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James Cameron’s third instalment of the hugely successful Avatar franchise may well be his last.

The Hollywood director shared the news with the Herald ahead of the Avatar: Fire and Ash premiere at Embassy Theatre in Wellington yesterday.

“I can’t even tell you that there will be another Avatar film. That business model itself may have collapsed,” Cameron said.

“Everybody’s belt-tightening right now. Because the theatrical marketplace has reduced by about a third, that’s a big deal. So big films like Avatar aren’t getting greenlit."

The first Avatar movie remains the world’s highest-grossing film of all time, having made over US$2.9 billion ($4.99b).

The second film, Avatar: The Way of Water, is also among the top earners, making it the third-highest-grossing movie ever with US$2.3b in earnings.

Cameron shot The Way of Water and Fire and Ash from 2017 to 2020 in New Zealand, using a mixture of over 3500 local and international cast and crew, as well as the team at Weta FX.

But the Oscar-winning director says New Zealand has big challenges ahead if the Government doesn’t act to help a struggling film industry rebuild and better compete with countries like the UK and Australia with more financially viable rebate schemes.

“We have a big problem being competitive here in New Zealand, the way we used to be, and we took a hard hit here during Covid,” says Cameron.

“I want us to flourish here, like we have in the past.”

The film-maker says he would personally encourage the Government to revisit the rebate scheme and “not with some little tiny incremental change that mostly benefits local productions”.

The first 2013 rebate scheme kept Cameron in New Zealand after the Government signed an agreement with Lightstorm Entertainment and Twentieth Century Fox to ensure three Avatar films were made in New Zealand.

In exchange for tax breaks, the deal required one world premiere to be held in Wellington and at least $500 million to be spent on production activity in New Zealand.

James Cameron attends the world premiere of 20th Century Studios' Avatar: Fire and Ash. Photo / Getty Images

“You’ve got to think globally on this because it’s that capital influx that, you know, is the tide that raises all ships, and we’re starting to have new replacement young crew members coming in – they’re not coming in the way we need, and we need to have a depth of crews here as well.”

Cameron says he’s not here to point fingers; in fact, he wants to help and offer real solutions.

“I’m a big proponent of all this stuff, and I’m happy to work with the Government, with the film commission, with everybody that’s involved in this – especially now I have a little more free time than I did while I was trying to get this film done,” he says with a laugh.

The deal struck with Cameron meant Avatar stayed local, when others like Amazon’s The Lord of the Rings: The Rings of Power left due to attractive UK incentives and Amazon’s desire to expand its studio footprint.

Cameron says his decision came down to successful negotiations.

“When we first started our work here on Avatar, it was in 2006 or 2007, and we were in a negotiation with the Government around the rebate scheme, and they upped the cap to 25%, which was important for us. It made it economically viable for us to work here, and that’s held throughout."

Jenni Mortimer speaks to James Cameron and wife, Suzy Amis Cameron. Photo / Annaleise Shortland

Once the crew, set and props were all based here and they had momentum, Cameron said there was no going back.

But could Cameron and his New Zealand-based crew weather a potential 100% tariff-sized hurdle?

Donald Trump’s administration announced its proposal in May for a 100% tariff on foreign-made films, which would significantly damage the New Zealand film industry. But Cameron says those types of things aren’t really possible, or legal.

“Most of us aren’t taking the tariffs too seriously right now because really it’s IP [intellectual property], it’s not a good, so you can’t really impose a tariff on IP or on photons that are travelling over a network,” he says.

“So it’s kind of illegal what they’re proposing to do, and you know, who knows with this Government in the US what they might ram through. It seems like it’s ‘no rules Tuesday’, but I’m not worried about that.”

Neytiri in Avatar: Fire and Ash. Photo / Twentieth Century Fox

But no matter what happens on the political landscape, Cameron says he himself is here to stay.

The Titanic director lives with his family on a farm in Wairarapa and recently took his commitment to Aotearoa to the next level, becoming a citizen in August.

“I love it here. My kids love it here. It just seemed like a natural evolution. I’ve been living here on and off since 2011 and have been here full time since 2020, so it made sense.”

Cameron says he’s excited for Kiwis to see the film he worked so hard on right on their soil.

“They should see the result of the work as something extraordinary. I can distance myself from it and see what 3000 people did, most of them here, and what that group effort results in on the screen is just pure magic.”

The plot takes audiences back to the planet of Pandora in an immersive new adventure with Marine turned Na’vi leader Sully – played by lead Sam Worthington – Sigourney Weaver, Jack Champion, Zoe Saldana, Stephen Lang, Kate Winslet and Kiwi leads Cliff Curtis and Jemaine Clement.

Cliff Curtis on the red carpet of Avatar Fire and Ash. Photo / Annaleise Shortland

And once the movie is released, on December 18, and he’s wrapped a whirlwind press tour, Cameron says he’s due a little R&R and a white Christmas in Colorado.

“Then hopefully get back in time for the back half of the beautiful New Zealand summer here, which I’m sure we’ll enjoy on our farm in the Wairarapa. I’m just gonna take it easy for a little while, I’m unemployed, and I’m enjoying it.”

So what does unemployed life look like for a local man like Cameron? Does he pop on a spot of Country Calendar, The Chase or binge some Shortland Street?

“I don’t watch anything,” he says with a laugh. “Well, I can start now. I don’t think people quite appreciate what it takes to finish a film like Avatar with 3500 VFX shots. I don’t get a lot of free time, let’s put it that way.”