Building an outstanding “World’s Jewish Museum” in Tel Aviv Asper Foundation Final report June 2013 Executive summary (1/2) ▪ There is a clear white-space for an iconic cultural institution in Israel in general and specifically in Tel Aviv – There is no “must visit” cultural institute in Tel Aviv – Tel Aviv is under-represented in the museum landscape in Israel – Tel Aviv is missing an architectural symbol ▪ The World Jewish museum may be a viable candidate to fill this need. Initial indications from interviews are positive, and prime location given by the city is a significant achievement. However, further work is required on concept: – Assuming the museum can fully tap its target visitor groups and position itself as one of Israel’s top 3 museums, we believe a target of circa 850K visitors annually feasible1 – To achieve this, concept requires adjustment and significant further development. Expert interviews suggest a list of key elements critical to the success of the concept – In addition, at present the museum concept is not sufficiently differentiated from Beit Hatfutsot ▪ Even a very successful museum will only deliver limited economic benefits to Israel or to Tel Aviv; however, such a museum could contribute to the cultural and educational offering of /Tel Aviv, strengthen the relationship with the diaspora and add a sense of pride to the people of Israel 1 By 2019, assuming 2-3% growth in population and tourism SOURCE: Team McKinsey & Company | 1 Executive summary (2/2) ▪ Funding requirements: – Construction of the museum is estimated at NIS 650M, excluding development of exhibits – Ongoing operations costs and self-generated revenues estimated at NIS 75-90M, and ~40M respectively, resulting in an annual funding requirement for operations of NIS 35-50M ▪ Interviews indicate that securing a commitment for significant financial support from the government will be challenging – Initial focus should be on gathering strong support from key opinion leaders – Several innovative funding options were identified, all requiring some commitment by the government – Gathering significant donations from local donors might prove challenging, and some adaptions to the concept and the execution are required ▪ Going forward – Asper Foundation should set up local team to quarterback the concept development, orchestrate lobbying with key stakeholders, and manage the municipal processes 1 By 2019, assuming 2-3% growth in population and tourism SOURCE: Team McKinsey & Company | 2 Content of final report 1 Proposed concept 2 Overview of museum landscape 3 Financial assessment of proposed concept – operations 4 Financial assessment of proposed concept – construction 5 Country/city business case 6 Governance and funding strategy 7 Going forward and implementation plan McKinsey & Company | 3 Content of final report 1 Proposed concept Description White space assessment Assessment of potential traffic 2 Overview of museum landscape 3 Financial assessment of proposed concept – operations 4 Financial assessment of proposed concept – construction 5 Country/city business case 6 Governance and funding strategy 7 Going forward and implementation plan McKinsey & Company | 4 PROPOSED CONCEPT - DESCRIPTION The Jewish Museum will aim to offer a complete experience and immerse visitors in Jewish thoughts and achievements The World’s Jewish Museum will narrate, in an overarching chronological account, the odyssey of the Jewish people It will attest to the significance of outstanding Jewish achievement and intellectual output, and showcase how Jewish contributions have enriched the spirit of humankind. Exhibitions and programs will also document the covenant between Jewish people and the Land of Israel The museum will serve as the collaborative force among Jewish museums nationally and throughout the world and, most crucially, enhance the cultural bond between Israel and global Jewish populations through the strengthening of its collective identity The greater museum campus will provide a major new green public space where residents and tourists alike can learn, honor, discover, and celebrate SOURCE: Asper Foundation McKinsey & Company | 5 PROPOSED CONCEPT - DESCRIPTION The museum will include 6 pavilions with a different message for each Tzedakah Pavilion The Covenant Pavilion Tzedakah Amphi theatre Education Pavilion Covenant Theatre Volunteering space Children’s museum Origins Gallery Indoor Garden Digital library Museum welcome area Conference center Enterprise Pavilion Inquiry Pavilion Innovators Gallery Hand-on science Creativity pavilion center Product Showcase Arts gallery Future Laboratory Inventions Laboratory Artists residences Lecture Theater Materials Library SOURCE: Ralph Appelbaum McKinsey & Company | 6 PROPOSED CONCEPT - DESCRIPTION