Ram Mandir could attract 50 million tourists a year: Jefferies
What's the story
The Ram Mandir in Ayodhya is anticipated to boost the city's economy as it emerges as an emerging tourist destination. Brokerage firm Jefferies estimates that over 50 million tourists could visit the temple annually, bolstering India's thriving tourism sector. "A $10 billion makeover (new airport, revamped railway station, township, improved road connectivity, etc) will likely drive a multiplier effect with new hotels and other economic activities," Jefferies stated.
Details
Tourism sector's potential remains untapped in India
Currently, India's tourism-to-GDP ratio stands at 6.8%, lower than many large emerging and developed economies. Prior to the pandemic, tourism contributed $194 billion to India's FY19 GDP, with projections to grow at an 8% CAGR to $443 billion by FY 2033. The $225 million Ram temple is poised to transform Ayodhya into a global religious and spiritual tourism hub. Various sectors, including hotels, airlines, hospitality, FMCG, travel ancillaries, and cement, will benefit from this growth.
What Next?
Ayodhya's infrastructure upgrades
Ayodhya Airport's domestic termnal is now operational, costing $175 million and accommodating one million passengers. By 2025, an international terminal with a capacity for six million passengers is expected. The railway station has also been upgraded to handle 60,000 passengers daily, doubling its previous capacity. Furthermore, a 1,200-acre greenfield township is in the works and road connectivity has been enhanced.