Wellington's feature film industry generated $495 million in revenue in 2011, a 4.2 percent increase on the previous year ($474 million) and a 49 percent increase on the $252 million generated in 2008.
Wellington has 753 businesses connected with the feature film industry.
Statistics New Zealand figures released today show feature film revenue nationwide rose 15 per cent to more than $700m and 35 feature films were produced in New Zealand last year.
Mayor Celia Wade-Brown says Wellington's creative sector offers exciting jobs in a growing global market.
"This is a serious part of the weightless economy of our smart Capital," says the Mayor.
"The combination of inspiring individuals and a city where talent wants to live is a successful proposition. I look forward to supporting co-production initiatives to grow the sector further."
Wellington City Council's Economy Portfolio Leader, Councillor Jo Coughlan, says Wellington's private sector is performing strongly despite belt-tightening in the public sector.
"The success of the film industry proves we have world-class skills and infrastructure here," says Cr Coughlan.
"The world premiere of The Hobbit in November will further cement Wellington's reputation as a major producer of feature films.
"It's clear Wellington has a proposition that works - revenue and international investment is holding up and increasing, so it can be done - we just need to do a better job promoting ourselves and targeting our efforts.
"Securing direct flights to Asia will allow us to build on this success and attract more investment and talent into Wellington."