The pran pratishthan ceremony of Ram Lalla at the Ayodhya Ram Temple concluded on January 22, 2024, opening the door to making Uttar Pradesh the largest religious tourist destination in India.
The Ayodhya Ram Temple will itself attract over 50 million tourists annually, roughly 136,000 per day, as estimated by US investment bank and finance services company, Jefferies.
Further, Uttar Pradesh holds the Sri Krishna Janmabhoomi and Varanasi, a few hundred kilometres within the Ayodhya Ram Janmabhoomi space, and all coupled together will form India's biggest religious tourist circuit.
The Uttar Pradesh government has formulated a master plan with an investment of over Rs 85,000 crore for Ayodhya until 2031, which includes projects, such as the newly constructed airport and renovated railway station.
The plan also includes the development of the Ayodhya township, with improved road connectivity, among others, which are expected to produce a multiplier effect on the already projected footfall.
For investors seeking opportunity to benefit from this footfall, here are five sectors to invest in.
In 2023, Ayodhya had already welcomed over 23 million tourists, and with the consecration of the Ram Temple, a surge in tourism-related businesses is anticipated in the area.
Online travel portals, and end-to-end travel solutions are already experiencing a surge in share price. Food and beverage companies, which have ties to the aviation sector, and also brands offering religious merchandise can benefit from the expected surge in pilgrimage.
All India based event management or exhibition companies having a base in Ayodhya are also poised to benefit from the expected influx of pilgrims.
Major hotel construction projects, including properties from the Tata Group's Taj and Vivanta, as well as Radisson, are already underway in Ayodhya.
Nearly 50 upscale hotels are in progress, while budget hotels and guesthouses are also likely to witness a surge in demand. Hospitality tech platform OYO earlier in week reported opening 65 homestays and hotels in Ayodhya to accommodate the pilgrims, with prices starting from Rs 1,000 per night. Many homestays have also come up in the city to cater to the demand, reportedly starting from around Rs 4,000.
In the aviation sector, SpiceJet has enhanced Ayodhya's connectivity with non-stop flights to Chennai, Bengaluru, and Mumbai, starting from February 1, 2024. This move parallels similar moves by IndiGo and Air India Express, contributing to increased daily flight connections between Ayodhya and Delhi.
While Phase 1 of the Ayodhya Airport has become operational, an international terminal is expected to come up by 2025 with a capacity to handle 6 million passengers. The ongoing expansion activities for the renovation of Ayodhya township are anticipated to bolster construction activities, potentially causing a surge in cement and steel prices.
Indian Railways had announced over 1,000 trains to Ayodhya for the temple inauguration. Now, it is expected it will also announce special trains in future for pilgrimages which is likely to boost the share price of IRCTC. The renovated Ayodhya station and a special Bharat Gaurav Deluxe AC Tourist Train will complement the rail infrastructure. On January 22, 2024, IRCTC shares touched a new 1-year high of Rs 1,025 apiece on the National Stock Exchange (NSE). IRCTC shares have gained by 59 per cent on the NSE so far in the last one year.
