Sinking ship : Cinemas suffering from worst economic crisis due to Covid-19

Cinema owners who were affected by the Covid-19 lockdown have decided to close down their businesses despite resuming operations a couple of weeks ago. According to sources, the decision was taken because the federal and provincial governments did not take cinema owners’ demands seriously. Besides, newly released domestic and foreign movies are also not available.

Owners of some cinema houses in the most expensive business areas of Lahore, Karachi, and Islamabad-Rawalpindi have started contacting architects to convert the buildings to commercial plazas. Similarly, the management of Pakistan’s only IMAX cinema in Lahore, which was created for $4 million, has decided that to permanently close the cinema within a few months if the current situation persists.

“The government has declared cinemas an industry but unlike other industries, we are not being given financial packages and concessions,” one cinema owner said. “Electricity bills are also being collected according to commercial tariffs instead of industrial tariffs.”

At present, there are 125 cinemas across the country. Before the coronavirus outbreak, a huge number of spectators used to frequent these cinemas to watch the latest Hollywood movies on the big screen.

“We would run a new English movie every 15 days before the lockdown. At the same time, good films made in Pakistan used to get good business for several weeks too,” the owner said.

Not only did cinemas close during the coronavirus lockdown, but the process of filmmaking around the world, including in Pakistan, came to a standstill and the release of pending films have been delayed for months.

After the lockdown in Pakistan, the government allowed cinema houses to exhibit different movies by following strict standard operating procedures (SOPs) for Covid-19, but only 20 to 25 screens could stay active. Some owners decided not to reopen their cinemas fearing losses to business, while those who had opened their cinema houses have closed their doors.

“Our biggest demand from the government is to announce special electricity tariff for cinemas, but so far, nothing has been done and we are forced to pay hefty bills under the commercial tariff, which his unfair,” one of the owners said.

He added: “As a result of the government’s lack of seriousness and non-cooperation, the cinema industry is in danger of shutting down in the next few months, and if the industry shuts down this time, it will be very difficult to start from scratch again.”

In the 1970s, there were about 1,400 small and big cinema halls in Pakistan but this number has severely declined. In 2018, the number of cinema in the country stood at 161, which has now been reduced to 125.

“Our cinema houses used to be crowded when we showcased English and Indian films. When Indian films got banned, Hollywood movies filled the gap. Now, even English films are not available, so there is no incentive for cinemagoers anymore. It’s a sinking ship.”

It is worth mentioning that even in India, with a population of 1.5 billion, there is only one IMAX cinema.

Speaking to The Express Tribune, Film Exhibitors Association of Pakistan’s Chairman Zoraiz Lashari said that the cinema industry has been suffering from the worst financial crisis since the outbreak of Covid-19.

“Government SOPs are also tough, and people are scared to go to crowded places. Above all, we have no new domestic or foreign films to show,” Lashari said.

Published in The Express Tribune, October 26^th, 2020.