Economic Impact Of Ram Mandir Expected To Surpass Rs 50K Cr

On 22 January 2024, India will officially open the Ram Temple signifying the consecration of Lord Rama’s idol at the recently completed Ram Temple in Ayodhya. Previously confined to the realm of myth, Ayodhya has re-entered our national history and consciousness.

Praveen Khandelwal, Secretary General, Confederation of All India Traders (CAIT) stated in a report, “The temple has created numerous business prospects, especially benefiting small manufacturers and traders. The economic impact of the Ram Temple is expected to surpass Rs 50,000 crore, as per CAIT's preliminary estimates.”

Ayodhya has forever been a destination for pilgrims, but the consecration amplifies its allure. The city is poised to witness an influx of devotees from across the country and the globe. This surge in footfall is a windfall for the tourism sector, with hotels, guesthouses, and homestays experiencing a surge in bookings.

“The event is expecting an initial attendance of nearly 7,000 guests, projecting a daily footfall between three to five lakh visitors post-inauguration, presenting significant economic opportunities,” said Nishant Pitti, CEO, EaseMyTrip.

Around the temple, several new shops have opened, providing tourists with a selection of regional goods. The storytelling aspect of the site would draw people from all parts of the world and has the potential to become a major tourist attraction for north India.

Leading up to the inauguration, Ayodhya's hotels are fully booked, enabling them to leverage increased pricing.

Pitti added, “Occupancy rates have risen from 80 per cent to 100 per cent, resulting in substantial price hikes, reaching up to Rs 70,000 per night in select hotels.”

The city's infrastructure is being fine-tuned to accommodate the rising tide of tourists. New hotels are opening their doors, and existing ones are expanding their capacities. The rejuvenated focus on Ayodhya as a spiritual and cultural hub is likely to have a lasting impact, turning it into a year-round destination beyond the immediate event. To give the required boost, Rs 85 crore has been allocated by the Uttar Pradesh government.

“Ayodhya is undergoing significant infrastructural growth too, planning for 73 new properties, including 40 currently under construction. OYO's plans encompass the addition of 50 hotels and homes with 1000 rooms before the grand opening of the Ram Temple, totalling 10,000 rooms. This accommodation setup includes 150 economy hotels, 30 dharmshalas, and 20 luxury hotels,” Pitti explained.

The inauguration of the Ram Temple is anticipated to bolster tourism in Uttar Pradesh, stimulating travel to neighbouring cities such as Faizabad, Lucknow, Varanasi, and Prayagraj from Ayodhya.

The CEO revealed, “EaseMyTrip recently introduced EasyDarshan, a platform specialising in pilgrimage packages in India, reporting a 45 per cent surge in travel bookings to spiritual destinations like Puri, Amritsar, Varanasi, Haridwar, and Kochi. Concurrently, airfare prices to these locations have witnessed a 10-20 per cent increase. Hotel reservations to these spiritual destinations have surged by 50 per cent, with an average room rate increase of 20 per cent.”

The Ram Temple's inauguration has also impacted the event industry in Ayodhya. The event industry in Ayodhya has been booming since the announcement of the temple.

Rajesh Verma, Founder, CRI Events said, “The Ram Temple consecration in Ayodhya has notably increased demand for event planning services, emphasising advanced logistics, crowd management, and security measures to accommodate large crowds at a culturally significant site.”

The consecration of the Ram Temple marks the beginning of a new chapter for Ayodhya. The city, already a symbol of India's cultural and religious heritage, is now positioned as a dynamic centre for spiritual and cultural tourism.

Outlining key aspects for managing such a large-scale event, Verma expressed, “Effective crowd control, stringent security protocols, essential infrastructure like medical and food services, close coordination with local authorities, and a focus on cultural sensitivity and respect.”

In conclusion, the Ram Temple consecration is an event that reverberates through various facets of Ayodhya's business landscape. From the events industry to tourism and the local economy, the impact is transformative. As the city opens its arms to millions, it also opens doors of opportunity for businesses that can navigate the complexities and contribute to Ayodhya's renaissance.