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‘World’s Top Tourist Hub in the Making’


With the grand opening of the Ram temple in Ayodhya, the once-out-of-the-way town in Uttar Pradesh may become a tourist hotspot, attracting at least 50 million tourists annually. This would put it ahead of religious tourism hotspots like Tirupati Temple and Golden Temple, thanks to massive investments in infrastructure like airports. New hotels and other economic activities are expected to produce a multiplier effect, according to a research by brokerage Jefferies. The Ayodhya makeover, which includes a new airport, renovated railway station, township, and improved road connectivity, is estimated to cost USD 10 billion. The area "could attract 50 million+ tourists a year" .


Around 25–30 million people visit the Tirupati temple each year, while 30-35 million people attend the Golden Temple in Amritsar. On a global scale, Mecca in Saudi Arabia attracts about 20 million visitors annually, while Vatican City receives about 9 million.


While visiting India, "religious tourism is still the biggest segment of tourism in India," says Jeferies. Despite the existing infrastructure impediments, a number of popular religious centers attract 10-30 million tourists annually. Therefore, a new religious tourist center (Ayodhya) with better infrastructure and connections can have a substantial and positive effect on the economy.


The report anticipated that tourism would add USD 194 billion to FY19 (pre-Covid) GDP and increase at a CAGR of 8 percent, reaching USD 443 billion by FY33. However, at 6.8 percent of GDP, India's tourism to GDP ratio is lower than that of most large emerging/developed economies, which is higher by 3-5 percentage points.


Reports indicate that the historic city of Ayodhya is about to undergo a massive renovation project valued at Rs 85,000 crore (USD 10 billion), which will turn it from a sleepy village into a worldwide spiritual and religious tourism mecca.


"Tourism is projected to surge and increase economic and religious migration to Ayodhya, multiple sectors stand to benefit, including hotels, airlines, hospitality, FMCG, travel ancillaries, cement etc," according to the broker.


One million passengers per year will be able to use the newly operational Ayodhya Airport Phase 1. With the addition of an international terminal and additional domestic capacity, the airport is projected to be able to handle 6 million passengers by 2025. The station has been expanded to accommodate twice as many passengers each day, up to sixty thousand. In addition to improving road connectivity, plans include for a 1,200-acre greenfield township.


There are now about 17 hotels in Ayodhya, with a total of 590 rooms. Of the 73 hotels planned, 40 are now in various stages of construction. Hotel partnerships have already been struck by Indian Hotels, Wyndham, and Marriott, while ITC is looking at potential opportunities in Ayodhya. Ayodhya will get 1,000 more hotel rooms from Oyo.


According to Jefferies, India's abundance of cultural offerings—including its rich history, diverse landscapes, and delectable cuisines—make the country a top tourist destination around the world. In addition to being one of just three countries on Earth to boast both hot and cold deserts, having 42 Unesco World Heritage sites, being ranked 10th in the Medical Tourism Index, and being named the most beautiful country in the world by Forbes in 2022, the Ayodhya temple will only serve to unlock India's tourism potential.

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