As destinations compete for tourism-led investment, the conversation is shifting from footfall alone to employment, income generation and ecosystem impact. In Varanasi, that shift is now clearly visible, with policymakers positioning tourism — particularly spiritual tourism — as an economic multiplier rather than a single-segment product.
Speaking to TravTalk during the International Tourism and Hospitality Expo in Varanasi, Anuruddha Kshatriya, General Manager, Invest U.P., outlines how tourism is shaping investment discussions in Uttar Pradesh and why the next phase of growth must expand beyond religious travel. He addresses the role of spiritual tourism, infrastructure readiness and untapped opportunities around the city.
Tourism as an employment engine
Kshatriya emphasises tourism’s ability to generate jobs at scale. “If you look at it on a per-project or per-rupee basis, or even per crore invested, the number of jobs generated through tourism is much higher compared to a comparable investment in industries or manufacturing,” he says.
He adds that this makes tourism particularly relevant for Uttar Pradesh. “The need of the hour is to generate employment, generate income and enhance income levels. In that context, tourism is one of the most important industries today,” he says.
The economic impact of spiritual tourism
According to Kshatriya, spiritual tourism remains a cornerstone of the state’s tourism economy. Citing large-scale religious events and pilgrimage centres, he says such destinations have demonstrated their ability to transform local economies. “They enhance overall living standards, provide jobs, improve infrastructure and catalyse other businesses,” he notes.
He points out that spiritual tourism also drives secondary sectors. “Through spiritual tourism, the retail industry gets catalysed, along with food and beverage businesses. This boosts GI products and ODOP products, and all these cumulatively benefit,” he says.
Where the untapped potential lies
While acknowledging the strength of spiritual tourism, Kshatriya says future growth depends on diversification. “Tourism should not be restricted only to religion or spirituality,” he says. “There is a big market for cultural tourism, tourism related to history and tourism related to experiences.”
He stresses that infrastructure quality will determine how far this potential can be realised. “Facilities for foreign tourists are very important. The quality is coming, but it still needs improvement, and that is where the potential lies,” he says, referring to expectations from international markets such as Japan.
Beyond the ghats: Expanding the geography
Kshatriya highlights lesser-known areas around Varanasi as future tourism assets. “Within one to two hours towards Sonbhadra, there are fossil sites where fossils that are millions of years old have been discovered,” he says. “People should be made aware of such things, and access should be improved.”
He adds that this broader belt around Varanasi holds appeal for niche travellers. “People interested in ecology, environment and archaeology would enjoy these experiences. Right now, tourism is focused mainly on specific religions, but we can offer much broader experiences,” he says.
Key takeaways for industry stakeholders
For tour operators, developers and investors, the message is clear: Varanasi’s tourism story is evolving. While spiritual tourism continues to anchor demand, opportunities are emerging in cultural, experiential and nature-linked products — provided infrastructure, access and service quality keep pace.
As Uttar Pradesh expands its tourism footprint, the trade is likely to see increasing alignment between policy, investment facilitation and diversified destination development.
Rahul Bhadana is a digital editor at TravTalk with experience spanning multiple content niches, with a strong focus on travel trade journalism and digital publishing. A graduate of Delhi University, his work covers editorial writing, content strategy and platform-led storytelling, supporting TravTalk’s digital growth and industry engagement. A technology enthusiast, he enjoys films, poetry and exploring new ideas across media and culture.
