Aviation, tourism stakeholders seek policy support in budget

Aviation and tourism stakeholders have urged the government to prioritise policy reforms, tax incentives and infrastructure support in the 2026-27 budget to unlock the growth potential of two key economic sectors.

As the BNP government prepares to unveil its first national budget following its election victory, industry leaders said the aviation and tourism sectors need more than financial allocations, calling for a coherent policy framework to transform them into major drivers of economic growth.

Aviation operators have sought tax relief on jet fuel, aircraft leasing and airline operations to improve competitiveness and reduce airfares, while tourism stakeholders have demanded implementation of the long-awaited National Tourism Master Plan alongside stronger investment incentives.

Industry representatives told BSS that the upcoming budget would be a key test of the government's commitment to delivering on its election pledges of turning Bangladesh into a regional aviation hub and a globally competitive tourism destination by 2034.

Aviation leaders said high fuel taxes and operational costs continue to undermine the competitiveness of local carriers.

Secretary General of the Aviation Operators Association of Bangladesh (AOAB) and Managing Director of NOVOAIR Mofizur Rahman said the government should introduce a predictable taxation regime for aviation fuel and provide fiscal support to airlines to help reduce operating costs.

"Jet fuel prices have increased significantly over the years, but what is more concerning is that the tax burden has also risen. A rational and stable tax structure on aviation fuel would help lower operating costs, stimulate passenger demand and make Bangladeshi airlines more competitive," he said.

He also called for VAT exemptions on jet fuel, reduced taxation on aircraft leasing and maintenance, and rationalisation of aviation-related duties.

Industry stakeholders also urged the government to allocate adequate resources for the operational launch of the Third Terminal at Hazrat Shahjalal International Airport.

Aviation analyst ATM Nazrul Islam said recruitment, staff training, security systems and operational readiness must receive immediate attention if the terminal is to begin operations as planned.

"Building infrastructure is one thing; operating it efficiently is another," he said, stressing the need for skilled manpower and robust systems.

The aviation sector further called for greater investment in airport modernisation, cargo logistics, navigation infrastructure and digital aviation systems to support Bangladesh's ambition of becoming a regional aviation hub.

Tourism stakeholders, meanwhile, emphasised the need for effective implementation of policies and projects rather than merely announcing new initiatives.

They identified the National Tourism Master Plan as the sector's top priority and urged the government to allocate resources for tourism clusters, eco-tourism projects, community-based tourism and coastal tourism development, including the Exclusive Tourist Zone at Sabrang in Cox's Bazar.

Tour Operators Association of Bangladesh (TOAB) President Mohammad Rafeuzzaman called for tax exemptions on tourism-related equipment, tourist vehicles and hospitality infrastructure to encourage private-sector investment.

He also urged the government to introduce incentive packages for inbound tourism and launch an electronic visa system to facilitate foreign tourist arrivals.

TOAB Director Dr Md Taslim Amin Shovon said tourism has historically received less attention than aviation despite its significant contribution to employment and economic activity.

"Tourism needs greater attention and a larger share of development funding," he said, adding that effective implementation and leadership would ultimately determine the success of budgetary allocations.

PATA Bangladesh Chapter Secretary General Toufiq Rahman stressed the importance of coordinated action among government agencies, saying tourism development depends on transport, infrastructure, security, environment, culture and foreign affairs.

Stakeholders said Budget 2026-27 would be judged not only by the size of allocations but also by whether it delivers the policy reforms needed to unlock long-term growth in both sectors.

They expressed hope that the BNP government's first budget would provide the policy support necessary to translate its election promises into measurable progress for Bangladesh's aviation and tourism industries.