Tk5,695cr allocated for civil aviation and tourism sector

In the proposed budget, Tk 5,695 crore has been allocated for the civil aviation and tourism ministry for the fiscal year 2024-25 to support the growth of local aviation operators as well as increase tourism contribution to the national economy.

The allocation in the proposed budget is Tk 655 crore less than the revised budget for the 2023-24 fiscal which was Tk 6,350 crore.

The proposed budget for FY 2023-24 for the Ministry of Civil Aviation and Tourism was Tk 6,597 crore.

Finance Minister Abul Hassan Mahmood Ali made the announcement while placing the budget for FY 2024-25 at the Jatiya Sangsad on Thursday.

In the proposed budget, a total of Tk 80,498 crore has been proposed for civil aviation in the proposed budget for the fiscal year 2024-25, down by Tk 4,693 crore, from the outgoing fiscal year 2023-24.

An amount of Tk 85,191 crore was allocated budget for the civil aviation sector in the outgoing fiscal year 2023-24.

The minister proposed to withdraw the VAT on aircraft engines and spare parts of propellers at the import stage to support the growth of local aviation companies and to tap the future potential of the industry.

"In the current reality, the domestic airlines are gradually lagging in the competition with the foreign airlines due to various reasons," he said while placing his rationale for exempting the VAT.

Over the past 15 years, the finance minister said, both passenger and cargo air transport with the rest of the world has increased manifold with the substantial growth of the country's economy.

He said that domestic air travel has also increased with the change in travel options by the countrymen.

He added, “We have taken up several projects to modernize air transport and related services to meet global standards. To improve the safety of aircraft takeoff and landing, the runways and taxiways of Hazrat Shahjalal International Airport, Cox’s Bazar Airport and Osmani International Airport have been revamped and expanded.”

Citing the inauguration of the third terminal of Hazrat Shahjalal International Airport by the prime minister on October 7, 2023, marking a significant milestone in the nation's aviation sector, the minister said that the project to enhance the runway and taxiway capacity at Chittagong Shah Amanat International Airport is 90 per cent complete.

Additionally, 79.95 per cent of the runway extension project of Cox’s Bazar Airport has been completed, to upgrade it to an international airport. Security systems at all international airports have also been upgraded, the minister stated.

Tourism

Regarding the tourism sector, he said the government is implementing a 25-year Tourism Master Plan to contribute to the economic development of Bangladesh through tourism.

"The master plan will serve as a comprehensive roadmap to revitalize Bangladesh's tourism sector," the finance minister said.

mahmood Ali said that If implemented, the contribution of the tourism sector to the national economy will be $4.77 billion by 2041.

He said special emphasis has been given to the development of eco-tourism, heritage tourism and business tourism as there is a growing domestic demand for tourism apart from the interest of foreign tourists due to the socio-economic progress of Bangladesh.

"We have adopted plans to construct tourist facilities at Tanguar Haor, Nijhum Island, Sharankhola in the Sundarbans, Sompur Mahavihar in Paharpur and a tourism complex at Mawa-end of the Padma Bridge," said the minister.

Meanwhile, he said, destination management organizations (DMOs) have been set up in all these areas to attract tourists.

Moreover, he said, the government has taken initiatives to provide advanced training and registration to all tour operators and tour guides with the aim of developing a sustainable tourism industry.

Besides, the minister said tourist centres are being constructed at Parki in Chattogram, Hatia and Nijhum islands in Noakhali and Mahananda in Chapainawabganj district to enrich the tourism sector.

"We also have plans to develop international standard tourism facilities in Rangpur, Chandpur and Cox's Bazar," he said.

The finance minister said that all tourist parks -- Sabrang Tourism Park, Naf Tourism Park, Sonadia Eco Tourism Park -- under BEZA will also be made tourist-friendly.