January 22, 2019 (Reuters) - In an effort to increase tourism and his popularity with the majority population ahead of elections, Indian Prime Minister Narendra Modi opened one of the holiest Hindu temples on Monday. His administration has also been investing millions of dollars to build numerous additional temples.

In the last ten years, the federal government has developed dozens of Hindu pilgrimage sites, spending close to $120 million, aside from a $6 billion makeover of the northern city of Ayodhya, where Modi inaugurated the first phase of a Ram Temple, according to government data.

According to Jefferies analysts, the Ram Temple, which was constructed on the site of a mosque from the Mughal era that was destroyed by a Hindu mob in 1992 and is considered by Hindus to be the birthplace of Lord Ram, can attract up to 100 million tourists annually. By contrast, over 20 million people visit Mecca and nearly 9 million visit Vatican City annually.

"The creation of a new religious tourist centre (Ayodhya) with improved connectivity and infrastructure can create a meaningfully large economic impact," the researchers stated in a note.

More than 130 million people have visited the Hindu holy site of Kashi Vishwanath Corridor on the banks of the Ganges since Modi opened it in his Varanasi constituency in 2021, according to official government figures.

Prior to then, there were only about 7 million visitors annually to Varanasi, one of the oldest towns still in existence in the world and the capital of Uttar Pradesh, which is also home to Ayodhya.

According to analysts, Varanasi's tourism industry has increased villagers' and hotels' earnings by up to 65%. Hindus believe that by dying there, they can find redemption and be released from the cycle of birth and reincarnation.

With around $200 billion in revenue, tourism makes up only 7% of India's GDP, which is up to 5 percentage points less than most significant emerging and developed economies.

The construction of the new temple and the refurbishment of numerous others are expected to significantly improve the Hindu nationalist party's electoral prospects. Modi is predicted to win a rare third consecutive term in the general elections that are scheduled for May. With Monday's inauguration, Modi's Bharatiya Janata Party (BJP) delivered on a long-standing electoral promise.

"The BJP is clearly gaining momentum with today's event," political analyst Sandeep Shastri stated. "It may be fair to say that any political party would like to make the best of a situation they find themselves in, and the BJP seems to have mastered the art of managing the message."

Approximately six out of the 46 projects supported by the Ministry of Tourism since Modi took office under the "Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive" are Sikh or Muslim sites. Of the 1.42 billion people living in India, Muslims make up around 14%; the majority are Hindus.