Ayodhya has emerged as a global tourism hub with over 11 crore visitors in 2024, driven by the Ram Mandir’s inauguration. Uttar Pradesh’s government is investing heavily in the Ramayana Circuit, with Rs 3,800 crore for 126 hospitality projects and Rs 30,000 crore for Ayodhya’s transformation under Vision 2047. These initiatives aim to enhance infrastructure, create jobs, and promote spiritual tourism.
UP’s Massive Investment in Ayodhya’s Ramayana Circuit Tourism
Ayodhya, the birthplace of Lord Rama, has solidified its position as Uttar Pradesh’s top tourist destination, surpassing Varanasi with a staggering 11 crore visitors in the first six months of 2024, including 2,851 international tourists. The inauguration of the Ram Mandir in January 2024 has been a pivotal factor in this surge, transforming the city into a global pilgrimage and tourism hotspot. The Uttar Pradesh government, in alignment with the central government’s Swadesh Darshan and PRASHAD schemes, is channeling significant funds to develop the Ramayana Circuit, a thematic tourism initiative that connects sites associated with the Hindu epic Ramayana.
The Ramayana Circuit, one of 15 thematic circuits under the Swadesh Darshan scheme, spans key locations across India, including Ayodhya, Shringverpur, Chitrakoot, and Nandigram in Uttar Pradesh, as well as sites in Bihar, Madhya Pradesh, Odisha, Chhattisgarh, Maharashtra, Telangana, Karnataka, and Tamil Nadu. It also extends to Janakpur, Nepal, the birthplace of Sita. The circuit aims to promote spiritual tourism while fostering economic growth through job creation and infrastructure development. In Uttar Pradesh, the focus is on Ayodhya, with the state government allocating substantial resources to enhance its appeal.
In February 2024, a groundbreaking ceremony in Ayodhya launched 126 hospitality sector projects worth Rs 3,800 crore, including four mega hotels and resorts with investments totaling Rs 420 crore. Notable projects include Solitaire Ayodhya by Innovators Digital (Rs 100 crore), Shri Ramya Hotel by Evergreen Infra India Pvt Ltd (Rs 90 crore), and Vishranti Griha by Samriddhi Swastik Trading and Investment Ltd (Rs 86 crore). Of these, 46 projects worth Rs 1,923 crore have signed MoUs, while 80 others, valued at Rs 1,854 crore, were proposed post the 2023 Global Investors Summit. These initiatives are expected to bolster Ayodhya’s hospitality infrastructure to accommodate the growing influx of tourists.
The Uttar Pradesh government’s broader vision, dubbed ‘Ayodhya Vision 2047,’ involves an estimated Rs 30,000 crore investment across 260 projects covering tourism, aviation, infrastructure, housing, medical, energy, culture, urban development, and transport. Key developments include the Smart City Mission, road widening, modern bus terminals, ghat beautification, and cultural centers. A unique highlight is the planned ‘Ramaland,’ a Disneyland-inspired theme park to narrate the tales of Lord Rama, aimed at attracting both children and adults. Additionally, a cruise on the Saryu River is in the works, alongside six grandiose arched gateways named after Ramayana characters, each featuring tourism facilities like yoga centers and food courts.
The state’s 2023 supplementary budget allocated Rs 100 crore for Ramotsava celebrations, Rs 25 crore for the International Ramayana and Vedic Research Institute in Ayodhya, and Rs 10 crore for temple and religious site renovations. These funds aim to enhance Ayodhya’s spiritual and cultural offerings, including a music album on Lord Rama’s life and research into global versions of the Ramayana.
The economic impact is already evident. A 2024 SBI Ecowrap report estimates that tourist expenditure in Uttar Pradesh could exceed Rs 4 lakh crore in 2024, doubling from Rs 2.3 lakh crore in 2022, with the state earning an additional Rs 20,000-25,000 crore in tax revenue. This surge is attributed to improved physical and digital infrastructure under the PRASHAD scheme, facilitating better connectivity and access to historical sites. Ayodhya alone saw its tourist footfall rise from 2.21 crore in 2022 to over 14 crore annually since the Ram Mandir’s inauguration, highlighting its growing global appeal.
Private sector interest is also soaring, with luxury and budget hotel chains like Taj, Radisson, ITC, and OYO investing in Ayodhya. Talks are underway with the city’s erstwhile royal family to convert palaces into heritage properties, offering tourists a regal experience. The state anticipates tourist numbers doubling to 40 crore over the next 8-9 years, driven by these developments.
Shringverpur, another key Ramayana Circuit site in Uttar Pradesh, is also slated for development to enhance its pilgrimage and tourism potential. The circuit’s expansion into Nepal strengthens cultural ties, with a direct bus service connecting Ayodhya to Janakpur. These efforts not only promote religious tourism but also foster interfaith harmony by celebrating the universal values of the Ramayana.
Disclaimer: This article is based on recent news reports, government announcements, and tourism data available from credible sources, including the Uttar Pradesh Tourism Department, SBI Ecowrap, and media outlets like Times of India and Business Standard. Information is accurate as of August 2025, but project timelines and figures may be subject to change.