Ayodhya, with its grand inauguration of the Ram temple, is poised to become India's top tourist hotspot, surpassing renowned religious destinations like the Golden Temple and Tirupati Temple. A substantial investment of USD 10 billion in infrastructure development, including a new airport, upgraded railway station, township enhancements, and improved road connectivity, is set to transform this once secluded town in Uttar Pradesh into a prominent stop on the tourism circuit.
According to a report by brokerage firm Jefferies, the extensive makeover is expected to generate a multiplier effect, fostering the growth of new hotels and other economic activities. The report anticipates that Ayodhya could attract over 50 million tourists annually, surpassing the footfalls at the Golden Temple in Amritsar (30-35 million) and Tirupati Temple (25-30 million). Globally, this projection places Ayodhya in league with renowned destinations like Vatican City and Mecca.
Jefferies notes that religious tourism remains a dominant segment in India, drawing annual traffic of 10-30 million to popular centers despite existing infrastructure challenges. The creation of Ayodhya as a new religious tourist hub, coupled with improved connectivity and infrastructure, is predicted to yield a substantial economic impact.
Tourism, contributing USD 194 billion to FY19 GDP (pre-Covid), is expected to grow at an 8 per cent CAGR to reach USD 443 billion by FY33. Despite its potential, the tourism-to-GDP ratio in India (6.8 per cent) lags behind that of other large emerging/developed economies. Ayodhya is positioned to serve as a model for India's tourism surge, with its USD 10 billion makeover poised to elevate it from a quiet town to a global religious and spiritual tourist destination.
The first phase of the new Ayodhya airport is already operational, accommodating 1 million passengers, with additional domestic and international capacity expected by 2025. The upgraded railway station, now capable of handling 60,000 passengers per day, and the planned 1,200-acre greenfield township, along with enhanced road connectivity, further contribute to Ayodhya's tourism appeal.
Ayodhya presently boasts 17 hotels with 590 rooms, and an additional 73 hotels, including partnerships with Indian Hotels, Marriott, Wyndham, and potential ventures by ITC and Oyo, are in the pipeline. Jefferies envisions a surge in tourism and economic benefits across various sectors such as hotels, airlines, hospitality, FMCG, travel ancillaries, and cement.
Highlighting India's diverse offerings, Jefferies emphasises the country's geographical variety, rich culture, heritage sites, and a wealth of art, music, and cuisines. The Ram temple in Ayodhya is expected to unlock India's tourism potential, building on the nation's global appeal—ranked 7th most beautiful country by Forbes in 2022, home to 42 UNESCO World Heritage sites, and positioned 10th in the Medical Tourism Index.
(With inputs from PTI)
