TENS of thousands of New Zealanders turned out to watch the stars of The Hobbit walk the red carpet at the film trilogy's home town premiere.

An Air New Zealand plane painted with Hobbit characters flew low over Wellington's Embassy Theatre, bringing roars of approval from the crowd.

British actor Martin Freeman, who takes the lead role of Bilbo Baggins, said he thought director Peter Jackson had done an amazing job on The Hobbit: An Unexpected Journey.

"He's done it again," Freeman said. "If it's possible, it's probably even better than The Lord of the Rings."

While it is unusual for a city so far from Hollywood to host the premiere of a hoped-for blockbuster, Jackson's filming of his lauded Lord of The Rings trilogy and now The Hobbit in New Zealand has created a film industry there.

Also walking the red carpet was Cate Blanchett, who plays Elf queen Galadriel.

Billy Connolly, who plays Dwarf warrior Dain Ironfoot in the film trilogy, couldn't make the premiere as he was still busy celebrating his 70th birthday in New York.

The trilogy, which has cost £312million, has taken more than five years to film.

The first film will open in the UK next month.