Prime Minister Anthony Albanese says Newcastle Airport's new terminal building will help connect the Hunter and its "incredible products" to the rest of the world.
The Newcastle Herald reported on Wednesday that Mr Albanese would be at Williamtown on Thursday to turn the first sod for the airport's $110 million expansion.
The federal government is contributing half the construction costs for the building, which will help the airport attract and accommodate international flights.
Mr Albanese will confirm the funding commitment at Thursday's ceremony.
"We understand how important tourism is to the Hunter, and these upgrades will connect the region, and its incredible products, to the rest of the world," he said on Wednesday.
Infrastructure Minister Catherine King said in a media statement that the terminal expansion would support "significant" employment and economic stimulus during and after construction.
The media statement cited tourism statistics which said the region hosted 4.5 million domestic overnight visitors in the year ending March 2023, up 49 per cent on the previous year and 6 per cent on the corresponding period pre-pandemic.
The overnight visitors spent $3.1 billion in the Hunter tourism region, up 53 per cent on pre-pandemic levels.
One in seven domestic overnight travellers to the Hunter visited the vineyards.
Day-trippers to the Hunter were down 11 per cent on pre-COVID levels at 6.9 million.
Newcastle Airport released an animated video fly-through of the terminal building on Wednesday.
