Rotorua Airport is about to start a significant upgrade to the terminal and the fire station.
Rebuilding the old terminal and fire station will ensure the airport meets current building, health and safety and airport requirements, including earthquake strengthening regulations, as well as position the operation for the future.
The upgrade will be to the original part of the terminal (built in 1963) and the fire station - not the more recent developments.
Expressions of interest relating to the project will be advertised in the coming weeks.
Funds for the programme are budgeted over four years and the airport company will run both projects simultaneously to make the project more cost-effective and efficient.
Rotorua Airport Chief Executive, Nicole Brewer, said the upgrade is not only about strengthening the buildings but providing Rotorua locals and visitors with the airport that they deserve.
"We want to create an airport people can be proud of. We can do this by ensuring that it is a safe and efficient operation, and taking the opportunity to create a sense of arrival for travellers and visitors to Rotorua and showcase the best the city has to offer," she said.
Ms Brewer said the development programme ensured the airport assets werre optimized, managed, and maintained to a high standard.
Airport Chairman, Peter Stubbs, said the upgrade would make the airport fit to grow travel, tourism, and trade in the Bay of Plenty.
"The airport can, and does, bring business and jobs to the region. Implementing this capital expenditure programme will enable us to put our best foot forward and the end result will show just how great this destination is."
The rebuild news comes as the airport also announces an increase in passenger numbers.
Domestic passenger numbers are up 8.5 per cent for the first seven months of the 2016 financial year. The Auckland route has led the way with passenger growth of 33.5 per cent.