A landmark deal has been signed with Amazon for The Lord of the Rings TV series, currently being filmed in New Zealand.

The Memorandum of Understanding (MoU) - signed after negotiations between Amazon and the New Zealand Film Commission, Tourism New Zealand, and the Ministry of Business, Innovation and Employment - secures multi-year economic and tourism benefits to New Zealand, outside the screen production itself.

Economic and regional development minister Stuart Nash predicted the agreement will not only create an enduring legacy for New Zealand’s screen industry, but also generate local jobs and create work for local businesses.

“There is considerable economic and tourism potential in the Lord of the Rings project,” he said. “Not only does it bolster our global reputation as a desirable place to make screen productions, it will further strengthen our tourism appeal to visitors with the ‘Middle-earth’ theme,” he said.

The Lord of the Rings trilogy was dubbed “the best unpaid advertisement that New Zealand has ever had" by a former Tourism New Zealand manager and the number of visitors to New Zealand shot up by 40 per cent in the five years following the first film’s release in 2001. 

Stuart Nash says the deal will create an enduring legacy for NZ’s screen industry; meanwhile the Tax Payers Union called it a “corporate welfare payment” for one of the world’s richest companies. PHOTO: Supplied

A film studio proposed for Wanaka was also recently compared to the Lord of the Rings films in terms of the effect it could have on the local economy.

See also ‘Lord of the Rings’ style boost from proposed film park

The TV series is expected to be a multi-year production and filming will take place in provincial regions as well as Auckland, and it is expected to be particularly beneficial for the South Island, Stuart said.

Stuart said the deal will also result in job creation; increased coordination with Amazon and NZ businesses; Amazon’s promotion of NZ businesses, innovation and R&D opportunities; and stimulate growth in the NZ screen sector.

“It will enable a new wave of international tourism branding and promotion for this country. It opens the door for Kiwi businesses to access future innovations in technology, research and development through connections with the wider Amazon group,” Stuart said.

It is estimated Amazon is spending up to $650 million in New Zealand for season one of the show. The MoU entitles it to a potential rebate of 25 per cent of this expenditure, or approximately $162.5 million.

While New Zealand Taxpayers Union spokesperson Louis Houlbrooke described the deal as a “$162M corporate welfare payment” for one of the world’s richest companies, Stuart said these types of grants, rebates and incentives are “the global norm for countries who want to be part of the international film industry”.

“Without this rebate, jobs and economic opportunities would be lost overseas in the fiercely competitive global film industry,” he said.