MINING IN MEXICO S - ProMéxico

32 Negocios
work and this is one of our main competitive
advantages, as producers only have to bring
the bare essentials to Mexico. They can travel
with smaller teams and they can hire the rest
of their people here. Films like Apocalypto
[Mel Gibson, 2006], The Legend of Zorro
[Martin Campbell, 2005] or Troy [Wolfgang
Petersen, 2004] are just some examples of
productions that employed Mexican labor
extensively,” says Hugo Villa.
IMCINE’s statistics reveal that US productions
most frequently use Mexico for filming,
due to its obvious geographical proximity.
France and Spain are the European countries
which predominantly choose to film in Mexico,
the latter for language reasons. For the
same reason, a number of Latin American
countries like Argentina, Brazil, Uruguay, Cuba
and Bolivia, choose Mexican locations.
This variety of countries that choose
Mexico to film their productions seems to
be growing at the same pace as the locations
themselves. “Local and state
governments are taking increasing
interest in the importance
of the film industry, not only
for their economies but also for
the promotion of tourism that
arises from people seeing these
places on big screens around the
world,” says Hugo Villa.
And so while Durango was once ‘the
king’ of American Western movies, today
major film producers favor several states
across Mexico. Their preferences are not
only shaped by the climate, geographical terrain
or suitable period sets but also by infrastructure
around the location which is often
a determining factor for whether filming is
to take place in a specific place or not.
“Currently Mexico City is top choice for
foreign productions. You could safely say
that 70% of films produced in Mexico take
place in the country’s capital, partly due to
the city’s infrastructure and airport facilities
but also due to the city government’s work in
supporting film productions on their patch,
with new legislation and regulations making
it very clear how to go about the process,” explains
Hugo Villa.
Also, Mexico City has an ace up its sleeve.
The Estudios Churubusco film studio is located
in the Mexican capital, with sets suitable
for large-scale productions that are
unique throughout Latin America and with
industry-related services that easily match
the quality of other international studios.
Even so, states like Morelos, Puebla, Veracruz
and Zacatecas seem to be making their
presence felt, after years of the desert and
beach locations in states like Durango and
Baja California being the star attractions.
This is an area in which IMCINE, as a national
institute, is working hard.
“We go to all the festivals we can, both in
Mexico and abroad, to promote the country
as a ‘film destination’ offering a whole series
of benefits […] and of course we invite those
in charge of film promotion at state government
level. Little by little, this work is beginning
to pay off,” says Hugo Villa.
Every year Mexico is host to at least ten or
twelve large foreign productions. Each one
spends between 8 million and 10 million usd,
representing a profit of between 120 million
and 130 million usd.
And They Filmed Happily Ever After
It is not only the large, 100% foreign productions
that generate revenue for Mexico. Coproduction
is a formula that is increasingly
applied in the global market and in Mexico.
The IBERMEDIA program in Spain,
for example, created in 1997, has successfully
raised funds to provide an incentive for
Spanish and Latin American producers to
work on co-productions.
But this is not the only way. The Mexican
film industry is always looking for ways to
encourage Mexican filmmakers and producers
to “throw their hats into the ring.” Increasingly,
alliances with foreign colleagues
are being formed, resulting in benefits for
the film industries of the countries involved.
In Mexico, under Article 226 of the Income
Tax Law, producers can make films
with exclusively Mexican content, but they
can also use this financing for co-productions
with content from other countries. No
small incentive.
“This investment fund, which does not
come from the public purse but instead is
paid by the taxpayer himself, has strengthened
Mexican film-makers and producers
and converted them into major players within
the international film scene, especially
in Latin America or those countries with
similar-sized industries to the Mexican one,”
says Villa.
This fund currently has a total of 500 million
pesos to invest in productions involving
Mexicans. Those who take advantage of this
incentive almost always have 50% in private
investment, a considerable amount for Mexico
if the film is made in this country. That amount
often doubles the initial funding, meaning that
through this mechanism alone, approximately
$1 billion pesos remain in Mexico.
According to IMCINE, that is not all. Every
year Mexico is host to at least ten or twelve
large foreign productions. Each one spends
between 8 million and 10 million usd, representing
a profit of between 120 million and 130
million usd.
The Challenges Behind The Cameras
It is not all plain sailing in the film scene,
however. Like the movies themselves, which
compete with each other to position themselves
as the latest “box-office hit,” the competition
between potential locations and
national industries to produce a major film
is tough. Mexico is aware of the
challenge.
“We are competing, for example,
with incentives such as those
offered by New York City, which
recently announced a fund of 490
million usd for those filming in
New York locations, or by Puerto
Rico, which returns to foreign producers
45% of their expenditure in their territory.
In contrast, Mexico offers a VAT refund.
Also, although all Mexican states offer their
own particular attractions for film productions,
Mexico’s natural attractions could be
optimized and improved a lot more in order to
take full advantage of our natural assets,” concludes
Hugo Villa.
Even with these challenges and with parts
of the film machinery still needing a little oil,
there is something about Mexico that captures
people’s hearts and fascinates them in the
same way a good movie does.
Otherwise it would be hard to explain why
so many filmmakers choose to return to film in
Mexico. This is by no means an isolated phenomenon.
The latest saga in this “film love”
will be in 2010 when Mel Gibson will return to
film in Veracruz, where he made his box-office
smash Apocalypto.
How I Spent My Summer Vacation is a film
written and produced by Gibson himself, once
again promising controversy and therefore likely
to attract large audiences. Moviegoers around
the world will see Mexico’s natural beauty projected
before their eyes onto the big screen. n