The museum will exhibit iconic architecture ▪ Great new museum projects arc suitably served by iconic architecture. The buildings that house epic historical narratives can, at best, add to the wonder and dimensions of the stories, giving texture to the visitor’s experience, and helping to enliven his or her imagination ▪ At best, these buildings become a symbol of some common human or cultural value that is larger than architecture itself. We imagine that the concept of a World’s Jewish Museum will invite this kind of inspired response ▪ The footprint provided by the site will allow the museum to inhabit a scale comparable to other leading global institutions SOURCE: Ralph Appelbaum McKinsey & Company | 7 PROPOSED CONCEPT - DESCRIPTION A prime location in the north of Tel Aviv, next to Hayarkon Park ▪ The Museum will capitalize on a priceless opportunity – a 22 dunam (6 acres) site on the edge of HaYarkon Park – a major green belt for the city – looking out over Tel Aviv Port and the Mediterranean ▪ The park already receives some 16 million visits per year, attracted by a range of recreational offers – ranging from the botanic gardens to a water park, or sports fields to wandering meadows. To this abundant setting, the World’s Jewish Museum can add cultural richness and depth SOURCE: Asper Foundation McKinsey & Company | 8 PROPOSED CONCEPT - DESCRIPTION The Asper Foundation The Asper Foundation was established in Winnipeg, Manitoba, Canada in 1983 to build on the philanthropic objectives of Israel Asper (1932-2003), Babs Asper (1933-2011) and the Asper family. It undertakes and develops major initiatives in the areas of Jewish charity as well as culture, education, community development and human rights locally, nationally and internationally. Two such initiatives are the Canadian Museum for Human Rights, established as a Canadian national museum in 2008 and opening in 2014 and the award-winning Asper Foundation Human Rights and Holocaust Studies Program, established in 1997. In the recent past, over $125 million has been donated to various charitable causes through The Asper Foundation. SOURCE: Asper Foundation McKinsey & Company | 9 Contents 1 Proposed concept Description White space assessment Assessment of potential traffic 2 Overview of museum landscape 3 Financial assessment of proposed concept – operations 4 Financial assessment of proposed concept – construction 5 Country/city business case 6 Governance and funding strategy 7 Going forward and implementation plan McKinsey & Company | 10 PROPOSED CONCEPT– WHITE SPACE ASSESSMENT There is a white space for iconic, landmark cultural institution in Tel Aviv Description / explanation A “Tel Aviv is now perceived as destination ▪ Tel Aviv attractions are of leisure and There is no “must for leisure and business, we need to recreation nature, and involve mainly connect it to culture, Zionism and the visit” cultural the city experience rather than must institute in Tel Aviv “new”, non-religious Judaism…” visit locations ▪ As the city is striving to become a “…We don’t have a “Must” experience in global leading city, it lacks a must city Tel Aviv. I want the museum to be one. cultural anchor in par with leaving cities Yad Vashem will be for the past, The B Jewish Museum for the future…” Of the top 3 museum in Israel, only Tel Aviv is under- ▪ Hilla Oren, Manager of Tel Aviv Ir Olam and one (Tel Aviv Museum of Art) is in Tel represented in the responsible for tourism museum landscape Aviv, ranked #3 in Israel ▪ Most visited places by foreign tourists are of historical and religious nature, “Tel Aviv needs its cultural and Jerusalem is the most visited anchor…” Avner Shalev, C Chairman of Yad Vashem ▪ The city lacks an iconic building which Tel Aviv lacks a could be the symbol of the city visual / architectural “It can be the next Mega Project symbol that gives the city its identity” Zvi Hauser, Secretary of the government of Israel SOURCE: Team analysis, interviews McKinsey & Company | 11 PROPOSED CONCEPT– WHITE SPACE ASSESSMENT A Top tourist attractions are historical and religious sites Share of international tourists visiting the site, percent The wailing wall Via Dolorosa Masada 75 74 77 58 60 51 35 36 30 2008 09 2010 2008 09 2010 2008 09 2010 SOURCE: CBS tourism report 2010 McKinsey & Company | 12 PROPOSED CONCEPT– WHITE SPACE ASSESSMENT A Most visited sites in Israel are of leisure, nature and history Most visited paid sites Greater Tel Aviv area Tel Aviv Masada 786,000 Biblical Zoo (Jerusalem) 746,639 Safari Ramat Gan 744,550 Caesarea 668,208 Israel Museum 658,576 Banias River 584,029 Limited number of Tel Aviv Museum of Art 502,149 sites in the greater Tel Aviv area (only 3 sites) Ein Gedi 460,404 Yamit 2000 426,999 Underwater observatory 421,000 National