FY27 budget today: Tourism, aviation likely to be drivers of growth

The new government, led by Prime Minister Tarique Rahman, is going to present in parliament today (Thursday) a record fiscal outlay of Tk 9.38 trillion as the national budget for fiscal year 2026-27 with a special focus on the full-blown growth of aviatourism in addition to other sectors.

Finance Minister Amir Khosru Mahmud Chowdhury will present the national accounts meant for managing standard lives, livelihoods and development for a fiscal year.

Top government officials claimed that the higher allocations for the Ministry of Civil Aviation and Tourism signals the government's growing recognition of tourism and aviation as key drivers of investment, employment and economic diversification, they said.

According to reliable sources, the ministry is set to receive Tk 1,824.90 crore in the upcoming fiscal year, up from Tk 1,722.47 crore in FY2025-26, marking a 5.95 per cent increase. 

The sources argued that the additional funding indicates the government's efforts to strengthen tourism infrastructure, modernise aviation services and improve connectivity across the country.

Of the proposed allocation, Tk 1,211.34 crore will come from government resources, while Tk foreign loans.

The ministry has planned eight development projects for FY27, focusing on airport modernisation, tourism infrastructure development, destination connectivity and service quality enhancement.

The increased allocation comes within the framework of a record Tk 9.38 lakh crore national budget and a Tk 3 lakh crore Annual Development Programme (ADP), both aimed at accelerating investment, employment generation and private sector-led growth. As Bangladesh pursues its ambition of becoming a trillion-dollar economy, tourism is increasingly being viewed as a high-potential sector capable of attracting domestic and foreign investment, generating foreign exchange earnings and creating jobs across both urban and rural areas.

Tourism gains strategic importance

The FY27 budget is expected to place strong emphasis on investment promotion, entrepreneurship development and service-sector expansion under the government's broader economic transformation agenda.

Within that framework, tourism has emerged as a sector with considerable untapped potential.

Industry experts say tourism offers one of the fastest routes to job creation, particularly for young people and women, while supporting a broad ecosystem of businesses ranging from transport and hospitality to retail, handicrafts and food services.

Bangladesh possesses a diverse portfolio of tourism assets, including the world's longest natural sea beach in Cox's Bazar, the Sundarbans, archaeological heritage sites, tea gardens, hill districts and river-based tourism destinations. Yet the sector continues to underperform compared with regional competitors due to infrastructure gaps, limited international marketing and insufficient private-sector participation.

Aviation at the heart of tourism dev

Officials believe the future growth of Bangladesh's tourism industry will depend heavily on improved aviation infrastructure and connectivity.

Enhanced airport facilities, improved passenger services and stronger domestic air networks are expected to make key tourist destinations more accessible to both local and international travellers.

The government's continued investment in aviation infrastructure is also aimed at supporting rising passenger demand, expanding business travel and strengthening Bangladesh's position as an emerging regional aviation hub.

Stakeholders argue that aviation and tourism development must go hand in hand. Alongside airport expansion, greater investment will be needed in roads, accommodation facilities, visitor centres, digital tourism services and destination management systems.

Economic opportunities beyond major cities

Economists note that tourism has the potential to generate substantial spillover benefits throughout the economy, particularly in rural, coastal and environmentally sensitive regions where employment opportunities remain limited.

Successful implementation of the ministry's development projects could stimulate private investment in hotels, resorts, eco-tourism ventures and recreational facilities while creating new opportunities for local entrepreneurs and small businesses.

The sector is also expected to benefit from broader budget measures aimed at improving the ease of doing business, attracting investment and strengthening infrastructure connectivity.

Challenges to competitiveness

Despite the increased allocation, industry leaders caution that Bangladesh still faces significant challenges in becoming a competitive international tourism destination.

These include limited global branding, inadequate tourism promotion, restricted international flight connectivity, shortages of skilled hospitality professionals and weak destination management capacity.

Project implementation will also remain critical. Delays in land acquisition, procurement processes and inter-agency coordination have historically slowed progress in tourism and aviation development projects.

Looking ahead

As the government seeks to balance growth, employment generation and economic diversification, the increased allocation for the Ministry of Civil Aviation and Tourism reflects a broader policy shift towards leveraging service-sector opportunities alongside traditional industries.

With eight development projects in the pipeline and stronger policy support under the FY27 budget, tourism and aviation are increasingly being positioned not merely as supporting sectors, but as strategic contributors to national income, foreign exchange earnings, regional development and Bangladesh's long-term growth ambitions.