Spiritual Tourism in India Gives Boost to These 7 Emerging Cities

24.06.2024 - 23:28 / skift.com / Bulbul Dhawan

Spiritual tourism will help develop more tourism-related infrastructure in emerging cities in India, according to a report by real estate services firm Colliers.

In its latest report, Colliers identified 7 emerging cities, all religious hubs, where hospitality is set to drive real estate growth: Amritsar in Punjab; Ayodhya and Varanasi in Uttar Pradesh; Dwarka in Gujarat; Puri in Odisha; Shirdi in Maharashtra; and Tirupati in Andhra Pradesh. 

The report highlighted that spiritual tourism is set to be a major growth driver for the development of several temple towns in India, thanks to government policy support and infrastructure developments.

The improvements in infrastructure, such as upgraded roads, flagship trains, and new airports, are expected to attract real estate investors to these spiritual destinations.

Smaller towns are emerging as dynamic contributors to India’s economy, driven by improved infrastructure, affordable real estate, skilled talent, and government initiatives, said Colliers India CEO Badal Yagnik. “Significant momentum is expected across residential, commercial, retail, hospitality, and industrial segments,” he said.

In the 2022-2023 financial year, the travel and tourism industry contributed about $199 billion to India’s GDP. The Colliers report revealed that spiritual tourism holds a 30% market share in the country’s travel and tourism sector and accounts for 60% of the domestic tourism market.

Data from India’s Ministry of Tourism showed that in 2022, over 1.4 billion tourists visited religious sites across the country. These places of religious tourism generated INR 1,340 billion (over $16 billion) during the year.

Destinations like Ayodhya and Varanasi in Uttar Pradesh have seen significant upgrades to better accommodate tourists. In a recent interview with Skift, Preeti Srivastava, the tourism deputy director in Uttar Pradesh, mentioned that the state’s tourism industry has been transformed following the inauguration of the Kashi-Vishwanath corridor for visitor management in Varanasi in December 2021.

Spiritual destinations in India have been witnessing significant investment by hotel companies. Some of these cities include:

Ayodhya

Amritsar:

Varanasi:

The report said that the focus by the government on spiritual tourism is boosting this segment. “Given the latent potential, the segment’s market size grew from $44 billion in 2020 to about $60 billion in 2023,” it said, adding that the segment is expected to grow 9-10% annually to reach $130 billion by 2032. 

Recent government schemes including Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive (Prashad) and Swadesh Darshan 2.0 – to develop sustainable destinations – has led to an increase in