EQUITY RESEARCH

January 2024

India Strategy : Ayodhya – Unlocking India’s

tourism potential
Mahesh Nandurkar
India Equity Strategist
+91 22 4224 6120
mnandurkar@jefferies.com

Abhinav Sinha
India Equity Analyst
+91 22 4224 6121
abhinav.sinha@jefferies.com

Nishant Poddar
India Equity Strategist
+91 22 4224 6165
npoddar@jefferies.com
Kevin Verghese
India Equity Strategist
+91 22 4224 6303
kverghese@jefferies.com

Vivek Maheshwari, Equity Analyst, +91 22 4224 6135, vmaheshwari@jefferies.com 0

Jefferies Asia Equity Research
 Ayodhya - Unlocking India’s tourism potential

The grand opening of the Ram temple at Ayodhya by PM Modi on Jan 22nd, is a big religious event. It Did you know?
also comes with a large economic impact as India gets a new tourist spot which could attract 50m+
tourists/year. A US$10bn makeover (new airport, revamped railway station, township, improved road Forbes in 2022, ranked India as the
connectivity etc) will likely drive a multiplier effect with new hotels & other economic activities. It can 7th most beautiful country in its ‘The
also set a template for infra driven growth for tourism. 50 Most Beautiful Countries In The
World rankings
Tourism has big potential in India: Tourism contributed $194bn to FY19 (pre-COVID) GDP and is
expected to grow at an 8% cagr to US$$443bn by FY33. Tourism to GDP ratio in India at 6.8% of GDP,
puts it below most of the large Emerging / Developed economies; which are higher by 3-5ppts. India has 42 UNESCO World
Religious tourism is big in India: Religious tourism is still the biggest segment of tourism in India.
Heritage sites and ranks 6th globally
Several popular religious centres attract annual tourist traffic of 10-30m despite the existing
infrastructural bottlenecks. And hence, the creation of a new religious tourist centre (Ayodhya) with India is one of only three countries
improved connectivity and infrastructure can create a meaningfully large economic impact. in the world to have both hot and
Ayodhya – A template for India’s tourism boost: Rs850bn ($10bn) makeover is now set to transform cold deserts
the ancient city from a sleepy town to a global religious and spiritual tourist hotspot. The new Ram
temple comes up at the cost of US$225m (Rs18bn). Tourism is projected to surge and increased India ranks 10th globally in total area
economic and religious migration to Ayodhya, multiple sectors stand to benefit including hotels, under forest cover
airlines, hospitality, FMCG, travel ancillaries, cement etc.

Significant infra upgrade to facilitate Ayodhya tourism: Phase 1 of a new airport at Ayodhya has India ranked 10th in the Medical
become operational at the cost of US$175m and can handle 1m passengers. Additional domestic Tourism Index (MTI), 12th in top 20
capacity and an international terminal is expected by 2025 with a capacity to handle 6m passengers. wellness tourism markets globally,
Railway station has been upgraded to double the capacity to 60k passengers/day. A 1,200 acre and 5th in wellness tourism markets
greenfield township is being planned and road connectivity being beefed up as well. in APAC (as of 2021)

Ayodhya, a place that holds religious, historical, and cultural significance for India, is being transformed into a hub for spiritual tourism.
The focal point of this transformation is set to unfold on January 22nd this year, with the inauguration of the Ram Temple

1.Vivek Maheshwari,
Source: Equity Analyst,
Tourism Ministry +91 22 4224
(Government of 6135,
India)vmaheshwari@jefferies.com 1
2. Source: World Travel & Tourism Council (WTTC), Economic Impact Research (EIR) 2023
Conversion at 1USD = Rs83
 US$10bn+ infra upgrade to transform…

Ram Mandir - The centerpiece Mega infrastructure projects

Ayodhya gets its own airport leading to boost in tourism, business & employment

Investment: Phase I built at a cost of Rs14.5bn ($175mn)

Status: Phase I, operational from January 6, 2024
Three additional terminals including an international
terminal, that would be operational from 2025
Annual handling capacity: 1m passengers currently and
Source: PIB 6m post phase II

