Direct flights between Tasmania and New Zealand are set to resume as early as next year, Prime Minister Scott Morrison and Premier Peter Gutwein announced today.
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The plan will see 130 direct flights to Hobart - an average of three flights a week during summer - and will cost the Federal Government $50 million.
The state government will contribute $10 million alongside a $7.5 million investment from the airport itself.
It will be the first time since 1996 that the direct flight route has been available.
An infrastructure upgrade was also announced as part of the funding.
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Prime Minister Morrison said the re-opening of the route would provide a major economic boost for the Tasmanian tourism industry, and the region in general.
"Safely opening to Australia and New Zealand will be a shot in the arm for Tassie tourism and jobs," the Prime Minister said.
"This deal will mean tourists from low-risk areas can come to sample Tasmania's incredible experiences, sights and produce."
Premier Gutwein echoed the Prime Minister's sentiments and said the announcement was refreshing after a difficult year for tourism and jobs in Tasmania.
"2020 has been a challenging year, but this is a sensational coup, and I invite New Zealanders to come to Tasmania and discover what makes this place so very special," Mr Gutwein said.
"[It is] a terrific boost for local jobs across our tourism sector."
Hobart International Airport acting CEO Matt Cocker welcomed the announcement and said it puts the "'international' back into 'Hobart International Airport'" and that it will boost the state's economy.
"It's imperative we act quickly to capitalise on the momentum and to help Tasmania's economic recovery," he said.
"Obviously flights between Hobart and New Zealand will be a huge boost for tourism in Tasmania, but the infrastructure upgrades will also create more local Tasmania jobs."
"This is the culmination of years of hard work. Our vision has been for Hobart to be a truly international airport and it's fantastic both the state and federal governments support that," Mr Cocker said.
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