Museums, Zoos and Parks NAICS 7121

Mar 25, 2026 - Museums Face Rising Funding Strains: Survey

• Funding pressure remains the clearest takeaway for museums, according to the Art Museum Director Survey 2025 by the American Alliance of Museums. In the survey, 76% of art museum directors cited lack of financial resources as their top constraint, and 45% expressed high confidence in securing ongoing funding, lower than for other operational areas. Directors now spend an average of 23% of their time on fundraising, grant writing, and donor engagement. At the same time, institutions remain focused on public service: 96% prioritize educational programming, and 94% prioritize serving as a trusted source of information. Labor costs also remain important, with 92% prioritizing livable wages and 79% citing comparable pay as a five-year priority. For museums, the findings suggest continued mission strength, but rising pressure to diversify revenue, strengthen donor support, and balance public programming with staffing and financial sustainability.
• The services sector expanded for the 20th consecutive month in February, with the PMI rising to 56.1% (+2.3 pts), but the Arts, Entertainment & Recreation segment was among only three industries reporting contraction, according to an ISM Services PMI Report. Despite broader strength—Business Activity at 59.9% and New Orders at 58.6%—demand in this segment softened, aligning with declines in new orders reported for Arts, Entertainment & Recreation. Cost pressures remain elevated, with the Prices Index at 63%, while inventory sentiment stayed high at 55.3%, suggesting cautious demand planning. Employment growth in services (51.8%) contrasts with declines in several industries, signaling uneven labor conditions. Overall, while macro service activity is accelerating, the Arts, Entertainment & Recreation segment faces near-term demand headwinds and potential margin pressure amid rising costs and softer order flow.

• The National Park Service (NPS) will introduce higher fees for foreign visitors starting January 1, 2026, as part of an effort to strengthen park funding, according to a report by Spectrum News. The policy applies a $100 surcharge for international visitors at 11 of the most visited national parks, including Yellowstone and the Grand Canyon, and increases the foreign annual pass to $250, while the US annual pass remains unchanged at $80. Supporters estimate the changes could generate hundreds of millions of dollars to help address the system’s maintenance backlog. The policy also presents potential visitation risks. The US is projected to be the only country among 184 surveyed to experience a decline in foreign visitor spending in 2025, raising concerns that higher fees could further dampen demand. NPS leadership, however, expects total visitation to rebound in 2026, supported by increased travel tied to the nation’s 250th anniversary celebrations.
• The US museums, zoos, and parks industry is projected to grow at a CAGR of 6.86% between 2025 and 2029, according to an updated forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth rate is faster than the overall economy's projected growth. Spending by US households and tourists, foreign students, and other visitors largely drives the arts, entertainment, and recreation industries. Consumer confidence is expected to improve in the forecast period, which bodes well for the sector. Further increases in tariffs and decreases in immigrant labor supplies may push price levels higher and postpone the improvement of inflation. The slow rise of employment and higher consumption prices may limit expansion of real disposable income to about 1.8% in 2025 and 1.6% in 2026.