Holy Sites, Economic Might: The Power Of Religious Tourism In India

India's religious tourism sector is a significant part of the country's travel industry, attracting millions of visitors each year. It caters to both the spiritual and cultural needs of the population and plays a crucial role in the socio-economic development of the regions surrounding major pilgrimage sites. As per the Ministry of Tourism data, the number of people engaging in religious tourism in India rose to 1,439 million in 2022 from 677 million in 2021. Along with this growth, the revenues generated by the sector reached a level of US$ 16.2 billion (Rs. 1.34 lakh crores) in 2022, up from US$ 7.9 billion (Rs. 65.1 thousand crores) as noted by the Ministry of Tourism itself. It is believed that By 2030, more than one hundred million people will be gainfully employed through temporary and permanent jobs driven by India’s Spiritual Tourism alone, which is anticipated to be worth around US$ 59 billion by 2028. These encouraging figures indicate the bright future of the Indian tourism industry as well as its potential.

 

India is home to numerous religious sites that draw vast numbers of pilgrims and tourists. Among the most visited are the Tirupati Temple in Andhra Pradesh, the Vaishno Devi Shrine in Jammu & Kashmir, the Golden Temple in Amritsar, and the Sabarimala Temple in Kerala. Each site has a unique spiritual significance and attracts devotees from across the globe. As per  website of Tirumala Tirupati Devasthanam, More than 60,000 to 80,000 pilgrims visit the Sri Venkateswara Temple every day, Vaishno Devi hosts about 9.5 million pilgrims in year 2023  The Golden Temple welcomes between 27 to 33 million visitors (CNBC 18 news). Sabarimala Temple sees around 30 million devotees, particularly during its pilgrimage season from November to January, (https://timesofindia.indiatimes.com/city/kochi/kerala-tourism-to-sabarimala-pilgrims-stay-back-visit-other-places-ofworship/articleshow/104930736.cms .The 2013 Kumbh mela was the largest religious gathering in the world with almost 120 million visitors.In Ardh Kumbh Mela held in early 2019more than 200 million Hindus gathered for the Kumbh Mela in 2019, including 50 million on the festival's most crowded day (Encyclopædia Britannica and Indian authorities).

 

 

As per my understanding and experience  working in this sector, Pilgrims in India vary widely and can be categorized into several personas, each with distinct needs and preferences, which influence their spending behaviours and the services they seek. Traditional Pilgrims, often older, believed to make up about 35% of the visitors and seek spiritual experiences and value-based travel options. Cultural Explorers, who are often younger or international tourists interested in the cultural and historical aspects of religious sites, typically account for 20% of the pilgrim population. Family Vacationers, who travel to educate their children about their cultural and religious heritage,  assumed to represent 15% of the visitors. Affluent Devotees, looking for luxury experiences during their spiritual journeys, comprise good percentage of the market. Similarly, Event-Driven Tourists, drawn specifically by religious festivals, may be making  up 10%. Lastly, Group Organizers, responsible for coordinating travel for large groups, often for communal religious participation, account for another 10%.

 

The article will not be complete without discussing Economic Dynamics of the Organized and Unorganized Sectors in Religious Tourism. In the religious tourism sector, the organized sector includes registered businesses like formal travel agencies, hotels, and transport companies. This sector typically captures a larger share of the market value due to their ability to offer comprehensive packages and secure higher spend per tourist. They are believed to  command about 50-60% of the total profits in the religious tourism market, leveraging economies of scale and effective marketing strategies. These entities excel in providing streamlined services that ensure convenience and reliability, which appeals to the more affluent segments of pilgrims, including international tourists and those seeking hassle-free pilgrimage experiences.Conversely, the unorganized sector consists of small-scale operators and informal services, and it dominates in terms of volume. This sector caters to the majority of pilgrims who seek flexible, cost-effective solutions, believed to manage about 40-50% of the market’s profit pool. Despite lower profit margins per unit, their extensive volume of transactions compensates, ensuring a significant cumulative profit. The unorganized sector is particularly adept at serving the needs of budget-conscious travellers and those who prefer personalized itineraries or local experiences that are not typically covered by the standardized packages of the organized sector.

