Thousands of film and television workers are expected to protest this week outside Queen's Park in Toronto to demand additional tax credits for their industry.

The Toronto rally is planned for this Wednesday, Dec. 1.

The SARS crisis and the soaring Canadian dollar have kept U.S. filmmakers away from Toronto, effectively damaging the $1-billion industry. Business may have dropped by as much as 40 per cent in the city, industry leaders have said.

California Governor Arnold Schwarzenegger has also made successful pitches and convinced some American actors to film in his state.

On top of that, another possible headache for Toronto is that Quebec industry leaders are also organizing at a forum over the next few days to discuss how to regain lost ground. They may request government funding for homegrown films or consider new film tax incentives to attract production companies.

Toronto industry professionals say their problems have worsened because of new studio facilities in Vancouver and Montreal, and subsidies offered by municipal and provincial governments to lure American filmmakers to their respective cities.

Last week Toronto Mayor David Miller spoke out on the B.C. and Quebec tax credits.

"Their policies are deliberately aimed at taking the film industry outside of Toronto and that means in the context of the high Canadian dollar, you can kill the industry as a whole. It's that serious," the mayor said.

Ontario Finance Minister Greg Sorbara has said he has no new incentives to offer. But Ontario Conservative Leader John Tory says improved tax incentives are needed to save thousands of jobs.

Toronto City council is scheduled to discuss Miller's efforts to develop a new film board in the city.

With files from CTV's Genevieve Beauchemin