Ayodhya’s Ram Mandir has created exceptional demands from tourism to telecom, generating a surge in all sectors
After decades of long controversies and conflicts, the Ayodhya Ram Mandir was finally inaugurated by PM Narendra Modi on 22 January, 2024 which witnessed a spurt of devotees from all over the country the very next day.
On Tuesday, tens of thousands of Hindus gathered in the northern city of Ayodhya, enduring harsh cold weather to offer prayers at a newly inaugurated temple dedicated to Lord Ram at the location believed to be the birthplace of the revered deity. Hindu organisations, along with PM Modi’s Bharatiya Janata Party (BJP) and associated groups, have depicted this event as a symbol of a Hindu revival following centuries of perceived subjugation by Muslim invaders and colonial forces.
According to reports, approximately 500,000 worshippers visited the Ram temple complex on the first day, following the consecration ceremony. The inaugural day witnessed an estimated footfall of around five lakh at the temple complex, as stated by Shishir, the Director of Information for the Uttar Pradesh government.
Crowds started assembling at the Ram Janmabhoomi Path, the route leading to the temple, as early as 3 am, comprising both local residents and pilgrims from various parts of the world.
No wonder that Ram Mandir in Ayodhya will be the hub of spiritual tourism in India, attracting devotees and tourists from all over the world. Not only tourism but a lot of other areas have been highly impacted by the newly inaugurated Ram Mandir.
Jefferies on January 21 said in a report, “A US $10 billion makeover (new airport, revamped railway station, township, improved road connectivity, etc.) will likely drive a multiplier effect with new hotels and other economic activities. It can also set a template for infra-driven growth for tourism.”
Jefferies anticipates a significant upswing in tourism, leading to heightened economic and religious migration in the town. Various sectors, including hotels, airlines, hospitality, FMCG (Fast-Moving Consumer Goods), travel ancillaries, and cement, are poised to experience substantial benefits from this trend.
Here’s how these sectors have been impacted / going to get impacted due to the newly inaugurated Ayodhya Ram Mandir:-
Tourism
According to Jefferies, the grand inauguration of the Ram Temple in Ayodhya is expected to generate a significant multiplier effect on the economy. The temple city has the potential to transform into a prominent global spiritual tourist destination, drawing in more than 50 million visitors annually.
The report also said, “Tourism contributed $194 billion to FY19 (pre-COVID) GDP and is expected to grow at an 8 per cent CAGR to US $443 billion by FY33. Tourism to GDP ratio in India at 6.8% of GDP, puts it below most of the large emerging/developed economies.”
Another report released by SBI on January 21 says that the initiatives undertaken by the Uttar Pradesh government, coupled with the recent construction of the Ram Temple in Ayodhya, may lead to an additional annual tax revenue of ₹25,000 for the state in the fiscal year 2025, owing to the anticipated rise in visitor numbers.
As per the state government’s projections, approximately 320 million tourists explored the state in 2022, with a notable visitation of 22.1 million in Ayodhya alone. The overall spending by these tourists surpassed ₹2 trillion.
Economy
The Indian economy is poised to achieve a milestone of $5 trillion by FY28, showcasing resilience against challenges and exhibiting a growth rate surpassing 7%. Uttar Pradesh (UP) emerges as a pivotal contributor, expected to command the second-highest weightage in the Indian GDP by FY28, surpassing Norway in terms of GDP, according to the SBI Research report.
According to the report, Ayodhya is identified as a crucial factor, and the projected surge in tourism suggests that Uttar Pradesh (UP) could witness an increase in wealth by approximately Rs 4 lakh crore in the upcoming year.
Therefore, establishing a new religious tourist destination like Ayodhya, accompanied by enhanced connectivity and infrastructure, has the potential to generate a significant economic impact, as stated in the report.
Infrastructure
According to data from Ayodhya’s Stamp and Registration Department, the number of properties sold has experienced a substantial increase. In the 2018-19 fiscal year, around 9,000 properties were sold by November, while this year, the corresponding figure has more than doubled. As of November, a total of 20,067 properties have been sold.
