The inauguration of the Ram temple in Ayodhya is poised to transform the town into a major tourist destination, potentially drawing over 50 million visitors annually. This surpasses the footfall at other religious hotspots like the Golden Temple and Tirupati Temple. A significant investment of $1 billion in Ayodhya's infrastructure, including a new airport, renovated railway station, township, and improved road connectivity, is expected to catalyze economic activities, leading to the development of new hotels and more.
According to a report by brokerage firm Jefferies, the makeover of Ayodhya has the potential to make it a key player in religious tourism, surpassing the annual visits to the Golden Temple in Amritsar (30-35 million) and Tirupati temple (25-30 million). The estimate of 50 million tourists for Ayodhya suggests a substantial increase in foot traffic. Globally, renowned religious sites like Vatican City and Mecca attract around nine million and 20 million tourists annually, respectively.
The report highlights the significant contribution of tourism to India's GDP, amounting to $194 billion in FY19 (pre-Covid). The sector is projected to grow at an 8% Compound Annual Growth Rate (CAGR) to reach $443 billion by FY33. Despite being a dominant segment of tourism, the religious tourism sector faces infrastructural bottlenecks. Jefferies emphasizes that popular religious centers in India consistently draw annual tourist traffic ranging from 10 to 30 million.
The tourism-to-GDP ratio in India is currently at 6.8%, lower than many large emerging and developed economies, showcasing the potential for further growth in this sector.