Shooting for a Robert Redford directed movie, "The Legend of Bagger Vance," is scheduled to begin in Savannah this fall. "Forces of Nature" and "The General's Daughter" were shot there last year. Here in Atlanta, the miniseries, "Mama Flora's Family," and the Disney/ABC movie, "Selma, Lord, Selma," were shot during 1998. On the surface, it seems like business as usual for the state's film industry. However, an insidious trend is starting to have a negative impact - and the situation could get worse before it gets better.
Even though Georgia has all the crews, equipment, locations and accouterments to make a first class feature film or TV movie, the state is losing business to other southern states. Incentives are the issue. Other states now offer filmmakers financial incentives that don't exist here. Compounding this problem, the United States as a whole is losing film business to foreign countries, particularly Canada. Industry professionals in our state and across the country are gearing up to reverse this trend. The question is, what will it take to bring filmmakers back home, and how quickly can we get them back?
We've seen a huge change from two years ago," says Greg Torre, director of the Georgia Film and Videotape Office, the state agency in charge of luring and facilitating productions. "Now, when we get calls from TV or feature film producers or directors, they ask if we offer any incentives."
"I tell them we have the crews, equipment and services to cover the production from top to bottom. I talk about direct flights to Atlanta and I mention quality of life factors. Unfortunately, that's not enough any more."
Torre says the state governments of Georgia's main competitors - Texas, Virginia, South Carolina, North Carolina and Florida - have instituted financial incentives for film production companies. Offering these incentives is making it more cost effective to film in those states.
"The incentives also show interest on the part of the states in attracting film business," Torre adds. "It's a nonpolluting, nonresource-draining industry. Companies come in and spend money on labor, equipment, supplies, transportation and lodging. It's clean money."
The amount of this "clean money" makes a sizable contribution to state economies. For example, budgets for the 11 major productions that filmed in Georgia last year totaled more than $98 million. Using a formula that calculates economic impact, Torre estimates that those productions left more than $176 million in our state.
But, there is more than the direct dollar contribution from the productions. Torre points to the increased business Juliette, Georgia, realized after the release of "Fried Green Tomatoes," which was filmed there. "Then there are the ‘Midnight Tours,'" he adds, referring to the Savannah tourist attractions that mushroomed after the release of "Midnight in the Garden of Good and Evil." "These indirect, abstract benefits may be even more powerful payoffs."
"Now, if you stay in the state for 90 days, you get reimbursed the state tax charged on your hotel bill. We would like to see that lowered to 30 days," he explains.
In addition, he says the proposal calls for other financial incentives that will build the indigenous film business. "We feel we need to move forward quickly," he adds. "We need immediate support from our state government so we don't lose the existing infrastructure, people, equipment and services connected with the film industry."
In the meantime, Torre says his office is doing other things to sweeten the deal for prospective production companies. This fall, it will unveil a website where producers and directors can view location photos. The office is digitizing its photo library in preparation for electronic transmission. A toll-free number has recently been established.
Torre added that the Georgia Film and Videotape Office is also in the process of forming an advisory board. This board will act as a resource, providing information, advice and support for the Office's efforts to attract more productions to the state.
"Even if we don't establish incentives, we will still get the occasional movie, Torre predicts. "It's not all gloom and doom. Look at Savannah - it's the bright spot in the state. When we take producers there, they are blown away by it. They can't get what Savannah has anywhere else."
These efforts address the incentives issue at the state level. However, the bigger dilemma is in the national, even international arena. This summer, the Screen Actors Guild (SAG) and the Directors Guild of America (DGA) released the results of an economic impact study conducted by the Monitor Company, an international consulting firm. The results paint a graphic picture of the impact of economic runaway, which is defined as U.S. - developed feature films as well as TV movies, series and shows that are filmed in another country for economic reasons.
The report points out the seriousness of the problem of runaway production. Among its findings are:
Direct production expenditures lost from the United States due to film and TV economic runaway production was $2.8 billion in 1998, a six - fold increase from $0.5 billion in 1990.
Total economic impact of runaway U.S. production was $10.3 billion in 1998. This amount has increased five times, from $2 billion in 1990.
During 1998, 285 out of 1,075 film and television productions were economic runaways - 27 percent. The number of runaway productions has tripled since 1990.
45 percent of the U.S.-developed movies for television were economic runaways in 1998. This figure hits home particularly hard, since made-for-TV movies are Atlanta's bread and butter.
During the period from 1990 to 1998, the number of full - time U.S. positions lost from runaway productions rose 241 percent, from 6,900 in 1990 to 23,500 in 1998.
Canada captured the vast majority of economic runaways, including more than 90 percent of the TV movies shot outside the United States in 1998.
"Canada has been very smart in creating its film industry," Torre notes. "First of all, you have the favorable exchange rate, which enables you to shoot for 60 to 65 cents on the dollar. In addition, the Canadian government offers an 11 percent labor rebate to production companies. When they hire Canadian labor, they get 11 percent of the wages back. Some of the provinces, like Ontario, British Columbia and Manitoba offer additional labor rebates. So it's possible to shoot at a 20 to 25 percent discount, compared to what it would cost in the United States. When producers look at the bottom line, it's hard not to think seriously about going across the border."
Torre says that New Zealand, Australia and South Africa are other serious competitors for the U.S. film business.
Feature films and TV movies aren't the only productions seeking greener pastures in foreign countries. TV commercials also are following the runaway trend. According to the Association of Independent Commercial Producers, this $4.5 billion segment of the industry is in danger of going the way of American electronics, steel and other industries that have moved out.
Torre says runaway production sparked the formation of Film US, a group of nearly 200 city, county and state film commissioners. Along with the National Association of State Development Agencies (NASDA), Film US is working on a number of initiatives to heighten awareness of the effects of runaway production. Through NASDA, Film US has gained access to the federal government, enabling it to voice its position to the relevant agencies.
"Film US is talking to agencies like the Park Service and the Department of Defense to try to make it easier to shoot in national parks and on military bases," says Torre, who is a Film US board member. "We're in a brainstorming mode right now, trying to think of ideas that will make a difference and solutions that will make our country more competitive."
Ultimately, Film US would like to receive help from a federal film office. The United States is the only industrialized country that doesn't have one. Through these national offices, other countries have been able to be more competitive in attracting film productions.
In the meantime, Torre says Film US will work on educating Congress and raising questions about specific legislation, such as bringing back investment tax credits that were revoked in 1986.
Through all of these efforts, Torre stressed that protectionism for the U.S. film industry is not the issue. Rather, he says the groups want to level the playing field to make competition for film and TV productions as fair as possible.
Whether it's at the state or national level, Torre says no one is interested in "giving away the store" in order to attract film productions. If the race for incentives escalates out of control, at some point filmmakers have to take responsibility and base their choice of shooting location on something other than money.