T
he concept of travelling is
deeply embodied within
the
Islamic
heritage,
so much so, that the
acclaimed
Muslim
philosopher and jurist, Al-Ghazali,
had written about the subject
in Kitab Adab Al-Safar (Book on
Conduct in Travel). Moreover, Ibn
Batutta, a Muslim scholar, is widely
recognised as one of the greatest
travellers of all time. An account of
his journey from the Horn of Africa,
West Africa, Middle East, South Asia,
Central Asia and Southeast Asia to
China spanning over a period of 30
years was documented in details in
the Rihla (Journey) which serves as
an important reference for ensuing
travellers.
Indeed, the traditions of these
great Muslims have continued to
this day. Based on the State of the
Global Islamic Economy Report 2015
by Thomson Reuters (published in
collaboration with Dinar Standard),
the global Muslim travel expenditure,
excluding hajj and umrah, is estimated
to be worth US$142 billion in 2014
or 11% of the total global travel
expenditure. Comparatively, this is a
6.3% increase from the previous year
and is expected to grow to US$233
billion by the year 2020. Muslim
travel consumer is already among
the largest market in the world with
only China (US$160 billion) and
the United States (US$143 billion)
ranking higher.
Muslim travellers from Gulf
Cooperation Council (GCC) countries
are among the most sought after in
the Muslim-friendly travel market.
Despite accounting for only 3% of
the world Muslim population, the
Gulf travellers from these countries
represents 37% or US$52.3 billion
of the overall Muslim tourism
expenditure in 2014. Countries such
as Saudi Arabia (US$17.8 billion);
United Arab Emirates ($12.6 billion);
Kuwait (US$9.7 billion) and Qatar
(US$9.5 billion) are the top sources
for global Muslim tourism spending,
followed by Indonesia (US$7.6
billion) and Iran (US$7.5 billion).
The growth of the Muslim
travel market should not come as
a surprise as Muslim countries such
as the Gulf Cooperation Council
(GCC) members, Turkey, Indonesia
and Malaysia are among the fastest
growing economies in the world.
Today’s typical Muslim consumer
profile is young, educated and
with a large disposable income
precipitating propensity for travel.
What makes the Muslim
consumer segment distinct is their
desire for products and services that
takes into account their faith. The
emergence of this important market
in recent times has resulted in the
proliferations of products adhering to
the Sharia law across various sectors
from healthcare, finance, retail to
retail. These products are promoted
as halalan tayyiban or permissible
and good.
While ASEAN countries have
an edge in the tourism market
especially among travellers seeking
for nature and culture tourism
products, how does the region fare
in terms of attracting the arrivals of
Muslim travellers? More importantly,
what are the initiatives that have
been taken to cater to the needs
and demands of this emerging and
lucrative segment?
The ASEAN tourism industry
is already reaping the benefits of
the halal tourism market. The report
by Thompson Reuters and Dinar
Standards notes that countries
in the region such as Malaysia,
Singapore, Thailand and Indonesia
are leading the industry in term of the
development and health of its Muslim
inbound travel ecosystem.
Among the factors contributing
to these countries’ favourable position
are the large inbound Muslim traveller
base, a strong halal governance
and proximity to neighbouring
Muslim countries. Nevertheless, the
report also highlights the untapped
potential of the region’s nonOrganisation of Islamic Cooperation
(OIC) countries such as Thailand and
While halal travel could be
broadly defined as Muslim
travelers who do not
wish to compromise their
faith-based needs while
travelling for a purpose
which is permissible,
at present each player
is applying their own
interpretation of the term.
ISSUE 2 : 2016 | ASEAN COMMUNITY OF ENTREPRENEURS
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