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New research1 from specialist heritage insurer Ecclesiastical has revealed nine in 10 heritage leaders (89%) are concerned about their organisation’s future because of the cost of living crisis.
The survey of 500 decision makers working for heritage organisations in the UK discovered seven in 10 (72%) believe many heritage organisations will be at risk of closure in the next few years if costs continue to rise, and three quarters of those surveyed (73%) expect heritage destinations will need to significantly reduce prices to continue to attract visitors.
Strutt's North Mill Museum2 in Derbyshire closed in September after losing council funding and no longer being financially viable.
The research found that four in five heritage organisations need to drastically cut costs (84%) and innovate (78%) if they are going to survive.
In response to rising costs, the heritage sector is renegotiating contracts with existing suppliers (45%), making staff redundancies (44%), seeking new suppliers (43%), and limiting the rooms that are open and heated (42%).
Heritage organisations are also reducing opening hours (39%), opening on fewer days (39%), and reducing staff hours (39%).
“As the UK’s leading insurer of Grade I listed buildings, we’re passionate about protecting Britain’s heritage. The heritage sector is facing unprecedented economic uncertainty as inflation and the cost of living soar. Heritage organisations are having to face huge challenges, and many are looking at ways they can cut costs while still maintaining visitor numbers. Our research shows heritage organisations are having to make difficult decisions, including making staff redundancies and reducing opening hours to reduce costs.”
Ecclesiastical recently launched its Heritage Risk Barometer 2022, which explores the top risks within the heritage sector and focuses on key areas of concern, including the impact of the cost of living crisis, attracting local visitors, the recruitment crisis, and responding to climate change.
1 The survey was commissioned by Ecclesiastical Insurance and conducted by OnePoll with 500 decision makers in UK heritage organisations. 100 museums, 100 galleries, 100 theatres, 50 heritage hotels, 50 castles or palaces, 50 stately homes and / or gardens and 50 other heritage organisations. Between 27 June 2022 and 13 July 2022.