The Rockliff Liberal Government has a 2030 Strong Plan for Tasmania's future.

Hobart Airport has commenced its $200 million terminal upgrade in a move signalling its confidence in Tasmania's future under a Liberal Government.

Minister for Housing and Construction, Nic Street, said the construction work that will be undertaken is a boon for Tasmanians.

"This is a significant investment in one of Tasmania's most critical infrastructure assets, and represents a net gain for the entire State," Minister Street said.

"It will be delivered by Hutchinson Builders and will be built by our High Vis Army, generating 450 direct and indirect jobs during the construction phase.

"The current airport was designed to accommodate 1.5 million passengers per year and is currently handling 2.6 million per year.

"Once upgraded it will be able to accommodate 3.5 million passengers by 2030.

"This is almost an additional one million passengers who will come to our shores bringing certainty and stability for businesses across the State.

"This is the type of investment that stability and confidence under a Rockliff Liberal Government brings."