A government-commissioned report has highlighted Cayman’s potential to turn itself into a location for international TV and movie productions.
The analysis by PwC Cayman found that, during six months of last year, two movie production companies contributed an estimated $11.4 million to the local economy.
The TV and film productions created work for 80 Cayman residents, in addition to 159 crew members that were brought to the island.
The report covered the economic impact of Canadian company Productivity Media, which shot scenes for four movies from February to August 2021, as well as the dating reality TV series FBoy Island filmed by Los Angeles-based STX Productions from February to April of last year.
Government supported the productions by facilitating access to sites and expedited work permit approvals.
The companies’ direct spending on island amounted to $9.38 million, of which three quarters went to local suppliers, while staff contracted to the companies received 13%.
The productions paid approximately $850,000 in per diem allowances to its non-Cayman employees.
Overall, the analysis estimates the employment impact of film productions to be equivalent to one person working for 107 years full time. The report used this full-time equivalent (FTE) measure, rather than jobs, because of the temporary nature of the employment.
In addition to the economic activities of the production companies, the movies and TV series, together with their well-known cast members, could be beneficial for the awareness and reputation of the Cayman Islands around the world, the report said.
Last year this impact was limited to the social media and public relations activities of the production companies and the cast during the time spent filming in the Cayman Islands. But a further impact is anticipated when the programmes are aired.
Future potential
The analysis suggests that Cayman could build on its strengths and work with the local and overseas film industry to establish policies and incentives for future productions.
This would provide Cayman with an opportunity to stand out on the global film production scene.
“With targeted promotion of the Cayman Islands and it’s offering, both the reputation of Cayman as a filming destination as well as tourism destination can be enhanced,” the report said.
Last year, Cayman was chosen as a film location largely because of the absence of COVID at the time.
The islands’ lifestyle benefits, high standard of living, low crime rate and sunny climate all continue to weigh in its favour.
The structured immigration process created together with the Cayman Islands Film Commission also allows for temporary film productions on island. The Film Commission acts as liaison between the government and the industry and has helped production companies through the procedures for obtaining media licences and work permits for the cast and crew.
Work permit fees for crew and cast ranged from $85 to $110 per person, in addition to a $50 application fee for the two to six months of filming.
However, the high cost of accommodation and lack of film infrastructure combined with the need to ship and pay duty on production materials are perceived as weaknesses.
The report said, “Since the film industry in the Cayman Islands was virtually non-existent prior to the productions in question, investment in filming and production infrastructure could be beneficial.”
Other popular film industry locations tend to attract productions with tax rebates through close to 100 different incentive mechanisms worldwide. These allow companies to offset on average 30% of their production costs against taxes that are due.
Cayman’s tax neutral status does not allow for this, but PwC suggests that government could develop policies for a rebate formula and the eligibility for concessions.
The shipping and import duties for film production materials could also be simplified. Building out wardrobes and props storage, as well as the general development of film technology are other areas noted for improvement.
Training and reputation
PwC noted that one of the production companies specifically budgeted for the training of Caymanians.
“This is intended to be in place and supported after the production companies have left so that the skills provided by the team on island create value for the production company and others in the future and raise awareness of the creative arts and media for those students thinking of heading overseas to further their education.”
Overall, the report suggests that Cayman could benefit from greater visibility and better manage its reputation through on-island film productions. But it also noted a “reputational threat” based on what films depict.
Citing the example of ‘The Firm’, which framed Cayman as a place where money laundering and other crimes take place, PwC concluded “such continued depictions could have a negative impact on the islands financial services industry”.
Although this is a much-repeated trope, it should be noted that there is no evidence to suggest that ‘The Firm’ – either the movie or the John Grisham thriller of the same name – ever changed Cayman’s reputation or that the financial services industry suffered from it in any way, given its development over the past three decades since the movie’s release in 1993.
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