Ayodhya’s Religious Tourism Boom: What the Flag Hoisting Ceremony at Ram Mandir Means for Uttar Pradesh’s Economic Growth, Know How It Can Be a Game-Changer for Visitors

Published on November 23, 2025

Ayodhya, a city with a deep historical and cultural significance in India, is experiencing an unprecedented boom in religious tourism. The recent developments surrounding the Ram Mandir, especially the upcoming flag hoisting ceremony at the temple, are set to transform this small town into one of the most visited pilgrimage sites in the world. Expected to draw massive crowds, this event will significantly impact the economy of Uttar Pradesh, boosting the tourism sector and local businesses alike.

The Ram Temple Phenomenon: A New Dawn for Ayodhya’s Tourism

In recent years, Ayodhya has undergone a transformation, emerging from relative obscurity to become the epicentre of religious tourism in India. With the Ram Mandir’s construction well underway, the city has witnessed a tremendous influx of visitors, particularly following the Bhumi Pujan (ground-breaking ceremony) conducted in August 2020. As the temple nears completion, Ayodhya’s tourism figures have skyrocketed, and this trend shows no signs of slowing down.

Between January and June 2025, the city saw around 23 crore visitors, and experts predict that the number will nearly double, reaching 50 crore by the end of the year. The flag hoisting ceremony on November 25 is expected to provide an additional boost, with prominent figures like Prime Minister Narendra Modi and RSS chief Mohan Bhagwat attending the event.

A Glimpse Into Ayodhya’s Economic Growth Through Religious Tourism

The economic impact of Ayodhya’s growing religious tourism is already becoming evident. The city’s economy has seen a surge, with tourism contributing to approximately 1.5% of the state’s Gross State Domestic Product (GSDP). However, this contribution is expected to grow substantially in the coming years as the city solidifies its position as a global religious hub.

Currently, ₹2,150 crore has been spent on the Ram Mandir and associated development works. With the anticipated increase in visitors, experts predict that Ayodhya’s tourism revenue could reach ₹4 lakh crore in the coming years. Local merchants, hospitality services, and artisans are already feeling the positive effects of this surge, and the ripple effect on the local economy is becoming apparent.

What The Flag Hoisting Ceremony Means For Ayodhya

As the flag hoisting ceremony at the Ram Mandir draws closer, the city is gearing up for even larger crowds. The event is expected to attract millions of devotees, further accelerating the growth of Ayodhya’s tourism sector. This growth will be a boon for local businesses, offering employment opportunities and boosting demand for a variety of services such as transportation, hotels, and retail.

The hospitality sector in Ayodhya has seen significant investments, with over 76 new hotels opening in the past few months. Leading hotel chains like IHCL, Marriott, Radisson, Kamat, and Lemon Tree have already made substantial investments in the region. The increase in accommodation options will ensure that the influx of visitors is well-supported, offering tourists a range of choices for their stay.

The Role of Local Merchants and Small Businesses

The flag hoisting ceremony is expected to have a direct impact on the livelihoods of local merchants and small business owners in Ayodhya. From puja material vendors to local artisans creating religious artefacts, the surge in visitors will create a robust market for a wide array of goods and services. Additionally, small businesses will play a key role in providing essential items like food, souvenirs, and religious offerings.

The event will also help raise the profile of Ayodhya on the global tourism map. As more visitors come to the city, the demand for local goods will rise, giving artisans the opportunity to showcase their craftsmanship to a global audience. This will not only promote the city’s cultural heritage but also create new avenues for growth and self-sustainability for local communities.

Ayodhya’s Path To Becoming A Major Global Religious Tourism Destination

The rise of Ayodhya as a religious tourism hotspot is not just about the Ram Mandir but is part of a larger push by the state government to promote Uttar Pradesh’s tourism sector as a whole. By 2028, the tourism industry in the state is projected to be worth around ₹70,000 crore, with Ayodhya expected to contribute a significant portion of this revenue.

The significance of the Ram Mandir is not just limited to religious sentiment but also serves as a symbol of cultural unity. As Ayodhya’s tourism continues to expand, the city is expected to see a rise in infrastructure development, including better transport links, road networks, and communication systems, further facilitating ease of access for tourists from all over the world.

Travel Tips: What To Expect When Visiting Ayodhya

For those planning to visit Ayodhya in the coming months, here are a few things to keep in mind:

1. Plan Ahead: The flag hoisting ceremony will attract millions of visitors, so it’s important to book accommodations and travel tickets well in advance. The surge in visitors may cause transportation and accommodation to fill up quickly.
2. Respect the Local Culture: Ayodhya is a highly religious city, and visitors should show respect to the local customs and traditions, especially when visiting the Ram Mandir and other holy sites.
3. Explore Beyond the Temple: While the Ram Mandir is the main attraction, Ayodhya is home to other historical and cultural sites worth exploring, such as the Hanuman Garhi Temple and Kanak Bhawan.
4. Safety First: Always follow the guidelines and instructions issued by local authorities to ensure your safety during large events like the flag hoisting ceremony.
5. Shop Local: Support local artisans by purchasing handmade religious souvenirs, which are perfect mementoes of your visit.

How Ayodhya’s Tourism Will Benefit Uttar Pradesh

The religious tourism boom in Ayodhya is a catalyst for economic growth not just within the city but for the entire state of Uttar Pradesh. As the state’s tourism sector grows, job creation, infrastructure development, and investment in hospitality services will become key drivers of economic prosperity.

With Ayodhya expected to contribute a sizeable portion to Uttar Pradesh’s tourism revenue, the ripple effect on other industries cannot be ignored. The increase in footfall will likely inspire new development projects aimed at improving the city’s overall visitor experience, including better public transport, enhanced amenities, and more sustainable tourism practices.

A Glimmering Future for Ayodhya’s Tourism Industry

The flag hoisting ceremony marks a significant moment for Ayodhya, both as a religious and economic powerhouse. As the city continues to experience rapid growth in its tourism sector, it is poised to become a global religious tourism destination. The positive impact of this growth will resonate across Uttar Pradesh, creating new economic opportunities for both the region and its people.