Source: Government of UP
Overview Ayodhya’s railway station is revamped to cater to a high number of arrivals
Investment: built at an est. cost of Rs18bn
($225mn), with the cost being funded
through contributions and donations Investment: Phase I built at a cost of Rs2.4bn ($30mn)
Status: grand inauguration on January 22nd, Status: Phase I operational
2024
Capacity: increased from 30k to 60k passengers in phase I
Key highlights
• Main pilgrimage site, spread over nearly Source: Ministry of Railways
70 acres and will be equipped to host
about a million devotees together
Other infrastructure projects
• Number of pilgrims is expected to jump
to 100-150k per day
Road connectivity: Three key roads: Ram Path (13km), Ram Janmabhoomi Path (2km),
and Bhakti Path (750m) – have been revamped, featuring grand gates at entry and exit
Significant milestone of Ayodhya’s points
transformation is set to unfold on January Township: launch of a 1,200-acre greenfield township, built at an estimated cost of
22nd, 2024 with the inauguration of the Rs22bn ($260mn), to cater to the potential interest of senior citizens and families
Ram Temple seeking a second home on account of sacred significance

Vivek Maheshwari,
Source: Equity Analyst,
Press Information Bureau+91 22 4224
(PIB), 6135, vmaheshwari@jefferies.com
Government of India, Government of UP 2
Conversion at 1USD = Rs83
 … a small ancient town to a religious and spiritual tourist hub

Hotels / Hospitality FMCG & QSR Aviation / Railways & ancillaries

• Demand outstripping supply: At

• Religious & pilgrimage sites like
present Ayodhya has ~17 hotels with
~590 rooms
• 73 new hotels in the pipeline, of which
40 are already under construction
• IHCL, Marriott International, Wyndham,
etc. have already signed deals for hotels •
Current
impact • IHCL has signed contracts for two new
properties in Ayodhya (operational in
2027)
• ITC Hotels exploring opportunities in
Ayodhya
• Burger King set up one store in the city
• OYO to add 1000 hotel rooms in
Ayodhya
Ayodhya, The Golden Temple, Vaishno
Devi, etc. present significant captive
markets offering strategic first-mover
advantage
QSR chains such as Restaurant Brands
Asia (RBA), Devyani International,
Jubilant Foods are either in discussions
to set up outlets or have already begun
setting up outlets
centre in 1H of 2023
• Indigo, announced Ayodhya as its 86th
domestic destination. Direct flights from
Delhi, Ahmedabad & Mumbai.
• Air India, announced direct flights from
Bengaluru, Kolkata & Delhi
• Spicejet and Akasa Air also announced
flights connecting Ayodhya with
multiple cities
• IRCTC announced tour packages to
Ayodhya

• Surge in tourism - Ayodhya’s enhanced •
status as a religious and cultural tourist
Future
destination will lead to increased footfall
impact
from pilgrims and tourists, both
domestic & international
• Surge in tourism & residents will lead
Surge in tourism & residents will lead
to increased demand for both domestic
to a substantial demand for FMCG,
& international connectivity and stands
consumer staples and quick service,
to benefit aviation, railways & ancillary
restaurants (QSR)
service providers

• Jubilant • Westlife • InterGlobe Aviation (Indigo)

Foodworks Foodworld
• Indian Hotels Company Limited (IHCL) • SpiceJet
Select • Britannia • Hindustan
• ITC Hotels • Akasa Air
potential Industries Unilever
beneficiaries • EIH Limited • IRCTC
• Godrej • Devyani
• OYO Rooms Consumer International • Make My Trip
• ITC • Sapphire Foods • Ease My Trip

Vivek Maheshwari,
Source: Companies,Equity Analyst, +91 22 4224 6135, vmaheshwari@jefferies.com
Jefferies 3
Conversion at 1USD = Rs83
 Why Ayodhya? – Religious tourism still draws…

Top 5 states / UT visited by domestic tourists in 2019 1 Top 5 states / UT visited by foreign tourists in 2019 1

State Tourist visits (mn) % share of total State Tourist visits (mn) % share of total

Tamil Nadu 385.9 20.8% Tamil Nadu 6.0 21.0%

Uttar Pradesh 285.1 15.4% Maharashtra 5.1 17.6%

Karnataka 214.3 11.5% Uttar Pradesh 3.8 13.1%

Andhra Pradesh 194.7 10.5% Delhi 2.7 9.5%

Maharashtra 119.2 6.4% Rajasthan 1.8 6.1%

Source: Tourism Ministry (Government of India) Source: Tourism Ministry (Government of India)

