From Temples to Tourism: The Economic Impact of Spiritual Travel in India

India, known for its diverse dialects, cuisines, and religions, is witnessing a significant surge in spiritual tourism. According to experts, factors like social media, easy accessibility, and unique cultural experiences are fueling this trend. In fact, there's been a remarkable 102% increase in searches for pilgrimage destinations like Ayodhya, Ujjain, Badrinath, and Amarnath just in May 2024 alone.

The rise of pilgrimage tourism in India

The Ministry of Tourism’s latest report highlights a 22% rise in flight searches to Amritsar for May 2024 compared to the previous year, with Tirupati and Varanasi also seeing significant increases. Spiritual tourism now holds a 30% market share in India’s travel sector and accounts for a whopping 60% of domestic tourismTo further boost this sector, the Indian government has introduced initiatives like the PRASAD scheme – Pilgrimage Rejuvenation and Spiritual Augmentation Drive – identifying 41 religious sites across 25 states for development.

Major projects completed under this scheme include Kashi Vishwanath in Varanasi, Mahakaleshwar Jyotirling in Ujjain, and the iconic Ayodhya Ram Mandir.The redevelopment of these sites is not just about restoration but enhancing the entire pilgrimage experience. For instance, the Kashi Vishwanath Dham project has beautifully transformed the temple, while the Mahakal Maharaj Mandir Parisar Vistar Yojna in Ujjain aims to double the number of pilgrims.

Ayodhya Ram Mandir's impact on spiritual tourism

The consecration of the Ayodhya Ram Mandir is expected to attract around 5 crore visitors annually, surpassing even global pilgrimage sites like Vatican City and Mecca. Digital travel platforms report an astonishing 1806% increase in searches since the temple’s inauguration announcement. With such a massive influx of visitors, tax collections could rise to 5000 crore rupees in 2024-25, leading to Ayodhya playing a pivotal role in Uttar Pradesh's goal of becoming a trillion-dollar economy.

Pilgrimage tourism: A growing force in India

According to a report by CBRE South Asia Pvt Ltd, religious holidays make up 60% of domestic tourism. This sector is projected to grow at an annual rate of 16.2%, potentially reaching $4.6 billion by 2033. Hotels in pilgrim destinations are expected to see record occupancy rates of 70-72% for FY2024 and FY2025, with average room rates climbing significantly. Average room rates are expected to climb to a range of Rs 7,800-Rs 8,000 by FY2025, signifying a potential revenue growth of 7-9% for the hotel industry.Interestingly, spiritual tourism is no longer just for the older generation.

Post-COVID, it’s attracting millennials and Gen Z too. The hospitality and tourism industry is evolving, offering mindfulness, yoga, meditation, and even adventure packages to cater to younger travelers.Customised tour packages are now available in spiritual hubs like Rishikesh, Katra, and Varanasi, combining spiritual and adventurous experiences. This diversification is set to drive further growth in India’s tourism sector.

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