The Government of Nepal has announced a major initiative to upgrade Tribhuvan International Airport (TIA) in Kathmandu into a boutique airport, aiming to enhance passenger experience and manage increasing air traffic.
In the budget speech for the fiscal year 2082/83 BS (2025/26 AD), presented yesterday by Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel at the joint session of the Federal Parliament, the government allocated NPR 4.15 billion for this transformative upgrade.
The boutique airport concept aims to blend aesthetic design with high-quality services, providing a comfortable and efficient travel experience. With TIA currently handling a growing volume of domestic and international passengers, the government sees this upgrade as a critical step toward modernizing Nepal’s air travel infrastructure.
NPR 13.28 Billion Allocated for Tourism Ministry
In a broader effort to strengthen the tourism sector, the government has earmarked NPR 13.28 billion for the Ministry of Culture, Tourism and Civil Aviation for the upcoming fiscal year. Key highlights include:
- Pokhara International Airport will be developed as a tourism hub, leveraging its strategic location to promote adventure and cultural tourism in western Nepal.
- Gautam Buddha International Airport (GBIA) in Bhairahawa will be equipped with affordable facilities for tourists and migrant workers, enhancing convenience and accessibility.
- Special incentives will be provided to operate cargo services from GBIA to improve Nepal’s air logistics network.
- Airlines operating international services in Nepal will be encouraged through special concessions to operate a fixed number of flights from Pokhara and Bhairahawa, promoting regional air connectivity.
Nijgadh International Airport Project Revived
Reaffirming its commitment to long-term infrastructure expansion, the government has reinstated the plan to construct Nijgadh International Airport. According to the budget statement, the project will proceed using alternative financing models, including development finance, to establish this much-anticipated international gateway in the Terai region.
Regional and Domestic Airport Enhancements
The budget also outlines several development and expansion projects across the country:
- Capacity expansion of Bhadrapur (Jhapa), Tarigaun (Dang), and Suketar (Taplejung) airports.
- Initiation of processes to develop a provincial airport in Surkhet.
- Allocation of NPR 500 million for infrastructure improvement at various domestic airports.
Institutional Reforms in Civil Aviation
The government has committed to strengthening the Civil Aviation Authority of Nepal (CAAN) by separating its regulatory and service provider functions to improve operational efficiency and transparency.
Furthermore, steps will be taken to remove Nepal from international aviation safety concern lists, ensuring compliance with global aviation standards. The budget also emphasizes enhancing internal aviation safety and making domestic air travel more secure and accessible.
The budget allocations and strategic focus on aviation and tourism signal Nepal’s intention to modernize its infrastructure and position itself as a competitive destination for global travelers. With significant investments, safety measures, and tourism hubs, the government aims to boost economic growth through enhanced connectivity and tourism development.
