‘The pandemic has created a new appreciation for spirituality, faith’

Marasa Sarovar Premiere, Tirupati; and Roni Madhvani, a director at the Madhvani Group.

In a recent op-ed in the Indian Express, the London-based private equity investor Ramesh Venkataraman wondered whether the Ram Temple in Ayodhya would remain a cultural monument or acquire sacred status. The next couple of decades will answer his pertinent question, but what is crystal clear at the moment, is the boost the temple, which will be inaugurated on January 22, will provide to religious tourism in the region.

Land prices in Ayodhya have sky-rocketed, with several hotel chains and builders eyeing prime locations in the city. Ayodhya now has improved air connectivity, with some airlines announcing daily, and direct flights. The city is expected to receive over 40 lakh visitors over the next week. The Rs 1,800 crore Ram Temple, the construction of which is expected to be completed by December 2024, has also put the growth of spiritual tourism in the country, especially post the Covid-19 pandemic, in the spotlight.

The numbers are staggering. Places of religious tourism earned Rs 1,34, 543 crore in 2022, says the Ministry of Tourism, with about 1,433 million domestic tourists undertaking pilgrimages. Among the players closely eyeing the space is the Uganda-based Madhvani Group, one of East Africa’s largest diversified private sector conglomerates.

The Madhvani Group, an early-mover in the spiritual tourism space in India, entered the country about eight years ago through a tie-up with Sarovar Hotels. Today, it operates luxury properties in Bodhgaya and Tirupati, besides one in Rajkot under the Marasa brand name. In an interview with Moneycontrol, Roni Madhvani, a director at the Madhvani Group, spoke about the potential of religious tourism in the country, the fillip provided by the pandemic, and the group’s expansion plans. Excerpts.

The Madhvani Group was one of the early movers in the religious tourism space in India. How did the venture come into being?

The initial idea was, of course, based on the actual experience of travelling to India on religious pilgrimages and finding that the offerings in terms of accommodation at most locations were either inferior or substandard. In the past, most traditional pilgrimages were undertaken with a great deal of hardship. In some respects, this inadvertently reflected the need for individuals to earn penance. Today, however, we are seeing a major shift from these penitent journeys to pilgrimages which, in some cases, can resemble luxury vacations. This change seems to be occurring in all religious traditions. We sensed these changing customer preferences as far back as 2007 and conducted an extensive market survey of prominent religious destinations in India. Marasa was born soon after. The objective was to provide luxury world-class accommodation to guests that reflected the spiritual essence of the individual location.

How much of a fillip did the pandemic provide to religious tourism in India?

Initially, the pandemic had a detrimental effect on religious tourism. However, as restrictions eased and vaccinations became more widely available, religious tourism in India saw a gradual recovery. The second wave of Covid proved to be quite... (bad) for the hospitality sector, bringing occupancies to the low single digits for certain properties, but as vaccination picked up pace, the occupancies at our properties gradually rose to over 80 percent with higher average daily rates. Since then, occupancies at religious destinations have remained at elevated levels. The pandemic has created a renewed appreciation for spirituality, faith, and seeking solace, leading to a pent-up demand for religious travel.

How do you see the Ram Temple in Ayodhya boosting religious tourism in the region?

The increased significance of Ayodhya as a religious destination could inspire more domestic and international tourists to visit the city, contributing to the local economy and tourism industry. Further, the infrastructure development around Ayodhya, including improved transportation facilities, luxurious yet affordable accommodation options, and tourist amenities can enhance the overall visitor experience. This development may attract a broader range of tourists, including those with specific interests in religious tourism.

Back in 2016, the Madhvani Group had announced plans to invest Rs 560 crore in seven hotels across the country, including Bodhgaya and Tirupati. Post-Covid, how is the rest of the plan progressing?

We are quite keen to expand our footprint in prominent places of religious interest in India, but it's important to note that the COVID-19 pandemic has significantly impacted the hospitality and tourism industry worldwide. Many hotel projects and investments have faced delays, modifications, or cancellations due to uncertain and challenging market conditions caused by the pandemic.

Of late, land acquisition in places of religious places at reasonable valuations has become quite challenging, considering renewed interest from hoteliers/real estate developers. The progress of our plans would depend on various factors, including market demand, financial considerations, and any governmental regulations or restrictions related to tourism and development.

At the same time, several religious places such as Somnath, Ujjain, Pavagadh, and Varanasi have been revamped under the Indian government’s PRASAD scheme. These may come under our radar if land is made available at reasonable rates.

‘Praycations’ have been a growing trend in India. The demographic, too, has reportedly changed, with younger tourists visiting religious sites. Have your properties, too, witnessed this trend?

Generally, families visiting a pilgrimage site try and plan their itinerary in such a manner that along with prayers at a particular religious site, they are able to either enjoy a staycation or visit nearby places for adventure/sightseeing. Our hotels have witnessed a mixed crowd so far, with demographics tilting towards older people, but we expect this trend to change significantly in the next few years, as infrastructure at prominent religious places gets a facelift.