Mark Twain famously referred to Varanasi as older than history, tradition, and even legends. Indeed, the ancient city on the banks of the holy Ganges boasts a rich cultural and spiritual heritage, making it a magnet for tourists from India and around the world. In recent years, Varanasi has pivoted towards premium and luxury travellers, with a focus on infrastructure improvement and the promotion of culture-based tourism. This has resulted in a significant increase in tourist arrivals, with a 10-fold increase in the 5-year period between 2017 and 2022.
From a majority of budget-friendly tourists, the region is gradually pivoting towards premium and luxury travellers.
The city’s hospitality market is ripe for differentiated offerings centred around wellness and hospitality, with the presence of organised national and international players, as well as several independent properties. However, there remains a gap between demand and supply, particularly for concepts centred around the cultural heritage of the city, such as yoga, food, and music. The city’s spiritual offerings are expected to continue to grow in popularity, attracting long-stay guests seeking spiritual rejuvenation.
Sarnath, located 10 km northeast of the city, is also a major driver of tourism, particularly from South East Asian nations and Japan. The expansion of the Varanasi airport is expected to result in increased international arrivals, making the hospitality sector a lucrative investment opportunity. Offering luxury stays centred around Buddhism can be a compelling proposition, given the expected boom in foreign tourists, and improved road connectivity to key Buddhist sites.
Investing in the hospitality sector in Varanasi in the near future will provide investors with the opportunity to tap into a fast-growing market and capitalize on the increasing demand for accommodation and other tourist services.
With the recent launch of a luxury river cruise service and fully booked trips until March 2024, the quantum of high-paying travellers to the city has increased at an unprecedented pace. Hotel tariffs have even reached INR 1 lakh per night at certain times of the year, demonstrating the potential for investment.
For potential investors looking to capitalize on the burgeoning hospitality market in Varanasi, it is imperative to undertake a feasibility study and concept planning to ensure economic viability. As hospitality consultants, we at Spectra Hospitality are equipped to provide these services, and are ready to assist you in your investment journey. Contact us at info@spectrahospitality.com to schedule a consultation today.”
