THE MANY WAYS FILM STUDIOS AND FILM PRODUCTION BENEFIT A COMMUNITY – PART ONE
Arnold Rodriguez
Film Industry Entrepreneur & COO- Serving the film and television industry and contributing to the economic growth of our community. - Multiple Industry Business Development Leadership Experience - USMC & USAF Vet
There is growing attention being given to the film industry as a catalyst for local economic development.? It is important, therefore, to understand why the film industry, in the form of film productions and film studios, is receiving such attention.
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Below are a few of the well documented reasons states and municipalities are seeking film industry presence.
Because of film production, thousands of people are employed.? This includes electricians, stage crews, artists, hairdressers, groundkeepers, maintenance, designers, production assistants.? In all, a typical film production will employ people in over 80 different occupations, most of which require little to no experience in the film industry.? Based on historical data, these are predictive figures:
JOBS CREATION
??????????? Approximately 845 permanent jobs working directly for the Studio (multiple sound stages)
??????????? Approximately 3,000 permanent jobs indirectly within the immediate vicinity
??????????? Increased total employment in the area by more than 22% in a single year
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TOTAL PAYROLL INCREASE IN THE AREA
??????????? More than $350 million per year
AVERAGE SALARY
??????????? $79,637 annually
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SMALL BUSINESSES THRIVE
The people employed for a film production may number in the hundreds to over a thousand, based on the type of production.? The length of most productions can be from a few months to a few years. However, the key is that a productive film studio will have one production company ready to fill the spot of a film production company that has completed its filming.? This results in year-round employment of people.
However, let’s look at how employment exponentially grows from direct (the film production company) to indirect (small businesses) employment.
THE NEED FOR MULTIPLE VENDORS
The film industry uses small businesses to get various projects done.? Small businesses that specialize in construction, landscaping and hardware are especially useful in the industry.
One film production will need the services, products, and equipment of multiple vendors.? Whether it be cars, equipment, furniture, catering, hair stylists, accountants, or janitorial.? Every trade, craft, technical and professional occupation has a role to play.
In addition to direct hiring by production companies, vendors from businesses such as hotels, restaurants, gas stations, dry cleaners, or lumber/hardware stores will expand their size to meet the major demands of a film production.
Historical data shows that approximately 845 permanent jobs working directly for a studio are created with approximately 3,000 permanent jobs indirectly within the immediate vicinity.? In all, there is an increased of total employment in the area of more than 22% in a single year.
In addition to providing production jobs that range across a variety of skills from accounting to carpentry to engineering and graphic design, productions are using local vendors, production and cast crews eat at local restaurants and stay in local hotels.?
According to the Motion Picture Association of America (MPAA) annual spending in a film state such as Georgia results in an average of $690 million and utilizes more than 11,000 vendors in the state.
CREATION OR STIMULATION OF NEW OR EXISTING BUSINESSES (RIPPLE EFFECT)
??????????? Hotels, restaurants, service companies
??????????? Construction, maintenance companies
??????????? Retail businesses
??????????? Residential areas, public parks, recreational
Additionally, a region will benefit from the many different types of jobs needed by film production companies. The local work resources must be diversified, resulting in new occupations, new careers, and new training and educational programs to prepare and supply a diversified workforce.
DIVERSIFICATION OF THE ECONOMY
o?? Introduces an entirely new major industry in the region
o?? Diversifies occupations
o?? Creates new career opportunities
o?? Leads to new training and educational enterprises
THE NEED FOR HOTELS?
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One of the most common options for actors while filming, hotels are readily available in many locations and price points. ?Productions with a large cast and crew may seek out hotels that allow everyone to stay close together, making it easier to transport people to and from set while creating bonding opportunities.
?As one example, in the state of Georgia, one movie created more than 25,000 room stays.? That is a lot of cash flow to local hotels. There is every reason to believe the same results will occur in Texas.? As a matter of fact, with the increase in filming in Texas, the cash flow projection is headed directly toward Georgia’s numbers (and why not exceed them, since Texas has or can build more hotels).
Actors who are filming on location can be away for days, weeks, or months at a time, meaning they need a temporary place to call home. From lavish villas to economical trailers, there is a wide range of places actors can live while filming; actors must find rest?and respite when work takes them far away. Production crews tend to stay in?hotels, serviced apartments, or guest houses.? ?Each of these options provides unique services that cater to particular needs.
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LOCAL REVENUE – OUTSIDE MONEY COMES IN
Money spent in the local area results in increased revenue in the local area.? If a film company employee spends $1000 at a local hotel or restaurant, how can the resulting expenditure go elsewhere?? ??
The fact is that the incentives provided to film producers are structured to assure money is spent locally.? For example, consider the eligibility criteria for a project that involves either a feature film, television program, commercial, video game, or animation/visual effects,
·???????? A minimum of 60% of the total shooting days must occur in-state,
·???????? A minimum of 70% of the total paid cast and crew must be Texas residents, and
·???????? A minimum in-state spending threshold of $250,000 needs to be met for feature films or television programs and $100,000 for commercials, video games, or animations.
A film production incentive is based on a percentage of a project’s qualified in-state spending, ranging from 5% to 22.5%.? Eligibility requirements include a minimum of $250,000 in-state spending for feature films, and a 60% local cast and crew hiring requirement.
