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Wellington Mayor Celia Wade-Brown says the announcement from Sir Peter Jackson that the world premiere of The Hobbit will be held in Wellington is "terrific news for the Capital".
The premiere is reported to be planned for late November 2012.
"The marvellous talent in Miramar continues to shine on the world stage," says Mayor Wade-Brown.
"This is terrific news for the Capital. It underlines the importance of the film industry to Wellington and also the commitment by Sir Peter and Sir Richard Taylor to our city's culture and economy.
"Wellington has really taken Middle Earth to heart and will celebrate the world premiere.
"The world premiere of The Lord of the Rings (LOTR): The Return of the King in 2003 was such a magical occasion when 100,000 Wellingtonians came out to party. We will support this event and make it the spectacular and memorable premiere The Hobbit deserves.
"This announcement continues to justify the Council's investment in the Embassy Theatre and the arts sector," says Mayor Wade-Brown.
The City Council's Economy Portfolio Leader, Cr Jo Coughlan, agrees the Hobbit premiere will again focus world attention on the Capital and emphasise the huge contribution that the movie industry makes to the local economy.
She says that a City Council-commissioned report by MartinJenkins released earlier this year estimated that direct value added to the Wellington economy in 2009 from the arts and culture sector was between $284 million and $292 million. An economic impact report on the LOTR premiere in 2003 also estimated that the single event contributed about $9.5 million into the local economy.