Sterling Resorts in Ayodhya and Lakshadweep in Thomas Cook blueprint

Ayodhya Ram Mandir Live: The event will witness the presence of around 7,000 VVIPs from across the nation

With Ayodhya and Lakshadweep emerging on the tourism map of India in a big way, there is an increasing need for infra facelift in these places in an accelerated mode, according to online travel aggregator Thomas Cook.

Along with connectivity, both the destinations are in need of good quality hotels, said a top official of the company. The company, which has a hospitality brand called Sterling Resort, plans to expand in Ayodhya and Lakshadweep.

"In Ayodhya, there is a capacity constraint in terms of rooms and quality of hotels as there are mostly three star hotels. As that grows, tourism will grow. Also, there is capacity constraints in terms of the number of hotels in Lakshadweep. There are minimal facilities there which have to expand," said Debasis Nandy, president and group chief financial officer (CFO) of Thomas Cook.

"We are looking at Ayodhya and are trying to get a good property there. Something may come up soon. Lakshadweep is also on the cards. We plan to go to Andaman and Lakshadweep and that should happen some time this year if we find a suitable property."

Sterling Resorts in the December quarter of FY24 reported an occupancy of 60 percent with an average room tariff of Rs 6,588.

The company expects the two destinations to be a major attractions, especially for overseas travellers, at a time when foreign tourist arrivals (FTAs) are yet to return to the pre-Covid levels.

FTAs till October last year stood at 7.2 million, down from 10.93 million in 2019.

"In the past few months, I have seen foreign tourists being eager to come to India as they are seeing a lot more places opening up in the country. Typically, the sectors that foreigners look at are the golden triangle of Delhi-Agra-Jaipur and parts of Rajasthan and then Goa and Kerala. But now people are looking at newer regions like Varanasi which is a big draw and Ayodhya will also become a big draw as curiosity will take many people there. The government is also talking about the new golden triangle of Varanasi-Prayagraj-Ayodhya," Nandy said.

The Budget 2024 has intensified the government focus on spiritual tourism. "This will draw a lot of people into India. There is a large Indian diaspora that lives abroad. The NRIs will be flocking to these places when they open up. We see an increasing trend for river cruises. They are a big hit with foreigners. All that can help people from overseas come to India."

Nandy, however, reiterated that the island region is not well connected to the mainland. "There is a constraint in terms of flights. It is not well connected right now. Once all the infrastructure develops, it will become a big draw for us. Taj (Hotels) is setting up two hotels in two of the islands that will come up next year and with that more hotels will open there. It is more about the capacity of the place to accommodate tourists, demand is already there. Andaman, 10 years back was not a big draw, but today it ranks as one of the most visited destinations for us. I am sure Lakshadweep will come on that list once facilities there improve."

The CFO added that inbound tourism is reviving quickly. "I don't think the reduction in government allocation for overseas promotion to Rs 3 crore from Rs 100 crore will affect that much because India continues to be an attractive destination."

In the December quarter, the company reported a profit of Rs 89.6 crore, up from Rs 26.3 crore a year ago.