Skift Take
Hotel companies are betting big on the smaller towns in India. With spiritual tourism accounting for 60% of the domestic tourism, the segment is likely to drive the growth in the Indian hospitality industry for the next few years.
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,