The Bay of Islands' airport upgrade will get a $1.7-million boost from the provincial growth fund, while the area's wharves are in for $5m as well, the government has announced.
The government will work with Far North Holdings, the commercial arm of the Far North District Council which owns the Kerikeri airport, "to progress a detailed business case for the upgrade", Regional Economic Development Minister Shane Jone said on Friday.
Building consents have been lodged and are due at the end of next month.
The airport has up to five scheduled passenger flights a day to Auckland, and Far North Holdings hopes to start construction on an expanded terminal building by the end of April, with work to be completed by December, according to its website.
"The current terminal is not fit for purpose and does not meet Air New Zealand's requirements, while growth in passenger numbers is also putting pressure on the existing facilities," Mr Jones said.
About 96,000 people used the airport in 2017.
Air NZ has been operating an additional three flights a week between Auckland and the Bay of Islands since November amid booming tourist numbers.
Meanwhile, Mr Jones on Friday also announced $5m in spending on upgrading wharves in Paihia, Russell and Opua, also with Far North Holdings.
"Tourism is an important and developing sector in Northland but some existing facilities are ageing and unsuitable, inhibiting future growth," he said.
"These three projects, which are long overdue, will boost the productivity potential of Northland, help grow the tourism sector, diversify the local economy, create new jobs and help build more resilient communities."
The money for both announcements will come from a three-year, $3-billion fund aimed at revitalising New Zealand's regions, which was launched by the government last month.
Mr Jones earlier this week revealed $5.8m from the fund would go to expanding a tree nursery and cellphone coverage in the shrinking Bay of Plenty town of Minginui.
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