The Ontario film and television industry hopes it is back in action after two years on the sidelines.

While the number of foreign feature films made in Ontario last year was almost unchanged from 2003, total spending was up about 140 per cent, according to statistics released recently by the Ontario Media Development Corp. (OMDC).

"We're definitely pleased at the way those numbers have started to recover," Donna Zuchlinski, the corporation's manager of film, said in an interview.

"We're getting more calls and more requests. Everyone is learning once again that Ontario has a lot to offer."

Culture Minister Madeleine Meilleur

OMDC, an agency of the Ontario Ministry of Culture, says 13 foreign feature films were produced in 2004 at a cost of $331.3 million. In 2003, $138.9 million was spent on making 12 foreign feature films - down from 18 in 2002, when total spending was $216 million.

The sharp decline in 2003 was partly a result of an outbreak of SARS - severe acute respiratory syndrome - in Toronto. Other factors include the growing popularity of reality TV shows, increased competition with other provinces and a Hollywood campaign against so-called runaway productions, a term referring to studios that take filming - and jobs - outside the United States.

Further evidence of the recovery can be seen in the OMDC's foreign film production category that includes television series, docudramas, pilots, specials and mini-series.

Last year, there were 38 foreign film productions in Ontario with a total spending of $486.3 million. In 2003, 40 foreign film productions were made at a cost of $369.9 million - a sharp decline from 2002, when there were 69 productions and $574.4 million in spending.

About 35 per cent of Canada's total film production usually takes place in Toronto. According to the Toronto Film and Television Office (TFTO), spending from major film productions in the city totalled $928.1 million in 2001, when 5,018 film permits were issued. Major films are defined as all productions except music videos, corporate videos and TV commercials.

Although the spending figure moderated slightly in 2002 to $886.1 million - when 5,727 permits were issued - it dropped sharply in 2003 with $723.2 million in spending and only 4,340 film location permits.

Last year, however, major film production spending in Toronto rebounded to $801.6 million, city figures show. About 4,302 film permits were issued.

Programs have recently been announced in several provinces to bolster the film industry.

Shortly before Christmas, Ontario Finance Minister Greg Sorbara and Culture Minister Madeleine Meilleur jointly announced a $48-million tax-incentive package for the film and television industry. Tax credits for domestic film productions were raised from 20 per cent to 30 per cent over a five-year period.

The tax credit for foreign productions - seen as crucial to luring Hollywood productions to Ontario - soared to 18 per cent from 11 per cent. A 10-per-cent bonus credit also is available for productions that shoot outside the Toronto area in cities such as Hamilton or Ottawa.

Finance Minister Greg Sorbara

Rhonda Silverstone, film commissioner for the TFTO, said she first heard rumours about a possible bailout package in early December. "I heard buzz that something was going to be coming soon, and it was going to be big."

That same month, Toronto city councillors voted to "peg the dollar" at 78 cents. That means foreign production companies will be protected against fluctuations in the Canadian dollar. If the dollar goes past that mark, the city will refund them the difference.

In January, Silverstone teamed up with provincial officials to meet with 20 film companies. As a result of the meetings, she said, five firms agreed to consider Toronto as a location for their upcoming shoots.

Silverstone refused to name who was considering bringing their film productions to Toronto, or what the movies would be. The city posts a list of current movie and television filming on its website, but production companies can choose not to be listed.

Since permits are usually issued for longer than needed to allow time for potential production delays, it is difficult to estimate how many are in Toronto at any specific time.

Other provinces have also implemented tax incentive programs.

Less than a week after the Ontario announcement, Quebec increased its tax credit to two points above Ontario, raising the incentive from 11 per cent to 20 per cent for foreign productions.

The B.C. government also announced a one-year plan to raise core tax incentives to match Ontario. Foreign film production credits were raised to 18 per cent from 11 per cent, and domestic tax breaks to 30 per cent from 20 per cent.

Statistics for British Columbia were unavailable because several municipalities are involved, and each one collects its own numbers. The province is not scheduled to release its latest figures until later this spring.

Previous news releases and government announcements, however, indicate that in 2001, 84 visiting foreign film productions spent an estimated $856.9 million. In 2002, the number of visiting foreign films declined to 65, but spending was higher at $1.23 billion.

B.C. film commissioner Susan Croome said she's already noticed an increase in the total number of film projects in the province. B.C. has branded itself as World of Looks because of its diverse geography for filming. It also benefits from being in the same time zone and a short flight away from Los Angeles and Hollywood, Croome said.

Alberta residents also get to glimpse their province in movies - it has stood in for different parts of the United States, Europe, Japan and the Arctic.

"One of our biggest advantages is the diversity of locations," said Beth Thompson, manager of film development for the Calgary Film Commission.

Last year, her office approved 62 permits for different types of filming around the city. No official spending estimates were available.

Thompson said the Alberta Film Development Program offers tax incentives to help local directors and producers with up to $750,000 per project. The program has been a "victim of its own success," however, due to getting so many applications, she added.

"It seems to go in trends where different locations are popular for a while," she said. "We seem to be in a very different situation than the rest of Canada because last year was good for us. It's been pretty consistent."

(David Hatton can be reached at hatton@businessedge.ca)