• Tuesday, March 05, 2024

Business

India’s Ram temple to have major economic impact, will draw 50m tourists a year: Jefferies

Devotees queue to get glimpse of a statue of the hindu god Ram a day after consecration ceremony of the Ram Mandir on January 23, 2024, in the holy Indian town of Ayodhya in the northern state of Uttar Pradesh. (Photo by Ritesh Shukla/Getty Images)

By: Shubham Ghosh

THE recently inaugurated Ram temple in the northern Indian holy city of Ayodhya is likely to have a major economic impact in the region as local tourism is projected to receive a boost with 50 million visitors annually, US financial services company Jefferies said.

In a report, it said the new tourist spot in India could attract 50 million plus tourists a year, adding that a $10 billion makeover of the place, including building a new airport, revamping the local railway station, township and improved road connectivity, will propel a multiplier effect with new hotels and other economic activities. It said the temple in Ayodhya can also set a template for infra-driven growth for tourism.

According to Jefferies, multiple sectors, including hotels, airlines, hospitality, travel ancillaries, cement and others will benefit amid growing economic and religious migration to Ayodhya, believed to be the place of birth of Lord Ram. It said the temple can lead to a “meaningfully large economic impact”.

Read: Ram Mandir consecration big boost for India’s temple tourism

The temple’s main pilgrim centre, spread over 70 acres, can accommodate about a million devotees at a time. According to Jefferies, the number of pilgrims at Ram temple is likely to go up to 100,000-150,000 a day.

It said religious tourism is still India’s largest tourism sector. Despite infrastructural bottlenecks, several popular religious centres in India see footfall of 10-30 million tourists annually. According to Jefferies, the temple in Ayodhya will transform the ancient city from a sleepy town into a global religious and spiritual tourist hotspot.

Jefferies picked Indian Hotel Company and EIH as the potential beneficiaries from the hotel space related to tourism in Ayodhya, while it sees companies such as ITC, Jubilant FoodWorks, Britannia Industries, Godrej Consumer, Westlife Food world, Hindustan Unilever, Devyani International, and Sapphire Foods from the angle of FMCG and QSR.

Airlines such as IndiGo, SpiceJet and travel agencies such as Ease My Trip are also set to benefit.

(With agency inputs)

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