A total of Taka 5,695 crore has been allocated for Civil Aviation and Tourism Ministry in the proposed budget for 2024-25 fiscal year (FY) to support growth of local aviation operators as well as increasing tourism contribution to the national economy.
The allocation in the proposed budget is Taka 655 crore less than the revised budget of 2023-24 fiscal that was Taka 6,350. The proposed budget of the fiscal 2023-24 for the Civil Aviation and Tourism ministry was Taka 6,597 crore.
Finance Minister Abul Hassan Mahmood Ali made the announcement while placing the budget for FY 2024-25 in the Jatiya Sangsad (JS) here today.
The minister proposed to withdraw the VAT on aircraft engine 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 behind in the competition with the foreign airlines due to various reasons,” he said while placing his rational 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.
In tandem, he said, domestic air travel has also increased with the change in travel options by the countrymen.
“In response, we have taken up several projects to modernize air transport and related services to meet global standards,” he added.
While highlighting the government efforts to develop the aviation sector, the minister said the runways and taxiways of Hazrat Shahjalal International Airport, Cox’s Bazar Airport and Osmani International Airport have been revamped and expanded to improve the safety of aircraft take-off and landing.
On October 7 last year, Ali said, Prime Minister Sheikh Hasina inaugurated the third Terminal of Hazrat Shahjalal International Airport, marking a significant milestone in the nation’s aviation sector.
The 90 percent work of the project to enhance the runway and taxiway capacity at Chittagong Shah Amanat International Airport had been completed, he continued.
Besides, the minister said, 79.95 percent of the runway extension project towards the sea at Cox’s Bazar Airport has been completed to upgrade it to an international airport.
Security systems at all international airports have also been upgraded, Mahmood Ali added.
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.
If implemented, Ali said, the contribution of the tourism sector to the national economy will be 4.77 billion US dollar by 2041.
He said special emphasis has been given on 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 tourism complex at Mawa-end of the Padma Bridge,” said the minister.
Meanwhile, he said, Destination Management Organizations (DMO) has been set up in all these areas to attract tourists.
Moreover, he said, the government has taken initiatives to provide advance training and registration to all tour operators and tour guides with the aim of developing a sustainable tourism industry.
Beside, 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 tourism parks– Sabrang Tourism Park, Naf Tourism Park, Sonadia Eco Tourism Park– under BEZA will also be made tourist friendly.
