A Case Study of Dynamic Capabilities Driving the Emergence of Ajodhya’s Sustainable Tourism Ecosystem

Purpose - Religious tourism is increasingly recognized as a catalyst for regional development, yet its strategic management through dynamic capabilities in emerging pilgrimage destinations remains insufficiently examined. Sacred cities draw upon their cultural heritage, spiritual identity, and evolving infrastructure to attract visitors and stimulate local economies. This study aims to explore how dynamic capabilities specifically sensing, seizing, and transforming shape sustainable tourism development and economic revitalization of JaiSriRam’s Ayodhya amid its recent religious and infrastructural resurgence.
Design/methodology/approach - The study uses a qualitative case study approach combining secondary data such as government reports, tourism statistics, policy documents, and institutional publications with primary insights from stakeholder interviews. A dynamic capabilities lens is applied to understand how stakeholders identify opportunities, mobilize resources, and adapt within Ayodhya’s evolving tourism ecosystem.
Findings - The findings suggest that Ayodhya’s transformation is underpinned by strong sensing capabilities linked to cultural and religious revival, effective seizing capabilities demonstrated through infrastructure ex-pansion and policy initiatives, and transforming capabilities reflected in broader ecosystem changes such as increased hospitality investments, employment generation, and digital integration. However, the study also highlights emerging challenges related to environmental sustainability, resource pressures, and the need for inclusive stakeholder engagement.
Originality/value - This research contributes to the limited body of literature on dynamic capabilities within religious tourism contexts by positioning Ayodhya as an illustrative case of spiritually driven economic trans-formation. It underscores the importance of aligning cultural heritage with adaptive strategic capabilities while advocating for policy interventions that ensure long-term sustainability and balanced regional development

JaiShriRam, Ayodhya, Religious tourism, Dynamic capabilities, Sustainable development, Pilgrimage economy

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