Art Basel Miami beach: who profits?

Art in America, March, 2005 by Roni Feinstein

The third edition of Art Basel Miami Beach (ABMB), held Dec. 2-5, 2004, at the Miami Beach Convention Center and its environs, enhanced this international art fair's position as the leading exposition of contemporary art on the North American continent. The fair featured 190 galleries from the Americas, Europe, Asia and Africa, and attracted a record number of 33,000 visitors (an increase of approximately 3,000 over the year before), which included more than 80 museum and collector groups from across the U.S. and around the world. As in the past, works in all price categories sold well, from pieces by young artists costing less than $5,000 to museum-quality works valued in the millions. That exhibitors were pleased is evidenced by the fact that 97 percent of those who participated in 2003 reapplied for inclusion in 2004. (Reapplication figures for 2005 were not yet available as we went to press.) Although ABMB organizers claim that they have extended their commitment to Miami Beach indefinitely, at present the contract with the Miami Beach Convention Center extends only to 2005. The next fair will take place Dec. 1-4.

While Art Basel does not release financial figures pertaining to its shows, an article published in the Miami Herald on Dec. 4, 2004, revealed that more than $8 million had been spent on the organization of the fair, a sum that represented a 10-percent increase over the prior year due to a larger marketing budget, higher labor costs and the weakened U.S. dollar. As for returns, about $6.24 million came from exhibitor fees, representing a $1-million increase over 2003, which can be attributed to the addition of 30 exhibitors and a rise of $25 per square meter in the cost of a booth. Additional monies came from corporate sponsorships (primarily UBS, with Bulgari and BMW as associate sponsors), ticket revenues, catalogue sales, and local tourism and cultural council grants (such as those from the Miami Beach Visitor and Convention Authority). According to Peter Vetsch, communications manager for Art Basel and ABMB, the latter made "a small profit" in 2004 (there was a $145,000 shortfall in 2003).

By comparison, Art Basel, ABMB's parent fair, which has been held annually in Basel, Switzerland, for the past 35 years, has tended to make a "healthy profit." This is due to several factors. The Swiss event is considerably larger, having about 270 exhibitors. Attendance figures in Switzerland are also higher, with 52,000 visitors counted over the course of six days in 2004 (vs. 33,000 for its four-day American counterpart). Having long been in existence and proven its worth, the parent fair does not need to advertise and spend money on the development of special programs in order to attract visitors as its offspring does in Florida. Further, it is more expensive to organize an art show in the U.S. because of higher labor and construction costs. (A standard booth at the Miami Beach Convention Center in 2004 cost $407 per square meter; at the upcoming Art 36 Basel, which will be held June 15-20, the cost is $374 per square meter.) According to the same Dec. 4 article in the Miami Herald, revenue from Art 35 Basel helped MCH Swiss Exhibition, its parent company, post a profit last year of $2.8 million.