Bengaluru: Even as hectic preparations are underway for Prime Minister Narendra Modi to inaugurate the Ram temple at Ayodhya on January 22, the city itself is on the cusp of a religious tourism boom over the coming days and years.
Multiple booking and hotel companies told DH that online searches for Ayodhya have shot up significantly. And real estate and hospitality experts say that while land prices have gone up significantly, it will still take two-three years for the city to mature as a religious tourism hotspot.
“We have seen a consistent increase in hotel bookings and searches in Ayodhya throughout the past year. On New Year’s Eve, we witnessed a surge of over 70 per cent in Ayodhya, surpassing even the popular destinations like Goa and Nainital. We are in the process of adding 50 hotels and homes, offering around 1,000 rooms, ahead of the grand opening of the Ram Mandir,” said Anuj Tejpal, chief merchant officer at OYO.
A number of other hotel chains big and small, including the likes of Taj, Tata Group’s IHCL, Raddisson and ITC are looking to build multiple properties in the vicinity across price points, with significant interest from midscale and up-scale builders, industry insiders in the know said.
Land in Ayodhya has tripled in value in the last three years and locals are capitalising on the limited land parcels by either holding on to their properties or quoting exorbitant rates, especially as there is no price benchmark to compare with, said Jaideep Dang, managing director of Hotels & Hospitality Group at property consultancy JLL.
Development in the city is expected to continue for the next 2-3 years before it can properly function as a tourist hotspot, according to industry experts. While there are an estimated 1,100-1,200 rooms or 25-50 hotels in the city right now, this is expected to more than double in the next three years to bridge the current demand-supply gap. Till then, most tourists are expected to plan day trips to the city or stay in nearby cities.
The Ram Temple inauguration is also expected to give a boost to local traders and manufacturers, with preliminary estimates from the Confederation of All India Traders (CAIT) placing its economic impact to be over Rs 50,000 crore.
“Religious tourism is flourishing in India, experiencing a strong demand for accommodations. Initially concentrated in Southern India, this demand has now expanded to other regions. The construction of the Ayodhya temple is poised to enhance and sustain this upward trend,” said Nikhil Shah, director of hospitality at Colliers.
Shah said that revenue from religious tourism across India is expected to increase by 15 per cent year-on-year in 2024. The estimates for 2023 are still being worked out, while in 2022, revenues stood at Rs 1.35 lakh crore.
Factors influencing this boom include increased accessibility through improved infrastructure, government schemes aimed at revamping and promoting newer spiritual destinations, and increased digitisation making them a part of standard travel itineraries, said Rajat Mahajan, partner at Deloitte.