 

Religious tourism significantly boosts local economies by creating jobs, generating income for small businesses, and fostering broader economic development. Profit pools in religious tourism are mainly concentrated in accommodation, food and beverage, travel services, and religious paraphernalia. Pilgrimage sites are pivotal in the tourism value chain, offering a variety of services that cater to the needs of pilgrims. These include lodging, food services, guided tours, and transportation. Sites also spur investments in infrastructure, such as better roads, improved telecommunications, and healthcare services, which benefit both tourists and the local community. During the interim Budget 2024, Finance Minister  Ms Nirmala Sitharaman emphasized the burgeoning potential of spiritual tourism, particularly noting the surge in interest for emerging destinations .Over the past decade, the accommodation landscape at spiritual tourist destinations has undergone a significant transformation. Historically, these locations predominantly featured guesthouses operated by charitable organizations, and today these pilgrimage sites are surrounded by quality hotels designed to meet the increased demand for comfortable accommodations from Indian tourists. Hoteliers report that the number of accommodation units, or 'keys', in temple towns has more than tripled from about 2,300 in FY15 to 7,500 in FY23( Source : IBEF recent report) .Currently, occupancy rates in popular destinations like Puri, Varanasi, and Ujjain average around 60%. A study by Money Control highlights a 10% rise in occupancy rates across India’s top 30 spiritual markets in 2024. The Indian tourism market is expected to grow at a compound annual growth rate (CAGR) of 7–8%, with spiritual tourism expanding even faster at a projected 9–10% CAGR over the next 5–7 years. In FY23, the spiritual tourism market reached approximately US$ 56 billion, up from US$ 44 billion in FY20. The Confederation of Indian Industry (CII)  also anticipates that offering long-term interest-free loans to states for tourism infrastructure will boost both domestic and inbound tourism.

 

Stakeholders in religious tourism therefore need to focus on sustainable practices to preserve the sites and their surroundings. This includes managing visitor numbers to prevent overcrowding, investing in eco-friendly infrastructure, and ensuring that the local community benefits economically from tourism activities. Marketing strategies should also be tailored to the different personas of pilgrims, ensuring that each group’s needs are met in a manner that encourages return visits. Spiritual tourism in India highlights the significant impact of religious and spiritual destinations on the country's tourism sector and economy. With the Indian government working towards improving pilgrimage sites through initiatives such as the PRASAD and Swadesh Darshan schemes, there is a focused effort to develop infrastructure while preserving the cultural and natural heritage. These efforts not only aim to enhance the tourist experience but also contribute to economic growth through local job creation. The increased availability of quality accommodations and improved transport connectivity are turning these cities into attractive destinations for both domestic and foreign visitors.

 

The ongoing expansion of spiritual tourism presents both challenges and opportunities. Addressing issues like inadequate infrastructure, maintenance neglect, and the impacts of overcrowding requires careful planning and environmentally sustainable strategies that benefit local communities. Embracing cultural exchange and promoting spiritual wellness are  going to be future keys in positioning India as a leading global destination for spiritual  enlightenment. The future of spiritual tourism in India looks promising if pursued with visionary leadership, prudent financial resource allocation, and an unwavering commitment to safeguard India’s spiritual heritage. This sector not only has the potential to drive significant economic growth but also to foster cultural enrichment and community well-being, ensuring that spiritual tourism remains inclusive, sustainable, and transformative for all stakeholders involved.

 

Disclaimer : “The information provided is based on commonly accepted knowledge in the field of religious tourism and does not cite specific studies or reports due to the generalized nature of the data available. Further,Data on religious tourism demographics is typically published in industry reports, government publications, and academic studies. Readers interested in the most current statistics should refer to these types of sources."