The Tasmanian government has made a five million dollar budget pledge to an expansion of the Launceston Airport, a commitment that the airport matched.
The development cost is $10.3 million and will enable improvements throughout.
Automated bag drops, self-serve check-in and a smoother transit will be key changes made possible by the development.
The upgrade will see the airport able to accomodate multiple aircraft at peak times and is expected to support up to 100 local jobs as the expansion takes place.
Infrastructure and Transport Minister Michael Ferguson said, despite a major hit from the COVID-19 pandemic, the airport had been growing in recent years and the expansion would allow for increased capacity.
"The Launceston Airport has been growing significantly in the past few years, with flights and passenger numbers increasing, and this terminal expansion will accommodate convenient passenger flows during arrival and departure," Mr Ferguson said.
"It will also increase capacity to service forecast growth in passenger traffic over the next eight years, which is expected to reach around 1.9 million passengers per year.
"These changes will see improvements across the airport, including a larger and more contemporary arrivals experience, improved passenger security screening and a larger departures and check-in facility to accommodate the latest industry changes.
"Our contribution will also contribute to the development cost of a new air freight cargo facility at the airport to service increased air freight movement."
Launceston Airport CEO Hans van Pelt welcomed the upgrades and said they would make for a more user friendly travel experience for those utilising the airport.
"From check-in through to security screening we're introducing new automated technology that will ensure our travellers move through the airport with greater ease," Mr van Pelt said.
"The upgrades will ensure we grow with anticipated passenger forecasts, which are set to reach 1.9 million people in the next eight years."
The development will also see the Qantas lounge moved past the security checkpoint, and a security check upgrade which will mean travellers will not have to remove laptops from their bags.