A recent study by a leading hotel management consultancy predicts a significant surge in tourism for Ayodhya, driven by the construction of the Ram Mandir, estimating 10.61 crore annual visitors by 2031. To meet this demand, the city is projected to require 8,500-12,500 branded hotel rooms in the medium to long term, transforming Ayodhya into a major hub for hotel development. Despite only two branded hotels in the budget and economy segment currently operational, the report highlights the strategic focus on Ayodhya's development aligning with the growing trend of spiritual and religious tourism across India.

The government's commitment to Ayodhya's development, evident in the Ayodhya Master Plan 2031, includes a substantial investment of over Rs 85,000 crore ($10 billion) over the next decade. The plan encompasses upgrading infrastructure, establishing a spiritual university, greenfield townships, urban forests, a convention center, an arts and crafts center, and a hospitality management and training center. Major hospitality brands like IHCL (Taj Hotels), Marriott, Club Mahindra, Wyndham, The Leela Palace, and ITC Hotels have shown interest, with some already signing agreements or Memoranda of Understanding (MoUs).

The government's efforts to address the supply-demand mismatch include auctions for plots, aiming to establish more than 400 hotels in Ayodhya. The report emphasizes the tremendous opportunity for the hospitality sector in Ayodhya, as evident in the city's tourism boom since 2017, driven by events like the annual Deepotsav celebration and the Supreme Court's 2019 Ram Temple judgment. With projections of three lakh tourists per day by 2031, Ayodhya's hospitality sector is poised for significant growth.