Warrnambool Museum and Art Gallery Economic Contribution Study

The Challenge

The Warrnambool Museum and Art Gallery (WAG), owned and operated by the Warrnambool City Council, plays a vital role in the cultural and recreational life of the city. However, the current WAG building and site are too small, limiting the effective functionality of exhibition spaces and back-of-house operations such as storage, logistics, and workspace. This inadequacy has led to several challenges, including unmet customer expectations, inefficient use of staff time, ongoing risks to the collection, and rising operating costs with limited opportunities for revenue generation. To address these issues, the Council undertook a study to determine the benefits of developing a new WAG facility has been proposed for a new site at Cannon Hill compared with an expansion/renovation of the existing facility.

The Action

Polis Partners in association with RP Infrastructure undertook the following actions to support the Warrnambool City Council:

• Economic Contribution Study: Conducted an in-depth study to assess the economic impact of the proposed new WAG at Cannon Hill on Warrnambool City, the Great South Coast region, and the state of Victoria. This study evaluated the economic activity generated through construction, operational expenditure, and increased visitor spending.
• Economic Cost-Benefit Analysis: Performed a detailed economic cost-benefit analysis of the proposed project in line with Victorian Treasury Guidelines. This analysis assessed the overall economic viability of the project by comparing the expected benefits to the associated costs.
• Financial Evaluation: Carried out a financial evaluation of the proposed project, examining the financial implications and sustainability of the new WAG, including revenue potential, operating costs, and long-term financial impacts.

The Results

The findings from the economic contribution study, cost-benefit analysis, and financial evaluation were incorporated into a comprehensive business case completed by RP Infrastructure for Warrnambool City Council. This business case was presented for internal investment decision-making purposes and subsequently submitted to the Victorian Government as part of a grant submission.