Assessment 4 – Essay
Q: Why did the New Zealand government offer Warner Brothers incentives to film “The Hobbit” in New Zealand? Analyse how this will affect the New Zealand film industry and New Zealand society.
The movie “The Hobbit”, directed and produced by New Zealand’s own Peter Jackson, is a two-part film based on J.R.R. Tolkien’s novel of the same name. It is a prequel to ‘The Lord of the Rings’ film trilogy. The film is being shot right here in New Zealand, but only because of our governments’ intervention. Warner Brothers were considering moving production elsewhere due to a Do Not Work order released from the International Federation of Actors. It was the fear that our tourism ...view middle of the document...
The governments’ incentive to Warner Bros obviously shows how important keeping the film in New Zealand was to them. They were desperate to keep Warner Brothers filming here and not switch locations because it would hit New Zealand’s economy in the long run, “a move that economists said could cost the country up to $1.5 billion”. They assumed that it would create hundreds of jobs around our communities and inject millions into the economy. When the government agreed to pay Warner Bros more of the taxpayers money, they increased their spending, thus meaning they had used expansionary fiscal policy. Expansionary fiscal policy is when government spending increases and is greater than its income. This decision was made in order to stimulate New Zealand’s economy and to decrease the unemployment rate. The government knew that keeping the film in New Zealand would see an injection of hundreds of millions of dollars by Warner Brothers for filming both parts of the hobbit here. That’s why when they sorted out the deal to keep Warner Bros filming in New Zealand, they knew that the millions of dollars they paid them would dwarf in existence compared to the hundreds of millions the film would bring the country’s economy.
When the ‘The Lord of the Rings’ trilogy was filmed in New Zealand from 2000-2003, it was incredibly successful and as a result many thousands of fans have flocked to New Zealand to since to experience our scenery and visit various locations the film was shot throughout New Zealand. It is expected that this same response will occur with the filming of ‘The Hobbit’. This will mean thousands more tourists coming into New Zealand which will provide a massive boost to the New Zealand economy in many ways. John Key has said that “3000 jobs were created in The Hobbit”. The direct impacts of the movie will see hundreds of new jobs created for New Zealanders working for the movie in various ways whether it be in production, costumes or catering. This will then extend out to more jobs being created throughout the local New Zealand regions in such things as accommodation for all the people directly connected to the movie, and in the future to accommodate the incoming tourists. Restaurants and bars will open up for the influx of tourists and souvenir shops will thrive too.
Over time the increase in jobs will cause New Zealand’s economic growth to increase. More and more goods and services will be produced as there will be increased demand. This demand will primarily come from tourists wanting to visit the sites The Hobbit was filmed at. They will want hotel rooms, food, transport and entertainment while they are visiting and so the hundreds of jobs created will mean New Zealand business owners will produce more goods and/or services to cater to the needs of the tourists.
There is no doubt that filming the hobbit here in New Zealand will greatly benefit our film industry. New Zealand’s film industry is growing all the time due to our diverse...