Tools

Once upon a time, film festivals were limited to a handful of major events around the world, including the daddy of them all, the Venice International Film Festival, which launched in 1932. But today, thanks to the growth of the international film business, every last small town and emerging nation wants a festival of its own.

Witness the plethora of new festivals across the Arab world, from Doha to Dubai, and from Marrakech to Abu Dhabi. Or the latest addition to the circuit, the Aruba International Film Festival, which debuted this year. The International Federation of Film Producers Associations (FIAPF) accredits around 50 film festivals around the world, although this is just the tip of the iceberg. Go to filmfestivals.com, "the number one portal site for festivals and film news", and you'll find more than 4,000 film festivals listed. The festival A-list includes the likes of Cannes, Venice, Berlin and, of course, the BFI London Film Festival, which takes place this month. But, beyond that, there are countless festivals to attend, from Taormina to Telluride, Caracas to Copenhagen.

A major factor in the proliferation of film festivals is the potential economic impact a festival can have on the local economy. "The effect on London is huge," says Amanda Nevill, director of the BFI. "During the London Film Festival we sell 124,000 tickets, so that's 124,000 restaurant meals for a start. Then there are transport fares, and hotel rooms for all the delegates we have coming in. And there are huge benefits from a proximity point of view for the industry. We've got one of the best post-production businesses in the world in London, so it's a great opportunity for them to tout themselves around. Finally, you've got film-makers coming in and perhaps falling in love with London and thinking they might film something here."

The BFI has yet to fully analyse the economic uplift the LFF brings to London, but research from other festivals gives an idea of how significant it can be. According to a recent study on the Berlin International Film Festival by the Investitionsbank Berlin, the event created a €40m bonanza in the city in this, its 60th year.

"The Berlinale's economic impact is enormous," says its director, Dieter Kosslick. "It has not only established Berlin's position as an international film metropolis, but also stimulated its growth.

It boosts sales, creates jobs and generates revenue." At this year's Berlinale, 300,000 tickets were sold, while some 4,000 journalists from more than 80 countries also attended. "Another important factor is how the city's image has benefited from coverage in the media," says Kosslick. "Every year in February, Berlin presents itself as a young, modern and trendy city, and the attention in the media is enormous."

Film festivals acquire funding in various ways. According to Nevill, the LFF's money comes from three sources: ticket sales, central government funding, and sponsorship and media partnerships. This year's big news is that American Express has come on board as the LFF's new headline partner, tying in nicely with the company's strategy of giving cardholders special access to cultural events. The LFF offers sponsors plenty of opportunities for corporate hospitality, especially as the big films are usually followed by a glamorous party. The festival also has a number of in-kind sponsorship deals with suppliers such as Stella Artois, Green & Black's and Icelandic Glacial mineral water, who all benefit from getting their brand in front of a large audience.

But it's not just sponsors who are looking for exposure. "The reason film-makers, distributors and studios want their films at the festival is because it's a fantastic promotional device," says Nevill. "And where we are placed in the film calendar is just when all the campaigns for the Baftas and Oscars start. So to get your film shown at the BFI London Film Festival in the centre of the English speaking world on this side of the pond at that time of the year is very important, because if you get a Bafta or an Oscar your chances of a better box office are hugely increased."

And of course some of the glory rubs off on the film festival that first premiered a film. For example, in 2008, the Hawaii International Film Festival hosted the US premiere of the Japanese film Departures, which went on to win an Oscar for Best Foreign Language Film. "Once Departures won the Oscar, it went on to become a huge hit across the United States," says the festival's executive director, Chuck Boller. "That kind of exposure for HIFF not only helps the festival publicity-wise and, frankly, status-wise, but also helps put Hawaii on the map as a significant film-oriented location."

Last year, HIFF's locally produced trailer won the Hollywood Reporter's Key Art Award for the best film festival trailer in the world, drawing more attention to film making on the island.

According to Boller, the main goal of the festival is cultural: "HIFF's mission statement since its inception 30 years ago has been to promote understanding and cultural exchange through the medium of cinema," he says. "In today's volatile world, this statement is more significant than ever. There is perhaps no finer window into other cultures than film."

"Our primary goal is to put together a brilliant and eclectic slate of films that haven't yet opened anywhere else to the public," says the BFI's Nevill. "The big film festivals - and we consider ourselves to be in that very top tier — live or die by the quality of the films that they manage to attract. And I think the ability of our artistic director Sandra Hebron to hit on films that then go on to win the great awards is second to none."

After record-breaking ticket sales last year, Nevill is hoping for another fortnight to remember. "Last year really was absolutely spectacular," she says. "And one thing I know for certain is that we have a really amazing line-up of films this year."

This month's BFI London Film Festival kicks off with the European premiere of Never Let Me Go, the film adaptation of Kazuo Ishiguro's novel, starring Keira Knightley and Carey Mulligan. It closes with the European première of Danny Boyle's new film, 127 Hours. And there are no prizes for guessing where his last film, Slumdog Millionaire, got its first showing in Europe - at the London Film Festival 2008.

• Tweet