THE Spirit of Tasmania ferries will undergo dramatic modernisation and fares will be cut by an average of 14.8 per cent under TT-Line's aggressive business plans.
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The state government has approved TT-Line's latest business case, which includes a plan to reduce fares on the ferries in an effort to bring 64,000 more passengers to the state each year within a decade.
The ships will undergo refurbishment worth tens of millions of dollars, with a plan to increase capacity, install new bars and food areas and install Wi-Fi internet.
To begin next winter, the renovations will be the first and last major upgrades on the current ships, which are due to be retired in 2022-23.
The government has also pledged an additional 42 daytime sailings a year by 2018, to appeal to caravanners and grey nomads.
Infrastructure Minister Rene Hidding said the improvements would reap huge benefits for the tourism industry.
"The refurbished Spirit of Tasmania vessels will act as a brand ambassador for Tasmania, showcasing Tasmanian produce and products," Mr Hidding said.
He said an additional 64,000 passengers would mean $220 million more in tourism spending.
Opposition Leader Bryan Green said the business case fell short of the government's pre-election commitments.
"The Liberals promised to cut fares by 20 per cent and deliberately gave voters the impression it would happen immediately," Mr Green said.
"Now there is no guarantee the fares will even get close to what the Liberals are claiming over the next four years."
Mr Hidding said the Liberals had committed to cutting fares by "up to 20 per cent", and said some fares would be reduced by more than that figure.
He said the refurbishments would be undertaken with minimal disruptions to the service.
The company will face a government business scrutiny hearing this morning.
TT-Line returned an after-tax profit of $10.4 million in 2013-14, a dip of more than $2 million compared to the previous year.
