An upmarket hotel, a transport interchange and new one-way roads have been proposed to tackle the traffic nightmares plaguing Sydney Airport.

The NSW Roads Minister, Duncan Gay, and the chief executive of Sydney Airport, Kerrie Mather, confirmed the measures on Sunday. They are designed to relieve chronic traffic congestion that has helped make the airport the most unpopular in the country.

Road congestion to the airport's terminals can be greatest at weekends. Credit:Dallas Kilponen

Sydney Airport is under pressure to invest in transport infrastructure and improve the traveller experience, as a rival airport at Badgerys Creek draws closer and passenger numbers surge.

Ms Mathers said a draft plan for congestion-busting work around the T2 and T3 domestic terminals would assist about 150,000 people who travel to and from the airport each day.