Hollywood struggles against new film meccas

It is just as StormR said:

The whole industry is good for NZ economy and you can bet the govt isn't just giving a tax credit coz its big corporations doing business. Although I wouldn't call it "simple Economics"

I was in NZ in the Airport on my way to Philippines Vacation and the when i came back, but I did found it a beautiful country, even though the scenery from the Airport was limited, it was nice, so i did not mind that I hadt to spend 6 hours there waiting for my next flight

wtfjapan:

NZ is all the rage now but wont be when a cheaper country in south america or asia decides it time to get in on the action.

That's it is true, but as for South America it is going to be a while before that happens, with all the socialist government and the influence of Chavist Venezuelan president Maduro, the rest of governments will tend to reject any deals with US filmmakers, even if they put high taxes and the promise of ripple effect from the investment in the movie, South America doesn't have very well developed tourism industry and they are only interested in governments that are more inclined by the state rather the industry. SO i guess Asian countries will have a better shot at capturing filmmakers and doing movies in their countries

DudeDeuce have you been there? It is no way dull and the food is not bland at all. It has a very rich culture which runs very deep in the people and its food.

Yes, I am sure scores of tourists want to flock to NZ to experience the dullness and bland food it has to offer.

While some correctly point out that lower taxes are an incentive, lets not forget what Hollywood has done to directors such as James Cameron. When Hollywood handed out their awards the year Avatar was made they completely ignored him. I did not know too many people who saw Avatar and did not like it. It was a big hit for Cameron! Great acting, special effects, story line you name it, what was there not to like. Yet Hollywood did not give him not one Oscar. Hollywood is getting what it richly deserves.

NZ is all the rage now but wont be when a cheaper country in south america or asia decides it time to get in on the action.

In the old days they made westerns in Italy, so nothing has changed.

Very smart move by NZ. By setting a minimum of $413 million that the movies must spend, they can offer the rebates knowing that they'll still make a profit in taxation, national promotion and tourism. This only works for the more marginalized areas of the world as the benefits of the promotion of the country outweighs the expense of the rebate. For more popular areas, it would be much harder to justify the expense. This is the free market. Well done to NZ for understanding it and working it to their advantage.

Corporate welfare is a plague, greedy rich play off cities/countries against each other, scum bags is what they are!

Then I guess Scorsese's new film "The Wolf Of Wall Street" is just pure fiction then. Here is a big money filmmaker who argues for the same tax credits and other corporate welfare as you say, and yet he makes a movie about other people doing the same thing he (they all are) is doing to vilify them

Funny how those in the "Hollywood In-crowd" were all for the Occupy Wall Street movement, and yet they are doing the same thing with moving production out of Hollywood.

How about this, if Weinstein, et al just met with Jerry Brown, and told him that they need to cut taxes in CA a lot of this problem would be solved. Those so called union leaders who force the workers behind the scenes to join the union in order to get the dues (which by the way are not taxable as income for the unions) were really for the workers, they would be beating down the doors to Brown's office as well and fighting for lower taxes instead of going there and asking for tax hikes to cover for the pension promises made to the public employee union members.

But all we seem to hear from Hollywood is lower taxes only helps the rich and not the regular people. Well, this article pretty much sums it up, if they get their millions, somehow the money will trickle down. I don't think all of the people in NZ who will be working on the films will be getting as much as Cameron, but they will be getting paid.

Simple economics really, the govt in NZ for example will get GST (15% Consumption Tax) on everything to do with the making of the movies, then there is the income tax on salaried workers, then the GST again on everything they spend and so on and so forth. Every govt is better to have its people employed and paying taxes than collecting a benefit.

Then we can begin to talk about the Tourist $'s and the GST that will generate.

The whole industry is good for NZ economy and you can bet the govt isn't just giving a tax credit coz its big corporations doing business.

It is good business for NZ govt to credit back a portion of the cost of making the movies, if you can't see that then I guess that's why you work in a dull boring job and are not making big budget movie sequels in NZ.

Its about tourism $ also. For those freaks that want to find a hobbit or do a cr@py set tour.

Corporate welfare is a plague, greedy rich play off cities/countries against each other, scum bags is what they are!

They maximize the profit for the few at the expense of the MANY!

In NAmerica you get this every time a sports team wants/demands a new stadium.

Its time we figured out ways to keep the rich from pilfering in this manner, make them earn $$ the old fashioned way, EARN IT!!!

@Nessie: As long as production of three films at $413 million is done in NZ Cameron gets $103 million back. You have to make the movies first. The only thing receipts help with are with Cameron's costs. He'll hope the receipts from the first film will help his production on the 2nd and 3rd. NZ doesn't get a percentage of movie receipts AFAIK

What Cameron gets out of the deal is a 25 percent rebate on production costs, as long as his company spends at least $413 million on the three films.

How does that work? Does NZ reimburse the movie-makers based on receipts?

I suppose any industry would succeed if taxpayers kept paying for it. This is the corporate model after all. We call it corporate socialism in Canada but other largesse industries like nuclear and other energy also are depending on taxpayer money to exist and always they want more. We can see this everywhere and not a unique problem, I'm sure you have examples.

Given the amount of junk out there in movieland though it would be okay to cut back on subsidies. Then those cities and countries will be crowded with movie companies chasing fewer and fewer handouts. Then maybe they'd have to scale back the CG and start writing original stories

Then they could start earning based on value instead of just taking based on entitlement