Museums and galleries warn they may be forced to close and lay off staff as they face increased costs, shrinking funds and limited ability to raise more revenue.
Museums Aotearoa is concerned some institutions may not survive the decade and is launching a campaign to save them.
Its chief executive Adele Fitzpatrick said the sector is under pressure and the workforce is stretched.
"Some institutions have said their insurance costs have tripled in the last three years. Small museums and galleries in rural communities are really being held together by goodwill and sticky tape, and many are not sure how long they can continue like this, but larger institutions are affected too. The whole industry is nearing crisis,” said Fitzpatrick.
The campaign is calling for long-term investment, a change to the funding model, and for more help from central government.
There are about 400 museums and galleries across the country, attracting 17.5 million visitors and generating at least $272 million a year.
Most museums and galleries are funded through council grants and revenue gathered internally such as exhibition fees, gift shops, and cafes.
But some, like the New Zealand Portrait Gallery, receives no core funding. It must fundraise and relies heavily on its reserves and goodwill.
"It could be lights out for us – not necessarily today or tomorrow but in the foreseeable future," said Jaenine Parkinson, the director of the New Zealand Portrait Gallery.
Otago Museum is also facing difficulties and is eating into its reserves.
It receives $4 million a year from local government, but that only covers half its costs.
"Just to keep the doors open, we need to generate approximately 50 per cent of our operational expenses from commercial ventures and short-term, project-based grants every year," museum director Ian Griffin said.
The museum is the most visited cultural institution in Otago and Southland, with an economic impact similar to Forsyth Barr Stadium.
Griffin said the Government needs to come to the party.
“Ratepayer base should not be responsible for safeguarding our cultural treasures," he said.
Medium-sized institutions are in the most "precarious" state, according to a report by economic research company Business and Economic Research Limited (BERL).
They are large enough to need full-time staff but are not big enough to attract high-profile ticketed events or government funding, the report read.
Arts Minister responds
The Arts Minister Paul Goldsmith said he’s aware the sector is struggling with higher costs but didn’t think museums would be shutting down across the country.
“We don’t want to see museums closing down, we want them to be vibrant and a very important part of securing our heritage in this country,” said Goldsmith.
He said there is some money in regional development funds that the government can use to help regional museums.
“But we are in the middle of a budget process and money is tight across the country there is no question about that.”
Asked if there were too many museums, the Minister said he thought there was an opportunity for them to collaborate more closely.
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