Nepali Cinema's Cannes Success Highlights Need for State Support

The 79th edition of the 'Cannes', one of the world's most prestigious international film festivals, recently concluded, bringing together politicians, businessmen, journalists, film distributors, and critics from around the world in Paris. For filmmakers worldwide, having their cinema selected for this festival is considered a lifelong dream.

Avinash Bikram Shah's directorial debut, 'Elephant in the Fog', made history by being selected in the 'Un Certain Regard' and 'Best Sound' categories at the festival. It won the Jury Award in 'Un Certain Regard' and the Best Sound award.

This was a dream come true for Nepali filmmakers. Previously, Avinash's short film 'Laure' had won an award in the short film category at Cannes. Since the late 1990s, many 'short films' made by Nepali filmmakers have been selected for international film festivals. This trend has now culminated in a feature film winning an award at a prestigious festival like Cannes.

This success was achieved by a filmmaker through their personal dedication and continuous effort. While there may be many stories and individuals behind this success, Avinash led the way. The state's role in this success appears negligible. Furthermore, the state has missed the opportunity to claim ownership of this achievement after the award was won.

Nepal produces around a hundred films annually. The state considers this number alone a significant achievement. However, the measure of cinema or literature is not by quantity but by quality. Quality creations can inspire society, whereas substandard creations can have a more negative impact.

Therefore, the state's role is not just to count numbers but to create an environment conducive for creators of quality cinema to continue their work. The success of Nepali cinema in international festivals over the past two decades clearly demonstrates that Nepali stories, art, history, identity, social consciousness, culture, heritage, and archaeology can reach the international market when presented artistically. Today, most Nepali films reaching international film festivals are not the result of government strategy, special grants, or international promotion; they are the fruits of the tireless efforts, personal financial risks, international collaborations, and optimal utilization of limited resources by Nepali film directors, producers, writers, technicians, and actors.

However, this cannot always be achieved solely through the efforts of filmmakers. It is imperative for the state to develop long-term strategies for the film sector and commit to formulating policies and programs accordingly. Doing so will elevate the film sector beyond being merely a source of entertainment or a medium to represent the country; it can also generate substantial economic benefits. Clearly, investing in the film sector is equivalent to supporting the national economy.

The global community has witnessed successful examples of this:

1. South Korea: South Korea is the prime example of how cinema and culture can transform a nation's economy. In the 1990s, Korea faced a severe economic recession. However, during that time, it made significant investments in the film and music sectors with the objective of generating economic returns, utilizing them as soft power.

As a result, according to a 2025/2026 report, this sector contributes approximately US$17.1 billion annually to the country's GDP. Its indirect contribution to society and its role in spreading Korea's reputation have greatly helped in attracting foreign currency. According to the Korean government's 'International Visitor Survey', 38.3 percent of tourists visiting Korea are influenced by Korean cinema, dramas, or culture. Due to cinema, the export of Korean fashion, cosmetics, and cuisine has increased worldwide.

2. New Zealand: New Zealand implemented a long-term strategic plan to invest in the film sector, aiming to showcase its natural resources and the stories of its indigenous people (Maori) to audiences worldwide through cinema. This has played a significant role in promoting the country's tourism. After the release of the popular film series 'The Lord of the Rings' and 'The Hobbit' in the early 2000s, the number of tourists visiting New Zealand surged. A large number of tourists visit places like 'Hobbiton', where the movies were filmed. This has directly added billions of dollars and thousands of jobs to the national economy, a phenomenon known as 'The Ring Effect'.

3. France: France has invested heavily in international film festivals like Cannes to protect its art and identity from Hollywood's cultural dominance. The French government views cinema not just as a business but as a national pride and heritage. France collects a certain percentage of each cinema ticket sale as tax, which is then redistributed as grants to filmmakers for producing original French cinema. This has paved the way for the production of a large number of original films in France. In France and other European countries, 'Creative Economy' (cinema, art, literature) significantly contributes to overall employment. Cinema has played a major role in France's global image and tourism development.

