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Large-Scale Film Productions May Increase Property Use Costs and Strain Local Infrastructure

·5 min read·👀 Watch

Executive Summary

Disney's temporary construction of a large film set on Kauai highlights the potential for significant short-term economic benefits alongside major logistical and environmental challenges. Real estate owners and tourism operators should anticipate increased demand for temporary land use and infrastructure, while investors and entrepreneurs can monitor for localized economic stimulus.

Watch & Prepare

Medium Priority

If similar productions are considered or proposed in the future, local businesses need to be prepared to engage with the zoning, permitting, and logistical aspects involved, which requires understanding past examples.

Watch for announcements on major film productions being considered for Hawaii. If a proposal surfaces, review county permitting requirements and the potential impact on local infrastructure and land use costs.

Who's Affected
Real Estate OwnersTourism OperatorsInvestorsEntrepreneurs & Startups
Ripple Effects
  • Intensive film production land use → increased demand for specialized construction & logistics services → potential labor shortages in other sectors
  • Large temporary construction footprint → elevated local infrastructure strain (transport, waste) → higher permitting & mitigation fees for future projects
  • Film production focus → potential displacement of other economic development or land uses → long-term diversification risk
Outdoor film set with crew and camera, capturing a scene with a seated actress.
Photo by Aj Collins Artistry

Large-Scale Film Productions May Increase Property Use Costs and Strain Local Infrastructure

Disney's five-year-old construction and rapid dismantling of a 1916 Amazon port town on Kauai offers a case study for businesses considering the impacts of major film productions. While such events can bring localized economic activity, they also present challenges related to land use, infrastructure, and environmental management that require strategic planning.

The Change

Five years ago, Disney leased and transformed a section of Kauai near the Kapaia Reservoir into a detailed film set for "Jungle Cruise." The production involved substantial construction, filming over several weeks, and subsequent complete demolition and site restoration. This process exemplifies the intensive, temporary use of land and resources typical of large-scale film ventures, raising questions about recurring opportunities and their broader economic and environmental implications for the islands.

Who's Affected

  • Real Estate Owners: Property owners in areas suitable for large-scale film sets could see increased demand for temporary leases, potentially driving up short-term rental rates for land. However, they must also account for the complexities of permitting, environmental impact assessments, and the significant disruption associated with intensive construction and demolition. Demands for site restoration can also add to the owner's long-term costs or recovery time.
  • Tourism Operators: While major film productions can draw media attention and potentially boost visitor interest in filming locations, they can also lead to temporary closures of public access areas and strain local services like transportation and accommodation for cast and crew. This might cause short-term disruptions for existing tourism operations, particularly on islands with limited available land like Kauai.
  • Investors: Investors looking at Hawaii's economy should recognize the dual nature of film production impacts. On one hand, they represent a significant, albeit temporary, injection of capital into local economies, potentially stimulating growth in specific sectors like construction and hospitality. On the other hand, the intensive, short-term land use can impose significant environmental costs or regulatory hurdles that might affect long-term development projects or land valuations.
  • Entrepreneurs & Startups: Businesses that can offer specialized services to film productions—such as logistics, catering, specialized construction, or environmental remediation—may find niche opportunities. However, the transient nature of productions means these opportunities can be unpredictable, requiring flexibility and adaptability. The demand for skilled labor for such productions could also temporarily increase competition for talent.

Second-Order Effects

Intensive, temporary land use for film sets can lead to increased pressure on local infrastructure like transportation and waste management. This strain, coupled with extensive construction and teardown, can necessitate higher permit fees and environmental mitigation costs, ultimately increasing the operational expenses for future large-scale projects and potentially impacting long-term land development feasibility.

What to Do

For Real Estate Owners considering land use for film productions, proactively engage with county permitting offices and environmental agencies to understand the full scope of requirements, potential timelines, and necessary restoration guarantees. For Tourism Operators, monitor local media and county announcements for upcoming large productions that might affect access to popular sites or accommodation availability, and consider marketing unique behind-the-scenes experiences if permissible.

Investors should research the long-term economic viability of the film industry in Hawaii beyond direct subsidies, examining its impact on local supply chains and infrastructure. Entrepreneurs should assess their capacity to provide specialized services required by film production companies, focusing on scalability and adaptability, while also preparing for the potential for short-term, high-demand projects that may not have a consistent revenue stream. All roles should be aware that future productions will likely involve increased scrutiny regarding environmental impact and community benefit agreements.

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