The Canadian film industry is turning a potential economic challenge into an opportunity as the declining value of the Canadian dollar positions the country as an attractive destination for U.S. film and TV productions. With the loonie hovering around $0.70 USD, Canadian industry insiders are optimistic about luring Hollywood projects north of the border, capitalizing on competitive exchange rates and robust provincial incentives.
Why the Low Dollar Matters for Productions
A weak Canadian dollar translates to significant cost savings for American studios. According to Damien Petti, International Vice President of the International Alliance of Theatrical Stage Employees (IATSE), “The low dollar is one of the factors that drives decisions to shoot in this jurisdiction.” Historically, such economic conditions have led to production booms in Canada, with the early 2000s offering a prime example when projects like Scooby-Doo 2 filmed in Vancouver during a low-point for the loonie.
Michelle Wong, head of business affairs at Calgary’s Seven24 Films, also sees parallels between now and that period. “When the dollar dipped, we saw a massive influx of U.S. productions. I expect a similar trend this time around,” she said, noting that American studios are already eyeing Canadian locations for spring shoots.
Canada’s Competitive Edge
Canada’s proximity to the U.S., shared language, cultural similarities, and well-trained crews make it an ideal choice for Hollywood. However, the exchange rate isn’t the only factor driving productions to Canada. Provinces are fiercely competing by enhancing their film tax credits and production incentives.
British Columbia, often referred to as “Hollywood North,” recently increased its tax credit for international productions from 28% to 36%, alongside a special bonus for blockbuster projects with budgets exceeding $200 million. Alberta offers a 22% tax credit but covers a broader range of production costs, coupled with benefits like low corporate tax rates, no provincial sales tax, and streamlined permitting. Meanwhile, Quebec has raised its credit to 25% and introduced a 65% cap, further intensifying the competition.
“Numerous jurisdictions across Canada are upping their incentive game,” said Petti. “The low dollar might attract productions, but these competitive tax structures seal the deal.”
Success Stories Fuel Optimism
Canada has already proven its value to major productions. Alberta, for example, hosted the first season of HBO’s The Last of Us, filming across 180 locations and significantly boosting the province’s GDP. Michelle Wong credits Calgary’s flexibility, including shutting down major roads for filming, as a key factor in attracting such large-scale projects.
Though The Last of Us has since moved to British Columbia for its second season, Alberta’s ability to accommodate the needs of major productions remains a selling point. “Provinces like Alberta have learned to be agile, which is critical when competing with larger centers like B.C. or Ontario,” said Wong.
Challenges and Opportunities Ahead
Despite its advantages, Canada faces challenges in retaining productions. The global industry’s increasing reliance on virtual production and advancements in visual effects mean that location-based shoots are no longer the default. Moreover, competition isn’t just domestic—international markets like Eastern Europe and Australia are also vying for Hollywood’s attention with their own aggressive incentives and cost savings.
Nonetheless, Canada’s combination of a low dollar, skilled labor, and growing infrastructure puts it in a strong position. For U.S. studios, it’s not just about cost-cutting—it’s about finding locations and partners that deliver quality and efficiency. As Petti pointed out, “If the dollar dips below 70 cents, we’re at a tipping point. Producers will see the scales tip in favor of shooting here.”
A Broader Context for Hollywood Insiders
For members of the global production community, Canada’s low dollar is just one factor in a rapidly evolving landscape. The increasing emphasis on sustainability, virtual production, and streamlined workflows means that incentives like tax credits and favorable exchange rates need to be paired with cutting-edge infrastructure and flexibility. Canada’s response to these challenges—through investments in training, infrastructure, and tax policy—positions it as a model for how regional markets can compete on a global stage.
As the exchange rate continues to favor U.S. productions, Canada’s provinces must ensure they offer not just affordability but also value. Whether it’s leveraging local expertise, developing new soundstage spaces, or showcasing its diverse locations, Canada has the opportunity to solidify its role as a cornerstone of Hollywood’s production strategy.
