| Summary: | The locations where industries develop have a decisive influence on their activities. The recent development of international filmmaking in Iceland suggests that local landscapes are a comparative advantage of Iceland as a filming destination. Conversely, these increased filming activities might threaten the landscapes, directly through physical pressure, and indirectly though film-induced tourism aftereffects. Defying the apparent dichotomy between economic development and nature preservation, this case study assesses the Icelandic film industry’s consideration of environmental damages and evaluates the current legislation on the access to protected areas for filming purposes based on the Porter Hypothesis’ claim that adapted environmental regulations can enhance industries’ competitiveness rather than hinder it. Ten semi-structured interviews were conducted with the main stakeholder groups, paired with a descriptive analysis of the Maskína survey on drivers of tourism in Iceland. The cross-sectional results confirm that landscapes are the main factor to Iceland’s competitiveness as a destination for international filmmaking, but also indicate the professional production services and the financial incentive as indispensable complementary factors. The industry takes measures to limit damages on nature, benefiting its reputation and competitiveness; however, international films were the fourth driver of tourism in 2016, raising new challenges for nature and filmmaking. Access to protected areas is overseen by three agencies, providing few strengths and several limitations to the industry and environmental preservation alike. Having a unified institution inspired by New Zealand could increase practicality, efficiency, and flexibility in the regulation, leading to mutually beneficial outcomes for stakeholders. The adaptive nature of the motion picture industry and the effective state of cooperation in place indicate opportunities to do so collaboratively, which could help addressing the phenomenon of film-induced ...
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