More than movies: Can film drive regional development?

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This blog is the 3rd in the COGITO series on  “Strategies to build reasons to come and stay for people and investments“, developed by the OECD Regional Attractiveness and Migrant Integration Unit in CFE/RDG. The objective is to present to readers ways in which to make their territory more attractive, building on existing examples that have proved impactful. Many of the examples come from the unit’s regional attractiveness community of practice, which includes over 40 regions in 15 countries.  This blog benefitted from the financial support of the European Union. Its contents are the sole responsibility of the authors and do not necessarily reflect the views of the European Union.  

When fans travel to Northern Ireland to experience landscapes made famous by Game of Thrones, they are doing more than chasing a fantasy, they are fuelling a regional economy. Although the television series concluded in 2019, it still draws around 350 000 visitors each year, representing around one in six visitors from outside Northern Ireland. How can more regions reel in the benefits of movie stardom? 

A powerful lever for regional attractiveness beyond entertainment 

The movie and tv industry have momentum. Global film production bounced back from the pandemic to smash records in 2023 and investment into cultural and creative sectors more than doubled between 2003 and 2021, with the motion picture and sound recording sector representing the largest share of that growth. Popular destinations are reaping the benefits – the Canary Islands had at least three major FDI projects in the motion picture sector between 2018 and 2021 totalling over EUR 33 million and generating more than 200 jobs.  

The economic benefits are clear – the film industry draws in not only artists but a diverse mix of creative and support professionals, including technical experts, administrators and production staff. It is also a dynamic sector that integrates new technologies faster than many other creative or service industries – providing the potential for spillover benefits for local firms.  

According to the 2024 Motion Picture Association economic analysis, a feature film shot on location in the United States generates on average USD 21.8 million in local spending and 1 483 local jobs, including USD 11.7 million in wages. Television series have an even larger impact globally, averaging USD 48.9 million per location and 1 854 local hires. While the feature film figures refer to U.S. productions, the series data reflect average local spending per shoot worldwide, underscoring both the strong domestic impact of U.S. filmmaking and the broader international footprint of series production. 



Yet its true appeal lies in its legacy impacts on tourism, while also acting as a powerful place-branding tool. In Austria, the Sound of Music continues to attract international tourists. The city’s Visitors Bureau estimates that about 300 000 guests, equivalent to twice the local population, visit filming locations annually.  

Similarly, in Mexico, the global popularity of James Bond: Spectre highlighted local traditions such as Día de los Muertos (Day of the Dead), helping to attract millions of visitors and reinforcing the country’s cultural visibility. More recently, the The White Lotus television series has further illustrated this trend, with each season influencing tourism flows and holiday destination choices. 

More Than Tax Breaks 

Little wonder then that countries and regions often roll out the red carpet through tax breaks and grants to lure filmmakers. France’s 30% tax rebate, increasing to 40% for significant visual effects (VFX) spend, is a prime example. 

In February 2026, Mexico strengthened its national film strategy introducing a new federal incentive offering up to a 30% tax credit on eligible production expenditures. Importantly, the scheme requires that at least 70% of spending be directed to Mexican suppliers, helping to maximise local economic spillovers and strengthen domestic value chains. 

However, unique locations and scenery that offer visual distinction and storytelling value are often more important in the choice of a filming location.  

A study by Olsberg•SPI and the Association of Film Commissioners International (AFCI) finds that filming location decisions depend not only on incentives but on the strength of the local ecosystem – including skilled crews, specialised technicians such as VFX artists, high-quality studios and post-production facilities, and efficient logistical support. A production-friendly environment, supported by streamlined permitting, proactive film commissions and welcoming local authorities, further enhances competitiveness.  

Cultural and linguistic diversity can attract international co-productions, while safety and reliable services encourage repeat investment. In Latin America, initiatives such as “WE ARE DIVERSE”, which supports female audiovisual professionals, illustrate how inclusion strategies can reinforce workforce capacity and strengthen long-term industry development. 

