Why did the New Zealand government offer Warner Brothers incentives to film The Hobbit in New Zealand - Research Paper Example

? Introduction The decision to film “The Lord of the Rings” and “The Hobbit” in New Zealand was one which had to be issued as an agreement between Warner Brothers and the New Zealand government. The intent to do the film was based on the need to stimulate the economy and to create a specific image attributed to New Zealand. The intent was also inclusive of changing the industry and society into a positive atmosphere, specifically with the expectation that the film would grow in popularity. This was combined with the noted changes in statistics of the society, which required alterations to offer more for those who were living in the region. The approach which was taken toward the filming as well as the expected economic stimulation led to the filming being a positive measure for growth in the economy while creating the destination as one that was branded through both landscape and the popularity of the filming. Moving into Economic Growth A main reason why New Zealand allowed Warner Brothers to film “The Hobbit” in New Zealand was because of the economic growth that was associated with the film. This was specific to the time frame, which is based on a global movement where each location is able to offer a unique element for the globe as a whole. To be a part of this movement is also the need to create a different understanding and highlight of various locations. The belief from the government was that this particular movie would highlight the best aspects of New Zealand, specifically with the nature shots and the elements of fantasy that were attributed to the landscape. This particular concept led to New Zealand opening into the global market and to push into free trade within the economy, specifically because it forced the barriers in the country to be removed. The intent was then partially based on changing global relationships and growth for a different approach to the economy (Gould, 2010). The concept of opening into free trade is one which was specific to the identification of businesses in New Zealand and the current state which they are in. It was believed that the trade unions and the businesses would be positively affected by highlighting the New Zealand territory, specifically because it would bring a sense of trust and popularity to the businesses in the region. This was combined with highlighting the advantages of New Zealand. For instance, the region is known as subsidy free in the free trade agreement; however, it has not opened to the global level of commerce in most regions. The highlights of different countries are also creating fair trade which occurs because of what is known as well as where the best deals are within the economy. By showing the main ideologies of New Zealand, those interested in business and other approaches to fair trade were able to investigate into global agreements while recognizing the strengths that were associated with the approach to partnering with a subsidy free region (Weyer, 2005). The approach which was taken with the economy was known to create a high stimulus and to open the free trade agreement to the region. The return was a $363 million amount of cash that went into the economy from tourism, trade with businesses in the region while filming and a high amount of tourism which began to grow after the popularity of the film. This was combined with a continuous range of additional economic activity from $119 to $227 million and indirect benefits of $10 million to $34 million. The concept was based on an international competition for the region to be highlighted as a global area for commerce, trade, environment and other concepts that were portrayed in the film. The scheme allowed the film producers to highlight the best of New Zealand, specifically to stimulate the economy and to force in levels of growth by the growing popularity of the region. The figures show that this particular tactic worked to stimulate the New Zealand economy (New Zealand Film Commission, 2011). Social Stimulus The concept of stimulating the economy not only worked with the businesses that were able to benefit from a boost in trades and global recognition of New Zealand. The popularity also grew with the concept of social stimulation and the ability to revive the area with activities and popularity. This was done because of the current state of New Zealand. In 2009, 737 million people were over the age of 60 for 11% of the population. It was also predicted that by 2050, this would increase to 22% of the population. While the aging population is able to stimulate retirement villages and health care, there isn’t the ability to assist in businesses remaining vital and in entertainment as well as other components being a main part of society. This change constitutes a buyer shift in which the population moves away from the aging population and instead finds other means of retrieving the individuals in the area. Migration, promotions of work force and moving outwards to stimulate the economy are used specifically to balance out the growing numbers. This is combined with the capability of balancing out the intergenerational inequality to ensure that the aging population doesn’t cause an imbalance in the daily functions and needs of New Zealand (UN, 2009). The concept of stimulating the economy because of the population works in several ways with the use of the film as a basis. The first is by creating