Tamil Nadu ranked among the top 5 Indian states on strength of tourism infrastructure is the destination of choice among
domestic & foreign tourists closely followed by Uttar Pradesh on account of its religious, cultural and historical significance

Top 5 monuments having the Top 5 monuments having the Estimated footfall at key Indian religious
highest domestic footfall (2019)1 highest foreign footfall (2019)1 places
Tourist visits Tourist visits Footfall Collections
Monument Monument
(mn) (mn) (est.) (est.)

Taj Mahal 5.65 Taj Mahal 0.87 Golden Temple ~30-35m ~$10-15mn

Red Fort 3.43 Agra Fort 0.53 Tirupati Temple ~25-30mn ~$140-150mn

Qutub Minar 2.64 Qutub Minar 0.33 Jagannath Puri ~15-20mn ~$20-25mn

Sun Temple 2.46 Red Fort 0.12 VaishnoDevi ~7-8mn ~$50-60mn

Agra Fort 1.97 Mamallapuram 0.06 Ajmer Sharif ~7-8mn Not disclosed
Source: Tourism Ministry (Government of India), Source: Tourism Ministry (Government of India), Source: News articles
Archaeological Survey of India (ASI) Archaeological Survey of India (ASI)

Pilgrimage, religious & historic sites attract significant domestic & foreign footfall, and The Taj Mahal is the monument of
choice, across both domestic & foreign tourists

1.Vivek
2019Maheshwari,
statistics toEquity Analyst,
account +91 22
for data 4224 6135,
excluding thevmaheshwari@jefferies.com
impact of COVID19 disruption 4
 … the highest footfalls
Source: Government of UP
Ram Mandir,
Uttar Pradesh
Religious, cultural and
Significance
historical
Tourism type Pilgrimage / spiritual
Annual est. footfall1 50mn to 100mn (expected)
Annual est. income1 NA
Good: new airport
constructed to serve
Air Ayodhya. International
Access flights to be operational in
the next phase (2025)
Excellent: on account of
Rail
numerous route options
Currently ~17 hotels with
Accommodation ~590 rooms with IHCL,
options Marriott, Wyndham, etc. all
in process of adding
capacity
GOI has assessed the challenges impeding current historical & pilgrimage destinations and innovatively curated a holistic spiritual
tourism experience in Ayodhya, a place that holds immense spiritual, historical, and cultural significance for India
Vivek Maheshwari,
Source: Equity Analyst,
Tourism Ministry +91 22 of
(Government 4224 6135,&vmaheshwari@jefferies.com
India)
1. 2019 statistics to account for data excluding the impact of COVID19 disruption
Conversion at 1USD = Rs83
Source: Ministry of Tourism Source: Ministry of Tourism Source: Ministry of Tourism Source: Ministry of Tourism
Tirupati Temple, Vaishnodevi, The Taj Mahal, Agra Fort,
Andhra Pradesh Jammu & Kashmir Uttar Pradesh Uttar Pradesh
Religious, cultural and Religious, cultural and
Historical Historical
historical historical
Pilgrimage / spiritual Pilgrimage / spiritual Heritage Heritage
25mn 7mn-8mn 6.5mn 2.5mn
~Rs12bn / $140mn ~Rs5bn /$60mn ~Rs1bn / $12mn ~Rs275mn / $3mn
Poor: closest airport is Poor: on account of low number of domestic flights,
Poor: closest airport is
50 kms away and has limited connectivity & no international terminal in
170 kms away (Chennai
limited connectivity Agra Airport making New Delhi Airport situated 210
Airport)
(Jammu Airport) kms away the convenient option
Excellent: on account of Excellent: on account of
Excellent: on account of numerous route options
numerous route options numerous route options
Limited accommodation
Limited accommodation
number with practically
number with a few Pan- 350 government recognized hotels in Agra
no Pan-India or Global
India hotel chains
hotel chains
news articles 5
 Why Ayodhya? - India’s response to the Vatican City & Mecca

Source: PIB Source: UNESCO Source: Saudi Tourism Authority

Ayodhya, India Vatican City Mecca, Saudi Arabia

Significance Religious, cultural and historical Religious, cultural and historical Religious, cultural and historical

