Tata Group Hospitality Firm Indian Hotels Company Ltd (IHCL) Bets Big on Spiritual Tourism

Spirituality has long drawn travelers to India’s shores, from the Beatles in Rishikesh to the millions who bathe in the Ganges each year. Now, the Tata group’s Indian Hotels Company Ltd aims to capitalize on this global thirst for inner peace by expanding its portfolio of hotels in the country’s most renowned spiritual locations. With properties in over 50 spiritual hotspots currently, including the latest draw of Ayodhya, IHCL is strengthening its leadership in spiritual tourism and the financial returns that come with it.

As Managing Director Puneet Chhatwal notes, “People visit spiritual destinations in good times and bad times to seek blessings.” IHCL thus sees spirituality as a safe bet for growth, and will continue developing hotels for spiritual seekers across brands like Vivanta and Ginger. From the Himalayas to the tip of Kanyakumari, IHCL is ready to host travelers journeying inward.

Eager to tap this swelling market, hotel chains are racing to cater to spiritual travelers with enhanced amenities and services. From serene ashrams to luxurious five-star retreats, accommodation options abound for pilgrims seeking to nourish both body and soul. With its timeless traditions and wealth of holy sites, India has long been a prime destination for religious tourism. But the completion of the long-awaited Ram Mandir seems poised to accelerate this trend even further in the coming years. My decades of reporting indicate an extremely promising future for this sector, as more travelers embark on quests for inner peace and meaning. India’s spirituality is calling – and the world is answering.

Tata group hospitality firm Indian Hotels Company Ltd (IHCL) is looking to strengthen its leadership position in spiritual tourism, developing properties in noted locations in India. With spirituality expected to play a more significant role globally, IHCL sees a major opportunity to grow its portfolio of hotels in spiritual destinations across the country.

IHCL currently has 66 hotels either operational or under development at spiritual destinations, including the latest hotspot Ayodhya. The company will continue to actively grow this number, according to IHCL Managing Director & CEO Puneet Chhatwal.

“I think spiritual destinations and spirituality are going to play a more significant role across the globe. Not just for us, but generally for the world population, a very important role and I’m glad to say that we are at the forefront of it,” Chhatwal said in an interview.

The rising interest in spiritual tourism in India can be attributed to several factors. With stressful urban lifestyles, more Indians are seeking solace in spirituality and religious pilgrimages. The improvement in infrastructure and connectivity to smaller towns has also enabled access to remote pilgrimage sites. Domestic tourism has boomed as Indians explore their own country due to international travel restrictions.

Chhatwal explained IHCL’s strategic focus in this area, “Spiritual destinations are a safer bet because people in good or in bad times go to get the blessings of the Lord, whether it’s any kind of good, bad, sad, or happy event happening. That’s a part of our culture. That’s a part of our history.”

IHCL has seen strong financial performance from its properties in spiritual destinations. The company is present in over 50 such locations with hotels under brands like Vivanta and Ginger. These range from Katra and Vaishno Devi in North India to Tirupati down South, where IHCL will add a second hotel soon. Properties in Guwahati, Haridwar, Varanasi, and other pilgrimage hubs have expanded IHCL’s footprint.

The latest feather in IHCL’s cap is Ayodhya, which has emerged as a popular spiritual tourism spot after the construction of the Ram Mandir began. With strong demand expected as religious tourism rebounds post-pandemic, IHCL aims to consolidate its first-mover advantage in this segment. Its deep understanding of pilgrim needs and local sensitivities will enable customized experiences.

As Chhatwal summarized, “We serve a lot of spiritual destinations, and it’s been a part of the strategy.” With spirituality taking on greater significance worldwide, IHCL is betting big on increasing its presence across India’s most coveted pilgrimage sites. Its early investments and experience place it in a strong position to cater to this fast-growing tourism niche.

The recent construction of the Ram Mandir in Ayodhya has led to a massive upsurge in spiritual tourism across India. As one of the most revered Hindu temple sites, the Ram Mandir attracts millions of devotees and pilgrims every year. The long-awaited temple construction has further elevated Ayodhya’s status as a premier spiritual destination. This boom in faith-based travel ties into the broader growth that spiritual tourism has seen in India over the past decade. According to industry estimates, the niche segment has grown at over 20% year-on-year. Religious circuits like the Char Dham in Uttarakhand and the Golden Temple in Amritsar have especially witnessed a sharp rise in visitors.

There are several factors driving this rapid growth of spiritual tourism in the country. For one, India’s ancient heritage and diverse faiths make it a focal point for religious travel worldwide. The government has also actively promoted niche tourism through campaigns like ‘Incredible India’ and improved infrastructure around pilgrimage sites. The rise of the upwardly mobile middle class with higher disposable incomes has further enabled this trend. With better access to transport and accommodation, domestic travelers are now undertaking pilgrimages more frequently. Furthermore, India’s popularity as a budget-friendly destination has attracted international visitors looking for spiritual awakening.

The boom has created a lucrative opportunity for players in the hospitality and travel sector. Several Indian hotel chains like ITC, Oberoi, and Lemon Tree have specially designed properties around pilgrimage circuits. Foreign brands like Accor and Hyatt are also now eyeing spiritual destinations for upcoming projects.

Tour operators and online travel agencies are customizing spiritual holiday packages for Indian and international tourists. The Ministry of Tourism is planning to develop amenities and launch promotional campaigns around faith-based circuits. States like Uttar Pradesh aim to capitalize on religious tourism to boost their local economies.

However, the segment does come with its own challenges. Key pilgrimage sites often lack adequate infrastructure to handle the heavy footfall. Environmental degradation and overcrowding are also concerns around major temples and ashrams. The government will need to ensure sustainable models of development for spiritual destinations.

Nonetheless, faith-based travel is slated for robust long-term growth in India. As rising incomes allow Indians to reconnect with their spiritual roots, pilgrimages and religious circuits will continue driving domestic tourism. The global appeal of India’s holy sites also paints a bright picture for spiritual tourism in the country. With the right policies and infrastructure, India can cement its position as the world’s spiritual tourism capital in the coming years.

Team Profile

Shubham ChakrabortyNews Writer

Shubham Chakraborty, a Freelance Writer, holds an MBA from XLRI and boasts 6.5 years of extensive corporate experience. Departing from his corporate path, he embarked on a journey to fulfill his childhood dream of focusing on writing.

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