Tourism chiefs overjoyed as Middle Earth to remain in NZ
Tourism bosses breathed a sigh of relief this morning after New Zealand prime minister John Key announced The Hobbit films, worth $500m to the economy, would be filmed on his home turf.
Key, economic development minister Gerry Brownlee and heritage minister Chris Finlayson had been locked in talks with makers Warner Brothers all day yesterday.
All three of director Peter Jackson’s Lord of the Rings trilogy films were made in New Zealand but a dispute over actors’ pay and conditions soured the relationship after Jackson announced the making of The Hobbit.
Warner Brothers indicated that it was considering other locations, including the UK where JRR Tolkien set his stories, causing New Zealanders, who rely on tourism as the country’s top money spinner, to protest in the streets.
But Key has agreed to introduce legislation immediately to make clear the distinction between independent contractors and employees in relation to the film industry – a bone of contention that caused the initial stand off.
There will also be tax rebate changes for Warner Bros, meaning an extra US$7.5m per movie for Warner Bros, depending on how successful the films are.
Part of the deal will see the New Zealand government and Warner Bros working on a “long term strategic partnership” to promote the country as a tourism destination.
Key said: “My government is determined to use the opportunity that the Hobbit movies present to highlight New Zealand as a great place to visit, as well as a great place to do business.”
He added: “I am delighted we have achieved this result. Making the two Hobbit movies here will not only safeguard work for thousands of New Zealanders, but it will also follow the success of the Lord of the Rings trilogy in once again promoting NZ on the world stage.”
Meanwhile Tourism New Zealand was overjoyed with the news, which coincides with figures that show that in the year to March 2010, tourism was New Zealand’s biggest foreign money earner, earning more than the dairy sector and worth NZ$9.5 billion.
General manager public affairs Suzanne Carter said: “We are absolutely thrilled with the outcome of these negotiations. The Hobbit provides us with another great opportunity to promote New Zealand to the world in a unique way and to raise awareness of New Zealand as a visitor destination.
“The Lord of the Rings films presented New Zealand to the world in a truly spectacular way. From a tourism perspective the flow on effects of these films reach communities across the country with visitors coming to enjoy our unique scenery and lifestyle and using our tourism services as they travel.
“People are still travelling to New Zealand today because of the exposure gained through the Lord of the Rings trilogy and the Hobbit will provide another much-needed boost to our billion dollar tourism industry.”
She added: “As with the Lord of the Rings triology, Tourism New Zealand will be looking at every opportunity to leverage the profile of the Hobbit to promote New Zealand.”
by Dinah Hatch
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