The Economic Impact of
Museums
Compiled by Lindsey Smith
lindseysmith00@yahoo.com
July 2015
Photos, clockwise: Lincoln Log Cabin State Historic Site, La Brea Tar Pits and Museum, LACMA, The Getty Institute,
Amherst Museum, Perot Museum, London Museum of Natural History. © Lindsey Smith
How are Museums Funded?
“Precariously.”
- Ford W. Bell, former director of the
American Alliance of Museums
But does this mean that museums do not
have an economic impact on society?
They absolutely do!
Museums directly contribute $21
billion to the U.S. economy each
year. They generate billions more
through indirect spending by their
visitors.
Taken from: “How Are Museums Supported Financially in
the U.S.?” By Ford W. Bell, published by the Embassy of
the United States of America.
Fact from: http://www.aamus.org/advocacy/resources/economic-impact-statement
Museums as Economic Engines
•
78% of all U.S. leisure travelers participate in cultural or heritage
activities. These travelers —including visitors to museums —spend 63% more
on average than other leisure travelers.
•
Governments that support the arts see an average return on investment of
over $7 in taxes for every $1 that the government appropriates.
•
The U.S. Bureau of Economic Analysis has found that arts and cultural
p r o d u c t i o n c o n s t i t u t e 3 . 2 p e r c e n t o f t h e n a t i o n ’s e n t i r e e c o n o m y, a $ 5 0 4
b i l l i o n i n d u s t r y.
•
The nonprofit arts and culture industry annually generates over $135
b i l l i o n i n e c o n o m i c a c t i v i t y, s u p p o r t s m o r e t h a n 4 . 1 m i l l i o n f u l l - t i m e j o b s
and returns over $22 billion in local, state and federal tax revenues.
From: http://www.aam-us.org/advocacy/resources/economic-impact-statement
Would anyone noticed if museums closed?
Economic effects of
the 2013 Government
Shutdown:
In October, 2013, in
conjunction with the
U.S. Government’s
shutdown, federally run
museums closed,
disrupting business,
inconveniencing staff
and visitors, and
causing a loss of
millions of dollars in
revenue.
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Because of the 2013 Government Shutdown:
The National Park Service estimates a loss of $500 million in
visitor spending, causing significant economic damage to
communities surrounding national parks and monuments
nationwide.
The Smithsonian Institution lost $4 million in store, theater
and special events revenue.
The USS Constitution Museum (MA) was forced to close
because it is located on the grounds of the Charleston Navy
Yard. The museum lost more than $100,000 in donations and
gift shop sales during the shutdown.
The U.S. Travel Association calculated that the shutdown cost
the U.S. travel economy $152 million per day and put
450,000 U.S. workers supported by the travel industry at risk
of experiencing temporary layoffs, reduced wages and
decreased hours.
Paraphrased from: http://www.aam-us.org/docs/defaultsource/advocacy/brief-economic-impact.pdf?sfvrsn=6
Local Impact
Museums of all sizes
have an economic
impact in their local
communities.
This flyer, prepared by
the Iowa Museum
Association for Iowa
Museum Week 2015,
highlights some of the
impacts Iowa’s museums
have on the economy,
workforce, and tourism
industries.
Iowa museums attract 5
million visitors
annually and employ
over 2,300 Iowans.
Ways Museums Impact Society
But They’re Non-Profits?

Non-profit organizations have the unjustified
reputation of not being an important economic
player. Their non-profit status portrays them as
institutions that have no interest in money, either
theirs or anyone else’s.
Museums Build
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But this reputation is very untrue! Museums and
other non-profits are businesses, some large, some
small, that need income to succeed.
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In addition to their immediate economic impact,
there are other ways museums blaze trails toward
economic development. They educate, unite and
inspire millions of visitors each year to go into the
world and make a difference.

Museums Build Social Capital by
communicating ideas, information and values,
improving participant’s skills in planning and
organizing, and improving the understanding of
different cultures and lifestyles.
Museums Build and Develop Communities by
developing a sense of community identity, social
cohesion, development of local enterprise, facility
improvement.
Museums Contribute to Social Change and
Public Awareness by stimulating and developing
public awareness and changing people’s attitudes on
political, ethnical, religious or moral issues
Museums Build Human Capital by improving
human and communication skills, analytical and
problem-solving skills, creative talents, and social
awareness.
Paraphrased from Museums and Impact by Carol
Scott, quoting Kelly and Kelly 2000.

Investing in
Tomorrow
Museums of all sizes
partner with schools,
working with curriculum
guidelines to make sure
their programming is in
line with national
standards. By investing in
youth today, museums are
teaching, mentoring and
guiding tomorrow’s leaders
to be successful and
prosperous members of
society.
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Museums spend more than $2 billion a year on education
activities.
Museums help teach the state, local or core curriculum,
tailoring their programs in math, science, art, literacy,
language arts, history, civics and government, economics and
financial literacy, geography and social studies.
Museums receive approximately 55 million visits each year
from students in school groups.
Students who attend a field trip to an art museum experience
an increase in critical thinking skills, historical empathy and
tolerance.
Teachers, students and researchers benefit from access to
trustworthy information through online collections and
exhibits.
Children who visited a museum during kindergarten had
higher achievement scores in reading, mathematics and
science in third grade than children who did not.
Museums also provide social services, including ESL classes
and programs for adults with Alzheimer’s. Some museums
facilitate job training programs and provide vegetable gardens
for low- income communities.
Paraphrased from: http://www.aam-us.org/about-museums/museum-facts
School Buses parked outside Blank Park Zoo
Job Creation
A Ripple Effect
On the Job

Museums employ more than 400,000
Americans.

Museums hire workers with a variety of
skills, including: business, bookkeeping,
marketing, sales, fundraising, publishing, IT,
facilities management, exhibit
development, law, art, human resources,
housekeeping, event planning, design, food
service, security, guest services, education,
science, history, writing, volunteer
management, conservation, retail
management, preservation and more!

Arts and cultural spending has a ripple
effect on the overall economy, boosting
both commodities and jobs. For example,
for every 100 jobs created from new
demand for the arts, 62 additional jobs are
also created.
Iowa Governor Terry Branstad signing the “Iowa Museum Week” proclamation, 2014
For more information about museums and their impact
on the economy, please visit:
In Conclusion
Museums are an
important part of the
local, national and
international economy.
They employ hundreds
of thousands of workers
from a wide variety of
industries, as well as
promoting tourism and
economic development.
Museums also invest in
tomorrow’s economy by
building communities,
educating visitors of all
ages, and promoting
new ideas to help
society grow.
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The American Alliance of Museums http://aam-us.org/
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The National Endowment fo the Humanities
http://www.neh.gov/news/fact-sheet/neh-economic-impact
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Your regional museum association:
http://museumstudies.si.edu/Network1B.html

And your state museum association:
https://nasmablog.wordpress.com/
Photos: Science Center of Iowa, Exhibition Guide for The International Exhibition of Sherlock Holmes,
The State Historical Society of Iowa, Iowa Jewish Historical Society © Lindsey Smith