SUVA, November 25, 2008- THE increase in the Film Tax Rebate from 15 per cent to 35 per cent will keep Fiji competitive as a filmmaking destination and enable it to effectively contest for business against other jurisdictions, said CEO of the Fiji Audio Visual Commission, Mr. Taniela Bolea.

The increase was announced last Friday during the 2009 Budget Address by the Interim Prime Minister and Minister for Finance and National Planning, Commodore J.V Bainimarama.

The rebate incentive is targeted mainly at overseas film productions that are fully-funded and that are looking for a location that will also give them the best benefits in making their budgets go further.

Mr Bolea said that since the rebate was introduced in 2003, many countries had introduced much more attractive incentives which to a large extent had negated Fiji's initial advantage.

"We noticed that in many cases these countries had used the basic outline and formula of our rebate incentive but had significantly increased the threshold values," Mr. Bolea said.

"The significant increase in the rebate incentive allows us to vie for film business on a more competitive basis with other countries, and we thank the Interim Government for this initiative which has been sorely missing for several years now," Mr. Bolea said.

He said that film productions bring in high levels of foreign exchange over a short period. And for every dollar spent in Fiji, a further $2.81 dollars is generated via the economic multiplier effect.

"This translates to local employment, business activities, the supply of goods and services, and the utilization of locations which would have not received such substantial locations fees otherwise," he said.

The industry is non-destructive to the environment and the films shot in Fiji showcase our country, the beauty of the locations, and promote and encourage visitors to come to Fiji, he said.

Mr Bolea said that while the FAVC will market Fiji to foreign filmmakers, it will also direct its efforts to encouraging local productions which will be a more stable source of audiovisual activity over the long run.

"To this end we will be encouraging the introduction of local content legislation to require television operators to broadcast a certain number of hours of prime time viewing dedicated to locally-produced programs," he said.

The FAVC will receive a grant of $1 million for 2009, the same level as this year.