AS part of the state government funding agreement for the airport upgrade, Margaret River has been officially added to the title of the Busselton Regional Airport.
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Regional development minister Terry Redman officially renamed the airfield Busselton-Margaret River Regional Airport on Thursday.
Mr Redman said the addition of one of WA's "premier tourism" spots Margaret River would attract more visitors to the region.
He said the Margaret River region was an iconic brand recognised throughout Australia.
"Its inclusion in the airport's name will significantly enhance marketing activities that target new interstate and international visitors, bringing great economic and social benefits to the State," Minister Redman said.
"The renamed airport will act as a catalyst to increase accommodation occupancy rates, event attendance and ultimately, be an incentive to reinvest in major tourism infrastructure and services."
Industry and major domestic Australian airlines have supported the name change.
Vasse MP Libby Mettam supports the name change and said she had been advocating it to the government.
“I appreciate the value of the Margaret River brand, however it is important that a name is also logical and informative for visitors and locals alike," she said.
“Given the location at which people land is the City of Busselton, in the region of Margaret River, I believe it is logical the name is the ‘Busselton Margaret River Regional Airport.’
“The Ballina-Byron Gateway airport represents a good example of this, similarly Busselton is a gateway to the broader Margaret River region."
The announcement comes after the state government provided $59.7 million investment to the airport's expansion.
Royalties for Regions provided $45.9 million of the funding with Department of Transport putting in $10 million, $3.5 million from the City of Busselton and $300,000 from the South West Development Commission.