An artist's impression of the scheduled NZ$4m baggage terminal at Queenstown Airport

Queenstown Airport, New Zealand, is set to meet a 60 percent increase in passenger growth with a new NZ$4 million upgrade and expansion.

The proposed 1470 square-metre building to house a new baggage make up area will result in speedier baggage-handling and ultimately benefit airlines and departing passengers to the region, Queenstown Airport Corporation announced on Tuesday 31 August.

Construction of the building - more than three times the size of the existing baggage carousel - is due to commence on Monday 6 September, with the new building scheduled to open on 7 December.

The timing coincides with the new international Jetstar services into Queenstown which start on December 9 and Air New Zealand's roll out of new A320 domestic jets from January 2011.

The development of the new baggage make up area was necessary to accommodate the increasing number of passengers passing through the airport, Queenstown Airport General Manager Commercial Simon Barr said.

"Known airline schedules indicate 60 percent growth in international passengers during the next year, together with a 10 percent increase in domestic.

"Our current facilities are designed to cope with passenger numbers of around 700,000 per year while we are actually expecting to reach almost 1 million over the next 12 months.  Of those numbers, the airport is designed to handle five percent international (international passengers have a greater impact on facilities) and 95 percent domestic but our actual passenger mix is closer to 20 percent international and 80 percent domestic."