The tourism industry is gathering in Queenstown for its annual sales pitch to buyers from around the world, with high hopes the Hobbit movies will prove an irresistible lure to tourists.

Peter Jackson has released the first production video from the set of The Hobbit movies now filming in New Zealand.

For the first time, we can reveal the beautiful New Zealand scenery that will be made world-famous in The Hobbit.

Key cast members of The Hobbit made their first media appearance today, minus director Peter Jackson.

A US businessman fraudulently billed almost a quarter of a million dollars to film director Sir Peter Jackson's credit card.

NZ taxpayers have spent more than half a billion dollars over the past decade subsidising Hollywood.

Prime Minister John Key, who will meet high-powered executives from Warner Brothers in Wellington in the next two days, thinks there is a "50-50" chance of The Hobbit being filmed in New Zealand.

Sir Peter Jackson has taken a shot at an Australian union for intervening in the NZ film industry and unsettling plans to film The Hobbit in this country.

Losses to the tourism industry would be well into the millions if The Hobbit films are not shot here, an expert has warned.

Hobbiton has put Matamata on the map, but with production of The Hobbit shifting overseas, the town's future as a tourist hub is in jeopardy.