Japan’s museums struggle with shrinking revenue despite record tourism boom

TOKYO: Japan is home to a whopping 4,500 museums.

Visitors are spoilt for choice among a myriad of exhibitions – from the conventional history, arts and culture to those that feature special interests like railways and bonsai trees.

Quirky and fun themes are also on offer, such as the Sand Museum in Tottori, the Cup Noodles Museum in Yokohama, and the soon-to-be-opened Nintendo Museum in Kyoto.

However, shrinking revenues and rising costs are threatening some of their ability to stay afloat.

More museums say they are struggling to find enough funding, and some have started adopting different concepts and strategies to attract more visitors.

FRESH, IMMERSIVE EXPERIENCES

Japanese collective teamLab Borderless in Tokyo, for instance, is not your run-of-the-mill gallery.

The digital art museum is renowned for its high-tech, captivating and interactive installations that stimulate the senses. Its exhibitions play with lights, sounds and scents to immerse and mesmerise visitors in a fantasy world.

With museum-goers craving for novel and highly Instagrammable experiences, the gallery has been a hit since it opened its doors in February. Tickets are sold out days in advance.

It is one of few museums boasting peak admission numbers, buoyed by both the domestic crowd and a sheer influx of foreign travellers descending on the nation.

Japan has welcomed a record number of tourists this year, driven in part by a sluggish yen that helped boost their spending power.

The nation saw 17.78 million foreign visitors in the first half of 2024, well above pre-pandemic levels, according to its tourism agency.

Yet, unlike teamLab, not all museums are seeing the tourism boom translate into revenue.

SPILLOVER FROM PANDEMIC

In fact, museums were already not doing well before COVID-19, according to the Japanese Association of Museums. The pandemic dealt a even more severe blow to the industry.

Many say they are still struggling to find their footing almost two years after the nation eased pandemic restrictions and reopened its borders in October 2022.

The Mori Art Museum in Tokyo is one such gallery that took a significant hit. It was shuttered for more than seven months between 2020 and 2021, and its income fell to just 25 per cent over the course of the pandemic.

The contemporary art museum said it managed to survive as it is backed by Mori Building, a major developer that also runs teamLab.

Museum director Mami Kataoka said the gallery functions as part of the larger corporation. Its exhibitions – which change every few months – help to drive footfall to the Roppongi Hills Mori Tower, a mega-complex housing retail and office space.

Mori's strategy of having largely temporary displays has helped visitorship recover to about 80 per cent of pre-pandemic levels.

However, bringing the numbers back up for many other museums that do not have organisations to fall back on could require substantial donations or investments.

“A MUSEUM NEVER MAKES PROFITS”

About 69 per cent of Japan’s museums are national- or public-run, and they receive some amount of funding from the government.

Still, the fallout of low ticket sales over the pandemic, rising expenses like utility and manpower bills, and the shadow of subsidy cuts, are posing challenges amid an economic slump.

This has prompted museums to seek other sources of support. Even revered institutions like the National Museum of Nature and Science are turning to crowdfunding.

"The business model of running a museum never makes profit. For privately-funded museums, they could form as a non-profit organisation (for tax breaks), like a public foundation,” Kataoka said.

The Artizon Museum, for example, is owned and managed by the Ishibashi Foundation, which is recognised by the Japanese government as a public interest corporation focused on cultural activities.

Its status means the museum and its donors are eligible for tax breaks – a welcome relief as it has about 3,500 art pieces under its care.

The gallery's exhibits include masterpieces by renowned international artists including Monet and Cezanne, as well as artwork by Japanese artists dating back to the Edo period. Some are part of the private collection of Shojiro Ishibashi, the late founder of tire maker Bridgestone.

Adults pay about US$8 to enter the museum, while students get free admission. The museum also generates income through its in-house cafe and merchandise at its gift shop.

Artizon’s director Hiroshi Ishibashi – grandson of the founder – said that while the museum can make ends meet, he acknowledged concerns amid the current economic climate.

“I am constantly worried about what’s happening in the world. I am collecting information every day on whether the economic environment might change,” he told CNA.

KEEPING MUSEUMS OPEN

Donations make up less than 7 per cent of museums' income in Japan, according to the Cultural Affairs Agency.

The amount is in stark contrast to donations elsewhere – such as the United States, where they can amount up to 38 per cent.

Much of the revenue from Japan's museums still come from admissions, and institutions are trying to boost attendance by appealing to a younger audience. A large proportion of museum-goers tend to be middle-aged or older.

Galleries say they plan to run more blockbuster exhibits to pique interest among youths and support the next generation of artists.

Museums say making a profit is not their main priority. Instead, they want to be an integral part of the community and spark an interest in the arts.

Still, they need to make enough – whether through admissions or donations – to keep their doors open.