Taken together, these elements can position a region not just as a financially attractive location, but also as a creative, operational, and culturally compelling hub for the film industry.  

Balancing growth responsibly and sustainably 

While the benefits are clear, potential trade-offs must be considered. For instance, the increasing use of AI and automation in areas like visual effects, editing and scriptwriting may streamline production but could also displace certain jobs.  

Similarly, screen-induced tourism can place pressure on local communities and infrastructure: Northern Ireland’s Game of Thrones sites particularly the Dark Hedges, have required site-level conservation and visitor management measures, including traffic restrictions, tree-protection rules, and co-ordinated management planning to reduce damage to the landscape.  

Investments in production infrastructure or incentives do not automatically guarantee long-term regional development; regions that fail to nurture local talent, integrate productions into broader cultural strategies, or maintain sustainable practices may see short-term economic gains without lasting social or economic spillovers.  

In this context, regions must adopt balanced strategies that maximise the gains from film production while managing social, economic and environmental pressures. Experience shows this is possible. In New Zealand, The Lord of the Rings helped build a lasting production ecosystem; in Dubrovnik, responses to Game of Thrones shifted towards capacity management and sustainability; and in the United Kingdom, Harry Potter anchored permanent studio infrastructure. The strongest outcomes arise when film activity translates into long-lasting investment, supported by effective visitor management and embedded within a coherent, long-term regional development strategy. 

Increasingly, this also means promoting environmentally responsible production practices encouraging green standards, reducing carbon footprints, and aligning incentives with sustainability frameworks such as the BAFTA albert initiative demonstrating that environmental ambition can strengthen both the resilience and attractiveness of regions. 

A film industry that stays for the long-term 

Ultimately, attracting film projects should not be about short-term subsidies or production to secure five minutes of fame, but about targeting projects that strengthen local skills, create cultural value and generate lasting benefits for communities. By focusing on sustainable talent attraction, greener production practices and investments with durable economic, cultural and technological benefits, regions can ensure the film industry becomes a true lever for resilient regional development. 


Read more about our work on Regional development and Culture, creative industries and sports. Check out the related paper on Leveraging cultural and creative sectors for development in the European Union outermost regions.

Policy Analyst at OECD Centre for Entrepreneurship, SMEs, Regions and Cities (CFE) |  + posts

Maya is a Policy Analyst in the Regional Policy and Attractiveness Unit at the OECD, working on the Regional Attractiveness for Inclusive and Sustainable Development in LAC countries and Spain. She has over 15 years of experience in public policy, international relations, and territorial development, with a strong background in strategic project management, policy analysis, and multi-level coordination. Prior to joining the OECD, she worked in the Mexican public sector first, in the Office of the President as policy analyst, later in the Budget Office at the Ministry of Finance, where she assessed the political and technical feasibility of budgetary allocations for local governments. She also served at the  Ministry of Transport and Telecommunications as Deputy Chief of Staff of the Minister’s office, and spent six years (2012- 2018) at the Mexican Permanent Delegation to the OECD following the Regional Development Policy and Government Committees among other tasks of the Delegation.

She holds a MSc in Global Politics from London School of Economics (LSE) and a BSc in International Relations from the Iberoamericana University in Mexico City.

Managing Director at  |  + posts

Thomas Buchwalder is a line producer and Managing Director of Cactus Films, a Paris-based production services company supporting international film and television productions across France. With over 20 years of experience, he works at the intersection of creative industries, international investment and regional development.

He collaborates with major studios and platforms to structure and deliver productions in diverse territories, contributing to local economic activity, employment and skills development. His work involves navigating production ecosystems, public incentives such as the French Tax Rebate (TRIP), and partnerships with regional authorities and film commissions.

Through his experience, Thomas has developed a strong understanding of the factors that drive location decisions and the conditions required to build sustainable, competitive production hubs. He regularly engages with public and private stakeholders on how audiovisual production can support regional attractiveness, long-term investment and cultural visibility.