Hobart’s iconic Museum of Old and New Art (Mona) has accumulated a remarkable $408 million in losses since its inception in 2011. Yet, its founder, David Walsh, remains unfazed, expressing satisfaction with the museum’s financial trajectory. “Mona is financially where I want it to be,” Walsh conveyed in an email to the ABC.
Recent financial disclosures from Moorilla Estate, the parent company of Mona, reveal that the museum and its associated businesses, including a brewery, winery, and festivals, reported a $63 million loss in the 2023-24 fiscal year, an increase from the previous year’s $60 million. The latest figures are anticipated in the first half of next year.
David Walsh’s Vision for Mona
Walsh has always maintained that Mona was never intended to be a profit-making venture. “If I wanted to make money, I would have built it in Sydney, or Istanbul, or somewhere,” he stated. Currently, Walsh is overseeing a $100 million expansion at Mona, which includes a new gallery wing set to open in December and a library scheduled for next year. Despite shelving a $400 million hotel project in 2021, he continues to contemplate a major hotel development on the site.
Walsh estimates Mona’s long-term costs at approximately $25 million annually. He references a 2018 Deloitte Access Economics report, which, although unpublished, suggests that Mona generates $135 million annually in direct and indirect economic activity in Tasmania, supporting around 1,285 jobs, and $165 million nationally.
Potential Revenue Adjustments
Walsh has outlined potential strategies to make Mona financially self-sufficient. These include raising ticket prices for interstate and international visitors, introducing a modest fee for Tasmanians, reducing music offerings, and scaling back the Dark Mofo festival. “We could do simple stuff, like open on days when there are cruise ships and market to them,” he remarked, though he currently refrains from this due to personal views on cruise tourism.
The Broader Economic Impact
Despite the financial losses, Walsh argues that Mona’s impact extends beyond its balance sheet. The museum has played a pivotal role in reshaping Tasmania’s cultural landscape and attracting a new category of tourists. Independent economist Saul Eslake notes that Mona has significantly contributed to Tasmania’s image and tourism industry, likening Walsh’s influence to that of a modern-day Medici.
“Mona brought a different category of tourist,” Eslake said. “Whatever you think of gambling, Mr. Walsh is an extraordinary character, and Tasmania has been fortunate to have his investment.”
Art Processors: A Technological Hope
Walsh sees potential financial upside in Art Processors, Mona’s experience design business. This company developed “The O” digital guide used at Mona and recently launched Pladia, a visitor wayfinding platform. Art Processors has already secured clients like Sydney’s Museum of Contemporary Art and various cultural institutions globally.
Despite Art Processors’ current financial losses, Walsh has high hopes for its patented virtual queuing system, which he believes could eliminate queues worldwide. “Art Processors is my ‘great white hope’,” he stated, expressing optimism about its future profitability.
Future Prospects and Challenges
Looking ahead, Walsh remains committed to supporting Mona and exploring new ventures that could enhance its sustainability. He is optimistic about the potential visitor boost from the proposed Cadbury Visitor Experience and the new AFL stadium at Macquarie Point.
Recent changes in accounting practices have also improved Mona’s financial position. A “debt to equity swap” converted $47.3 million in loans from Downward Spiral Enterprises into equity, reflecting a strategic shift in financial management.
“I hope to live long enough to establish, on Mona’s behalf, an endowment, or some income streams that support it,” Walsh said. “I can’t guarantee Mona’s long-term survival, but I can offer assurances that I intend to support it while I’m alive.”
As Walsh continues to expand Mona, he remains a steadfast believer in its cultural mission and economic impact, even as he acknowledges the challenges ahead.
