The inauguration ceremony itself was a grand affair, with over 7,000 guests in attendance from both India and abroad. Officials from the Ayodhya Development Authority anticipate a substantial influx of visitors, estimating between 3 to 5 lakh individuals daily for at least a month following the inauguration. With over $10 billion in investments made in new airports, revamped railway stations, townships, and improved roads, the city is expected to attract around 5-10 crore footfall every year, according to a report by Jefferies.
This influx of pilgrims is poised to create lucrative opportunities for many sectors.
“Without a doubt, Ayodhya will become a major spiritual tourism destination. The potential for tourism-related business is enormous and has attracted investors into hotel, travel, and other tourism-related stocks. While appreciating the long-term potential of investment, investors should not go overboard chasing these stocks that have elevated prices. Many stocks in this segment have run up too much too fast and have shot up by more than 100 percent in just a few weeks. This is a sentiment-driven rally triggered by retail exuberance. Ayodhya tourism has excellent long-term prospects, but investors have to be careful about the valuations. Large caps in IT, capital goods, telecom, and selective private sector banks are safer bets now,” advised VK Vijayakumar, Chief Investment Strategist, at Geojit Financial Services.
These sectors stand to gain after the opening of the Ram Mandir
Hotels
The hotel industry in and around Ayodhya is poised for significant growth following the opening of the temple to visitors. Anticipating an upsurge in tourism, the region is likely to experience a boom in the hotel sector as accommodations become increasingly sought after by tourists and pilgrims visiting the temple. Currently, the city has approximately 17 hotels with around 590 rooms. To meet the anticipated increase in tourist arrivals, 73 new hotels are in the pipeline, with 40 of them already under construction, informed Jefferies
Shares of hotel stock Praveg, which has built a resort at Ayodhya has jumped almost 40 percent just in January after a 12.4 percent rise in December. In the last 1 year, the stock has soared 205 percent.
Meanwhile, other luxury hotel chains like Indian Hotels Co., ITC, Mariott, Lemon Tree, Trident, and Oberoi are also planning hotel openings in the area. ITC is opening a seven-star property, 12 km from the temple. Meanwhile, IHCL is building Vivanta and Ginger-branded hotels.
Shares IHCL have gained 8 percent just in January while EIH and EIH Associates have jumped 22 percent and 36 percent in this period. Lemon Tree Hotels also advanced 18 percent and Chalet Hotels added 9 percent in Jan 2024 so far. Apollo Sindoori Hotels also rallied 46 percent.
The hospitality projects are expected to add significant room capacity to accommodate the growing number of tourists and pilgrims visiting Ayodhya.
Airlines
The newly completed Ayodhya International Airport was inaugurated by Prime Minister Narendra Modi on December 30, 2023, and flight operations begin on January 10, 2023, ahead of the Ram temple opening.
Ayodhya’s Phase I of the new airport is operational, becoming a milestone in facilitating air travel to and from the city. The airport’s Phase I, built at a cost of approximately approximately $175 million, has an annual handling capacity of 1 million passengers. Meanwhile, Ayodhya’s international terminal is expected to be operational by 2025. Once operational, Phase II of the airport is expected to handle around 6 million passengers annually.
InterGlobe Aviation Ltd.’s IndiGo started commercial operations in Ayodhya from Delhi and Ahmedabad. Meanwhile, ticket prices to Ayodhya airport have surged on the back of increased demand.
Shares of SpiceJet have risen 5.33 percent in January after a 35 percent jump in December and a 23 percent gain in November 2023. Meanwhile, IndiGo shed around a percent in January till date on high valuations after 3 straight months of rise between October-December 2023.
Railways
The Ram temple city, Ayodhya, has witnessed enhanced connectivity through railways during the temple inauguration, with the operation of over 1,000 trains providing convenient access from major cities. Looking ahead, there are plans to introduce additional trains to further improve connectivity with Ayodhya, ensuring seamless transportation for visitors and pilgrims. IRCTC stock has added 7.5 percent in January so far after a 26 percent gain in December. Meanwhile, Rail Vikas Nigam soared over 61 percent just in Jan after a 10.5 percent rise in December.
Tour operators
Tour operators and travel agencies, including Thomas Cook (India) Ltd., EaseMyTrip, and RateGain Travel Technologies Ltd., are experiencing a notable uptick in inquiries and bookings from devotees interested in visiting the recently inaugurated temple.
EaseMyTrip, in particular, is well-positioned to capitalize on the growing demand, as it anticipates a surge in bookings for various travel services such as air tickets, hotels, cabs, buses, and railway tickets in connection with the upcoming temple inauguration. The company’s shares have surged 12.6 percent in January after a 5.3 percent rise in December. Meanwhile, Thomas Cook India advanced 18 percent in January so far and RateGain Travel Technologies is up 3 percent in Jan after a 10 percent jump in December.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.
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Published: 23 Jan 2024, 01:51 PM IST