4. Philippines: The Philippines has been reaping significant economic and cultural benefits by promoting its art, culture, and stories worldwide through cinema and theater in recent times. The Philippine government considers cinema, music, and digital media as a cornerstone of the country's economy. To this end, they passed a historic law in 2022 called the 'Philippine Creative Industries Development Act'.

The primary objective of this law is to foster economic development and create employment through cinema and the arts. According to a recent report, the arts sector provides direct or indirect employment to approximately 7 million citizens in the Philippines.

This country has globalized its indigenous stories and identity. They prioritize historical events, family values, and Filipino indigenous cultures in their films. The 'Film Development Council of the Philippines' offers 'Film Location Incentives' to attract foreign filmmakers to shoot in the Philippines. Foreign film shootings directly benefit local technicians, actors, and the tourism industry.

Now, let's discuss some of our neighboring South Asian countries:

1. India: Bollywood and, more recently, South Indian cinema have globalized India's internal culture and folk tales. In India, the world's most populous country, the media and entertainment sector directly and indirectly employs over 5 million people.

The Ministry of Tourism, Government of India, has formulated a special policy to promote 'Film Tourism'. India has consistently used cinema not just as a medium of entertainment but as its most significant soft power for spreading its identity worldwide.

2. Bangladesh: Bangladesh has recently been investing heavily in reviving its film industry, 'Dhallywood', and disseminating its original stories worldwide through OTT platforms. The Bangladesh government is modernizing the film censor board and has established a special concessional loan fund of millions of Taka for upgrading cinema halls to promote the film industry. The government also distributes substantial government grants annually for the production of films that embody national identity.

3. Sri Lanka: Sri Lanka has significantly supported its tourism industry by showcasing its post-civil war history, Buddhist heritage, and natural beauty to the world through cinema. Tourism contributes about 4 to 5 percent to Sri Lanka's total GDP, with cinema tourism playing a major role. Many famous Hollywood and Bollywood films have been shot here. Its national film corporation has a policy of earning foreign exchange by attracting foreign films to shoot in the country. Additionally, the government provides financial assistance to help local films reach international festivals.

Looking at this, while the contribution of cinema to the economy in our neighboring countries is being discussed, our state lacks even consolidated statistics or 'data' on how much the film sector contributes to the economy.

Nepal possesses the world's best locations and unique stories. If the state shifts its perspective from viewing the film sector as unproductive and prioritizes it policy-wise, similar to neighboring countries, Nepali cinema can inject new energy into Nepal's sluggish tourism and creative economy.

This is because, in recent years, the role and importance of the creative sector in the global economy have been increasing. According to a recent study report by 'Business Consulting Firm and Global Management', the output of the creative industry in 2020 was $2.25 trillion, accounting for approximately 3.1 percent of the world's total GDP.

According to a 2022 UNESCO report, the creative sector generated about 6.2 percent of the total jobs created worldwide. This report states that every $1 invested in the creative industry yields a total economic 'output' of $2.50, as the creative industry also benefits other sectors of the economy such as tourism, manufacturing, and urban services.

Therefore, today, the creative sector is not limited to state prestige, entertainment, or luxury. It creates a large number of jobs and stimulates the economy. Just as the Philippines and other countries have been able to make a significant contribution to their national GDP by legally recognizing their film and art sectors as creative industries, Nepal can also elevate cinema beyond entertainment to become an engine for economic development.

It is imperative for the state to introduce concrete policies to promote Nepal's unique stories, language, attire, and culture to the world through cinema.

The new film bill has been passed by the National Assembly and presented in the House of Representatives, and is currently under discussion in thematic committees. Sufficient suggestions have been provided by stakeholders on the tabled bill. Every suggestion and debate collected during this process will prove valuable in guiding the Nepali film sector in the days to come.