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Cinema, New Zealand fears low-cost competition and trembles for Avatar 2 and 3

New Zealand fears losing its world-leading film location to new low-cost meccas – The Avatar conundrum and Spielberg's promises – Jackson's touch and Lord of the Rings – Tax incentives and Cameron's farm .

Cinema, New Zealand fears low-cost competition and trembles for Avatar 2 and 3

They call it the Peter Jackson "touch," but it could soon lose its effectiveness. New Zealand, an important center for the world film industry, thanks also to the success of the director of Lord of the Rings, could soon lose its attractiveness in favor of other cheaper locations.

An international business – Undoubtedly the visionary New Zealand director, projected to international success for the film adaptation of Tolkien's trilogy, put Wellington on the map of the most sought-after film locations in the world. Apart from the pristine nature and breathtaking landscapes, the oceanic country, and its capital in the first place, also offer cutting-edge logistics facilities for the production of action films and cartoons. Weta Digital (special effects), Weta Workshop (costume and production design) and Stone Street Studios, owned by Jackson, award-winning costume and make-up wizard Richard Taylor and Jamie Selkirk, have been awarded major special effects contracts for such successes as X-Men, The Chronicles of Narnia, Gulliver's Travels and the remake of The A-Team. Weta Digital is now the second largest digital animation group in the world after the US Pixar.

The Avatar Enigma – This hard-won record, however, could easily be lost because more and more countries are trying to attract large film productions, promising favorable conditions and, often, low manpower. For now, Steven Spielberg has confirmed that the second Tin Tin film, which will likely be followed by a third, will be directed by Jackson. Filming will begin as soon as the Kiwi director has completed production of the Hobbit, the film based on Tolkien's novel which stars Ian McKellen and Martin Freeman among its performers and which will be inaugurated in Wellington next November. Screened in theaters last year, Tin Tin's first cinematic adventure, titled The Secret of the Unicorn, has so far grossed $371 million worldwide and the second episode promises to be another hit.

Despite the confirmation of Spielberg's commitment and the contract to provide special effects for the new Superman-Man of Steel film, the Kiwi film industry is trembling at the possible loss of what promises to be a new box office hit. The stakes are high. More than 360 million NZ dollars (224 million euros) was spent in New Zealand (of which at least 100 in the city of Wellington alone) and 1500 people were employed in the production of the first installment of Avatar, the science fiction blockbuster by James Cameron which shattered the profit record recorded by the Titanic. Hundreds of digital animators have worked on the complex computer-generated images for years. The Weta group also produced the concept design, costumes, weapons and equipment for the green film.

Avatar was an important film for the downunder film industry because it was the first huge international success to be produced entirely in New Zealand, apart from the Jackson films, which, however, played at home. Now in Wellington there are fears that Lightstorm Entertainment, Cameron's company, will choose to shoot Avatar 2 and 3 elsewhere, in one of the new low-cost cinema meccas. A decision that would deal a serious blow to the New Zealand industry, after Twenty Century Fox, which produced the first Avatar, recorded profits of 1,35 billion US dollars (thanks to Avatar and the cartoon The Ice Age ) and has been awarded tax rebates of 53 million New Zealand dollars (33 million euros) by the Kiwi government.

Tax rebates – According to the Large Budget Screen Production Grant (LBSPG), in fact, film productions that spend more than 15 million New Zealand dollars (9,4 million euros) in the southern country can access grants equal to 15% of the costs incurred. Since 2007, the grant has also been extended to films that carry out only post-production work, or visual and digital effects for an expenditure ranging from 3 to 15 million dollars. "We enjoy a great reputation all over the world - says Delia Shanley, manager of Film Wellington - for the talent of our technicians in the field of special effects and film production". Without these concessions, however Shanley admits, the big American studios would never have approached New Zealand. Since 2003, the Wellington government has paid 189,4 million dollars (118 million euros) to foreign productions. Efforts that have contributed to the generation, for local film production, of foreign profits of 542 million dollars (338 million euros) in 2009 alone, placing the country in third place in the world after Canada and Great Britain in this business sector.

The competition – Many countries have sensed the deal and are now on the market with competitive packages. South Korea, for example, recently announced it will invest US$178 million in the computer graphics industry, with a focus on 3D technology, in a clear attempt to enter a highly profitable business, revived by Avatar. Tax incentives have also been promised by the state of California, which has announced credits for at least 20% of expenses, and that of Florida, which recently launched a package of tax incentives worth 300 million dollars for various industries, that of entertainment included. Many US states are preparing similar packages to bring the film industry back to US borders, after the mass exodus of recent years due to high domestic production costs. Other frontline countries are Canada, the Czech Republic, Ireland and Mexico.

Breathless - The news that Cameron has bought a farm in the Wairarapa region, a ten-minute helicopter flight from the roofs of Jackson's Weta, has made many think that the brilliant American director will still rely on the New Zealand talent for his works. At the same time, however, Cameron and his team have moved their headquarters to the MBS Media Campus in Hollywood where films such as Pirates of the Caribbean and Iron Man have been produced. New Zealand remains in suspense.

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