If you are an Indian planning your next trip…including Gen Z…chances are that visiting a religious place is part of your itinerary. And it’s not just you. Places like Ayodhya have witnessed a 70 per cent surge in tourism recently. This includes over 135 million domestic visitors!

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The secretary of the Shri Ram Janmabhoomi Teeth Kshetra Trust recently revealed that the trust alone has paid over 400 crore rupees ($4.6 million) in taxes over the past five years.

Of this, 270 crore rupees ($3.1 million) were paid as GST, while 130 crore rupees ($1.5 million) came under other tax categories. The trust, formed in 2020 to oversee the construction of the Ram Mandir, has seen a surge in religious tourism.

According to the Union Tourism Ministry, Ayodhya’s total visitors rose from 600,000 in 2020 to over 160 million in 2024. The growing influx has driven employment across multiple sectors, including hospitality, transport, and retail.

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The real estate boom in pilgrimage cities

Religious tourism is fuelling real estate growth across key pilgrimage sites. Developers are rapidly investing in Ayodhya, Vrindavan, and Amritsar, supported by government incentives and infrastructure upgrades.

The house of Abhinandan Lodha is among the largest developers expanding in Ayodhya, while the BCD group plans to build 1,000 to 5,000 homes in the next five years. Industry experts predict continued growth despite concerns of market overheating.

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Property first realty has already facilitated multiple plot sales in Ayodhya, and demand for hotels, hostels, resorts, and dorms is rising. The faith-based tourism industry is projected to grow at 16.2 per cent annually, reaching $4.6 billion by 2033. With more infrastructure projects underway, Ayodhya’s transformation into a spiritual tourism hub is expected to accelerate, making it a key investment destination.

Social media and digital coverage of faith-based events have significantly boosted tourism. Faith-based holidays now account for 60 per cent of domestic tourism, as per a CBRE South Asia report.

Despite the surge, these religious cities will take more time to compete with economic powerhouses, like Mumbai and Delhi. Mumbai currently leads the pack, with over 5 trillion rupees ($57 billion) in direct tax collection.

(With the inputs from the agencies)