Jefferies Report Highlights Tourism Potential : In a landmark moment for India’s cultural history, the consecration of the Ram Mandir in Ayodhya is poised to turn the city into a religious tourist hotspot. A recent report by Jefferies anticipates that Ayodhya will attract more than 50 million tourists annually, propelled by a $10-billion makeover, including a new airport, revamped railway station, and other infrastructure enhancements.
Multiplier Effect and Economic Activities
Jefferies suggests that the massive makeover of Ayodhya will trigger a multiplier effect, fostering new economic activities such as the development of hotels and other amenities. The comprehensive transformation aims to position Ayodhya as a global religious and spiritual tourism destination.
Ayodhya vs. Mecca and Vatican
Comparing Ayodhya to Mecca and the Vatican, the report underscores its potential as India’s answer to these global religious centers. While Mecca and the Vatican witness annual footfalls of 20 million and 9 million, respectively, Ayodhya is expected to surpass them. The economic impact is also significant, with Mecca generating $12 billion annually and the Vatican $315 million.
Tourism Contribution to India’s GDP
Tourism is a crucial contributor to India’s GDP, accounting for $194 billion in FY19. Jefferies estimates that this sector could grow at an 8% CAGR, reaching $443 billion by FY33. Despite its significance, the current tourism-to-GDP ratio in India stands at 6.8%, below that of many large emerging and developed economies.
Ayodhya’s Makeover as a Blueprint
The makeover of Ayodhya serves as a blueprint for India’s tourism boost, according to Jefferies. The nearly Rs 85,000-crore investment is expected to transform Ayodhya from a quiet town into a global religious and spiritual destination. Various sectors, including hotels, airlines, hospitality, FMCG, travel ancillaries, and cement, are poised to benefit from increased economic and religious migration to Ayodhya.
Infrastructural Upgrades
Ayodhya has witnessed significant infrastructural upgrades to bolster tourism. The operationalization of Phase 1 of the new airport, costing $175 million, is a key milestone. The airport’s capacity to handle 1 million passengers is expected to be complemented by additional domestic capacity and an international terminal by 2025, catering to 6 million passengers. The railway station has also undergone an upgrade to double its capacity to 60,000 passengers daily, and plans for a 1,200-acre greenfield township are underway.
Ayodhya’s transformation stands as a testament to India’s potential to boost tourism through strategic investments in infrastructure and amenities.
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