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Hungarian Edition
While Hungary’s movie industry did feel the effects of the U.S. screenwriters’ and the actors’ union strikes, it is unlikely that these will have a major long-term impact on film production in the country, with the government opting to give considerable financial support to the National Film Institute (NFI).
According to Andersen Hungary’s estimations, the effects of the Hollywood strikes could even impact Hungary’s GDP figures and lead to a loss of revenue for the central budget.
In an article published by the Budapest Business Journal, Károly Radnai, managing partner of Andersen Hungary, said that two parallel strikes impact films made in Hungary differently.
“The strike by screenwriters only implied a medium-term slowdown; it didn’t cause any immediate damage. It didn’t affect any productions that were already in progress or pre-production here; there were no shutdowns; only the arrival of new projects has slowed down,” he noted.
“By contrast, the strike by the Hollywood actors’ union led to the immediate stoppage of almost all larger productions, as filming couldn’t continue without the lead actors and major cast members,” Radnai argued.
The Economic Benefits of International Film Productions
Some seven years ago, Andersen’s tax experts contributed to a study published by the National Film Fund, according to which every forint spent on film productions in Hungary generates a budgetary income of HUF 0.32 and increases GDP by HUF 0.8.
There are several factors why Hungary is an attractive production location for international film projects. Apart from the great shooting locations, expert crews, and cutting-edge facilities, the most important draw is the film tax rebate, which since 2018 allows 30% of production costs declared in Hungary to be reclaimed. This is one of the most favorable schemes in the world.
According to an article by Hungarian news outlet HVG, the Hungarian government is making readjustments in this year’s budget, regrouping some HUF 40 billion.
It is no wonder, that more than HUF 1 billion will be used to provide extra support to the NFI, which is a key player in attracting international movie productions to the country. Despite the economic downturn, it is widely expected that the incentives will remain in place, with the state lending a hand to institutions like the NFI, as the long-term economic benefits far outweigh momentary concerns such as strikes in Hollywood.
(Photo credit: Elliott Cowand Jr/Shutterstock.com)
