The grand opening of the Ram temple in Ayodhya by Prime Minister Narendra Modi will have a huge economic impact, as India gets a new tourist hotspot, which could attract 50 million plus tourists per year, said brokerage firm Jefferies.
“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. It can also set a template for infra-driven growth for tourism,” said Jefferies.
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Before the pandemic, tourism contributed $194 billion to FY19 GDP. This is now expected to grow at an 8 percent CAGR to $443 billion by FY 2033. Currently, the tourism-to-GDP ratio in India, at 6.8 percent of the GDP, puts the country below most of the large emerging and developed economies, which are higher by 3-5 percentage points.
The makeover is now set to transform the ancient city into a global religious and spiritual tourist hotspot. “The new Ram temple comes up at the cost of $225 million. Tourism is projected to surge,” Jefferies said. Amid increased economic and religious migration to Ayodhya, "multiple sectors stand to benefit including hotels, airlines, hospitality, FMCG, travel ancillaries, cement etc", the report issued by the firm added.
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Phase 1 of Ayodhya Airport has become operational at the cost of $175 million and can handle 1 million passengers. An international terminal is expected by 2025 with a capacity to handle 6 million passengers. Not just the airport, but the railway station has also been upgraded to double the capacity to 60,000 passengers per day. Further, a 1,200-acre greenfield township is being planned and road connectivity is being beefed up as well.
Earlier, India's G20 presidency provided an unparalleled platform to promote tourism in India with thousands of delegates visiting and travelling across the length and breadth of the country, according to Jefferies.
India was ranked 7th most beautiful country by Forbes in 2022. India has 42 UNESCO World Heritage sites and ranks 6th globally. Also, the world’s largest democracy is one of only three countries to have hot and cold deserts.
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