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    South Asia
     May 19, 2006
Foreign shoots spread Bollywood's reach
By Priyanka Bhardwaj

NEW DELHI - Sixty percent of Bollywood's upcoming release Krrish, starring top actor Hritik Roshan, was shot in Singapore, and overseas shoots like that one are increasingly becoming the rule, not the exception.

More and more Bollywood films, which number more than a thousand every year, are being shot abroad - 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


- such as Gangster, a recent hit, which was shot in South Korea, one of the first mainstream Bollywood films to feature that country.

One important reason for the new trend is to cater to the more than 20-million-strong Indian diaspora, with an estimated combined wealth of more than US$300 billion. Koi Mil Gaya made $10 million in India, $1.9 million from the US market and 1.6 million pounds in Britain; Kal Ho Na Ho made $8 million domestically, $700,000 in the US and 600,000 pounds in the UK; while Chalte-Chalte earned $4.5 million at home, $900,000 in America and 700,000 pounds in Britain. Dilwale Dulhaniya Le Jayenge made $5 million abroad. And Rang de Basanti, a recent Bollywood release, has collected $6 million abroad in just six weeks.

A key benefit of overseas exhibitions is that the income earned abroad is tax-free, since export earnings of cinema and television programs are tax-exempt. Last year, India exported films worth $15 million, an increase of about 40% over the previous year. In the early 1990s, the figure was $125,000 per annum. This year the figure is expected to cross $25 million. Thirty percent of the overseas revenue of Indian films comes from North America.

There are other benefits of moving overseas. Movie producers do not have to grapple with the endless bureaucracy that is the staple in India, and can ensure the stars' presence for an extended period at the shooting location; travel and production costs are sometimes cheaper given the tight schedules at international locations; and governments in foreign countries make sure that the guests are well taken care of given the revenues earned.

"I captured [previously unused] locations in Singapore for Krrish," said director Rakesh Roshan. "It is tough to get permission to shoot in India. But the Singapore government was very supportive. Asian countries are very Bollywood-friendly."

The trend has a benefit for other nations as well: the locations used tend to become popular tourist destinations for Indian travelers. Switzerland was one of the first countries to experience an increased flow of Indian tourist traffic due to exposure in Hindi movies, the Swiss Alps being a popular film location. Following Switzerland's experience, other countries such as Singapore, Thailand, the United Arab Emirates (Dubai), Austria, South Africa, Egypt and Canada have joined the race to lure Bollywood by offering incentives.

The Singapore Tourism Board has invested S$10 million (US$6.3 million) under the Film in Singapore! scheme that subsidizes international film productions by up to 50%. Krrish was the first mega-Bollywood film to make use of this fund. A spokesperson for the board has said that Bollywood is the best way to "showcase Singapore to Indians", given Indians' passion for films. Singapore expects 700,000 visitors from India in 2006, compared with just under 600,000 last year.

The Asian-dominated city of Leicester in the East Midlands region of England has drawn up elaborate plans to boost film production. Bollywood blockbusters such as Mohabbatein, Dilwale Dulhaniya Le Jayenge and Kuch Kuch Hota Hai have been shot in England, Scotland and Wales. The Yorkshire Tourist Board has submitted a bid to the International Indian Film Academy (IIFA) to host its 2007 awards in Yorkshire. The awards have been held in Singapore, South Africa and Amsterdam in the past. This year the venue is Dubai, with one of Bollywood's greatest actors, Amitabh Bachchan, acting as IIFA's brand ambassador.

While speaking at an IIFA forum recently, Bachchan said: "It's a very interesting phase [for Bollywood], with the younger generation very keen to prove themselves and aggressively match [the] qualities of world-class cinema, and many of our films this year are so progressive. We used to be criticized for our song-and-dance routine, but have you seen how the world has been lapping it up? It's due to the opening-up of the economy. Once a country progresses, people like everything it does."

Kim Jong-min, chief executive officer of the Korea Tourism Organization, said, "South Korea has just got a taste of Bollywood with Gangster being shot almost exclusively there, and is setting the wheels in motion to promote itself as a destination for Indian film [productions]."

Poland is the latest entrant, with a major Bollywood film, Fanaa, featuring top stars Kajol and Amir Khan, being filmed in that country. The Polish Tourist Organization has used the movie to launch its latest campaign to attract tourists. Emilia Engler of the Polish Tourist Organization said in an interview with the Mumbai-based newspaper Daily News & Analysis: "We started with Fanaa and now are on the process of taking some Bollywood producers to Poland for a familiarization trip. Until now, Poland has not been on the itinerary of the Indian going to Europe. But now we want to attract Indians to our country. And what better [way is there] than showing them the country through Bollywood? We have taken the first step with Fanaa."

Although Bollywood's budgets and box-office takes still do not compare to Hollywood's, the scale of the business is not trivial. According to a PricewaterhouseCoopers report, India's film business earned $1.12 billion in 2004, up from $617 million in 2001, though that would not cover the takings from one Harry Potter film. In 2003, the industry earned more than $703 million. Much of this success is driven by global popularity. An average Indian movie's budget is $500,000 (though the major titles can budget more than $10 million), far below the average $14 million spent in the US.

PricewaterhouseCoopers believes that Bollywood will double its turnover by 2009. Since 2001, the government has allowed financial institutions to finance up to $1 million of a picture's budget or up to about 40% of the total production cost. A Rabo India study indicates that the number of films financed through organized sources last year went up 200% against 2002, though the total corporate finance into films is still quite low and was a little more than $150 million in 2004.

According to a study by KPMG, although India produces more films than any other country, its share of global cinema revenue is a lowly 1%. The US leads with 60%, and India is far behind Japan, the UK and France as well. However, KPMG projects that the revenue of the Indian film industry will cross $2 billion next year and $3.5 billion by 2010.

Priyanka Bhardwaj is a New Delhi-based writer.

(Copyright 2006 Asia Times Online Ltd. All rights reserved. Please contact us about sales, syndication and republishing .)


Hollywood's Indian adventures (Dec 2, '05)

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Hollywood turns to India for inspiration (Jun 18, '03)

 
 



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