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Museums Supply Side Perpective
Museums Supply Side Perpective
Museums Supply Side Perpective
613±631, 1999
Pergamon # 1999 Elsevier Science Ltd. All rights reserved
Printed in Great Britain
0160-7383/99/$20.00+0.00
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MUSEUMS
A Supply-Side Perspective
Steven Tufts
York University, Canada
Simon Milne
Victoria University, New Zealand
Abstract: The educational and cultural mandates of museums are being transformed as
institutions play an increasingly important part in urban economic development and tourism
promotion strategies. In contrast to more common demand-side studies, this paper
emphasizes the supply-side by focussing on everyday museum operations. It outlines the
competitive responses being adopted by museums in Montreal, Canada, including shifts in
sources of revenue, new technologies, labor practices and the development of networks.
Study ®ndings show that the restructuring of museum operations raises important questions
concerning not only the traditional public mandate of museums, but also on its ability to
enhance consumption experiences and to contribute to a diversi®ed tourism product. Key-
words: museums, funding, cultural attractions, organization. # 1999 Elsevier Science Ltd.
All rights reserved.
ReÂsume Â: Les museÂes: une perspective de l'offre. Les mandats Âeducatifs et culturels des
museÂes se transforment, jouant un roÃle de plus en plus important dans des strateÂgies de
deÂveloppement Âeconomique urbain et de promotion de tourisme. Par contraste aux Âetudes
plus nombreuses de la demande, cet article souligne le coÃte de l'offre en examinant le
fonctionnement quotidien des museÂes. L'article preÂsente des reÂponses compeÂtitives adopteÂes
par des museÂes aÁ MontreÂal, au Canada: des changements de sources de revenu, de nouvelles
technologies, de nouvelles politiques de travail et le deÂveloppement de reÂseaux. Cette
restructuration du fonctionnement des museÂes souleÁve des questions importantes concernant
non seulement le mandat public traditionnel des museÂes mais aussi leur capacite pour
ameÂliorer les expeÂriences du consommateur et contribuer aÁ un produit diversi®e du tour-
isme. Mots-cle Âs: museÂes, ®nancement, attractions culturelles, organisation. # 1999 Elsevier
Science Ltd. All rights reserved.
INTRODUCTION
For much of the 20th century the generally accepted de®nition of
the museum has been an institution which serves to collect, con-
serve, research, interpret and exhibit society's material culture
(ICOM 1986; Weil 1990:57±58). Museums have traditionally been
Steven Tufts (Department of Geography at York University, 4700 Keele Street, North
York, Ontario M3J 1P3, Canada. Email < stufts@yorku.ca >) is conducting research on the
impact of organized labor on urban tourism development. Simon Milne is Professor of
Tourism, School of Business and Public Management, Victoria University, New Zealand. His
research interests include sustainable tourism development and the economic restructuring of
tourism industries.
613
614 STEVEN TUFTS AND SIMON MILNE
spaces where a society can celebrate its past and form a sense of its
cultural identity (Urry 1996). Over the last decade, however, there
has been increasing attention to a ``cultural revival'' of heritage ex-
periences as popular leisure and urban tourism activities (Hewison
1987). Politicians and planners have taken the opportunity to inte-
grate museums into economic development initiatives in both large
and small urban centers (Vaughan and Booth 1989; Zukin 1995). In
simple terms, the role of the museum is evolving, with cultural in-
stitutions expected to perform a broader range of economic func-
tions, often as part of complex urban redevelopment strategies
(Bassett 1993; Bianchini 1990, 1993; Urry 1995; Watson 1991).
While the Canadian government asserts that the ``true value'' of
the museum is ``measured in terms of our culture and heritage'', it
still stresses that museums ``generate almost a billion dollars in rev-
enue each year'' (Communications Canada 1990:21).
The expanding role of cultural institutions in advanced capitalist
economies has forced researchers to focus more on the links
between the cultural and the economic. Sayer (1997) characterizes
the ``cultural turn'' in much economic geographic research not so
much as a result of a ``culturalized economy'' but rather as the
``economization of culture''. Although Sayer concedes that the re-
lationship between culture and economy is ``highly complex'', he
maintains ``economic forces continue to dominate contemporary
life'' (1997:16). The purpose of museums re¯ects various cultural
agendas (such as nation building and education); but the ability of
institutions to adhere to public mandates and play a central role in
the overall tourism product often is determined by the operating en-
vironment (including access to sources of funding). For the purposes
of this paper, the Montreal museum sector is treated as a set of cul-
tural institutions operating under increasingly complex and, at
times, contradictory economic constraints. The treatment is, in
district (Figure 1). Museums have also been placed at the center of
attempts to use heritage tourism as a way to merge this and
business development with the celebration of local architectural his-
tory and diverse cultural composition (see Chang, Milne, Fallon and
Pohlman 1996). Part of the redevelopment of the urban heritage
district in Old Montreal included the construction of a new archae-
ology museum and renovations to other museums in the area.