The approaching inauguration date has led to a surge in property prices. The revenue generated by the department has witnessed a notable increase, reaching ₹15,631.33 lakh up until November last year, compared to approximately ₹10,000 lakh in 2018-19. In November, the department’s revenue receipt exhibited a remarkable 109% hike, marking the highest in the state.
Transportation
On December 30, 2023, Prime Minister Narendra Modi inaugurated the renovated Ayodhya railway station, now named Ayodhya Dham. The new station features a temple-inspired facade dedicated to Lord Ram and modern amenities inside. This inauguration was significant ahead of the Ram Mandir consecration on January 22, 2024.
Officials report the completion of Phase-I for the revamped Ayodhya Dham Junction Railway Station, costing over Rs 240 crore. The three-story building is now equipped with lifts, escalators, food plazas, shops for puja needs, cloak rooms, child care rooms, and waiting halls.
IndiGo designates Ayodhya as its 86th domestic destination, offering direct flights from Delhi, Ahmedabad, and Mumbai. Air India follows suit with direct flights from Bengaluru, Kolkata, and Delhi. SpiceJet and Akasa Air also introduce flights connecting Ayodhya to various cities. Meanwhile, the Indian Railway Catering and Tourism Corporation (IRCTC) has unveiled tour packages for Ayodhya.
Hospitality
The surge in daily visitors to Ayodhya necessitates a significant enhancement in the hospitality sector to effectively cater to the needs of thousands of devotees.
Indian Hotels, Marriott International, and Wyndham, among various others, have inked agreements for hotel developments. IHCL has finalised deals for two upcoming properties in Ayodhya, slated to commence operations by 2027. Simultaneously, ITC Hotels is actively seeking prospects in the temple town, and OYO aims to expand its footprint by incorporating 1000 additional hotel rooms, as outlined in the report.
FMCG
FMCG companies and food service chains rushed to Ayodhya before the consecration of the Ram temple on January 22. They anticipated an 8-10 times increase in tourism and the city’s floating population, attributing it to the global branding and rejuvenation efforts.
Angelo George, who serves as the Chief Executive Officer of Bisleri International, India’s foremost mineral water company said, “Anticipating substantial surge in consumer demand following the consecration of the Ram temple, we are strategically setting up a greenfield plant in Ayodhya.”
Kabir Jeet Singh, co-founder of Burger Singh, supported by LetsVenture, shared that the outlet established in Civil Lines in Ayodhya, near the Ram Mandir complex, has become one of their top 10 performing outlets within nine months.
According to an executive from a prominent food services consultancy, some chains are establishing vegetarian-only outlets in Ayodhya to align with religious sentiments. Meanwhile, others, not wanting to exclude non-vegetarian options for diverse and international tourists, are strategically placing outlets just outside the city to tap into traveller demand.
Telecommunication
The inauguration of the newly constructed Ram mandir in Ayodhya has commendable effects on the telecommunication sector as well as enabling uninterrupted communication for the residents and travellers of Ayodhya.
Two prominent Indian telecom operators, Bharti Airtel and Vodafone Idea Limited (Vi), have enhanced their network infrastructure in the city. This involved the installation of extra sites, optical fibre cables, mobile cell units, and the assignment of additional personnel.
Airtel declared the enhancement of its network infrastructure to encompass crucial zones in Ayodhya, such as the airport, railway station, bus stands, prominent landmarks, and hotels.
In contrast, Vodafone Idea (Vi) has partnered with the Department of Telecommunications (DoT), the government, and local authorities to enhance its network infrastructure in Ayodhya. The telecom company mentioned the incorporation of new sites, the enhancement of L2100 spectrum capacity across the city, and the improvement of backhaul connectivity.
Also read: Ayodhya prepares for pilgrimage boom with $10B makeover: Jefferies Report
