Retail Boom Transforms Religious Tourism Landscape in India
The burgeoning retail sector in India is significantly impacting religious infrastructure. Visitors to sacred sites like Shirdi can now find FabIndia Kurtas, while Somnath houses a Spykar store. Similarly, Zudio and Blackberry have established a presence in Varanasi and Bodh Gaya, respectively.
Fast-food giants like Domino's, KFC, and Burger King haven't lagged behind, expanding their reach to remote religious destinations such as Puri, Katra, and Ajmer.
While Ayodhya's retail and hospitality growth has garnered considerable attention, this trend has been gradually and consistently expanding across the nation's retail chains.
This shift indicates evolving tourist preferences, as increasing numbers of visitors pursue transformative experiences beyond traditional activities. A report by real estate consulting firm CBRE suggests that urban spiritual tourism caters to this demand by attracting tourists to locations renowned for their religious and spiritual significance.
According to the CBRE report, the primary cities experiencing this retail surge are Madurai, Ajmer, Varanasi, Katra, Somnath, Shirdi, Ayodhya, Puri, Tirupati, Mathura, Dwarka, Bodh Gaya, Guruvayur, and Madurai.
"The product offerings of retail brands are adapting to both high-street locations and smaller clusters. Businesses and local governments are collaborating to craft unique retail experiences, incorporating regional customs into the design and amenities of stores, restaurants, and accommodations," CBRE states.
Cities like Amritsar, Varanasi, Madurai, Puri, and Guruvayur leverage their distinct culinary heritage and local fashion expertise to offer visitors a taste of the city beyond spirituality.
Infrastructure Enhancements Drive Growth in Spiritual Tourism
A Jefferies report highlights that despite existing infrastructural limitations, India's most popular religious sites attract 10–30 million tourists annually, creating a solid foundation for future growth, with the aid of planned upgrades.
State and central governments are investing in airport development, public transport systems, and well-connected road networks. This supports the expansion of accommodation options, including hotels, guesthouses, and wellness centers, to ensure comfortable stays for travelers.
"India's faith-based economy is experiencing rapid growth, fueled by the country's expanding spiritual tourism sector. Government initiatives aimed at improving connectivity between pilgrimage destinations and promoting tourism are further accelerating this expansion. The rise of online retail platforms, which facilitate access to faith-based products and services, is another significant contributing factor," says Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE.
While Jefferies projects an average of 50 million annual visitors to Ayodhya, other pilgrimage sites are also witnessing substantial growth. "India offers a diverse range of tourism experiences, including beaches, hill stations, cultural and heritage sites, historical monuments, and more. However, religious travel remains the largest segment of tourism in India," the report states.
In addition to retail chains, high-end hospitality brands are entering these cities. Chains including Taj, ITC, Lemon Tree, Novotel, JW Marriott, and Mayfair are opening boutique and experience hotels in these locations.
"Large hotel chains are adapting to the evolving demands of spiritual travelers by offering pristine, hygienic, and family-friendly accommodations at premium rates. Branded hotels are becoming major players, providing a blend of comfort and hospitality tailored for spiritual seekers," notes CBRE.