The federal government played an important role in the develop-
ment of several of Montreal's new museums in the early 90s. In,
1986, Communications Canada funded research on the state of
Canadian museums. In the wake of the studies a report and work-
ing paper were released which contained several recommendations
for a revamped federal museum policy (Communications Canada
1986, 1988, 1990). After the 1988 federal election, some of the work-
ing paper's recommendations were adopted and the government
began to invest money heavily into the ®nancially troubled museum
sectorÐ assisting established institutions and ®nancing the con-
struction of new projects (Godfrey 1991). The result was an ex-
plosion in the number of museums throughout the country. The
number of museums in Canada grew by nearly 25% between 1983
and 1994 (1,005 to 1,236), while visitation grew from just over 21
million to almost 25 million (Statistics Canada 1995). Montreal
alone received $300 million in funding for nine new cultural attrac-
tions. Many of the new museum openings were planned to coincide
with the celebration of the city's 350th birthday in the spring and
summer of 1992 (Montreal Gazette 1992:February 29, E1). The vis-
ible investment in cultural institutions was perhaps also a means of
the federal government to win favor with the majority of Quebec
residents during the constitutional crisis of the early 90s. Although
the federal government may have been encouraged to make such a
visibly patrimonial investment in Montreal, it can be argued that
the city's economy was genuinely in need of development assistance
and was due for signi®cant investment in new cultural attractions
(Chang et al 1996).
Unfortunately, the museum building boom of the early 90s was
not matched by a concomitant increase in government funding of
annual operating budgets (Lacroix 1992). Federal expenditures on
museums decreased by 4.1% between 1990±91 and 1994±95 to less
than $225 million. Although provincial government expenditures on
museums reached $293 million in 1992±93, levels of funding have
also not been sustained as support declined to $277 million in 1994±
95. Municipal governments only contribute approximately 5% to
overall public expenditures on museums, but their contribution also
decreased by 3.7% during this period as local funding focused on
heritage sites. Across Canada, museums have had to sustain annual
budgets with greater earned revenues (including corporate sponsor-
ships, donations, foundations, as well as admission revenues).
Nationally, earned revenues increased by 17.9% between 1990±91
and 1993±94 (Statistics Canada 1997).
MUSEUMS 619
Largest Funding Source No. Annual Operating Budget in Can$ (1993) No.
No Fees 8 0% 8 No fee 7
$1±$5 11 1%±5% 10 Future fee 1
$6±$10 5 6%±20% 0 Stable fee 14
$11> 2 21%±50% 8 Reduce fee 3
>50% 0 Raise fee 1
a
Source: 1993/1994 survey data.
MUSEUMS 621
mentators also argue that such technologies can reduce visitor in-
teraction with the artifacts and other attendees (Goodes 1991,
Alexander 1996).
The fastest growing area of applied technology in museums, how-
ever, lies in the display and dissemination of images. The World
Wide Web is now an important way for museums to advertise exhi-
bitions and provide visitors with information (Dumais 1996). The
large Montreal institutions are using the Internet to attract resi-
dents and visitors from Canada and abroad. The Greater Montral
Tourism and Convention Bureau lists most of the surveyed insti-
tutions on its website and 12 of them have also developed their own
sites. Smaller establishments, with fewer resources, are less likely to
develop their own sites. Some professionals feel that technological
developments such as CD ROM and the Internet increase accessi-
bility to museum holdings and will encourage visitation (Lambert
1995; Wertheim 1995). At the same time, such technology may also
threaten visitorship levels if they are forced to compete with their
own ``virtual'' exhibits. The impacts information technologies will
have on the frequency of museum visits and visitor expectations of
the ``real'' exhibit created by digital images have yet to be explored
fully.
No Subcontracting 11 Increasing 12
Security only 5 No Change 14
Other Subcontracting 10 Decrease 0
a
Source: 1993/1994 survey data.
624 STEVEN TUFTS AND SIMON MILNE
CONCLUSION
The evolving nature of Montreal's museum sector has several im-
plications for the urban economy and the development of cultural
institutions. The decline of both public and private support for
museum operations during the 90s has made it increasingly dif®cult
for Montreal museums to meet their traditional mandate of preser-
ving culture and educating society. They are being pressured to pro-
duce a product which maximizes admission revenues and appeals to
the marketing objectives of corporate sponsorship. Pressures to
increase sales of culturally inscribed goods in museum boutiques
tend to necessitate exhibits which appeal to broad-based tastes.
Questions arise concerning the ability of a ``popularized'' museum
experience to cater to the demands of cultural tourists. A popular-
ized museum experience will not necessarily appeal to the tourist
searching for an intense sense of local time and space (Harrison
1997) or ``food for thought'' (Jansen-Verbeke and van Rekom 1996).
An oversupply of mediocre attractions or spectacles masquerading
as museums will only increase the competition for corporate, indi-
vidual, and state sources of revenue while debasing the overall cul-
tural product. The key issue remainsÐhow museums in this
environment can deliver a cultural experience which sustains appeal
to tourists and residents alike.
This research shows that small museums face a dif®cult future.
While new communication technologies have provided some large
museums with access to new media such as the Internet, these tech-
nologies are often beyond the reach of smaller museums. Museums
with limited access to emerging technologies such as Internet and
MUSEUMS 627
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Submitted 28 August 1997. Resubmitted 21 June 1998. Resubmitted 2 October 1998. Accepted
21 October 1998. Final version 18 November 1998. Refereed anonymously. Coordinating
Editor: Myriam Jansen-Verbeke.