What does the economic forecast say? Cloudy with a chance of fog.
With each passing day, new economic news — much of it gloomy — is hitting our feeds. Recession, inflation, stagflation: all words becoming more prevalent these days. What’s the economic outlook for 2025 and beyond, and how will it impact nonprofits and cultural attractions?
While no one has a crystal ball that can accurately forecast what the coming months and years will look like, we convened a group of experts to provide their insights and outlook on what current data is telling us:
Mike O’Neill (Founder & President, Beneficence Partners)
Jerry Henry (Chief Executive Officer, H2R Market Research)
Aran Ryan (Director of Industry Studies, Tourism Economics)
Here are six key takeaways from the conversation:
Uncertainty is the new normal (for now). Economic anxiety is real, and consumers tend to operate based on emotions rather than logic. Consumer sentiment is at its second lowest in 70 years, and cultural attraction visitation is down 7% YTD. People aren’t opting out, but they are trading down — staying closer to home but still seeking meaningful experiences.
Targeting the right audiences is crucial. Affluent older adults, families with young children, and values-driven Gen Zs remain resilient and ready to spend on experiences (if you can speak their language and align with their priorities).
Philanthropy remains strong, but strategic. Donors aren’t pulling back; however, many are narrowing focus, making stewardship and segmentation more critical than ever. This means that you need to stick to your mission + values and showcase impact. And remember: “You can never say thank you enough.”
“Now is not the time to retreat — it’s the time to reconnect, reframe, and remind people why your mission matters.”
— Mike O’Neill, Beneficence Partners
Price sensitivity is rising, but value still sells. People are willing to spend for quality, differentiated experiences. Value = price + quality + uniqueness. If we see that more folks are limiting travel expenses and staying closer to home, that can actually be a positive thing for local cultural attractions. Don’t lead with discounts; lead with value.
“You can still have pricing power — but only if your experience is fresh, differentiated, and emotionally meaningful.”
— Jerry Henry, H2R Market Research
Prepare for multiple scenarios. Organizations should scenario-plan (best, moderate, worst) and preserve core revenue-generating capacity. Don’t default to across-the-board cuts. Double down on stewardship and invest in internal resilience: upgrade databases, segment audiences, train teams, and optimize internal systems. Prioritize the capacities that support long-term mission sustainability.
Monitor the climate and watch for red flags. We’re not in a recession…yet. But keep a pulse on what’s happening. When consumers start to have more clarity again, confidence (and spending) should rebound quickly.
“There’s not one path forward. The picture is evolving, and organizations need to stay nimble, data-informed, and audience-focused.”
— Aran Ryan, Tourism Economics
