The Government's funding an upgrade at the Chatham Islands airport runway, so larger aircraft can land

The islands will receive 40-million-dollars in Covid-19 recovery funding - the majority to go towards the runway.

NZ Airports Chief Executive Kevin Ward says accommodating larger aircraft will open local tourism and business opportunities.

He says the upgrade - which also includes safety and security enhancements, and an extension to the passenger terminal - will set the airport up for the next 50 years.