Pinewood Studios: Business Case and Economic Impact Assessment

Pinewood Studios LtdPinewood Studios: Business Case and Economic Impact AssessmentJanuary 2013to increase as a result of attracting more internationally mobile (inward investment)productions.4.2.3 Wider creative industries4.2.3.1 The UK film industry is part of the broader ‘creative industries’ – which is acknowledged as arapidly growing sector. There is a clear symbiotic relationship between film and the othercreative industries. These interactions are obvious in the case of writers, actors and directorswho also work in the theatre, TV and commercials, but most of the companies involved in thecore UK film industry are also involved in other creative industries and are dependent on bothto provide a sustainable revenue stream. This multi sectoral involvement also means that thefixed costs of infrastructure and studios are shared, enabling economies of scale/scope to beexploited. Other important synergies include technology transfer. The film post productionsector in the UK, for example, has developed a number of techniques in CGI initially for use infilms, that have since been applied to TV and other media. Investment by companies in the coreUK film industry (often on inward investment films) therefore has a direct impact on othercreative industries enhancing the competitiveness of the sector as a whole.4.2.3.2 Pinewood Studios is ideally placed to take advantage of the convergence between the differentelements of the creative industries, given the combination of facilities, skills and relatedproduction companies on site. For example, the post production team is working on high profilefilm, video game and television titles and many of the techniques they employ in sound mixingare being used across all disciplines. Digital workflow processes and 3D technologies are alsobeing shared.4.2.4 Tourism4.2.4.1 The ability of films to encourage viewers to visit the country or site where they were shot, oftentermed ‘film-induced’ tourism is well documented and accepted as a concept – and it is widelyacknowledged that film acts a key catalyst for tourism, increasing visitor numbers andsupporting the investment in refurbishments and expansion of special attractions.4.2.4.2 While there is limited robust statistical data quantifying the value of this impact, OxfordEconomics note that the available evidence suggests that approximately 10% of UK tourism maybe attributable to the impact of UK films. This equates to some £2.1 billion of visitor spend ayear and in 2011, this additional spending was estimated to be worth £1 billion to UK GDP and£230 million to the Exchequer. In addition, tourism, alongside the creative industries, has alsobeen consistently highlighted by the government as one of the UK’s most important industries –with the potential to contribute towards growth of a more sustainable economy.4.2.4.3 There are a number of channels through which film can affect tourism – the most direct beingthe promotion of trips to specific sites which can in turn stimulate investment in attractions.However, films also play a key role in promoting a country or region, as they reinforce what thecountry has to offer from a cultural perspective – as demonstrated by the globally acclaimedOlympic opening ceremony.35