The self-generated revenues are aggressive when benchmarked to the Israel Museum and the Tel Aviv Museum (both at 30% vs. the World’s Jewish Museum at 50%) but given the factors noted above (including parking) the World’s Jewish Museum has the opportunity to create a cultural and entertainment hub for Tel Aviv and Israel. Of note, 55% of the Eretz Israel Museum’s revenue in Tel Aviv is self-generated.
The World’s Jewish Museum projects that by its planned opening in 2023, it can expect 90 million shekels ($22.5 million US) in total expenses with a corresponding offset in revenues of a similar amount. The McKinsey study of 2013 is used as the benchmark, and if inflation were included, this would increase both revenues and expenses by 2% per year.
Government subsidies that will be requested include:
15 million shekels ($3.75 million US) – Ministry of Culture
The World’s Jewish Museum management team has met with Israel’s Ministry of Culture and based on size and visitors; the World’s Jewish Museum would more likely qualify for a subsidy of 15 million shekels ($3.75 million US).
15 million shekels ($3.75 million US) – City of Tel Aviv
We believe that the City of Tel Aviv, which currently subsidizes the Tel Aviv Art Museum with 32.9 million shekels ($8.2 million US) or 50% of its operations, will provide the World’s Jewish Museum with at least 15 million shekels ($3.75 million US) or 16%.
Also, a robust fundraising budget has been included in its annual operating expenses.