Figures released through Statistics New Zealand's's annual Screen Industry Survey show 81 businesses spent a total of $29 million on production and post-production in the Otago and Southland regions in the 2011 financial year, a 17.1% drop on the 2010 financial year when $35 million was spent. The 2011 figure was the lowest in the last five years, with the $31 million spent in 2009 the previous lowest.
Film Otago Southland executive officer, Kevin Jennings said the decline in spend was a "blip" and the sector was "booming" this financial year. A large number of projects, including feature films, television and commercials, are filming at the moment.
"Right now we are experiencing the busiest run ... [in the six years] I have been in the job," Mr Jennings said.
Projects filming in Otago and Southland at the moment included TV series Top Of The Lake, being shot near Queenstown, and the New Zealand/Danish co-production feature film The Weight of Elephants, being filmed in Southland. The filming of parts of Sir Peter Jackson's The Hobbit in Strath Taieri and Queenstown was also good news for the region.
There was no simple reason behind the decrease in spending in 2011, but it could possibly in part be attributed to the "timing" of projects, he said.
Film Otago Southland, which is funded by councils in Otago and Southland, advertises the regions to film-makers in effort to get projects to come here.
Otago Chamber of Commerce chief executive John Christie said despite the decline in spending, $29 million was still a "big chunk of money" for the region.
The film industry affected businesses beyond those directly related to film production, with service industries, such as hotel owners, benefiting when projects came to the region.
"It's an industry where we have got proven excellence world wide, when you look at the companies that are in that sector, particularly National History New Zealand."
Auckland was the region where the most was spent on production and post-production, with $391 million, followed by Wellington with $165 million. Otago and Southland, at $29 million, came in a distant third, with 4.1% of the national total of $715 million.
The same set of statistics revealed gross revenue for the screen industry, which includes production and post-production, television broadcasting, film and video distribution and film exhibition, in the 2011 financial year rose to nearly $3 billion, a 4% rise on the previous year.
Film New Zealand Chief Executive Gisella Carr said the figures were an indicator of the tremendous strength of the New Zealand industry.
"We could never have imagined the scale of these figures a generation ago," she said.
Making movies
Screen industry spending on production and post-production in Otago and Southland
2007 (financial year): 96 businesses spent total of $39million, 5.8% of national total.
2008: 93 businesses spent $37million (4.5%).
2009: 87 businesses spent $31million (3.6%).
2010: 99 businesses spent $35million (4%).
2011: 81 businesses spent $29million (4.1%).
Source: Statistics NZ annual screen industry survey
