Ayodhya's Ram Temple Makeover May Draw 50 Million Tourists, Costing Rs 85,000 Cr: Jefferies
A report from global brokerage firm Jefferies suggests that the inauguration of the Ram temple in Ayodhya by Prime Minister Modi on 22 January could have a significant impact on India's tourism sector, potentially attracting over 50 million tourists annually. The firm anticipates an economic boost through an Rs 85,000 crore makeover, including a new airport, revamped railway station, township development, improved road connectivity, and more. Jefferies sees this development as a potential template for infrastructure-driven growth in the tourism sector.
The report highlights that religious tourism remains a substantial segment in India, with several popular religious centers attracting annual tourist traffic despite existing infrastructural limitations. The transformation of Ayodhya into a global religious and spiritual tourist destination, with improved connectivity and infrastructure, is expected to generate a considerable economic impact. The construction of the Ram temple, costing Rs 1,800 crore, is projected to stimulate tourism, leading to increased economic and religious migration to Ayodhya and benefiting various sectors, including hotels, airlines, hospitality, FMCG, travel ancillaries and cement.
Jefferies notes that tourism contributed USD 194 billion to FY19 GDP (pre-Covid) and is anticipated to grow at an 8 per cent CAGR to USD 443 billion by FY33. Despite this, the tourism to GDP ratio in India, at 6.8 per cent, remains below that of most large emerging and developed economies.
The report identifies potential beneficiaries in various sectors, including Indian Hotel Company and EIH in the hotel space, and ITC, Jubilant Foodworks, Britannia Industries, Godrej Consumer, Westlife Foodworld, Hindustan Unilever, Devyani International and Sapphire Foods in the FMCG and QSR space. Additionally, InterGlobe Aviation (Indigo), SpiceJet, IRCTC and Ease My Trip are expected to benefit from developments in the travel sector.