Tourism type Pilgrimage / spiritual Pilgrimage / spiritual Pilgrimage / spiritual

Annual est. footfall ~50mn to ~100mn ~9mn ~20mn

~$315mn1 (low on account of

Annual est. revenue NA ~$12bn
proximity to Rome)

Good: access by air, road & rail Excellent: access by air, road & Good: access by rail and road
Travel International terminal to start by rail (on account of proximity with Closest airport is 75 kms away in
2025 Rome ~25 kms away in Rome) Jeddah
Infrastructure

Limited accommodation options

Global and domestic hotel chains Numerous accommodation
Stay with most visitors staying in Rome
in process of adding capacity options across budget ranges
on account of proximity

Vivek Maheshwari,
Source: Equity Analyst, +91 22 4224 6135, vmaheshwari@jefferies.com
News articles 6
1. CIA, World Factbook (2022)
 Indian tourism sector – a snapshot

How India fares globally in international tourist arrivals? Foreign Exchange Earnings from Tourism ($bn)

India market share rose by 1% in the last decade and this Tourism is a large foreign exchange earner for the
trajectory is expected to accelerate in the next decade country

India’s
rank 41 24 26 24 19 17
globally $31
35

30

$22
COVID19
25

1.6% 1.5% $18

1.80%

pandemic $17
1.2% 1.2%
20

1.2%
1.60%

1.40%

15

0.6%
1.20%

$7
1.00%

India’s % 10

COVID19
0.80%

share 0.60%

0.40%

0.20%
pandemic 5

0.00% 0

2012 2014 2016 2019 2020 2021 2012 2016 2019 2020 2022
Source: Tourism Ministry (Government of India) Source: Tourism Ministry (Government of India)

Cumulative FDI inflows in the tourism sector ($bn) GOI capital allocation to tourism ($mn)

Government’s progressive stance of 100% FDI allowance

Tourism was a focus sector in the FY24 Union Budget
makes tourism an attractive sector

COVID19 COVID19
pandemic pandemic

$6.4 $7.2 $7.5 $301 $289 $289

$6.1
8.0 350

7.0

$259 $264 $244

$222
300

$192
6.0

250

$3.1
5.0

200

$2.0
4.0

$0.9
3.0 150

2.0
100

1.0

50

0.0

FY17 FY18 FY19 FY20 FY21 FY22 FY23

FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
Source: Tourism Ministry (Government of India) Source: Tourism Ministry (Government of India)

Vivek Maheshwari,
Conversion at 1USDEquity
= Rs83Analyst, +91 22 4224 6135, vmaheshwari@jefferies.com 7
 Tourism in India has a lot to catch-up…

Tourism as a % of GDP for select countries in 20191

18.0% % GDP
Contribution to GDP by Tourism Sector

16.0% 15.5%

14.3%
14.0%
13.0%

12.0% 11.3% 11.3%

10.0% 9.5%
8.6% 8.5%
7.7%
8.0%
6.8%

5.7%
6.0%

4.0%

2.0%

0.0%
Mexico Spain Italy Turkey China Saudi Arabia U.S. France Brazil India Indonesia

India has significant headway to improve tourism with country ranking below average among the large economies

Source: World Travel & Tourism Council (WTTC)

1.Vivek
2019Maheshwari,
statistics toEquity Analyst,
account +91 22
for data 4224 6135,
excluding thevmaheshwari@jefferies.com
impact of COVID19 disruption 8
 …several initiatives in place to realise the potential

India as a tourist hub India tourism contribution to GDP ($bn)

What India offers geographical variety, diversity, culture, heritage sites and a
$443
500

treasure trove of art, music & cuisines makes India a popular global tourist 450

destination. 400

Lower on account
350
of COVID19
How big is tourism in India Tourism is an important contributor to India’s GDP, 300
pandemic
contributing $194bn in 2019 (pre-COVID) which is expected to increase to $443bn
$194
250

by 2033. Tourism is among the largest foreign exchange earners for the country. 200
$188

Infrastructure support Government of India (GOI) has been actively investing in 150

expanding and modernizing airports, railways & road networks to enhance end to
100

end connectivity not only to popular tourist destinations but also remote offbeat
50

locations.
0

2019 2022 2033E

Policy support GOI has been consistently promoting tourism with friendly
policies & initiatives: Swadesh Darshan Scheme to promote development of Source: Tourism Ministry (Government of India) & WTTC

thematic tourist circuits, PRASHAD Scheme to develop identified pilgrimage and

India tourism sector highlights (pre-COVID, 2019)1
heritage destinations, etc.

