The announcement came as Queenstown Airport and LS Travel Retail Pacific agreed to extend the duty-free concession to 2023.
The refurbishment, expected to be completed by the beginning of next winter, follows the $4.3 million expansion of the airport's terminal facilities, officially opened by deputy prime minister Bill English last Friday.
LS Travel Retail was one of the world's leading travel retail groups and its planned expansion would raise the quality of merchandising and signal the introduction of international fragrance and cosmetic brands to the Queenstown stores.
The expansion would also allow an increase in space to stock electronic goods and souvenirs.
Queenstown Airport chief executive Scott Paterson welcomed the announcement, which would provide a greater choice of duty-free goods "and better service for passengers", he said.
"The contemporary refit will add an exciting new dimension to our passenger experience, reinforcing our reputation as a fast-growing modern airport.
"We have been impressed by their professional approach and by their plans to build an international-standard duty-free experience at Queenstown."
LS Travel Retail Pacific duty-free general manager Ivo Favotto said he was "excited" to be entering into an extended concession with Queenstown Airport.
It would would allow the company to expand brand offers, enhance its online pre-order service and frequent buyers club and "deliver a duty-free experience which captures Queenstown's natural beauty, sense of adventure and the warmth of its people," he said.
