Burnie company Stubbs Construction won the tender and had about 20 staff and sub-contractors working on the building.

The upgrade will bring the airport into line with others such as Launceston's, with improved passenger amenities including retail shops, security screening and luggage check-in facilities.

It will also meet federal legislation obligations for passenger and baggage security.

However, the $1 parking fee is likely to go when the refurbishment is completed at the end of June.

''We understand the cost of parking is one of the considerations that the travelling public make and we will price parking in a way that ensures Devonport remains competitive,'' Tasports chief executive Paul Weedon said.

In the past eight years, the Devonport Airport has seen an increase of about 57 per cent in passenger numbers.

That was mainly from business travellers and fly-in, fly-out workers.

''I think the growth in businesses in the region is driving travel and that, in conjunction with the fly-in, fly-out travelling public, has increased passenger numbers.

''A lot of focus is on tourism and that's a highly competitive segment of the business as well.''

A wing extension on either end of the building was being constructed as part of the refurbishment as well as changes to the already existing building.