Introduction
According to the International Council of Museum (ICOM) Statutes, adopted during the 21st General Conference in Vienna, Austria, in 2007: ‘A museum is a non-profit, permanent institution in the service of society and its development, open to the public, which acquires, conserves, researches, communicates and exhibits the tangible and intangible heritage of humanity and its environment for the purposes of education, study and enjoyment.’
Obviously it is vital that the national museums and galleries, set up over a time of numerous years, ought to be seen to be inviting by all divisions of society. Notwithstanding, their function is not only to exist, or even to preserve objects for future eras; they are there for everyone’s advantage. In the early 1990s when most of the national museums and galleries began charging for admission, there has been an abundance change of demeanor in the segment. Increasingly, directors and operators are guaranteeing that these establishments have ended up outward-confronting and determined by open interest, as opposed to internal looking and preservation fixate. To a few, this has spoken to the ‘stupefying’ of the museums and galleries, yet for some individuals, this procedure has dragged these organizations into the twentieth, if not the twenty first yet, century. The Secretary of State for Culture, Media and Sport in this context promise to guaranteeing free admission for all guests and visitors to the national museums and galleries. However, as at December 2001, every one of those of the national museums and galleries which charges for admission had come back to a free admission footing. The British Museum, Tate Modern, National Gallery and Natural History Museum are all examples of government owned museums and galleries which will be considered mainly in this context.
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According to Travers (2006), in the absence of legitimate resources, internally-produced/sourced income to museums and galleries had not been growing as fast as staffing and other escalating expenses in the economy. It was impossible that the convoluted goals set for museums and galaxies may keep on being met, hence, extra pay sources was required. Museums and galleries are costly to manage, with the expenditure of procurement, maintenance, management, work force pay rate, distinctive exhibitions all measuring vigorously upon their funding. Most of the time, much of their financing originates from the government, with the rest sourced through donations, remuneration from gallery shops, private gifts and sponsorship, and, frequently, through entrance charges. Examples of where the entrance charges where being introduced are the London, National History Museum; and in most divisions of other National Museums in Britain and global Europe (O’Hagan and Duffy, 1994).
This is due to the pressure to meet up the expenses of running the museum. According to the man who led the campaign, Roya Nikkhah in the Daily telegraph on May 23rd, 2009 wrote that ‘National Museums and galleries could be compelled to reintroduce admission charges to withstand the recession.’ However, according to a spokesman for the National Museum Directors’ Conference who represented the United Kingdom’s leading Museums, said, ‘Directors would do all that they could to abstain from reintroducing admission fees, and would take a gander at all different choices initially, however depending on how awful things get, it could be a true final resort’. Therefore, what are the impacts of admission charges in museums and galleries services?
MUSEUM AS A SUBJECT MATTER FOR ECONOMIC ANALYSIS
Museums and galleries which adopts art galleries are real stores of a nation’s load of items and exhibits for educational and social value. A number of them are research establishments in their own notable right and offers primary material for touring researchers. They are critical establishments which utilizes considerable measures of workforce and capital in performing their functions (Frey and Meier, 2006).
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However, forasmuch as these resources basically have substitute uses, economic analysis is obviously applicable to the comprehension and assessment of museums and galleries proceedings and enterprises. According to Johnson and Thomas (1998), Museums can be seen as worthwhile units, that is, firms which o as to attain certain targets, take part in change, by means of production innovation, of input into a fuse of output that are esteemed by others. As being what is indicated, they bring up key issues about how the decision of ambition is dead set and how diverse goals identify with one another; how choices are arrived at on what blend of yields (e.g. entertainment, protection, shopping facilities, documentation, shows, education, etc) to deliver; the nature and determinants of interest; the effectiveness with which the distinctive yields are created; and how museums and galleries identify with one another in the commercial place for money or finance and visitors.
DEMAND AND SUPPLY AND ELASTICITY
Museums and galleries are more essential than at any other time. They assume a significant role in individuals’ leisure activities and fit in with a standout amongst the most imperative vacation spots. Significant amount of money are being spent when going to museums and galleries in regards of entrance charges and spending in museum shops and restaurants (Ginsburgh, 2004).
Museums can be looked at as an economic unit, or firms giving certain utilities. The relationship between the input (manpower, exhibitions, etc) and proceeds regarding income gained can then be analysed. However, the impact of museums and galleries on the economy are analysed, for example, the level of employment and what quantity of value added being made in different sectors (Caves, 2000).
