Government aims to remove Nepal from EU air safety list by mid-January 2027

Nepal's government is making a concerted push to revitalize its tourism and civil aviation sectors, setting a clear deadline to exit the European Union's air safety list by mid-January 2027. This ambitious goal is a central pillar of the budget for the fiscal year 2026-27.

Finance Minister Swarnim Wagle announced a substantial allocation of Rs7.34 billion for culture and tourism and Rs2.93 billion for civil aviation. The strategy hinges on attracting high-spending visitors through enhanced tourism infrastructure, improved Himalayan safety systems, and upgraded international aviation standards. A key reform involves restructuring the Civil Aviation Authority of Nepal by mid-January 2027, separating its regulatory and service provider functions – a plan that has stalled in previous budgets but now has a defined timeline.

Nepal has been on the EU's air safety list since December 2013 due to regulatory shortcomings, which have significantly impacted the tourism industry. The government's plan to address this involves not only aviation reforms but also a strategic promotion of Nepal as a "wellness tourism" destination. Preparations are underway for "Tourism Year 2028-29" and "Nepal Wellness Year 2027," coupled with incentives for high-end resort development.

Beyond wellness, the government is diversifying tourism offerings. Plans include naming and promoting unnamed peaks above 6,000 meters, strengthening climber and trekker safety, and developing new trekking routes like the Great Himalayan Trail and the "Danphe Route." Cultural and religious tourism also receive attention, with funding for Lumbini, plans to develop Janakpur as an international wedding destination, and efforts to secure UNESCO World Heritage status for sites like Tilaurakot.

In aviation infrastructure, Rs1.53 billion is earmarked for upgrading Tribhuvan International Airport. The long-delayed Nijgadh International Airport's implementation model is expected within six months. The budget also seeks private sector partnerships for the full operation of Gautam Buddha and Pokhara International Airports, and plans to introduce night flights at Bharatpur Airport, alongside runway upgrades at Surkhet Airport.