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The Hobbit will film in New Zealand

Good news. Peter Jackson will stay in New Zealand to shoot the two-part The Hobbit. The announcement was made last night in New Zealand by Prime Minister John Key [Via Deadline:]

Producer/director Peter Jackson is celebrating. Warner Bros executives were locked in negotiations all day with New Zealand government leaders. Then Prime Minister John Key announced at a press conference tonight that The Hobbit back-to-back movies will be made in New Zealand. That’s a $500+ million project, and the Hollywood studio bargained considerable perks for itself. Tax rebates of up to an extra $7.5 million per movie are arranged, subject to the success of the pics. The NZ government will offset $10 million of Warner Bros’ marketing costs as part of the strategic partnership. And New Zealand will also host one of the world premieres of the Hobbit movies. The NZ Government and Warner Bros also agreed to work together in a “long-term strategic partnership” to promote New Zealand as both a film production and tourism destination. Said Key: “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.”

The Hobbit: Part I is rumored to have a December 19, 2012 release date. The second part would release in December of the following the year.

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