Australia-New Zealand trans-Tasman travel bubble welcomed in Canberra

New Zealand Prime Minister Jacinda Ardern has confirmed that the arrangement will also work the other way in the New Year - though no time has been put on the start.

She said her cabinet had agreed in principle to the "travel bubble" between the two countries. It would mark the first opening of "normal" travel between Australia and any other country since March.

Resumption would depend on the continued elimination of the epidemic in both countries.

ACT Chief Minister Andrew Barr said he had been lobbying for the change.

He said it "would help create jobs and boost spending in our respective economies. Today's announcement further strengthens our case for various airlines to consider adding a direct flight to and from Canberra to their schedules."

Canberra Airport is studying the implications. Its owners and managers have been talking to the Australian and New Zealand governments since June about just such an opening.

In September, an airport spokesperson said: "Canberra Airport is ready, and we know that the connection between Canberra and Wellington does not present a health risk as both cities remain COVID free.

"We believe that flights will soon recommence from New Zealand to Sydney, Brisbane and Adelaide and we are hopeful that the airlines will also fly to Canberra - as it is a great opportunity."

The reopening of borders without quarantine improves the financial viability of flights, and so should bring prices down.

With New Zealanders coming to Australia but not the other way round, mass flying would have been far less profitable. Two-way flying means planes can be fuller.

Australian Health Minister Greg Hunt welcomed Ms Ardern's comments.

"We are ready to implement from our side as soon as New Zealand is ready," he told reporters in Melbourne.

"It's good for the economy, good for our airlines and it's good for both countries. [New Zealand has] done well through the pandemic and Australia has done well ... now both countries can bear the positive outcomes of that.

"It's the first step towards restoring international normality."

Ms Ardern said an exact date will come "in the New Year once remaining details are locked down".

Given New Zealand's cabinet isn't due to meet again until late January, it's likely the bubble will open in February at the earliest.

Ms Ardern's government is also keen to ensure airlines - which are keen to return to the skies - airports and staff are segregated, given flights to high-risk areas will be occurring concurrently.

The NZ government has come under increasing pressure to restore pre-COVID travel arrangements, with thousands of Kiwis in Australia eager to get home, and tourism operators keen for the uptick in business.

NZ's hotel quarantine booking system is booked out until March, with about 40 per cent of the bookings taken from Australian-based Kiwis.

In 2019, more than 1.5 million Australians visited New Zealand, pouring $2.5 billion into its economy. That made it by far the largest market for the New Zealand tourism industry.

With everywhere else closed off, that rush to New Zealand may pick up speed.

According to research in the industry, tourists from New Zealand spent $2.6 billion in Australia in 2019, the last full covid-free year.

Holidays was the main purpose - 505,000 tourists came to Australia for holiday purposes.

The most popular destinations were Sydney with 32 per cent, Melbourne with 27 per cent and Brisbane with 19 per cent of visitors. New Zealand visitors spent an average of 10 nights in Australia.

with AAP