Leveraging FDI India welcomes 100% Foreign Direct Investment (FDI) in the $194bn $30bn
tourism industry under the automatic route. From FY16 to FY22 India attracted Total contribution Foreign exchange earnings
over $7bn+ FDI in the hotel & tourism sector. to GDP from tourists

Visa process for foreigners To ease the travel for foreigners, GOI issued new visa
reforms: offering E-tourist Visas, and a scheme which offers 500k free tourist visas. 11mn 2.3bn
In 2019 (pre-COVID), India recorded ~11m Foreign Tourist Arrival (FTAs) and this Foreign Tourist Domestic Tourist Visits
Arrivals to all States
number is expected to increase to 31m by 2028.

G20 as a catalyst: India's G20 presidency provided an unparalleled platform to

promote tourism India with thousands of delegates visiting India travelling across
6.7% 42
Total share of World Heritage Sites
the length and breadth of the country. direct employment recognized by UNESCO

Source: Tourism Ministry (Government of India) & WTTC, Jefferies Source: Tourism Ministry (Government of India)

Vivek Maheshwari,
Conversion at 1USDEquity Analyst, +91 22 4224 6135, vmaheshwari@jefferies.com
= Rs83 9
1. 2019 statistics to account for data excluding the impact of COVID19 disruption
 Govt policy support to tourism
Tourism sector highlights in the Union Budget 2023-24
• Allocation: Rs24bn (~$300mn) allocated to Ministry of
Tourism
• 50 tourist destinations to be developed under the ‘Swadesh
Darshan Scheme’ with enhanced connectivity and safety
initiatives
• ‘Vibrant Village Program’ to develop tourism infrastructure and
facilities in border villages
• Official application to be developed covering all relevant
aspects of tourism to
• States to set up malls in the state capital as prominent tourist
centers to promote state specific products
“Tourism sector holds huge opportunities for jobs and
entrepreneurship for youth in particular…. promotion of
tourism will be taken up on mission mode, with active
participation of states, convergence of government programmes
and public-private partnerships” - Finance Minister, Smt.
Nirmala Seetharaman
Source: Press Information Bureau (PIB), Invest India, Jefferies
Vivek Maheshwari,
Conversion at 1USDEquity
= Rs83Analyst, +91 22 4224 6135, vmaheshwari@jefferies.com
Key Government schemes
Swadesh Darshan Scheme
Focus: Integrated development of theme-based tourist
circuits in the country
GOI Sanctioned 76 projects under the scheme since its
inception under 13 themes for a total sanctioned cost of
$670mn and has released ~$535mn (as of Dec 31, 2022)
PRASHAD Scheme
Focus: Pilgrimage Rejuvenation and Spiritual Heritage
Augmentation Drive (PRASHAD) seeks to enhance religious /
pilgrimage tourism in India by developing and identifying
pilgrimage sites across the nation
GOI sanctioned a total of 46 projects at a cost of Rs16bn
($200m) as of Dec 2023. Additionally, a total of 26 new sites
have also been identified for development
Adarsh Smarak Scheme
Focus: List of 100 identified monuments that will be
redeveloped and upgraded to Model Monuments.
Monuments will be upgraded to include Wi-Fi, security,
signage, encroachment-free area and interpretation centers,
etc.
Source: Tourism Ministry (Government of India), Press Information Bureau (PIB)
10
 Statue of Unity – a recent example of a greenfield tourist spot

Key highlights

• Project was announced in 2010 and construction began in

2013. The statue was inaugurated by Prime Minister Narendra
Modi on 31st October 2018.

• Investment: Constructed by Larsen & Toubro (L&T) at a cost of

Rs30bn (~$360mn)

• A tribute to the Iron Man of India - celebrating Vallabhbhai

Patel, India’s first Home Minister who was pivotal in uniting the
nation post-independence

• The Statue of Unity is the tallest statue in the world at 182

metres. Part of the Shanghai Cooperation Organization's '8
Wonders of SCO' list.

