NL Times Article: Museums Still Struggling After Coronavirus Pandemic; VAT Increase Could Be Devastating
Date: Tuesday, 24 September 2024
Excerpt:
The Dutch museum sector continues to grapple with the aftermath of the coronavirus pandemic, with small and medium-sized museums facing particularly严峻 challenges, according to figures released by the Museum Association. In the wake of these difficulties, the association has once again raised concerns about the government’s proposed increase in the value added tax (VAT) on cultural and entertainment products and services, including museum entrance fees.
Key Points:
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Visitor Numbers Down: The 475 museums affiliated with the Museum Association recorded a significant drop in visits, with only 30.9 million in the previous year, compared to 32.6 million in 2019, the year before the pandemic.
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Revenue Decline: Small museums, defined as those with annual revenues of up to 400,000 euros, experienced an average 33 percent decline in visitors from their peak year in 2019. Medium-sized museums, with revenues between 400,000 and 800,000 euros, saw an 18 percent decline since the onset of the health crisis.
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Recovery Uneven: While visitor numbers have been gradually increasing post-pandemic, with 23.5 million visits in 2022 and nearly 31 million in 2023, the recovery has been uneven, with the largest museums and a few medium-sized museums seeing the most significant improvements.
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Volunteer Impact: Many small museums rely heavily on volunteers, and there are concerns that rising ticket prices due to the VAT increase could lead to even greater challenges for these institutions.
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Government VAT Plan: The Dutch government plans to increase the VAT rate for museum tickets from 9 percent to 21 percent in 2026. This is part of a broader plan to raise taxes on various cultural and entertainment services to collect at least 1.2 billion euros annually starting in 2026.
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Sector Revenue: The total revenue for the museum sector in 2023 was 1.26 billion euros, indicating the economic significance of the sector.
Quotes:
- Vera Carasso, Museum Association Director: Although visitor numbers are rising, we see that many museums are still struggling to stay afloat. The sector is creaking under the pressure of continuously rising costs.
Political Context:
The coalition parties in the right-wing government, which include the PVV, VVD, NSC, and BBB, have proposed the VAT increase as a means to boost revenue. However, critics argue that the projections for revenue do not account for potential decreases in visitor numbers due to higher prices.
Conclusion:
The Museum Association is calling on the government to reconsider the VAT increase, highlighting the fragility of the museum sector in the wake of the pandemic and the potential for the tax hike to be devastating for smaller institutions.
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