Global Film Tourism Industry Expected To Reach 110 Billion USD By 2028: Experts Weigh In

The global film tourism market is on an upward trajectory and is projected to grow at a CAGR of 7.2 per cent in the coming years. Valued at 68.1 billion USD in 2022, it is expected to reach 110.79 billion USD by 2028, as per a KPMG report.

India is one of the largest film producers in the world and releases more than 1,500 movies yearly. Together, Indian television, cinema and OTT are expected to contribute 57 per cent to the Indian media industry by 2024.

“It is not just about Indian movies now getting released abroad, at the same time, OTT is helping the industry in a big way because as soon as a film comes to OTT, the audience becomes much larger. Through OTT, I think we have the opportunity now to promote ourselves. Specifically, when it comes to Hollywood, they portray India from a very skewed lens, us being able to craft our narrative ourselves is something OTT has allowed us to do.” Stresses Amit Sharma, Managing Director, Miraj Entertainment.

The primary motivation for film tourism is the desire of travellers to connect with the cinematic world, experiencing first-hand the locations, cultures and landscapes portrayed in their favourite films. This trend has emerged as a niche within the broader tourism industry, fostering economic growth for destinations that leverage their cinematic appeal.

Sharma asserts, “When you start looking at India as a country and when you start looking at this phenomenon where films are promoting certain unknown territories, you’ll find that the industry follows suit, more films will begin shooting in those kinds of territories and people want to go there and experience it for themselves.”

Integrating cinema with tourism is a way to put film tourist destinations on the map and generate economic benefits for the local population, as per the report.

The media and entertainment industry in India is expected to reach Rs 8,29,390 crore by 2030. In 2023, the Indian gross box office collection (GBOC) exceeded Rs 12,000 crore. Bollywood in Mumbai is the most prominent segment of the Indian film industry followed by regional film industries, such as Tollywood (Telugu), Kollywood (Tamil) and others.

In India, film-induced tourism witnessed a steady increase with a significant rise in the number of international and domestic tourists visiting locations featured in popular films. This prompted the government of India to offer several incentives to encourage film tourism, such as tax rebates and film subsidies to encourage filmmakers to film in India.

Sharma highlights, “The film industry is the biggest soft power of a country. Whether it is America making Hollywood films and attracting a lot of tourists or India making films and attracting tourists out of the place. One of the biggest examples to be given is ‘Dil Chahta hai’, before the film, in the 90s, Goa was an alien territory for Indians to go to. Post Dil Chahta hai, the tourism in Goa, has grown multi-fold.”

Rajasthan, for instance, adopted a strategy that promotes film tourism by providing subsidies of Rs 2 crore per film for shooting within the state, in addition to waiving all taxes and fees related to filming at any government-owned landmarks, sites, and properties.

Ankur Kalra, Managing Director, Vibgyor Group outlines, “Some key factors driving this growth are the growing middle class who have more disposable income and leisure time, fuelling travel interest. The rise of streaming platforms and blockbuster movies showcasing diverse locations pique viewers' interest in visiting filming locations. Social media platforms like Instagram and YouTube inspire travel decisions, with users sharing travel experiences and creating a desire to visit film locations.”

Uttar Pradesh, a longstanding contributor to India’s film industry landscape, recently adopted a comprehensive film tourism policy aimed at fostering the all-encompassing advancement of the sector. Emphasising infrastructural enhancements, financial support through subsidies and rebates on location fees, as well as facilitating access to government-owned properties, this policy seeks to stimulate growth and development. In addition to these measures, the state tourism initiatives play a pivotal role in supporting film tourism by organising film festivals, conducting roadshows, hosting cultural events and engaging in various promotional endeavours.

The report finds that a destination featured prominently in mainstream media can garner international attention drawing visitors from far. Such influx provides opportunities for film tourism, where visitors can tour film sets and locations, attend film festivals and events and participate in workshops and masterclasses.

Aprajita Parashar, Founder, Made Of Honour, “Society has evolved such that exposure to global destinations in various regions and the reach to be able to visit the rest of the world has gotten more convenient. Because of the exposure the rest of the world has gotten, it fosters a curiosity within viewers to go and visit the places where their favourite films have been shot.”

As per the New Zealand Tourism Department, the country experienced a 40 per cent increase in tourist arrivals since the film, ‘The Lord of The Rings’. Moreover, Hobbiton was transformed from a film studio into a tourist attraction following the production of the film series, ‘The Hobbit’. Presently, it is among New Zealand’s top tourist destinations.

Some factors driving individuals to travel to a particular destination include the natural beauty and terrain, the overarching theme, the array of events and individuals involved, the narratives presented and the adeptness of marketers in associating the location with specific sentiments, perspectives, or emotional responses.