The consecration of the Ram Mandir is a landmark moment in India’s cultural history and offers many opportunities to the tourism sector to flourish, according to a report by Jefferies.
India’s latest religious tourist hotspot is expected to attract more than 50 million tourists a year, says the brokerage firm. A $10-billion (close to Rs 85,000-crore) makeover comprising a new airport, and revamped railway station, among others, will likely drive a multiplier effect, leading to new hotels and other economic activities, the report says.
In addition, the report also sees the temple town as India’s answer to Mecca and the Vatican, with all three being of religious, cultural and historical significance. The annual estimated footfall at Vatican City is 9 million, while it is 20 million at Mecca, which means Ayodhya will surpass the two global tourist destinations in terms of tourists. Mecca sees an estimated $12 billion in annual revenue, while for the Vatican, it is $315 million.
In India, tourism contributed $194 billion (Rs 16 trillion) to the GDP in FY19, and could grow at 8% (CAGR) to $443 billion (Rs 37 trillion) by FY33, the report estimates.
At present, the tourism-to-GDP ratio in India is 6.8% — below most of the large emerging/developed economies, which are higher by 3-5 percentage points.
The makeover of Ayodhya serves as a template for India’s tourism boost, says the brokerage. It says the near-Rs 85,000-crore makeover will transform it from a sleepy town to a global religious and spiritual tourist hotspot. Increased economic and religious migration to Ayodhya is expected, with multiple sectors like hotels, airlines, hospitality, FMCG, travel ancillaries and cement standing to benefit.
Ayodhya has also witnessed significant upgrade in its infra to boost tourism. Phase 1 of the new airport is now operational, built at the cost of $175 million (Rs 1,455 crore) with the capacity to handle 1 million passengers.
Additional domestic capacity, along with an international terminal is expected by 2025, with an improved capacity to handle 6 million passengers.
Further, the railway station has been upgraded to double the capacity to 60,000 passengers a day. A 1,200-acre greenfield township is also being planned, says the report.