Hence, admission rates are the major determinate.
Museums have extreme fixed cost which results to proportionate high or extreme average cost curve for museums. The demand curve regularly lies beneath the average cost curve. This makes it hard to set an entrance price at which the aggregate sum of income got through admission fees takes care of the expenses of the Museum (Frey, 2006).
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Now, the relationship between the input (workforce, exhibits) and yield regarding the income gained. Bearing in mind that admission rate is the major determinant; the law of demand states that all things being equal, the higher the price of a commodity, the lower the quantity demanded of that particular product and vice versa. This can be represented graphically below: at price P3, the quantity demanded is Q1 which is the least on the graph, however, at Price P1 (lowest price), the quantity demanded roar to Q3.
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Fig. 1: Demand Curve |
The admission rate being the price in this context, and the relating the input (workforce, exhibits) and the proceeds regarding the income gained as the output/quantity into consideration. The British Museum, Tate Modern, National Gallery and Natural History Museum are all national museums which according to the NMDC Newsletter Issue 72, September, 2007 are top free tourist attractions. These museum distinct from one another; British Museum is mainly dedicated to human history and culture; Tate modern is dedicated to international modern and contemporary art and collections of British art from the 1900 till the present day; the National gallery is dedicated to vast range of specimens from various segment of natural history.
Noting that these museums does not charge admission fees, and yet they boast high significant number of visitors or tourist visiting them yearly which is evident from the data released by the Association of Leading Visitors Attraction (ALVA) in 2014; stating that of all the museums and galleries in the United Kingdom, these four () ranked first to fourth most visited. Though, since they (museums) will need considerably number of workforce to meet the demands of the visitors, and in catering for the wages of these workforce and managing the museums, other source of funding was enormously considered which includes among others; profits from gift shops, restaurants, renting facilities, funding from the government, public supports, etc.
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Elasticity of demand is the measure of the relationship that exists between any change in the amount demanded of a specific good and a change in its price. In the event that a little change in price is joined by a vast change in amount demanded, the item is said to be elastic (or receptive to price changes).
Then again, an item is inelastic if a vast change in price is joined by a little measure of progress in amount demanded (Mankiw, 2014).
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Fig. 2: Demand curves with different price elasticity of demand |
In 2001, United Kingdom restored free admission. Albeit, numerous national museums in the Great Britain began to charge confirmation in 1984, evidently patronisation fell close to 40% in some significant museums (Loebbecke & Thaller, 2005).
According to the United Kingdom Parliament, Select Committee on Culture, Media and Sport First Report in 2002, since considerable promotion of something ordinarily goes with ‘major’ charge decreases, getting rid of admission fees regularly brings about a primary increment in attendance despite the fact that that upturn may not be constant in later years. In the initial seven months after charges were lifted at the DCMS museums, the overall number of visitors expanded 62% over the same period in the earlier year. Notwithstanding, a great part of the increment was credited to the way that the individuals who went to before the lifting of charges had tendencies to make more shorter and repeated visits once the museums were free. At the end of the day, albeit free get to did raise the figures of visits, the vast majority of the increment originated from existing public.
Therefore, before the introduction of the free admission into the museums, according to the information given above, there is relatively high elasticity in the demand (visits) to the museums. The sustainability of the elasticity may not be feasible because as noted above, a large portion of the increments in the wake of removing admission charges are because of customary visitors making more visits. This can be attributed to the evidence that admission charges are trivial restrictions to visits. Different restrictions, for example, absence of passion or time, are substantially more paramount reasons behind not going to than charges. The Council for Museums, Archives, and Libraries, London, Visitors to Museums & Galleries in the UK, February 2001 carried out a survey which resulted in 32% cited lack of time, 22% a lack of passion, 19% a lack of anything they want to see, 11% difficulty of transportation, and just 8% the admission charges being high (Arts Council England, 2004).
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In summary, individuals in the lowest income category see admission charges as an issue just about five times as much as individuals in the highest income category and closely identified with income are occupation and education as variables affecting this assessment. A clarification for the effect of these variables on the appraisal of museum admission charges as an issue can be found in the sociological models of way of life. Visiting the museums is more than an economic decision; it is a statement of a way of life (Volker, 1998).
