PERTH will be home to a world-class new airport terminal under a new agreement between Qantas and Perth Airport, delivering a major boost to Western Australia’s tourism industry and unlocking significant economic growth, according to the state government.

The agreement will see more than $5 billion invested towards a new terminal at Airport Central, a new parallel runway, two multi-storey carparks and an airport hotel.

Qantas and Jetstar’s services will relocate to the new terminal when it opens in 2031, with the developments enabling an additional 4.4 million additional seats to and from Perth by the time the new terminal opens.

The new terminal will be serviced by the Metronet Airport Central station - providing a public transport link directly from the airport to the city.

In the interim, upgrades at Terminal 3 and 4 will open up additional capacity while the new terminal is built, with Jetstar to relocate its domestic services to Terminal 2 from September this year.

The upgrades will support Qantas to add new destinations from Perth from 2025 - including Auckland and Johannesburg.

The new parallel runway is expected to open in 2028, supporting further growth for domestic and international flights.

Premier Roger Cook said the commitment cements Perth as the western gateway to Australia.

“By opening up new flight routes and adding millions of extra passenger seats each year, we’re positioning WA as a major tourist destination in the region. It will turn Perth Airport into a world-class travel hub for visitors and for Western Australians, and put Perth on the world stage for travellers,” he said.

Tourism Minister Rita Saffioti said the government had long been advocating to Qantas and Perth Airport to consolidate services at the one terminal.

“We know Perth is the western gateway to Australia with direct services from locations like London, Paris and Rome - but this will see the direct international connections into Perth grow significantly in the years ahead.

“We’ve been planning for this move for many years, and it led to important decisions like the final location of the Redcliffe train station, and the new Metronet Airport Central station, which provides passengers with a direct train service to the airport for around five dollars.”

Meanwhile, Tourism Council WA has congratulated Perth Airport and the Qantas group on the successful resolution of its new 12-year commercial agreement.

Tourism Council WA chief executive officer Evan Hall welcomed the certainty and investment the new commercial agreement brings, and that the move of Jetstar to terminals T1 and T2 at Airport Central would free capacity to expand direct international services inbound to Perth and onwards to regional WA.

“A key outcome of the new commercial arrangement is a significant expansion in aviation capacity to attract new international routes, both in the short term and over time,” Mr Hall said.

He said it was best practice to have a single airport for visitors with international and domestic services in close proximity.

The announcement was also welcomed by the Australian Hotels Association (WA) with the partnership is set to unlock a multi-billion dollar wave of investment, delivering new international and domestic flights and giving a substantial boost to Australia's tourism industry.

AHA (WA) chief executive officer Bradley Woods said by 2031, Qantas and Jetstar plan to add 4.4 million seats to and from Perth per annum.

“The establishment of this hub will enhance inbound tourism, offering Australians more travel options to Asia, Africa, India, and Europe. The new terminal promises passengers a world-leading travel experience with seamless transfers, state-of-the-art check-in and bag drop facilities, and a multi-lounge precinct featuring bespoke dining and wellness initiatives,” Mr Woods said.

“The upgraded terminals will also accommodate ultra-long-haul aircraft, such as the Project Sunrise Airbus A350s, enabling non-stop flights from distant destinations.

“The investment in infrastructure and services will be a boon for the hotel and hospitality industry, driving increased tourism and business travel, and providing new opportunities for growth and development,” Mr Woods said.