Nepal has set a target to secure removal from the European Union's air safety blacklist by mid-January 2027 as part of a broader reform agenda aimed at boosting tourism and modernising the country's aviation sector.

According to Nepal's fiscal year 2026-27 budget presented in Parliament on Friday, the government plans to split the Civil Aviation Authority of Nepal (CAAN) into separate regulatory and service-provider entities by January 15, 2027, a key requirement long sought by international aviation bodies.

Finance Minister Swarnim Wagle said tourism and civil aviation would play a central role in Nepal's economic transformation strategy. The government has allocated Rs7.34 billion for the culture and tourism sector and Rs2.93 billion for civil aviation.

Nepal has remained on the European Commission's air safety list since December 2013 due to concerns over aviation oversight and regulatory standards, a designation that has affected the country's tourism industry and international aviation reputation.

The budget also introduces a new "wellness tourism" initiative aimed at attracting high-spending international visitors. The government plans to launch "Nepal Wellness Year 2027" and begin preparations for "Tourism Year 2028-29" while encouraging investment in luxury resorts and hotels.

In the mountain tourism sector, authorities plan to identify and name previously unnamed peaks above 6,000 metres and promote them internationally. The government also pledged to strengthen rescue services and safety mechanisms for climbers and trekkers.

Several new trekking routes will be developed, including sections of the Great Himalayan Trail and the proposed Danphe Route linking Sudurpaschim and Karnali provinces. Additional tourism infrastructure projects are planned in the Api Himal, Dordi Himal, and Tinjure-Pathibhara regions, as well as cycling trails in parts of Gandaki Province.

To promote cultural and religious tourism, the government has allocated Rs830 million for infrastructure development in Lumbini, the birthplace of Buddha. Janakpur will be promoted as an international wedding destination, while efforts will continue to secure UNESCO World Heritage recognition for Tilaurakot, Janakpurdham, and Gokarneshwar.

The budget also calls for expanding community-based homestay programmes in Madhesh, Karnali, and Sudurpaschim provinces, with a focus on benefiting Dalit and Indigenous communities.

In aviation infrastructure, Rs1.53 billion has been earmarked for upgrades at Tribhuvan International Airport. The government said it would finalise the implementation model for the long-delayed Nijgadh International Airport within six months.

Authorities also plan to seek private-sector partnerships to fully operate Gautam Buddha International Airport and Pokhara International Airport, while expanding regional aviation facilities, including the introduction of night flights at Bharatpur Airport.

Source: The Kathmandu Post