Furthermore, the application process requires submitting an initial application to the Texas Film Commission (TFC).? This process requires applicants to provide basic information about their project, such as the title, synopsis, and estimated budget.? Applicants must also specify the type of production, such as a feature film, television series, or commercial. The TFC reviews these applications to determine eligibility for incentives.
EXPONENTIAL ECONOMIC DEVELOPMENT IMPACT
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Economic development produced through film production and film studios is sustainable. This includes on-going improvements in the local economy, society, culture, educational services, innovation, entrepreneurship, and pride in the community.
HOW DOES THE REGION'S REAL ESTATE BENEFIT?
Filming locations are in high demand with content creation and film production exceeding the film studios available on an international basis.? This is resulting in studio spaces becoming prime real estate.?? Real estate developers are considering available office or warehouse spaces for filming.? In some cases, converting a building not built as a sound stage maybe feasible, but the most effective route is to construct purpose built sound stages.
Areas where a purpose-built sound stage would be most suitable, such as away from loud noise areas such as airports, trains, or busy highways, mean that undeveloped land holds great potential.? This results in land which previously was not commercial property and had a low property tax value, can be developed into prime commercial property providing opportunities for revenue production, directly and indirectly.
Further, the influx of business activity results in a greater need for commercial estate, in addition to new homes, parks, recreational services, schools, etc. Entire new communities develop around a film studio site.
For further information on how film studios are a growing commercial real estate plum, read here https://lnkd.in/gyp-ZNJU
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FILM-INDUCED TOURISM
According to studies on the economic impact of tourism, one job in the core tourism industry creates about one and a half additional (indirect) jobs in the tourism-related economy. This ripple effect extends to various sectors, such as travel agency staff, guides, taxi and bus drivers, food and beverage suppliers, laundry workers, textile workers, gardeners, souvenir shop staff, and airport employees. Indirect employment opportunities are essential for the success of tourism, as they provide crucial support and services to the primary tourism providers.
Furthermore, the phenomenon of "Set-Jetting," where travelers are drawn to destinations featured in TV shows and movies, has become a powerful trend. Expedia Group identified this trend as a significant force in travel, with TV shows and movies now surpassing the influence of social media platforms like Instagram, Facebook, and TikTok.
Film tourism can have a significant impact on a destination's economy, increasing tourism and revenue by up to 300% in some cases.?In 2017, 80 million international tourists visited destinations featured in films, series, or commercials.?The global film tourism market was estimated at $66.9 million in 2023 and is projected to reach $119 million by 2033.
Films can inspire viewers to visit places they see depicted on screen, especially if the landscapes, cities, or cultures are unique.?For example, the Lord of the Rings and The Hobbit movie franchises had such a big impact on New Zealand's tourism that fans are sometimes called "Tolkien Tourists".?Guided tours to the Hobbit houses are available, and one in three visitors visits at least one film set.?Other examples of films that have increased tourism to their filming locations include:
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More detailed information on the impact of the film industry on tourism can be found at this site - https://www.statista.com/statistics/1428281/market-size-film-tourism-worldwide/#:~:text=Size%20of%20the%20film%20tourism%20market%20worldwide%202022%2D2033&text=In%202023%2C%20the%20global%20film,million%20U.S.%20dollars%20in%202033.
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MOVIES ARE GOOD FOR YOUR MIND AND SPIRIT
?In the realm of visual storytelling, films have an unparalleled ability to transcend borders, languages, and cultures, weaving narratives that touch the very core of our humanity. As the projector beams illuminate the silver screen, audiences embark on profound emotional journeys, becoming intimately connected with characters from diverse backgrounds and circumstances.
Within these celluloid tales lies the transformative power of cinema—the power to cultivate empathy and understanding, fostering a sense of shared human experience.
The impact of watching movies on our mental health is a tapestry woven with intricate threads of escapism, emotional catharsis, inspiration, social connection, cognitive stimulation, therapeutic laughter, mindfulness, and cultural exploration. The therapeutic potential of cinema extends far beyond its role as mere entertainment, evolving into a powerful force that shapes and enhances our well-being one frame at a time.
According to psychologists, movies may help us grow our strengths and become better people.? Further, after watching an inspiring movie, you may feel like you want to improve yourself or humanity in a particular way.
Movies can provide a child, teenager, or adult with the dreams that propel them into a lifelong journey that becomes a rewarding career.? Among the disadvantages of a local community may be the lack of inspiring and successful role models who can mentor youth toward rewarding and successful careers.? Through film, an enduring character can be created within the person that provides the strength, resilience, and grit necessary to change their future.?
For the too many young people (and those in unfulfilling jobs, as well), obtaining a good career opportunity involves moving to a large metropolitan area.? Just one film or theater experience can create the desire to become an actor that survives the most deprived of environments.?? Somehow and someway a strong dream can carry a person to the right place.?
Movies can create the magical carpet upon which the hopeful person rides through personal storms toward that future that fulfills a dream.
Our first intermission
So far, we have only touch upon some of the benefits derived from involvement in the film industry.? In the next article, we will review more positive results including how communities, local universities and schools, and nonprofits work with film studios to improve the community.