Weak Indain Rupee to hurt Bollywood film-makers: ASSOCHAM

India’s film industry hurt by 30% due to strong currency

Bollywood films influx towards foreign exotic locations have registered a significant decline to extent of 30%  to  35% in the last 4 months due to falling rupees, reveals the associated chamber of commerce and industry of India (ASSOCHAM) recent findings.

Releasing the ASSOCHAM paper on “Weak rupee dampen spirits of bollywood film-makers in foreign location” Mr. D S Rawat, Secretary General ASSOCHAM said, due to fall in rupee, Indian filmmakers are not just restricting their shooting outside, but are opting  within the country rather than going abroad. He also said that there will be more cut down in the number of films shot abroad, especially medium/low budget films and opting for lesser expensive destinations in South East Asia, Middle East and South Africa.


Mr. Rawat said, “Spending by Indian producers to overseas location has fallen sharply in recent months, as they are looking for cheaper options, or to places offering better incentives within the India”. So, the influx of Indian filmmakers towards foreign locations has decreased by over 30%. For film-makers, the cost turns out to be much higher from foreign countries mainly form USA, UK, Germany, France, Sweden, Italy, Ireland and Denmark in Europe.  Indian films producers are also reducing the number of days from packages and looking to offset those costs by opting for shorter duration stays and looking at budget accommodation options”, adds Mr. Rawat.

There are certainly some changes in travel patterns' as majority of film-makers are opting for non-dollar destinations such as Sri Lanka, Dubai, Bali and Phuket or sticking to domestic destinations such as Kashmir, Kerala and Goa, adds the ASSOCHAM paper.

The paper further points out that many of bollowood films-makers are opting for domestic options due to weak rupee. The demand for the destinations like Kashmir, Kerala, Ladakh, Goa, Himachal and Sikkim have seen a spurt in Indian film-makers, adds the ASSOCHAM Assessment.

The paper further highlights that due to depreciating rupee, India has become an attractive destination especially for the bollywood film-makers. The depreciating rupee has given an unprecedented focus to domestic locations within India and re-emerging as a viable option, highlights the paper.

“The falling rupee is definitely resulting in a slowdown in foreign locations and registered a significant drop of over 30% due to weakening rupees”, adds the ASSOCHAM Media and Entertainment committee.

Over the past four months travel costs and accommodation have gone up by around 25 to 30 percent. The falling rupee is definitely resulting in a slowdown in foreign location and spending abroad amongst Indian film-makers. As a result, Indian film-makerss may restrain from taking a foreign location. They are likely to save money by choosing a domestic destination, adds the ASSOCHAM committee.

The paper also mentioned that many Bollywood films are being shot abroad every year like Salaam Namaste (Australia), Kal Ho Na Ho (United States), Kabhi Khushi Kabhi Gam (United Kingdom), Shaadi Se Pehle (Malaysia), and Kaho Na Pyar Hai (New Zealand), to name just a few recent examples. New countries and locations are being constantly added to the list.


ASSOCHAM Assessment:

Foreign locations                  2012                        2013
                                          40%  (Increase)          30% (Fall)

Indian locations                       2012                      2013

                                               20% (fall)             35% (increase)
                                   
In the recent past, many films have been extensively shot in foreign locations:

Movie                                                 Country

Zindagi Na Milegi Dobara                     Spain

Rockstar                                             Czech Republic

RA.One                                               United Kingdom

Don 2                                                 Germany

Ek Main Aur Ek Tu                               United States of America


For Media Contact

Ms. Manju Negi
manju.negi@assocham.com

ASSOCHAM PR Department


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