The Maha Kumbh is expected to provide a boost to spiritual tourism not only in Prayagraj, but also in destinations like Varanasi, Ayodhya, Chitrakoot, etc.
``The event will contribute roughly 10 percent to India’s spiritual tourism market in FY25,'' said Atul Thakkar, Director, Investment Banking, Anand Rathi Advisors, who tracks tourism and hospitality. The spiritual tourism market stood at around $56 billion in FY23, and Thakkar expects it to touch $100 billion this fiscal year.
"Anticipating around 40 crore visitors, including international pilgrims and dignitaries, the event has a staggering budget around Rs 7,000 crore, focussed on infrastructure development, urban revitalisation, and eco-friendly initiatives to enhance the pilgrim's experience," Thakkar added.
In addition, several destinations near Prayagraj including Varanasi (120 km away), Ayodhya (160 km), Chitrakoot (135 km), and other neighbouring cities are seeing an influx of tourists due to the Kumbh, and also because of the limited flights to Prayagraj.
Varanasi, a key spiritual hub, has seen nearly a 30 percent rise in hotel bookings, while Ayodhya, which has gained prominence with the construction of the Ram Temple, is also witnessing a surge in visitors, who are combining their Kumbh pilgrimage with a visit to this sacred site, said Ramalingam S, President, Cox &Kings.
Aloke Bajpai, Group CEO, ixigo, said: "Thanks to the Maha Kumbh, ixigo has witnessed a 2.6X surge in flight and train bookings to Prayagraj and nearby areas. Flight bookings to Varanasi and Lucknow airports have grown 127 and 42 percent, respectively."
Spillover effect
Ramalingam pointed out that the Maha Kumbh’s pull has also amplified interest in surrounding regions, creating a ripple effect in travel demand and contributing to the overall growth of religious tourism in the area.
"The state’s tourism initiatives suggest a promising revenue trajectory for hotels in Uttar Pradesh. The state government also aims to add 2,00,000 hotel rooms to its inventory. This is expected to benefit major cities such as Ayodhya, Varanasi, Braj, Mathura, and Jewar significantly, impacting the local economy," Thakkar said.
Ayodhya, for instance, has received the approval for over two dozen hospitality projects, he added.
Indian Hotels (IHCL) has commenced a 150-room greenfield project under its Gateway brand in Ayodhya, along with a 150-key resort in Prayagraj, which is also expected to see a Holiday Inn, developed by IHG Hotels and Resorts, open later in 2025. Online travel platform EaseMyTrip plans to launch a 5-star hotel in Ayodhya, while the HMI Group, a Japanese hotel chain, plans to develop 30 new properties in Uttar Pradesh, investing approximately $1 billion.
Additionally, in response to the growing influx of pilgrims and tourists, local hotels are expanding and upgrading their facilities, he added.
Rating agency ICRA projects a 7-9 percent year-on-year (YoY) revenue increase in the Indian hospitality sector in FY25, followed by a 6-8 percent rise in FY26, driven by rising average room rates and sustained demand from domestic tourism, business travel, and MICE (meetings, incentives, conferences, and exhibitions) events.
Upcoming projects
The Kumbh serves as a catalyst for significant improvements in local infrastructure and accessibility.
`In preparation for Maha Kumbh 2025, various projects aimed at improving infrastructure are being implemented, including the construction of 10 new road over-bridges (RoBs) or flyovers, permanent ghats, and riverfront roads, which will ensure seamless connectivity in Prayagraj," Thakkar explained.
The inauguration of major temple corridors, including the Bharadwaj Ashram, Shringverpur Dham, Akshayvat, and Hanuman Mandir corridors, are also expected to enhance tourism in the region.
Uttar Pradesh has consistently ranked as a top domestic tourism destination in India. In 2022, the state hosted around 18.4 percent of domestic tourists. It is also among the top five in terms of foreign tourists, with 7.6 percent of the footfalls.
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