In a joint announcement, earlier this week, Prime Minister John Key and the international film director James Cameron established that the next three Avatar movies will be filmed in New Zealand, and the production would qualify for a tax rebate of 25 percent.

James Cameron is also excited about this news for another reason. He and his family will become residents in New Zealand as he has bought a piece of land in Wairarapa.

Cameron also wants to help bring talented work to New Zealand.

"It's important for everyone to know this isn't just about the Avatar films directly, it's about trying to lift up the New Zealand film industry, incubate new talent and develop new IP."

A major reason Cameron is shooting in New Zealand is because they'll be getting a 25% rebate for shooting there. Part of the deal is that the studio will have to help with marketing New Zealand, help increase local employment, and expend at least $500 million on production in New Zealand which includes principal photography and post-production.

In an interview earlier this year James Cameron also said that apart from the tax rebates, the favourable position of the New Zealand dollar is also a strong incentive to move production to New Zealand.