Ever heard of the ‘Rings Effect’? No? Well you probably aren’t from New Zealand then.
The ‘Rings Effect’ refers to the runaway success of The Lord of the Rings Trilogy and the huge economic boost the films inspired in New Zealand.
The striking and diverse Kiwi landscape provided the backdrop for the majority of the trilogy’s action. Consequently, after Frodo and his furry footed fellows teamed up with a bearded bloke to destroy an evil ring New Zealand experienced an unprecedented surge in tourism. Like an unstoppable army of Orc’s, thousands of Tolkienites descended on the South Pacific nation – and brought their money with them. New Zealand also benefited from a heighted profile as a film-making destination after all three films saw significant success at the Oscars and the box office.
The so-called ‘Frodo economy’ created jobs and impacted all economic sectors. At the height of filming the franchise created 20,000 jobs while the production financing was in the region of 500 million New Zealand Dollars. In 2003 New Zealand’s Energy Minister Pete Hodgson estimated that the influx of tourists had already netted the nation’s economy a minimum of 180 million NZD whilst an economic impact report forecast that media coverage of The Return of the King premiere would generate at least 25 million NZD in advertising.
Since the release of the final Lord of the Rings film New Zealand has faced some testing times. The nation’s currency has doubled in value, recovery from the devastating and costly 2010/2011 earthquakes has been sluggish and the global economic slowdown has deterred tourists while affecting the country’s exports.
But, it’s not all doom and Gollum. The first in a series of prequels to the Lord of the Rings Trilogy is due for release towards the close of the year and many are hoping The Hobbit will provide the New Zealand economy with a similar kind of boost.
Back in 2010 there was some uncertainty as to whether the prequel to the franchise would be filmed in New Zealand following a boycott by the actors’ union. It was estimated by economists at the time that if The Hobbit was indeed filmed elsewhere the Kiwi economy could lose as much as 1.5 billion NZD.
Luckily the disputes were resolved and Peter Jackson, the man who brought Middle Earth to life, shot his guaranteed block buster in his home country.
Although some are predicting that, with current circumstances being what they are, New Zealand ‘won’t do quite as well’ as previously others are more positive. Perhaps the sight of Gandalf whirling his staff will bring some much needed magic to the nation.
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