Once upon a time, South African lawmakers understood the multiplier effect of tax incentives on an economy. During that period, the country’s spectacular natural beauty, abundant sunshine and globally aligned tax breaks resulted in dozens of expensively produced international movies being shot in SA.
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The myopic approach which now prevails is typified by Budget 2021’s abolition of the highly successful 12J incentive scheme. And brought home again this week when SA wasn’t even in the frame when Amazon deliberated its $465m commitment for the first series of a made-for-TV version of Lord of The Rings.
The series dwarves the $100m per season spent on the previous top dog Game of Thrones. It will be shot in New Zealand which is offering Amazon an unprecedented tax break of at least $114m. Admittedly, New Zealand did have the inside track after hosting Peter Jackson’s blockbuster trilogy on the JRR Tolkien books. Movies which it says sustained the country’s tourism for years.
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NZ’s government is betting Amazon’s new series will help get the tourism wheels rolling once normality returns. Ironically, Tolkien was born in Bloemfontein and drew inspiration from the Eastern Cape. Neither are in NZ. A reminder of SA being blessed by its people, but cursed by its (poverty mentality) leaders.
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