The government has prioritised tourism and civil aviation as key drivers of economic transformation in the budget for the fiscal year 2026-27, introducing a new “wellness tourism” concept alongside infrastructure expansion and regulatory reforms.

Finance Minister Swarnim Wagle, presenting the budget in Parliament on Friday, stated that the strategy aims to attract high-spending visitors by strengthening tourism infrastructure, enhancing safety systems in the Himalayas, and upgrading international aviation standards.

The government has allocated Rs7.34 billion for the culture and tourism sector and Rs2.93 billion for civil aviation.

As part of aviation reforms, the budget proposes splitting the Civil Aviation Authority of Nepal into a regulator and a service provider by mid-January 2027. Successive governments had also included the provision in the previous budgets but the plan never materialised. This is the first time that the government has announced the timeline.

The move is aimed at supporting Nepal’s removal from the European Commission’s air safety list. Nepal has been kept in the bad books of the European Union since December 2013 due to poor regulatory measures, hurting Nepal’s tourism sector.

Under the tourism strategy, Nepal will be promoted internationally as a wellness tourism destination. Preparations will also begin for “Tourism Year 2028-29” and “Nepal Wellness Year 2027”, alongside incentives for investment in high-end resorts and hotels.

In mountain tourism, the government plans to name unnamed peaks above 6,000 metres and promote them in international markets. Rescue systems and safety mechanisms for climbers and trekkers will also be strengthened.

New trekking routes, including the Great Himalayan Trail and the “Danphe Route” spanning Sudurpaschim and Karnali, will be developed. Additional routes across Api Himal, Dordi Himal, and the Tinjure–Pathibhara region are also planned, along with cycling trails in parts of Gandaki Province.

In cultural and religious tourism, Rs830 million has been allocated for infrastructure development in Lumbini. Janakpur will be developed as an international wedding destination, while the Ram Janaki Path will be upgraded. The government will also pursue UNESCO World Heritage listing for Tilaurakot in Kapilvastu, Janakpurdham, and Gokarneshwar.

The budget also proposes expanding homestay programmes in Madhesh, Karnali, and Sudurpaschim to link local culture with tourism, with a focus on Dalit and Indigenous communities.

In aviation infrastructure, Rs1.53 billion has been allocated for upgrading the Tribhuvan International Airport. The government said the long-delayed Nijgadh International Airport will have its implementation model finalised within six months.

Private sector partnerships will be used to operate the Gautam Buddha International Airport and the Pokhara International Airport fully. Night flights will be introduced at Bharatpur Airport, while Surkhet Airport will be expanded and runway upgrades carried out at Talcha Airport in Mugu and Tarigaun Airport in Dang.