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When actor Ralph Fiennes chose Serbia as the location this spring to film his directorial debut, Shakespeare’s Coriolanus, it produced significant international attention to Serbia’s potential as a film location.

The outsourcing of film production services to international destinations is big business. When international productions shoot on location, they have a broad impact on the local economy – hiring local crews and talent, renting local equipment, procuring hotel rooms as well as cars and catering services.

They also raise a country’s visibility, generating free international advertising that promotes the country as both a business and tourist destination.

Recognizing these significant economic benefits, over 25 countries and 42 US states have developed film incentive programs that have an immediate and major impact in bringing international projects to a country.  Serbia could soon join this list.

The Serbian Film Commission produced recommendations that became the basis of a draft decree granting a 15-25 per cent rebate to filmmakers depending on the amount that foreign productions spent in the country.

This is consistent with incentives offered by other countries and, by linking the incentive to local spending alone, ensures that Serbian companies and employees stand to benefit directly.

Government officials have expressed support for the initiative, recognising the benefits to the economy and Serbia’s reputation. Frustratingly, however, the Decree has yet to be placed on the Government agenda.

This has already resulted in jobs and tax revenue going to other countries in the region and a loss of foreign investment. There is good evidence that producers who scouted Serbia over the last year, and selected Hungary and the Czech Republic instead, would have chosen Serbia had the incentive been adopted.

Based on the examples from other countries and the value of projects that have scouted Serbia, such a programme could  result in $200-$300 million a year in the country.

While all government officials still say they support the initiative, the delay threatens to undermine the momentum that has been gained by the international attention Serbia has received in the last year. Unless the decree is adopted soon, a key opportunity may be lost.

Adoption of the decree would be a win-win opportunity for Serbia’s economy, its film industry and for international producers who would benefit from Serbia’s low-cost, high-quality production service industry.

In addition to these film incentive programs, more than 30 countries have formed film commissions to promote their countries as filming destinations.

Last year, Serbia established its own film commission through an initiative led by 16 TV production companies and freelance filmmakers. It promotes Serbia’s competitive advantages globally, supports foreign producers
looking for locations and partners and provides a single point of contact for inquiries.

Over the year, it has achieved important milestones – being admitted to the Association of Film Commissioners International, expanding its membership base, developing corporate sponsorships and partnerships, and communicating with the Government on the need for the incentive program.

The commission has promoted the “Film in Serbia” brand and had a strong presence at major international trade shows and events, including the AFCI Location Market and the Cannes Film Festival.

So far, the Serbia is the only country with its own film commission in southeast Europe and in this regard is the regional leader.

The results of this increased attention on Serbia have been significant. In the last year alone, the commission supported international scouting visits for projects totaling $360 million, of which $100 million is close to being committed to Serbia.

But the commission can only do so much to bring in high-profile film projects. For its part, the government needs also to adopt an incentive programme, offering film-makers significant benefits and rebates.

The economic impact that film incentive programmes can have in this region is amply demonstrated by the example of Hungary. Budapest’s adoption of an incentive programme in 2004 prompted a mass exodus of foreign film productions from the Czech Republic, which lacked such a programme and was until then, the leading film location in eastern Europe.

Three years on, the Czech industry was down in value from $270 million a year to only $40 million while the Hungarian industry had grown to $250 million a year.  In response, the Czech Republic recently introduced its own incentive to try to lure back business from Hungary.  The adoption of the incentive program in Serbia will make us a via alternative given to these countries.

By acting now, the Government will create immediate opportunity for new jobs and revenue growth in key supporting industries, including construction, furniture manufacture and apparel design.  New and high profile projects will also contribute to an improved image of the country that will support further investment and tourism inflows.

Ana Ilic is director of the Serbia Film Commission. balkan Insight is BIRN’s online publication.