The conclusion was reached in a discussion paper to be distributed to councillors at Tuesday’s council meeting.
"Entry charges at Toitū and Dunedin Public Art Gallery (DPAG) are likely to negatively affect the visitation and demographic profile of audiences," the paper said.
"Admission fees may create barriers for those on lower incomes, making museums less accessible to a broader audience.
"When previously free museums introduce admission charges, it is common for visitation to fall dramatically."
The paper cited the example of the effect on Auckland Art Gallery after its introduction of an admission fee for international visitors in 2019, when visitor numbers fell to 415,000, down from 534,000 in 2018.
It was "worth noting only 44,000 of this 119,000 drop were international visitors, suggesting that local visitors were also deterred".
"Based on international and national research, total visitation at Toitū and DPAG is estimated to drop.
"Mitigations can be put into place, such as clear and ongoing communications about entry fees and a clear and simple museum arrival process that does not deter visitors."
However, the paper also estimated there would be an increase in revenue from the second year of implementation of about $135,000 a year if an $11 fee was introduced for out-of-town and international visitors — although the first year of entry fees might result in a $165,000 loss due to one-off capital costs.
"Entry charges at Toitū and DPAG will increase revenue. This economic gain can be used for capital and operational improvements.
"Paying visitors are likely to have higher expectations so an increased revenue will be useful for covering the costs of improving the quality of displays, the expense of higher profile touring exhibitions and providing more public programmes."
However, the paper noted the Otago Settlers Association and Dunedin Art Gallery Society had expressed concerns about introducing non-resident entry fees at Toitū and DPAG.
"They worry it could harm Dunedin’s reputation as a centre for arts and culture, reduce future donations and bequests, and discourage Dunedin residents from bringing out-of-town family and guests to visit.
"If the council were to introduce entry fees for international visitors only, these impacts would not require consideration."
The council staff produced the paper after a request from some of the councillors to examine options for charging.
If the councillors adopt entry charges at Toitū and DPAG, staff will prepare a report for council that outlines the entry fee that will be charged, who is to be charged and how and when this will be implemented.
This is not the first time councillors have considered this — in 2014, the idea was proposed and later rejected.
