What's Happening?
Peru is actively working to diversify its appeal as a filming destination beyond its iconic sites like Machu Picchu. Following the success of 'Transformers: Rise of the Beasts,' which was filmed in Peru,
the country has introduced new incentives to attract international film productions. These include the creation of a Film Commission and a tax incentive law known as CIPA, which allows producers to reduce their corporate income tax or Value Added Tax by up to 50%. The initiative aims to boost foreign investment in Peru's film industry and promote lesser-known locations such as Arequipa and Ayacucho. The new law is expected to become operational once the implementing regulations are finalized this year.
Why It's Important?
The introduction of these incentives is significant for Peru's economy and cultural sector. By attracting international film productions, Peru can increase its visibility on the global stage, potentially boosting tourism and creating jobs in the local film industry. The move also reflects a strategic effort to diversify the country's economic activities and reduce reliance on traditional tourist attractions. For the U.S. film industry, this development offers new opportunities for location shoots, potentially reducing production costs and providing unique backdrops for films. The initiative could also inspire other countries to adopt similar measures to attract film productions.
What's Next?
As the new film law becomes operational, Peru is likely to see an increase in international film projects. The government and private sector are expected to continue collaborating to refine the incentives and streamline the administrative processes for film productions. This could lead to more diverse and frequent international collaborations, further integrating Peru into the global film industry. The success of these initiatives will depend on the effective implementation of the new regulations and the ability to maintain a competitive edge in attracting film productions.
