Queenstown's burgeoning television commercial industry is being squeezed by the global economic downturn, but the declining New Zealand dollar could yet be a "game changer".
There appears to be flagging interest in Wakatipu film permits from the Department of Conservation, with just 31 issued so far this year - with two months to go - compared to 63 the previous year, figures obtained yesterday show.
Those working in the industry also reported signs of economic trouble when contacted by the Otago Daily Times.
Daz Caulton, a Queenstown location scout and line producer, said the number of car commercials in particular filmed around Queenstown had "definitely" declined this year, and there seemed to be less work in recent months.
Some in the industry were waiting out the quiet times with little work, while others found employment on projects outside the district, he said.
Some budget trimming was occurring, including some distant locations being skipped during shoots.
"It has quietened down a little bit due to the financial environment.
"Everyone's holding on to their money at the moment."
Heliworks Queenstown Helicopters pilot Alfie Speight, who provided aerial filming and transportation for mainly international film productions, said a lull in activity had been noticed in the past month.
"The last few years, we have definitely been busier at this time of year," he said.
However, he was confident the downturn was seasonal and would be helped by the declining value of the New Zealand dollar, making the country more attractive to international productions.
"Things come and go. You have just got to ride out the lows, don't you?"Film New Zealand chairman Julian Grimmond, of Arrowtown, said it was "very hard to crystal ball-gaze" about the health of the industry, given the rapidly changing economic climate.
The decline in Doc permits was only part of the picture, and could be due to "fairly smart" companies shifting productions from conservation land to private land, he said.
The resort industry's busy summer season was also approaching, and "the decreasing dollar will just make us more attractive" in competition with other countries, he said.
"Any economic hardship is going to make people very cautious about what they spend, but dollars will always run to the cheapest place.
"We have lost eight cents in the dollar in the last six days. That's a game-changer, absolutely," he said.
Film Otago Southland executive manager Kevin Jennings, of Queenstown, said the summer months looked promising, with up to 10 confidential but "top-end international commercials" expected to be filmed in the region.
"There's a couple of quite good-sized major ones coming and quite a bit of interest from Australia. I think that's quite possibly a growing market.
"When things go bad, people still want to watch television and be entertained, so it's one of those things that has to keep on pushing forward," he said.
