Leading up to the consecration of the Ram Mandir, only two branded hotels in the budget and economy segment have been inaugurated, while larger hotel chains have finalized agreements or Memorandums of Understanding (MoUs), signaling a three to five-year wait for their establishments to materialize.
A collaborative report by Mihir Chalishazar and Manav Thadani, CEO of Hotelivate, highlights the government's strategic focus on Ayodhya's development, aligning with the growing trend of spiritual and religious tourism nationwide.
According to Ministry of Tourism data from 2022, religious and spiritual destinations such as Varanasi, Rishikesh, Katra, Haridwar, Tirupati, and Dwarka collectively generated revenue of approximately Rs 1.3 lakh crore ($16 billion) and welcomed a staggering 1.4 billion visitors.
This translates to an average of one religious trip per capita annually in India. Notably, the report underscores that this influx of visitors extends beyond mainstream locations, with emerging markets like Pushkar, Vrindavan, and Sabarimala also witnessing a surge in tourism.
The report attributes Ayodhya's tourism upswing to the annual Deepotsav celebration since 2017, which gained momentum following the Supreme Court's landmark Ram Temple judgment in 2019. In 2023 alone, Ayodhya hosted over three crore tourists, with Ministry of Tourism projections estimating daily foot traffic to reach three lakh visitors by 2031.
This surge presents a significant opportunity for the hospitality sector in Ayodhya, with the recently opened Park Inn by Radisson Ayodhya and Clarks Inn Express Ayodhya serving as the sole branded accommodations presently available.
Recognizing the potential, major hospitality brands like IHCL (Taj Hotels), Marriott, Club Mahindra, Wyndham, The Leela Palace, and ITC Hotels have shown keen interest in Ayodhya. Several have already inked deals for their debut ventures, while others are in advanced stages of negotiation or have signed preliminary agreements.
In response to the demand-supply gap, the government has initiated auctions for land plots, aiming to facilitate the construction of over 400 hotels. The Ayodhya Master Plan 2031 outlines an ambitious investment plan of over Rs 85,000 crore ($10 billion) in the city's development over the next decade.
This investment will encompass various facets, including infrastructure upgrades, the establishment of a spiritual university, greenfield townships spanning over 1,200 acres, urban forests, a convention center, an arts and craft hub, and a hospitality management and training institute.
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