Film tax credit helps lift tourism
Anton Nel
Time and time again, data have shown that when a film production shoots in a particular location, it not only creates economic impacts, the finished product can also create significant spinoff economic impacts in the form of “film tourism,” also known as “movie induced” or “film induced” tourism. That means a site that has been featured on television, video or cinema itself attracts tourists. This has been demonstrated in several research reports over the last 20 years.
Interestingly, the White House's tourism strategy for the U.S. doesn't mention film-inspired tourism. Nevertheless, it's a growing phenomenon worldwide, driven by the growth and ubiquity of the entertainment industry and an increase in international travel. That's why Massachusetts should not phase out its film tax credit, as Gov. Charlie Baker is proposing in his fiscal year 2016 budget. Rather, hs should maintain it to boost not just the film production industry but also film tourism.
As long ago as 1998, The Annals of Tourism Research noted that locations where successful films had been shot demonstrated an average 54 percent increase in tourism visits four years after shooting. And in a report produced for the New Mexico Film Office in 2009, Ernst & Young said that every dollar spent in the state to produce a film returned $2.50 for the tourism sector.
There are several recent examples of film tourism success, such as:
Rabun County, Ga. Despite negative stereotypes generated by the 1972 film “Deliverance,” the Rabun County Convention and Visitors Bureau says more than a quarter-million people flock to the area each year to shoot the same rapids they saw come to life on the big screen. The film helped create the $20 million rafting and outdoor sports industry along the Chattooga River. County officials say tourism brings in $42 million a year, a huge surplus for a county whose annual operating budget is about $17 million.
London. Film London, a city agency, reports that films and television programs depicting the U.K. are responsible for attracting about 1 in 10 overseas tourists, who spend around $2.65 billion a year, and it estimates that approximately 28 million visitors visit Britain each year after viewing the country on the screen.
Film tourism is already being commercially exploited by film-themed entertainment parks such as the Disney World and Universal Studios in Orlando, Fla. By capturing people's interest, engagement and immersion in the movies, 2011 revenue for NBCUniversal's theme parks business rose 24 percent to $2 billion.
At the national, regional and city levels, film tourism is being formally explored and exploited by places as diverse as New Zealand, the United Kingdom and North Carolina.
As we who argue the value of the film industry in Massachusetts and the preservation of the tax credit to the Baker administration, there must also be recognition of the opportunities presented by film tourism, and the need to continue to invest in it.
No one can guarantee a “Harry Potter” or “Twilight” legacy for Massachusetts, but you can guarantee that without a film industry, we will not have film tourism.
Anton Nel is CEO of Mass Studios, a film production studio under development in Worcester.
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