KUNSTHAL AND ENTREPRENEURSHIP
A very big thank you! This year the Kunsthal was again generously supported by various local and national funds, companies and the city of Rotterdam. The number of private donations is steadily growing, as are sponsoring and fundraising revenues. Furthermore, the Kunsthal receives various contributions that will continue for several years to come. Read more about our partners under Kunsthal and Partnerships.
Subsidies vs. own revenues
The total budget, as included in the annual plan for 2018, is € 5,475,000 with a result of nil. Just like in 2017, the Kunsthal will continue to work towards a further increase of its own revenues from admission fees and structural contributions from private parties and companies. In 2017, the Kunsthal was able to cover over half its exploitation budget (55%) with its own revenues, i.e. store sales, rentals and admission fees.
A comparison between the 2016 figures and the budget for 2017 excellently points out how volatile the Kunsthal budget actually is and demonstrates the necessity for resistivity in order to deal with possible setbacks. Furthermore, enough room should be set aside for making the necessary investments that can help keep the Kunsthal future proof. This can only be done when the Kunsthal continues to operate in its usual budget-conscious way and manages to acquire substantial revenues of its own. In 2017 we were again very successful in achieving this, with 55% of our revenues acquired on our own merit.
The number of commercial receptions and events at the Kunsthal rose again in 2017. The total revenues from these activities increased with more than 30%. The revenues from the store were slightly lower than in 2016. As a result of the nature of the exhibitions we sold more products at a lower price and profit. In view of risk management, we therefore decided to buy as many products with right of return as possible. Although this meant lower sales margins, it also meant less unsaleable stock. This approach proved to be very successful. The store revenues only slightly decreased, but the depreciation of unsaleable stock was lower than in 2016.
The economic spin-off from dynamic cultural institutions like the Kunsthal that are a great asset to the city of Rotterdam, is of enormous value. Our own audience research shows that in 2017, 70% of the Kunsthal audience combined their visit with activities like shopping, eating and drinking, staying in a hotel and/or visiting other attractions. Many people also combined their visit to the Kunsthal with a visit to Museum Boijmans Van Beuningen. The possible closure of Museum Boijmans van Beuningen might have an impact on our visitor flow. In 2017, Kunsthal visitors gave the city of Rotterdam an economic injection worth over 8 million euros.
The Kunsthal contributes to creating jobs for the city of Rotterdam, for example for dozens of Rotterdam-based freelancers, companies and retailers who help design and set up the exhibitions, organise and produce other events and marketing activities.