Spain’s film industry saw a massive economic boost between 2019 and 2022, with international film productions pouring in over $1.5 billion. A new report, revealed at the San Sebastián Film Festival, highlights the wide-reaching impact of these productions on the Spanish economy.
Spain’s Growing Popularity in Global Streaming
According to Netflix’s latest report, Spanish titles are becoming increasingly popular on the platform. Shows like Society of the Snow (104 million views) and Berlin (49 million views) led the charge, proving that Spanish stories have a global audience. This surge in popularity is no surprise, as Spain ranked second in Europe (after the UK) in global streaming investment in original content during 2023, with over €1 billion invested.
Economic Impact of International Film Productions
A new study, titled “Economic Impact of International Productions in Spain“, was conducted by the Spain Film Commission in collaboration with Profilm and consulting firm Olsberg·SPI. It shows how international productions leveraged Spain’s tax rebates between 2019 and 2022, spending a minimum of €1.32 billion ($1.47 billion) within the Spanish audiovisual industry. This, in turn, generated a minimum of €1.8 billion ($2.4 billion) in Gross Value Added (GVA) to Spain’s national economy.
What is GVA?
GVA represents the total economic value created, including:
- Direct Spending: Money spent directly in the film industry, such as hiring crews or renting equipment.
- Indirect Uplift: Spending in related sectors, like a local dry cleaner providing services for a film’s costume department.
- Induced Impact: Crew members spending money locally at restaurants or shops after filming.
For every euro invested in Spain’s audiovisual sector through tax rebates, nine euros were generated in additional GVA, demonstrating the vast economic benefits of international film productions.
Job Creation and Economic Reach
These productions weren’t just about spending money—they also created jobs. Between 2019 and 2022, international productions supported an average of 7,080 full-time equivalent (FTE) jobs each year across Spain:
- 1,300 jobs were directly created by the productions.
- 5,780 jobs were supported indirectly, through supply chains and wage spending effects in the wider economy.
In total, employees working on these productions earned €989.9 million ($1.1 billion) in wages, with 55% of this income attributed to the indirect and induced impacts.
Broad Economic Influence
The report also reveals how film production extends beyond the film industry. In high-budget productions, 74% of below-the-line spending went to sectors like:
- Construction: Building sets and production facilities.
- Hospitality: Accommodating crews during filming.
- Transportation: Moving actors, equipment, and crew across Spain.
- Location Fees: Renting locations for shooting.
This data proves that the economic benefits of the film industry reach far beyond just audiovisual professionals, impacting multiple industries throughout Spain.
Government Support and Political Initiatives
The boom in Spain’s film industry is not just the result of global streaming trends but also due to strong political support. Government initiatives and tax incentives have been crucial in developing Spain into a leading hub for international film productions. María González Veracruz, Spain’s Secretary of State for Telecommunications and Digital Infrastructures, emphasized that these efforts have turned the audiovisual sector into a “true motor of industrial growth and job creation.”
Spain’s Future in the Film Industry
Looking ahead, Spain is poised to continue its rise as a powerhouse in the film and TV industry. The Spain Film Commission’s President, Carlos Rosado, highlighted how this report will change the way Spanish society views the audiovisual sector.
Ignasi Camós, managing director of the Spanish Film Agency ICAA, called for further studies to continue tracking the economic contributions of Spain’s film industry in the years to come.
Conclusion
International film productions have proven to be a significant driver of Spain’s economy, generating billions in spending and creating thousands of jobs. Thanks to government support and tax incentives, Spain is cementing its role as a major player in the global film industry.
For more on Spain’s tax incentives for international productions, visit Spain Film Commission.
Table: Economic Impact of Film Productions in Spain (2019-2022)
| Category | Amount (€) | Amount ($) |
|---|---|---|
| Total Direct Spend | €1.32 billion | $1.47 billion |
| Gross Value Added (GVA) | €1.8 billion | $2.4 billion |
| Full-Time Jobs Created (FTE/year) | 7,080 | – |
| Employee Remuneration | €989.9 million | $1.1 billion |
