Hospitality sector embraces spiritual tourism, creating new opportunities

Hospitality giants tap spiritual tourism: The convergence of spirituality and tourism in the country has sparked a new trend in the hospitality sector, with hotels across the country adapting to cater to the needs of spiritual travellers. This expanding market presents a wealth of opportunities for both established hotel chains and emerging boutique properties.

According to CBRE South Asia’s ‘Decoding Real Estate through the Spiritual Tourism Lens’ report, major hotel chains such as Marriott, Taj, and Hyatt are keenly tapping into the spiritual tourism market. These brands are not only offering clean, hygienic, and family-friendly accommodations but also incorporating elements of traditional hospitality tailored for spiritual visitors. This adaptation includes providing serene environments, customised wellness programs, and access to sacred sites and temples for immersive spiritual experiences.

Branded hotels leading the way

In cities like Puri, Tirupati, and Varanasi, branded hotels such as Mayfair Hotels, Taj Hotels, and Radisson are emerging as key players in the spiritual tourism sector. The brands offer not only comfort and high-quality hospitality services but also incorporate authentic local experiences that cater to the diverse needs of both national and international travellers.

According to the real estate services company’s report, a notable partnership has developed between wellness centres and hospitality brands to improve the spiritual tourism experience in the country. According to Statista Market Insights, the wellness market in the country is forecasted to exhibit a strong annual growth rate (CAGR 2024-2028) of 17.31 per cent, resulting in a projected market volume of $3,628 million by 2028.
Tapping on this huge market potential, wellness centres specialising in yoga and Ayurveda are complementing the offerings of hospitality brands by providing services to improve physical, mental, and spiritual health.

Industry insights and outlook

The shift towards experiential travel is largely driven by younger generations seeking cultural immersion and spiritual growth. Anshuman Magazine, Chairman and CEO - India, South-East Asia, Middle East & Africa, CBRE, said, “The rapid expansion of spiritual tourism in India is driving the growth of the country's faith-based tourism market. 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.”
Ram Chandnani, Managing Director, Advisory and Transaction Services, CBRE India, said, “Driven by the growing popularity of spiritual tourism, investors are flocking to capitalise on the market's potential. Guided by a commitment to cater to the unique needs of spiritual travellers, these investments aim to deliver high-quality accommodations, bolster infrastructure, safeguard heritage sites, and ultimately drive regional economic growth. This trend has created opportunities for the hospitality and retail sectors to thrive in these destinations.”

According to the report, the real estate demand in spiritual tourism destinations is triggering a surge in occupancy rates across various accommodation options, including hotels, guesthouses, and homestays. Additionally, specialised properties such as yoga retreats and meditation centres present new investment opportunities in the real estate market.

As India's hospitality sector embraces spiritual tourism, it is set to capitalise on the growing demand for transformative travel experiences.