Ayodhya: How the Ram Mandir construction is fuelling an economic boom

As the inauguration of the Ram Temple nears, businesses have found a new destination for their investments—Ayodhya in eastern Uttar Pradesh. The town on the banks of the Sarayu River is buzzing with industry, as both private enterprises and government congregate there ahead of the inauguration on January 22. From real estate developers and hotel owners to airlines, the country’s leading corporate houses are heading to the temple town, which wasn’t on their radar till a few years ago.

No industry is more emblematic of the frenetic pace of activity there than hospitality. Here, for instance, Indian Hotels Company Ltd (IHCL)—which owns popular brands like Taj Hotels and Vivanta—is coming up with two properties. According to Suma Venkatesh, Executive Vice President–Real Estate & Development at IHCL, the company took the leap of faith because Ayodhya, the revered birthplace of Lord Ram, is expected to attract significant footfall from pilgrims throughout the year. “IHCL has underscored its commitment by signing management contracts for two new properties in Ayodhya—a 100-room Vivanta hotel and a 120-room Ginger hotel, both expected to be operational in 36 months,” she tells BT.

Diversified conglomerate ITC Ltd—a leading player in the luxury- and mid-segment hotels business—is in discussions with developers to offer branding and management solutions for their assets under development. “It is encouraging to see rapid growth in overall infrastructure as a catalyst for the expected tourism surge. Any market with such large-scale expected movement of travellers, would need quality accommodation across segments,” says Anil Chadha, Divisional Chief Executive at ITC Hotels.

OYO, the country’s largest hotel chain operator, plans to add 50 hotels and homes, aggregating to some 1,000 rooms. “These new properties will be strategically located near Ayodhya’s prominent landmarks, ensuring convenient access for visitors exploring the city’s iconic attractions,” says Anuj Tejpal, Chief Merchant Officer at OYO.

According to Jaideep Dang, Head of hotels & hospitality, India at real estate services firm JLL, some four to five luxury hotel chains have already lined up properties aggregating to capacity of 1,100 rooms. The enthusiasm isn’t unfounded. Per estimates, some 300,000 tourists are expected to visit the holy town every day.

Apart from hotels, there are the massive infrastructure development projects announced by the central and state governments. Under the Ayodhya Master Plan 2031, projects worth `85,000 crore will be executed to upgrade the town’s infrastructure. The government has already unveiled a new international airport and a revamped railway junction as well. During a recent visit to the town, Prime Minister Narendra Modi said, “Infrastructure-related works will once again establish modern Ayodhya with pride on the map of the country.”

Meanwhile, IndiGo and Air India Express have launched multiple flights connecting major cities with the temple town. “These new routes will significantly promote travel, tourism, and trade in the region, contributing to economic growth and providing tourists direct access to Ayodhya,” says Vinay Malhotra, Head of global sales at IndiGo. On the ground, the Indian Railways is planning to launch nearly 15 new trains connecting Ayodhya with key cities.

Not to be left behind, real estate developers have flocked to the town in search of prime land. According to Abhinandan Lodha, Managing Director of the House of Abhinandan Lodha (HoAL), the company plans to invest `1,200 crore in the city. Its project will be spread over 51 acres, which includes a luxury hotel, residential plots, villas and high-rise luxury apartments.

“The realtors and hoteliers’ growing interest in the city has resulted in a threefold surge in land prices in the recent past as prominent developers from Mumbai and Delhi are purchasing land parcels,” Dang from JLL tells BT.

All roads, it seems, are leading to Ayodhya right now. 

@arndutt