Libraries, Museums & Cultural Activities in the UK Industry Market Research Report Now Updated by IBISWorld

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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. 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. 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. For these reasons, industry research firm IBISWorld has updated its report on the Libraries, Museums & Cultural Activities industry.

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.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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