London, United Kingdom (PRWEB) August 19, 2012
The Libraries, Museums & Cultural Activities industry's revenue growth has been volatile over the past five years. The industry covers a range of organisations, including museums, archives, libraries, botanical and zoological gardens and historical sites. These organisations are predominantly non-profit operations and rely on public funding for a portion of their income, either through grants, local council funding or some other form of support. According to IBISWorld industry analyst Angela Kidson, “admissions sales form a significant portion of revenue for museums, galleries and gardens, and so international and domestic visitor numbers are a key influence on revenue”. As the industry relies substantially on government funding for some of its revenue, enterprises were left exposed to funding cuts following the onset of the financial crisis. Industry participants have responded to the challenges presented to them by diversifying their revenue streams, with many successfully generating revenue from commercial activities and partnerships with the private sector. In addition, labour costs, the largest cost in the industry, were constrained by the increased use of volunteer labour. As a result, industry revenue is expected to grow by an annualised 6.5% over the five years through 2012-13, to total £2.26 billion.
The key driver of growth in 2012-13 will be a surge in international and domestic tourist numbers. Kidson adds, “the 2012 London Olympic and Paralympic Games are certain to help this along, and will be a key factor in the forecast revenue jump of 9.3% over the year”. In the following year, however, revenue is expected to contract as a worsening economic outlook weighs down domestic tourism activity and consumer spending. Furthermore, UK government measures to pay down public debt will constrain funding to many operators over the next several years. Over the coming five years to 2017-18, industry revenue is expected to grow only marginally.
The Libraries, Museums & Cultural Activities industry has a medium level of market share concentration. The top four players account for 52.8% of the industry's revenue. Major companies include The National Trust, Tate & The British Museum.
For more information on the Libraries, Museums & Cultural Activities industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
This industry comprises establishments engaged in operating libraries, archives, museums, art galleries, historical sites and buildings, and botanical and zoological gardens.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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