Otago Central Hotel owner Ngaire Sutherland, of Hyde, said she was "sworn to secrecy" about the filming but that some of those involved were staying at her establishment.
"We do have some people staying here, but we don't have the top brass. We've still got more cyclists than hobbits," she said.
Cast and crew were scattered "all round the place" providing a "boost for the area in total".
"We are bending over backwards to help them, but we don't get into much conversation because they are working ... they are doing some long hours."
Strath Taieri Community Board chairman Barry Williams said that while the filming was meant to be a secret, it was "pretty well known [as] they are all over the show".
A "base camp" had been set up on private land near Hyde, with crew arriving in the area from last Thursday.
Security was tight around the camp with signs requesting "three foot seven ID be worn at all times".
Filming had been delayed due to rain, but the cast and crew were expected to leave today.
Middlemarch business owner Dave Thompson said the whole thing had been "quite amazing", but people could not say anything about it because of a confidentiality agreement.
When asked if a contract had been signed, or it was a verbal agreement, he said: "Can't say".
He was also not sure when people would be able to start talking about the filming.
Northern Irish actor James Nesbitt, who plays dwarf Bofur in the films, is staying in Naseby.
Kirsty Sloan, of the Royal Hotel, said he was the "biggest name" staying in the town.
"We had a lot of them eating and drinking with us," she said.
She did not know where other stars, such as Martin Freeman, who plays Bilbo Baggins, and Sir Peter were staying.
The Hobbit: An Unexpected Journey is scheduled for release on December 14 next year.
The second film, The Hobbit: There and Back Again, is due to be released on December 13, 2013.
