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Peru’s Film Industry: Beyond Machu Picchu

Peru has long been known for its iconic attractions such as Machu Picchu, Cusco, and the Peruvian Amazon, which have been featured in various films, including Paramount’s 2023 “Transformers: Rise of the Beasts.” This exposure has sparked a renewed interest in the South American country, prompting tourists to explore its lesser-known sites.

Maria del Sol Velasquez, the director of Peru’s tourism body, PromPeru, recognizes the importance of diversifying Peru’s tourism offerings beyond the popular destinations. She emphasizes the need to showcase the country’s richness through filming locations like Arequipa, Kuélap, and Ayacucho. By promoting Peru as a filming destination, the country aims to attract international productions and increase foreign tourism.

The impact of having “Transformers” filmed in Peru has led to the creation of a multisectoral working group focused on encouraging foreign investment in the country’s film production industry. Erika Chavez, head of the culture ministry’s audiovisual directorate, highlights the government’s efforts to strengthen policies that support the film industry, including the introduction of a new visa for talent and crew entering Peru.

In line with these initiatives, Peru has introduced a new film law that includes a tax incentive similar to Colombia’s successful transferable tax credit. Known as the Certificate of Investment in Audiovisual Production (CIPA), this incentive allows producers to reduce corporate income tax or Value Added Tax by up to 50%. The government is working on implementing regulations to make the law operational and attract more international productions.

While Peru’s film industry continues to grow, there are challenges to overcome, especially in terms of infrastructure and funding. Local production companies like Tondero Films are pushing for more comprehensive film laws to support the industry’s development. Despite the hurdles, Peruvian cinema has seen success with films like “Mistura,” which is in talks for U.S. distribution, showcasing the country’s diverse storytelling capabilities.

Looking ahead, Peru aims to enhance its film industry by attracting a wider range of productions and providing incentives for both local and international filmmakers. By leveraging its unique landscapes and cultural heritage, Peru seeks to position itself as a dynamic filming destination that offers a blend of tradition and modernity for filmmakers and tourists alike.