JW Blog Thailand Production Incentives

#‎Thailand‬’s government has approved a ‪#‎Film‬ ‪#‎Production‬ ‪#‎rebate‬ for international ‪#‎productions‬ that spend at least $1.5m in the Kingdom. Thailand has finally secured government approval for production incentives in the form of a 15-20% cash rebate on qualifying local spend.

Expected to kick in from January 2017, the incentive offers a 15% rebate on international productions that spend at least $1.5m in the country, with a yet-to-be determined upper limit to prevent a single big-budget production from emptying the pot. An additional 3% is available for films that use key Thai cast or crew when shooting in the country and a further 2% for films that have particular value in promoting Thailand.

Reference: http://www.screendaily.com/festivals/cannes/thailand-launches-20-production-incentive/5103910.article

20160514 Thailand Launches 20 percent production rebate - ScreenDaily

Discussions for Thailand to introduce a film production incentive have been heard for over two decades and local film industry professionals see this as a great positive for the film industry in Thailand and ASEAN as a whole. With the more business opportunities and activities focused on trading partnership across the AEC, Thailand’s production hub status will be further strengthened by the implementation of this vital entertainment industry support at a time when Asian appetites for entrepreneurship, fintech, startup technology and OTT are heating up.

When one compares jurisdictions the Thailand film production industry incentives set to take effect in 2017 will weigh in heavily on other countries offering similar production incentives to attract filmmakers, not only in ASEAN, but also throughout the world. This is largely because the costs of production are significantly lower in Thailand than other countries and with rebates being offered in the range of 15%-20% being available, Thailand will rank high on the list of destinations for producers.

EP Financial Solutions

EP Financial Solutions

The development of movie production incentives stems from the perceived economic benefits of filmmaking and television production in the US. In 2010 revenues from television production in the US were estimated at $30.8 billion[1] while revenues from movie and video production in the US were estimated at $29.7 billion in the same year.[2]

As the TV and film industries around the world grew through the 1990s, so did concern over runaway productionsTV shows and films that are intended for a US audience but are filmed in other countries in order to reduce production costs. The issue of runaway productions gained further traction after Canada adopted a movie production incentive program in 1997.

In the 21st century Asia has emerged as a leading growth area for film financing with Asia, China and India increasingly being used by Hollywood producers and major studios as a necessary part of their global strategies.

Building on new trends and timing with markets

Evidence suggests that the trends of US and EU companies pursuing strategic partnerships in Asia is increasing in 2016. Such trends are not exclusive to strategic decisions being made by corporations in the entertainment, media, and Hollywood talent agencies. A renewed focus on private equity and Family Office funding coupled with recent increased volatility in financial markets has spurred a swathe of mergers and acquisitions activity across the divide between East and West.

Innovations and Cultural Specifics

Innovations in technology and rapid growth in the utilisation of enterprise software to enhance business efficiency are coupled to growing mobile penetration prevalent across ASEAN. With large populations utilising high-speed data services and ever-increasing access to mobile communications, the proliferation of marketing and advertising censorship controls under scrutiny, Governments and populations wishing to monitor and filter content delivered over the Internet are all key indicators to watch.

Mobile penetration demographics SE Asia - South Korea

India’s super angel investors are predominantly focused on the media technology and innovation spaces and are keenly interested in developing strategic partnerships with growth stories that focus on expansion in Asia.

For more information on filming in Thailand information is available from the Thailand Film Office. 
Telephone: + 66 2612 4149 +66 2219 4010 Ext. 634 or 463
Email: film@thailandfilmoffice.org URL: Thailandfilmoffice.org

About the author: James With
First published on Monday, 16th May 2016

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