India’s tourism sector is booming as more travelers make trips across the country for religious purposes.
The South Asian country with the world’s largest Hindu population could see an extra 50 million to 100 million tourists a year because of the new Ram Mandir – a temple in the northern city of Ayodhya that opened on Monday – according to Jefferies.
That expected hit to the new temple would be far higher than the annual numbers for the Taj Mahal (6.5 million) in India, the Vatican in Rome (9 million) and Mecca in Saudi Arabia (20 million), the memo showed .
Other religious sites in India such as the Tirupati Temple in Andhra Pradesh – 25 million visitors a year – and the Vaishno Devi Temple in Jammu and Kashmir – 8 million visitors a year – also have strong spiritual, historical and cultural significance in India, the investment said. bank.
“Religious tourism is still the largest segment of tourism in India … creating a new religious tourism center (Ayodhya) with improved connectivity and infrastructure can create a substantial economic impact,” Jefferies pointed out.
Indian media reported that around half a million people visited the Ram temple on its inauguration day, which was inaugurated by Prime Minister Narendra Modi. The YouTube show of the inauguration ceremony on Modi’s channel alone received more than 11 million views.
“The multiplier effect of travel is huge. If it continues to develop tourist destinations including religious tourism, the chances are that more and more people will come to visit India and even benefit from the foreign exchange side,” said Nilesh Shah, managing director at Kotak Mahindra Asset Management.
Devotees line up to catch a glimpse of a statue of the Hindu God Ram a day after the consecration ceremony of the Ram Mandir on January 23, 2024 in Ayodhya, India.
Ritesh Shukla | News Getty Images | Getty Images
India had 10.93 million foreign tourists before the pandemic in 2019 and 6.43 million between January and September last year, according to The Press Information Office.
The world’s most populous country is set to be the fourth largest global travel spender by 2030, with travel and tourism expected to become a $410 billion market — up more than 170 percent from $150 billion in 2019, according to Booking.com information.
“India has a lot to offer travelers of all kinds, from beaches to historical landmarks, backwaters to spiritual sites,” said Santosh Kumar, India, Sri Lanka, Maldives and Indonesia country manager for Booking.com.
“The government is encouraging the promotion of domestic tourism while also working to improve cleanliness, focusing on water conservation, promoting local products and adopting digital methods … for both locals and tourists,” Kumar told CNBC via e-mail.
AYODHYA, INDIA – JANUARY 23: Worshipers line up to see a statue of the Hindu god Ram a day after the consecration ceremony of the Ram Mandir on January 23, 2024 in Ayodhya, India. The Ram Mandir, a temple built on a site believed to be the birthplace of Lord Rama, an important figure in the Hindu religion, was inaugurated on January 22, 2024. (Photo by Ritesh Shukla/Getty Images)
Ritesh Shukla | News Getty Images | Getty Images
Air travel is taking off
Indian carriers have placed orders for more than 1,100 planes in the past eight months, signaling huge demand for travel.
Indigo in June last year placed the largest commercial aircraft order in history for 500 Airbus A320 aircraft to be delivered between 2030 and 2035, surpassing Air India agreement to buy 470 planes by Airbus and Boeing in the same month.
Akasa Air last week ordered 150 Boeing 737 MAX airplanes.
Kashmiri Umrah pilgrims boarding an IndiGo flight at Delhi Airport in India on December 13, 2023.
Nurphoto | Nurphoto | Getty Images
India’s improved air and road connectivity has made travel easier and helped the industry grow.
Air India Express, owned by Air India, has announced direct flights to Ayodhya from Bangalore, Kolkata and Delhi. Low-cost airline IndiGo has also announced direct flights to the holy city from Delhi, Ahmedabad and Mumbai.
Atal Setu, India’s longest sea bridge with a length of 21.8 km. opened earlier this month to reduce travel time between cities and improve connectivity between Mumbai International Airport and Navi Mumbai International Airport.
All this is a boon for the hospitality industry.
Hospitality names such as Indian Hotels Company Limited and OYO Rooms, and fast-moving consumer goods companies such as Hindustan Unilever, Jubilant Foodworks and Britannia Industries will benefit from a boom in Indian tourism, Jefferies said.
“In addition to traditional hotel arrangements, Indians are increasingly looking for accommodations such as apartments, villas, guesthouses and other unique places to stay,” Booking.com’s Kumar said, citing the company’s “How India Travels 2023” report.
— CNBC’s Naman Tandon contributed to this report.