SA impact study shows importance of local film industry

The success of South Africa’s burgeoning film industry is already helping to bolster the local economy through the creation of new jobs, according to a new impact study on the industry released by the Department of Arts and Culture.

Clive Shelver, Managing Director at Film & Entertainment Underwriters, a specialist insurance underwriter, underwritten by Compass Insurance Company Ltd (“Compass”), says the study revealed that the industry employs more than 25000 people and contributes R3.5-billion annually to the economy.

“It should also be noted that in addition to revenues generated by the local film industry itself, it also contributes towards a number of other vitally important related sectors such as hospitality and tourism and specialised local insurance,” says Shelver.

He says the government has made a number of successful strides recently to incentivise foreign filmmakers, with blockbusters such as Mad Max 4 and Safe House either being filmed or utilising post-production facilities in South Africa. “As a result, South Africa’s growing reputation as a desired filming destination will bring with it many advantages of becoming a global filming hotspot.”

“This recognition is likely to have a further positive impact on job creation, as more filming companies and their teams of people visit South Africa to reap the benefits of filming in a unique location that provides a variety of settings in one country, at low production costs and good exchange rates.

“It is also very positive to note Arts and Culture Minister Paul Mashatile’s comments that the study will be used as a basis to strengthen the success already being achieved in the local industry, as well as facilitating further skills development and building partnerships with the private sector. News that the Government is in the process of converting the National Film and Video Foundation (NFVF) into a fully-fledged National Film Commission will also assist in promoting the local film industry to a broader audience,” says Shelver.

He says the local niche insurance industry is also set to benefit, as local insurers are far more familiar with the specific risks - including location and seasonal changes - facing film makers and post production companies. “Each region has its own range of specific issues. For example, Cape Town is prone to extreme winds while Gauteng can be subject to electrical storms, so it is always best to source a local insurance company that understands the risks facing the local market.”

Specialised insurers are also able to write tailored policies that will better protect the film producers and further encourage filming in an unfamiliar location as the risk is covered financially, says Shelver.

He says that dealing with specialists when it comes to cover for public liability damage during the shooting process is also essential as filmmakers cannot shoot without this type of cover. “It is far easier to deal with insurers who are aware of local rules and regulations as they deal with it on a regular basis.”

“Specialist insurers can also offer options to assist foreign filmmakers when it comes to equipment and vehicle rental insurance.”

“However it is also important to encourage the use of local resources to overcome any unforeseen difficulties. By using companies that provide specifically tailored solutions, filmmakers will better ensure that if anything does go wrong, they will be comprehensively covered,” concludes Shelver.