The Economic Impact of On-Screen Tourism: The Case of The Lord of the Rings and the Hobbit

The economic impacts of on-screen tourism are particularly interesting, and research in this area can provide useful information to governments making decisions regarding subsidising film production and forming relevant marketing strategies. No reliable and systematic approach for measuring the economic impacts of on-screen tourism currently exists, and this study is the first to evaluate the overall economic impacts of on-screen tourism by comparing the impacts of two series of films, The Lord of the Rings and the Hobbit, both filmed in New Zealand. A new approach combining econometric and computable general equilibrium modelling techniques is used in the assessment. The results show that The Lord of the Rings did not significantly impact on the tourism and economy of New Zealand, while the Hobbit Trilogy had a significant positive impact, which may be due to effective marketing strategies and media convergence.