"Lord of the Rings was the set-up for the New Zealand film industry and The Hobbit is the cement - the industry is in a better position now than it was prior to this whole fiasco," said Brodie Stephens, a tape operator on the Lord of the Rings trilogy.
"I'm rapt - it's fantastic, it's a great deal and John Key is a smart man," he said.
Bearing a placard reading "Union tactics are destroying our NZ film industry", Mr Stephens took part in a rally to save The Hobbit at Queenstown's village green on Labour Day. He said the Government had not sold out and disputed claims the tax deal was corporate welfare.
"How the hell did they sell out? Think of how many millions it will bring in," he said.
Although the bulk of the production would take place in Peter Jackson's Wellington studios, Mr Stephens said he thought some sequences would be shot in the Queenstown Lakes district in locations similar to those used in the Lord of the Rings, such as Glenorchy, Treble Cone and the Remarkables.
When contacted yesterday about the possibility of filming in the Wakatipu area, a spokesman for Sir Peter's WingNut Films said, "No decisions on shooting locations have been made at this time."
The rescue has been welcomed by Film Otago Southland executive manager Kevin Jennings, who is hopeful parts of the two films will be shot in the region.
"It's great news for the Otago-Southland region and we look forward to the production hopefully choosing to shoot in the region and all the wider benefits it will bring," Mr Jennings said.
He would not be drawn on the actors' union boycott or the Government's tax rebate and marketing credit deal with Warner Brothers - thought to be worth close to $100 million.
Destination Queenstown chief executive Tony Everitt said he had no knowledge of The Hobbit locations in the district but said "obviously we would love it - it's fantastic for New Zealand and that alone is good for Queenstown".
