Hobbiton was chosen as the location for the filming of The Lord of the Rings because director Peter Jackson noticed this farm in 1988 and felt it was similar to the one he portrayed in his books, which he had written more than 30 years earlier, in 1953.
Once all the filming of the sequels of the movie was completed, the owners of the farm requested to keep all the scenery and elements intact to make it a tourist attraction, which was granted by the producers and to this day remains open to the public.