stimulation with wanting to move and migrate to New Zealand because of the landscapes that are a part of the region. The other is based on tourism which begins to increase to see where the film was developed and to trace the steps of what is available as a part of the film. By identifying the regions and making them landmarks of the film, there is the ability to stimulate the economy in two ways and to open the borders so individuals can look at the making of the film as a part of a landscape and history of “The Lord of the Rings.” Fans that are interested in the movie and want to trace the landmarks of the region can use this as a way to discover their own history and fantasy in the region. Those who look at the movie and see the appeal of the destination may not be as reluctant to go to the area with the belief that it isn’t as foreign as it seemed before. The nature of the filming is then able to create a sense of stimulation because of the level of entertainment and advertising that takes place through the film (Singh, 2004). The concept of building a landscape that is appealing to tourism goes one step further with the concepts of “Lord of the Rings” and the need to stimulate the economy. The use of landscapes throughout the film, as well as the known concepts that the area was used for the film adds in a layer of identification. The film works as a promotional feature to look at the landscapes of New Zealand and to see how the land is like a myth and fairy tale that any individual can enjoy. The concept of adding in the ideals of wanting to move to the area or be a part of the experience of New Zealand is able to heighten with the social stigma that surrounds the particular film. It is noted that the exposure to the film of New Zealand instantly added in $41 million in tourism, identification, film and business. The promotional and media aspects are inclusive of the media that is taped on site as well as the after effects of individuals believing they are a part of history by being a part of New Zealand. This instantly opens the economy, landscape and the potential of the region as the film works as a promotional feature for the destination (Hudson, Ritchie, 2006). The last aspect which is associated with the film and the social stigma which is presented around this comes from the relationship of destination branding and the association it has to stakeholders. In the current market, there are many investors that are looking for international destinations for expansion of businesses and to begin to move outward with new outlooks. By filming in this location, it is expected that the tourism levels and the amount of economy will begin to increase. To move into this, investors and stakeholders have the capability of creating a sense of brand with a space and adding in businesses to assist with the tourism. This stimulates the job levels, allows migrants to move into the region and allows stakeholders to build relationships with the country. New Zealand is one of the leaders of this particular initiative, specifically because the country began to open directly after the film with tourism and businesses beginning to build within the country. Multinational companies and others interested in a stimulated economy were able to take advantage of the expected destination tourism and aspects of brand positioning that took place with highlights from the film (Morgan, Pritchard, Piggott, 2003). Conclusion The concept of creating a space which offers a change in the economy is one which can be stimulated in various ways. The approval of “The Lord of the Rings” by the New Zealand government is one which was able to open the economy and the country because of changes which were occurring. The stimulation was based on the downfall in the economy, specifically because of the large percentage of individuals which were over 60. This was combined with most not going to New Zealand for free trade and economy because of the unnoticed resources in the region. New Zealand was able to create a sense of destination branding to tourists, migrants and stakeholders through the filming. The focus on the landscape as well as the stimulation of the potential that New Zealand holds was able to create an increase in revenue, stimulation of the economy and growth of businesses in the area, specifically as the destination became one that was popular among fans and revered because of the landscape and concepts of fantasy associated with the destination. The main ideology was to create a specific destination branding which allows the economy to remain stimulated on various levels while creating a different approach to the economy, social status and changes occurring among the population. References Barker, M. (2008). Watching the Lord of the Rings: Tolkein’s World Audiences. New York: Routledge. Buchmann, A. (2006). “From Erewhon to Edoras: Tourism and Myths in New Zealand.” Tourism, Culture and Communication (38). Carl, D, S Kindon. (2007). “Tourists’ Experiences of Film Locations: New Zealand as Middle Earth.” Tourism Geographies 5 (1). Croy, WG. (2003). “Rural Tourism and Film: Issues for Strategic Regional Development.” New Directions In Rural Tourism 81 (5). Gould, Bryan. (2010). “Bryan Gould: NZ’s Faith in Free Trade is Blind.” New Zealand Herald (May). Hudson, Simon, JR Richie. (2006). “Promoting Destinations via Film Tourism: an Empirical Identification of Supporting Marketing Initiatives.” Journal of Travel Research 44 (4). 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