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After uncertainty over its production location, The New York Times has reported that The Hobbit film will be shot in New Zealand.

New Zealand Prime Minister John Key this week negotiated with several Hollywood executives to secure the location, the New Zealand Government agreed to provide special financing and introduce new labour legislation. They will also provide $15 million for the two films’ production budget and an additional $10 million for marketing.

The new legislation is expected to require workers to designate their status as an employee or a freelance worker when beginning a project, then stick with it.

The Tourism Industry Association New Zealand (TIANZ) is delighted that the production has been secured for New Zealand, saying it will boost the entire economy while tourism operators around New Zealand look forward to supporting the filming of The Hobbit and using the films to promote the country.

Figures released this week show that tourism earns New Zealand $9.5 billion in foreign exchange a year, with domestic tourism adding another $12.9 billion to the economy. These figures show the value of continuing to invest in international tourism marketing,

As TIANZ Communications Manager Ann-Marie Johnson explains, “if The Hobbit movies are as successful as the Lord of the Rings trilogy, we expect to see a real boost to visitor arrivals and expenditure. People are still coming to see Lord of the Rings locations, seven years after the films were released.

“Even more important than visits from film fans is the exposure that the films will give New Zealand internationally, especially with the marketing deal agreed between the government and Warner Brothers. Along with Rugby World Cup 2011, The Hobbit will help keep New Zealand top of mind in the international travel marketplace.”

Nomad Safaris Managing Director David Gatward-Ferguson agrees. The Queenstown operator offers tours to LOTR locations which continue to attract many visitors.

Gatward-Ferguson adds “people are aware there is amazing scenery here because it has featured in award-winning movies, even if they haven’t seen them. The Hobbit will not only rekindle the interest in LOTR, but we’ll also have a whole new generation seeing The Hobbit who will be keen to visit New Zealand.”

The Hobbit has already suffered from several delays. J.R.R. Tolkien’s estate sued the production and the original director, Guillermo del Toro, resigned. New Zealander Peter Jackson is now to direct the movie. 

23rd July 2010 - NEW ZEALAND VISITOR ARRIVALS HIT 2.5 MILLION

1st March 2010 - TOURISM INDUSTRY BACKS WORLD-CLASS CRUISE FACILITY

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