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Retail boom in sacred cities driven by a surge in spiritual tourism

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Growing tourism is attracting retail brands to establish a footprint in these potential market  

New Delhi: Retail chains are capitalising on the growing trend of spiritual tourism across more than a dozen cities in India, according to the latest report.

The 14 cities include Amritsar, Ajmer, Varanasi, Katra, Somnath, Shirdi, Ayodhya, Puri, Tirupati, Mathura, Dwarka, Bodh Gaya, Guruvayur, and Madurai, according to a CBRE report titled – Decoding Real Estate through the Spiritual Tourism Lens.

This surge in spiritual tourism is attracting pilgrims and spiritual seekers to holy cities in droves, leading to an increase in foot traffic and benefiting both the tourism and retail sectors, the report added.

Key findings of the report

Retail brands across various segments, including fashion and apparel, food and beverage, hypermarkets, homeware and department stores and consumer electronics are expanding their presence in those holy places. This trend also reflects a shift in tourist preferences, with travellers seeking experiences beyond traditional rituals, the report said.

Key retail brands that have established retail presence in 14 cities
City Retail Segment Key Brands
Amritsar Fashion & Apparel Bata, Biba, Fabindia, Manyavar, Skechers, Woodland
Food & Beverage Barbeque Nation, Domino’s, McDonald’s, Starbucks
Hypermarket D-Mart, Reliance Fresh, Reliance Smart
Consumer Electronics Imagine
Ajmer Fashion & Apparel Max, Blackberrys, Decathlon
Home & Department Store Mr DIY, Pantaloons
Food & Beverage Burger King, Domino’s
Somnath Fashion & Apparel Spykar, Reliance Trends
Food & Beverage La Pino’z
Hypermarket Reliance Smart
Shirdi Food & Beverage Baskin Robbins,

Domino’s, McDonald’s

Hypermarket Reliance Smart
Fashion & Apparel FabIndia, Nike, Reliance Trends
Ayodhya Fashion & Apparel Manyavar, Reliance Trends, Raymonds
Homeware & Department Store Market99, Pantaloons
Food & Beverage Domino’s, Pizza Hut
Hypermarket Reliance Smart
Puri Fashion & Apparel Blackberrys, Manyavar, Raymond, Reliance Trends, Bata
Hypermarket Reliance Smart,

Bazaar Kolkata

Food & Beverage Domino’s, KFC, Basin Robbins
Tirupati Fashion & Apparel Levi’s, Max, Puma, Style Union
Homeware & Department Store Pantaloons
Hypermarket D-Mart
Consumer Electronics Croma
Katra Food & Beverage Domino’s, McDonald’s, Pizza Hut, Burger King
Mathura Fashion & Apparel Fabindia, United Colors of Benetton, Zudio
Food & Beverage Burger King, Domino’s
Hypermarket Reliance Smart
Consumer Electronics Croma
Dwarka Food & Beverage Amul Ice cream
Guruvayur Fashion & Apparel Reliance Trends, Allen Solly, Jockey
Homeware & Department Store Reliance smart point
Food & Beverage Chicking, Naturals Ice cream
Madurai Fashion & Apparel BIBA, Levi’s, Max, Trends,Van Heusen
Homeware & Department Store Westside
Consumer Electronics Croma
Varanasi Fashion & Apparel Manyavar, Reliance Trends, Zudio
Homeware & Department Store Pantaloons, Shoppers Stop
Food & Beverage Burger King, Domino’s, Pizza Hut,

McDonald’s

Hypermarket Spencer’s, Reliance smart
Consumer Electronics Croma, Reliance Digital
Bodh Gaya Fashion & Apparel Blackberrys, Fabindia, Manyavar,

Raymond

Homeware & Department Store Pantaloons, V Mart
Hypermarket Reliance Smart
Consumer Electronics Reliance Digital

“The rapid expansion of spiritual tourism in India is driving the growth of the country’s faith-based tourism market,” Anshuman Magazine, chairman & chief executive officer (CEO) – India, South-East Asia, Middle East & Africa, CBRE, said. “Government initiatives to promote tourism and improve connectivity between pilgrimage sites are further boosting this growth. The rise of online retail platforms offering easy access to faith-based products and services is also a key factor.”

Cities like Amritsar, Ajmer, Varanasi, Katra, and others are witnessing a retail boom, with brands strategically adapting their offerings in established mall clusters and high-street locations to cater to the growing tourist population. The surge in spiritual tourism can be attributed to enhanced infrastructure, including well-connected roads, airports, and public transportation, as well as various accommodation options such as hotels, guesthouses, and wellness centres.

Leading hotels catering to travellers’ needs

Leading hotels are also catering to the needs of spiritual travellers by offering clean, hygienic, and family-friendly accommodations. Major hotel chains are adapting to the preferences of spiritual tourists.

City Branded Hotel
Puri Mayfair Hotels
Tirupati Taj Hotels, ITC Hotels
Amritsar Taj Hotels, Novotel, Hilton, J W Mariott, ITC Hotels
Varanasi Taj Hotels, Radisson, Hilton
Ajmer Taj Hotels, Sheraton Hotels, The Westin
Dwarka Lemon Tree Hotels, Club Mahindra
Bodh Gaya Hyatt Hotels, Sarovar Premiere
Madurai Taj Hotels, ITC Hotels, Marriott
Katra Taj Hotels, ITC Hotels

Overall, the landscape of real estate demand in spiritual tourism destinations is triggering a wave of new construction and renovation projects in response to the growing demand. Specialised properties catering to spiritual tourists, preservation of heritage sites, and economic and infrastructure growth are some of the key outcomes of this trend.

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