Prime Minister John Key, who is also the Minister of Tourism, is expected to make an announcement with his Australian counterpart Kevin Rudd today aimed at streamlining travel across the Tasman.
The announcement is expected to end the duplication of quarantine, customs and security checks in both countries.
Tourism Dunedin chief executive Hamish Saxton said the removal of barriers on transtasman routes would encourage more people, on both sides of the Tasman, to travel.
"It represents a golden opportunity for the region."
With two international airports, Otago could capitalise on more Australians wanting to cross the Tasman and explore new destinations, he said.
Tourism Industry Association chief executive Tim Cossar said while the "utopia" for the association was a passport-free transtasman market, any move to reduce processing times would be welcomed.
"It would be a major step forward."
University of Otago Tourism associate professor David Duval said streamlining transtasman travel was a "positive move" for the tourism industry.
Changing how travellers were processed could save time and bring transtasman travel closer to the example set by the European Union.
"But in terms of reducing costs, that remains to be seen."
Dunedin International Airport chief executive John McCall said a $200 ticket from Dunedin to Brisbane included about $70 in government levies.
Government-related charges included biosecurity, aviation security and customs levies and were different from a departure tax, which was collected by the airport.
One way to reduce costs on transtasman routes would be to cut "double handling" and process passengers only at the point of departure, which would result in the "freeing up of arrivals", he said.