• Multiple attractions developed alongside has made the

location a family destination with overnight stays in hotels etc.
driving a transformation of the local economy

Annual tourist footfall (mn)

COVID19 pandemic
5
4.4
3.4
4.5

3.5

3
2.7
2.5

1.5
1.3
1

0.5

Source: Statue of Unity, Government of India 2019 2020 2021 2022

Vivek Maheshwari,
Source: Government Equity Analyst, +91 22 4224 6135, vmaheshwari@jefferies.com
of Gujarat 11
 Infrastructure upgrades add credibility to India’s tourism ambitions

GOI actively investing infrastructure to enhance connectivity to popular tourist destinations & remote offbeat locations

• Robust growth over the last decade attributed to government initiatives such as,
No. of airports (#)
Regional Connectivity Scheme UDAN (launched in 2016), under which 469 routes
148 connecting 74 airports have been made operational
160

74
140

120

100

80

• Union Budget 2023-24, announced an additional 50 airports, heliports, water

60

40

Airports
20

2014 2023 aerodromes, and advanced landing grounds that would be revived for improving
regional air connectivity in the country

Route kilometre (RKM)

addition • Indian railways has the fourth largest system in the world operating 13,523
26
30

passenger trains and 9,146 freight trains daily

15
25

20

15

10

• In the Union Budget of 2023-24, capital outlay of Rs2,400bn ($29b) had been
Railways
5

allocated to the Railways, ~9x the outlay in 2013-14

-

2004-14 2014-23

National highway length

(000' kms)
160
146 • 202 national highways are at the implementation stage (6,270 km in length)
91
140

120

• In the Union Budget of 2023-24, GOI allocated Rs2,700bn ($33b) to the Ministry of
100

80

60

Roads Road Transport and Highways

40

20

FY14 FY23

Source: Press Information Bureau (PIB), Ministry of Railways, Ministry of Road Transport & Highways, Ministry of Civil Aviation

Vivek Maheshwari,
Conversion at 1USDEquity
= Rs83Analyst, +91 22 4224 6135, vmaheshwari@jefferies.com 12
 India offers a wide array of experiences

Religious / Spiritual
Himalayas, Ladakh (Cold Desert), Monasteries Heritage
Jim Corbett, Rajaji, Valley of Flowers National Parks

Vaishnodevi Temple, Golden Temple Dharamshala, Haridwar, Kedarnath, etc. Beaches

Dal Lake, Gulmarg Ski Resort, Jallianwala Bagh Shimla, Kalka-Shimla Railway, Dalhousie, Spiti
Other

Amar Mahal Palace, Mughal Gardens

Monuments - Taj Mahal, Fatehpur Sikri, Darbhanga Fort

Palaces & Forts Ram Temple, Bodh Gaya, Varanasi, Vrindavan, etc.

Swaminarayan Akshardham, Ajmer Sharif UNESCO Heritage – Nalanda, Bodh Gaya, etc.

Tiger reserves & Bird sanctuaries Dudhwa National Park, Palamu Tiger Reserve

Thar Desert, Sam & Khuri Sand Dunes

Kaziranga National Park, Namdapha, etc.

Gandhi Ashram, Statue of Unity Monasteries – Pemayangtse, Tawang, etc.

Gir, Gulf of Kutch, Vansda etc. World War memorial sites

Sabarmati Riverfront, Royal Orient

Konark Sun Temple, Jagannath Puri Temple, Brahmeswara, etc.

Hill stations, waterfalls, Museums UNESCO Heritage – Khajuraho, Sanchi Stupa

UNESCO Heritage – Ellora, Ajanta, CSMT Sundarbans, Kanha, Pench, Bandavgarh etc.
Goa beaches Darjeeling, Victoria Memorial, Cooch Behar Palace

Iskcon Temple, Murudeshwar

Havelock Island, Elephant Beach, Kalapathar Beach
Bandipur, Nagarhole, Madumalai, etc.
Port Blair, Cellular Jail, Viper Island, Limestone caves
UNESCO Heritage – Hampi, Pattadaka

