Museums still struggling after coronavirus pandemic; VAT increase could be devastating

The Dutch museum sector is still struggling to recover from the coronavirus pandemic, particularly small and medium-sized museums, according to figures from the Museum Association. The 475 museums affiliated with the association recorded a fall to 30.9 million visits last year. In light of the difficulties, the association again expressed concern about the Cabinet's plans to increase the value added tax on many cultural and entertainment products and services, including museum entrances.

In 2023, small museums with annual revenues of up to 400,000 euros saw an average 33 percent decline in visitors compared to their peak year in 2019, the year before the coronavirus pandemic. Medium-sized museums with revenues between 400,000 and 800,000 euros experienced an 18 percent decline since the health crisis.

In 2019, 32.6 million visits were registered, but that cratered during the pandemic. As social restrictions were gradually lifted, museum visits rose to 23.5 million in 2022, before climbing towards 31 million in 2023. Of the nearly 31 million museum visits last year, 23 million were by Dutch visitors and 8 million by tourists.

"Although visitor numbers are rising, we see that many museums are still struggling to stay afloat," said Museum Association Director Vera Carasso. "The sector is creaking under the pressure of continuously rising costs."

There are concerns that small museums, many of which rely heavily or entirely on volunteers, could face even greater challenges if ticket prices rise. The Dutch government plans to raise the value added tax rate for museum tickets from 9 percent to 21 percent in 2026.

The Museum Association said the data shows that the post-pandemic recovery has primarily occurred in the country's largest museums. A handful of medium-sized museums have also become healthier.

The coalition parties in the right-wing government include the PVV, VVD, NSC and BBB. They want to raise the VAT rate on lodging and accommodations, books, concerts, museums, theater performances, and visits to events and attractions. They said this will collect at least 1.2 billion euros annually starting in 2026, though some Cabinet projections were criticized for not taking into account visitor figures falling due to higher prices.

The low 9 percent rate will remain in effect for campsites, cinemas, and some other forms of daily recreation. The plan was first floated in the initial coalition agreement released before the summer, and then was reaffirmed by the Cabinet in its full-term plan and the debate on its annual budget proposal for next year.

The total revenue for the museum sector in 2023 was 1.26 billion euros. One positive note from the museum sector was the increase in the number of museum card holders. Those using the card has reached a record high.

A record 1.44 million people carried a Museum Card last year, resulting in 9.5 million museum visits. On average, Museum Card holders visited museums 6.6 times over the course of the year.

Volunteers play a sometimes critical role, especially for small museums. More than 26,000 volunteers were involved in various roles last year. The association estimates that if paid staff had performed their work, it would have cost between 66 million euros and 123 million euros.