2. In European countries with well-established film production incentives the industry’s contribution towards the GDP is
significantly higher compared to the countries without incentives. Examples: UK, Hungary, France.
• Without the production incentives the UK would lose GBP 1.4bn annually.
• In UK’s tourism sector the share of film tourism amounts 12 %. From 2011 till today the revenues exceeded GBP 17.9bn,
employing 183,000 people.
Source: Oxford Economics
Hungary, Ireland have seen an increase of 24.2% in tax revenues from film industry since the introduction of the production
incentives.
In France each euro invested in incentives generates 14 euros of investment in the sector and 4 euros in tax revenues.
In 2004-2014 period the state has invested €417.7m in incentives, generating investment of €6.1bn in film industry and
€1.64bn in tax revenues.
Source: Ernst & Young France
UK: Each pound invested by the state in production incentives increases the sector’s GDI by GBP 12.
Source: Olsberg SPI
EconomicBenefits
3. 51
● Swiss Alps
● Bollywoodfilms
● 250,000Indian
visitors a year; growth
15-20% a year
● AlnwickCastle
● H arryPotter
● 120% increase
in visitors
● New Zealand
● LordoftheRings/The
Hobbit
● 40% increase in visitors
since mid-1990s
● Salzburg
● SoundofMusic
● 300,000visitors
per year
● Japan
● LostinTranslation/Last
Samurai
● +28% increase in UK
visitors
● Bolivia
● MotorcycleDiaries
● 30% increase in
bookings
● Forks,W ashington
● Twilight
● 1000% increasein
visitors
● Rwanda
● G orillas inthe
Mist
● +20% tourism
● Australia
● CrocodileDundee
and others
● +20% US visitors
in 1980s
● BasildonPark
● PrideandPrejudice
● +75% increasein
visitors
● SantaBarbarawine
country
● Sideways
● 300% increasein
visitors to local wineries
The Impact of Films on Tourism
4. Georgia – snapshot 2016
v Population: ~ 3.8 mln
v GDP: USD 16.5 bln (2014 )
v GDP/Capita (PPP 2014): ~ 7,582 USD
v GDP growth: 2.8% (2015*)
v FDI: USD 1.76 bln (2014) +87% growth
v Export: USD 2.2 bln (2015)
v Import: USD 7.7 bln (2015)
v Unemployment rate: 12.4% (2014)
*Preliminary Data
Sources: National Statistics Office of Georgia, World Bank
Growing Economy
5. #16
Doing Business
Georgia is one of the leading
countries in the world in terms of
starting a business, dealing with
bureaucracy and the number of
procedures required to launch
and operate an enterprise
Up from #112 in 2005
#21
Economic Freedom
Majority of Georgia’s reforms are
oriented on the development of
free, open and transparent,
private-sector driven market
economy
Up from #99 in 2005
#44
Corruption Perception
Alongside recognitions as the top
reformer in the world, Georgia is
the leader in the wider region in
terms of fighting with corruption
Up from #130 in 2005
Business Friendly Environment
6. DCFTA
FTA
FTA
GSP
Immediate
Region
CIS
EU
US, Canada,
Japan, Norway,
Switzerland
Very simple and service oriented customs policy 0% customs tax on over 80% of imports
Efficient tax administration 0% customs tax on all exports
No quantitative restrictions or tariff barriers 0% VAT on all exports
Average Customs Clearance ~15 minutes Maximum customs tax on imports – 5-12%
State Incentives
Regional Hub for Doing Business
7. Corporate Profit Tax15%
VAT (Value Added)18%
Personal Income20%
Property Tax≤1%
Taxation Burden is Simple, Low, Flat and Efficient
9. Inspirational locations: shoot subtropical, coastal,
alpine mountains, desert and beautiful
forest scenes in one day
Unique and captivating fusion of medieval and
modern architecture with Asian, European, and
Soviet Styles
Six climate zones and long sunny days
Competitive financial incentives: up to 25% off
Easy to apply cash rebate scheme: One-
stop-shop principle and no red-tape
Fully accessible public locations free of charge
Business-friendly environment: flexible
labor market, cheap energy, and low-taxes
(#9 Low Tax Rate Economies-World
Economic Forum’s Global Competitiveness
Report)
Modern infrastructure: three international
airports, cargo and passenger ports, and
well-connected roads and rail across
Georgia
High speed fiber-optic internet connectivity
across the country
Film Friendly Society
WHY GEORGIA?
10. • Type of Incentive — Cash Rebate
• Rebate percentage — 20% (automatic); additional
5% based on cultural elements
FastFacts
Qualifying Production Formats Min Local Spend
Feature Film
GEL 500,000 /
~ USD 220,000
Internet/TV Film
Drama/Series, mini series (including pilots)
Documentary
GEL 300,000 /
~ USD 125,000
Animated Film
Commercials
Reality Show
Music Video
11. 1% - Production release theatrically or on a major network; ‘Making of’
showcases Georgian shoot.
1% - Employment of Georgian citizen in some key positions
1% - Use of one recognizable Georgian elements
1% - Spending at least 50,000 GEL (around $ 22,000) on Georgian
post‐production activities
1% - Distribution of final products in at least two EU member countries or
in US or Canada; or participation in the main competition of an A festival
Additional 5% Rebate
Based on Georgian Elements
12. Procedures – Timeline
State receives online
Application
www.filmingeorgia.ge
30 days – Granting the
applicant a ‘Beneficiary’
Status
Within 2 years –
submission of
audited financial
statement
Within 90 days – State
rebates relevant
expenditures
Within 2 years – request
for additional 2-5% rebate
Within 90 days – State
rebates relevant
expenditures
13. • No cultural test to qualify for initial 20% rebate
• Rebate also applies on key non-resident salaries paid in Georgia
(max. 15% of local spend)
• Also covers Commercials, Reality Shows, Music Videos
• Easy online application, valid for 2 years
• One-Stop-Shop service provided to incoming productions
Key Advantages of Georgian Scheme
14. One Stop Shop
Production support from the State, based
on “One –Stop-Shop” principle:
Assistance in acquiring permits for
public sites
Coordination & communication with
all public stakeholders
Scouting support Local
Businesses
Local
Communities
Labor
Government
and
Agencies
15. Results:
Anthony Lucero Project
Halo of Stars
❑US theatrical drama set amongst the backdrop of a
traveling circus.
❑Directed by Anthony Lucero. Executive produced
by Terrence Malick. Music by Dave Matthews.
❑Cast: Lily Collins, Pål Sverre Hagen, Holliday
Grainger, Harry Treadaway, Stacy Martin, etc.
❑Produced by a mini-major. Expected wide
international distribution.
❑Actively employing diverse Georgian locations,
crew.
❑Scheduled to be released in 2017.