Lakshwadeep – Minicoy, Kavaratti,

Agatti, Bangaram
Tirupati, Ramappa, Madurai Temple, Rameswaram Temple, Kanchipuram
Backwaters & hill stations
UNESCO Heritage – Mahabalipuram, Nilgiris, Amaravati, Undavalli Caves
Periyar, Silent Valley, Aanamalai
Hill Stations, Vivekananda Rock Memorial, Charminar, Golconda, etc.
Kerala Beaches

Vivek Maheshwari, Equity Analyst, +91 22 4224 6135, vmaheshwari@jefferies.com 13

 Glimpse of sustainable tourism in India

What does India have to offer in sustainable / green Himalayas

tourism?

• 70 percent of the Himalayas

• Government of India has been bullish on
sustainable / eco-tourism on account of India’s rich
Source: Himachal Government

natural & eco-tourism resources Coastline of India

• Initiative is underscored by India’s unique natural

• 7,000 km of coastline
attractions including hot and cold deserts, rivers,
lakes, wetlands, mangroves, beaches, volcanoes and Source: Ministry of Tourism

corals Cold Desert, Ladakh

• India’s megafauna consists of tigers, lions, • India is only one of the three countries in the
world to have both hot and cold deserts
elephants, rhinos, leopards, wild buffaloes, Indian
bison (gaur), etc. alongside 1,200 species of birds Source: Ministry of Tourism

Ranthambore National Park

India’s top eco-tourism destinations • Ranks 10th in total area under forest cover

• Jammu & Kashmir, Sikkim, Himachal Pradesh, • 100+ national parks throughout the country
Uttaranchal, Coorg, Himalayas, Garhwal, Goa, Kerala, Source: Rajasthan Tourism

Kaziranga National Park

Kodaikanal, Bandhavgarh National Park, Kanha
National Park, Corbett National Park, Ranthambore • Ranks 6th in terms of the number of
Wildlife Sanctuary, Periyar National Park, Kaziranga recognized UNESCO Natural Heritage sites
National Park Source: Ministry of Tourism

Vivek Maheshwari,
Source: Ministry of Equity Analyst,
Tourism, +91 22 4224
Government of 6135,
India,vmaheshwari@jefferies.com
Jefferies 14
 Medical tourism – an emerging driver

Where India stands in the medical & wellness tourism sector today? Key policies & initiative support

• India ranked 10th in the Medical Tourism Index (MTI) (as of 2021) and
ranks 12th in top 20 wellness tourism markets globally, and 5th in
wellness tourism markets in APAC
• 52 Joint Commission International (JCI) and 1,600+ National
Accreditation Board for Hospitals & Healthcare Providers (NABH)
accredited hospitals
• Foreign Tourists Arrival on medical purpose increased from 183k in
2020 to 304k in 2021 on path to recovering back to pre-covid levels of
697k in 2019
• E-Medical Visa: introduced for 166 countries
• Heal in India: initiative to provide a boost to medical
tourism in the country
• ‘One Step” portal: integrated portal under
development to provide credible information for medical
tourism
• FDI: 100% FDI is permitted for the wellness and medical
tourism segment

Where India wins! Key beneficiaries of the growth of medical tourism

• High quality care along with cost advantage makes India an attractive Medical tourism as a % of total revenue in Jeff hospital coverage
destination
15% Jeff coverage
• Growing list of accredited hospitals, currently 52 JCI accredited and 16%

1,600+ NABH accredited hospitals Apollo Hospitals

14%

12%
10% -12% •
• Medicines / drugs are available at a fraction of the cost
10%

8%

6%
• Max Healthcare
• Largest pool of healthcare professionals along with additional 4%

• Fortis Healthcare
advantage of English fluency
2%

Medanta
0%

•
Current Next 3- 5 yrs
• Low to zero waiting times compared to other nations such as USA:
~20 days (primary physician appointment) / ~28 days (elective
surgery), UK: ~10 days (primary physician appointment) / ~62 days With ~80% of medical tourism in India centered in New Delhi &
(elective surgery) Chennai, Max Healthcare and Apollo Hospitals are strategically
positioned to be key beneficiaries

Vivek Maheshwari,
Source: Equity Analyst, +91 22 4224 6135, vmaheshwari@jefferies.com
Jefferies, PIB 15