Jackson gets his precious Hobbit

News that Peter Jackson is to film The Hobbit was met with delight this morning at the home of Hobbiton Matamata.

Hobbiton Movie Set and Farm Tours managing director Russell Alexander said the announcement that the Oscar-winning film-maker was revisiting Middle Earth was "huge".

"I'm rapt for Peter Jackson. It's just absolutely massive for New Zealand and the New Zealand brand and tourism."

Mr Alexander, whose farm near Matamata was picked in 1998 as the base of The Shire for The Lord of the Rings movie trilogy, said the making of the "prequel" was bound to generate more interest in his tours. However he said it was far too early to speculate whether Jackson would return to Matamata to film The Hobbit.

Matamata-Piako Mayor Hugh Vercoe said the entire town had benefited from the filming of The Lord of the Rings and that Jackson and his crew would be welcome back any time.

Jackson and Hollywood studios New Line Cinema and Metro-Goldwyn-Mayer Studios announced today that they had resolved a legal dispute preventing Jackson from making two Hobbit films. The films will be shot simultaneously, tentatively in 2009.