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Isle productions
feel growing pains
Several factors are
By Tim Ryan
holding back Hawaii-based
productions, a report says
Star-BulletinIt doesn't seem to take a whole lot of money to generate a whole lot of money when you're trying to attract movies and television productions to Hawaii.
The state is on the threshold of busting through the $100-million-a-year mark for film and television production revenues for the first time.
With one TV series already here -- "Baywatch Hawaii" -- two more being considered, and at least three major motion pictures scheduled, the year will see at least $135 million in production revenues, a state official confirmed.
Don't be surprised if that total is very close to $150 million.
It's largely being accomplished by the four county film offices and one state office, which have a total staff of nine and an annual budget statewide of just over $1 million. The film offices may help bring in more revenues in proportion to their budgets than any state government agency.But just how much entertainment production does Hawaii want? How many productions can film here at one time? And are there enough skilled workers here to accommodate industry growth?
These questions, along with the obstacles the state may face in reaching its production potential, are discussed in a comprehensive, recently released report, "Hawaii Film & Television Industry 2000." It was written by the state's film commissioners with contributions by private entertainment and labor leaders.
"We needed to do a full report on the state of the industry, to discuss where we want to be, and the potential for this industry," said Georgette Deemer, manager of the Hawaii Film Office.
The report emphasizes that if several obstacles are overcome, Hawaii's film and television production industry revenues could triple to $300 million in five to 10 years, while increasing the number of people working in the field by four times, from 4,000 to 16,000.
But Deemer emphasized that the intent of the report is to address existing problems and possible solutions.
"We want the public and legislators to understand what we're up against," she said.
The report said that to compete for productions in the competitive world of film locations, progressive measures are needed to defray the higher costs of filming in Hawaii -- a "broadening" of existing tax-incentive programs that could help lower labor, shipping and local equipment costs.Foreign locations already have the benefit of favorable exchange rates and "healthy" incentive packages, providing as much as a 40-percent cost reduction to a production's budget, according to the report.
Production revenues pay millions of dollars in taxes to the state and counties.
In 1999, film, television, commercials and other productions spent nearly $100 million, accounting for $15 million in state tax revenues. If expenditures hit $300 million a year, the state's take would be $45 million in taxes.
Hawaii often receives millions of dollars in free advertising and marketing from productions filming here at little or no cost to the Hawaii visitors bureaus.
"The Lost World: Jurassic Park" promoted Hawaii, and specifically Kauai, on 60 million Tropicana juice cartons for four months; "Godzilla" promoted Hawaii and Oahu in West Coast theaters, in Taco Bell restaurants and on a Web site for two months; and "Mighty Joe Young" promoted Hawaii on the official Disney movie Web site, through 250,000 email newsletters and in print ads in major newspapers for two months.
The report said production growth is being hindered by Hawaii's higher costs; a limited creative talent pool and crew base; limited facilities and equipment; the occasional perception of an uncooperative attitude; and "fragmentation of funding statewide" between the Legislature, Department of Business, Economic Development and Tourism, Hawaii Tourist Authority, Hawaii Visitors and Convention Bureau, neighbor island visitors bureaus and county governments.
It suggests the obstacles could be lessened by reviewing and adjusting state and county permitting procedures; developing training programs in colleges, within unions and the private sector; and directing most, if not all, funding through county film offices to "aggressively" market Hawaii to producers.
Since 1913, Hawaii has played host to 190 motion pictures. Eighteen TV series have filmed here since 1968, totaling 735 episodes. Most of them aired in prime time and many, like "Magnum, P.I." and "Hawaii Five-0," are still in reruns.
Film and TV productions spend lots of money at local businesses -- for hotel rooms, airline tickets, furniture rentals, building supplies, car and truck rentals, clothing and telecommunications equipment, among other items, the report noted.
One Oahu hotel last year said that film and TV-related business totaled about 4,300 room-nights with a value of $1.6 million -- 5 percent of its overall room sales, the report said.
Hollywood seems to have noticed Hawaii's appeal and the state's more pro-active marketing approach. Production expenditures here since 1996 have seen annual increases of 21 percent, 18 percent and 28 percent.
Much credit for the growth goes to programs introduced during Gov. Ben Cayetano's administration, which helped to get "Baywatch Hawaii" and "Destination Stardom" here, completed the 16,000-square-foot sound stage at the Hawaii Film Studio, and last year constructed at the studio the state's only underwater filming tank.
With their current budgets and staff, the state film office can handle at most only three major productions "and that's really stretching it," Deemer said. Additional funding and staff are critical for Hawaii's production industry to continue growing.
"We are at a point where we are overwhelmed based on the amount of production activities we're handling," she said.
"If we want the industry to grow, if we want to do more marketing, and increase production activity, the obstacles facing us must be addressed."
