Global / Regional Trends and Policies in Promoting MFT ... · Holiday Bosnia: Immersion Trips & CSR ... Halal Food Halal Food Non-Muslim majority destinations Inflight Audio Prayer

4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 © DinarStandard 2005-2015

Presented by:

Global / Regional Trends and Policies in

Promoting MFT Products and Services

At: 4th Meeting of the OIC/COMCEC

Private Sector Tourism Forum

January 14, 2016

4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 © DinarStandard 2005-2015 2


1 Current Momentum & Drivers

2 Profile of MFT Products & Services

3

Outline:

Global / Regional Trends and Policies in Promoting

MFT Products and Services

3 Key Challenges & Opportunities

4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 4

MFT part of a global Muslim lifestyle economy trend

Current Momentum & Drivers

GLOBAL

MUSLIM

“LIFESTYLE”

ECONOMY


OIC vs Non-OIC

Muslim-Friendly Travel Key attributes

4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016

$142 Billion

2014

$233 Billion 2020

6

.

.

.

GLOBAL MUSLIM CONSUMER SPEND ON OUTBOUND TOURISM

Ecosystem • Travel Agents

• Online booking

• Travel media

• …

Hospitality Investments • Multi nationals:

Marriot,

Fairmont, IHG

• Regional: Shaza

Hotel, Resorts

• …

Non-OIC* Destinations • Australia

• Japan

• Germany

• …

OIC* Destinations • Turkey • Malaysia • UAE…

8.6% 2014-20 CAGR

Growth

Fast growing and representing 11% of global travel spend

Current Momentum & Drivers


8 Key ‘Halal’ travel opportunities drivers

How are the opportunity drivers evolving?

Demographic

Islamic values-driven consumption

Economic climate

Entrepreneurship/ Investments

Halal travel

market drivers

Global participation

Global Growth

needs

Ethical Consumption

Technology/ Innovation

Islamic market drivers Global drivers


Young Population

Median Age 30 by 2030 compared to 44 in North

America

8

Demographic drivers remain strong


.

Demographic


Economic climate

Entrepreneurship

Islamic market drivers

Source: Pew Research Center’s Forum on Religion & Public Life

2.2 billion

by 2030 (26.4%)

2x population

growth compared to ROW


Religious affinity high but future not clear….


.

Demographic


Economic climate

Entrepreneurship


Source: 2012 Pew Research Center’s Forum on

Religion & Public Life

30% in

Europe; 56% in USA

Growth in Halal economy: Modest clothing, Islamic finance, Halal food…and travel shows current

adoption… BUT future uncertain not clear…

87%

Muslims consider

religion ‘very important’


Tourism gets increased economic focus….


.

Demographic


Economic climate

Entrepreneurship


Increase focus on tourism to

boost diversification

Falling Oil

prices

$6.7 trillion

OIC (Organisation of Islamic Cooperation) 2013 GDP (current) 5.4% growth 2015-19

compared to 3.6% global


Shaza hotel

11

Entrepreneurship and investments build momentum


.

Demographic


Economic climate

Entrepreneurship/ Investments


Serendipidity

Halaltrip.com Halalbooking. com


Muslim-friendly Travel Issues & Opportunities


.


Global Growth

needs

Ethical Consumption


Global drivers




.


Global Growth

needs

Ethical Consumption


Global drivers The Sharing Economy




.


Global Growth

needs

Ethical Consumption


Global drivers Immersion/Experiential

& Responsible Travel


1 Current market momentum & drivers

2 Profile of MFT Product/Services & Trends

15

Outline:



3 Key Trends, Challenges & Opportunities


Al Jawhara Hotels – Marketing to Muslims and non-Muslims

Profile of MFT Product/Services & Trends


Holiday Bosnia: Immersion Trips & CSR



MasterCard Halal Benefits Program for Indonesia, Malaysia

MasterCard Shari-Compliant Card Holders Tourism benefits



DinarStandard’s

MUSLIM KIT

Webinar

Marriott International: Multi-Cultural Marketing



Key value-chain areas addressing MFT market



OIC (Significant Muslim majority/strong affinity)

OIC (Sizeable Non-Muslim Minority/less affinity)

Non-OIC

Saudi Arabia/ Pakistan

Turkey/ Malaysia

USA/France/ Australia

AIRLINES • On-plane prayer space; take-off prayer; Dry…

• Halal food; Dry?; Ramadan meals…

•MOML (‘Muslim meals); Airport prayer space

HOTELS/ RESORTS

• Prayer space; No inappropriate TV; women separate srvc…

• Halal food; Dry?; Ramadan meals…

•Halal food, Support services (i.e. Mosque direction)

DESTINATIONS • Assumed all ‘Halal’; Family-friendly…

• Halal food; family-friendly options; Gender options

•Halal food, Support guides…

21

Distinctions in OIC & Non-OIC environments



Current universe of MFT services/features


AIRLINES HOTELS DESTINATIONS

Halal Food Halal Food Non-Muslim majority destinations

Inflight Audio Prayer direction & mats Islamic Heritage/ Culture destinations

Alcohol-free No Alcohol on premises Niche Services:

Take off prayer Gender based floors (Spas; Medical travel; Themed Travel)

Airport prayer space Gender based swimming options

Inflight prayer space Toilet facilities (e.g. bidet)

Ramadan Services No Adult Channels in rooms

Special Tour packages Prayer rooms

Ramadan services


1 Current market momentum & drivers

2 Profile of MFT Product/Services & Trends

23

Outline:



3 Key Trends, Challenges & Opportunities


Key recent developments

Key Trends, Challenges & Opportunities

o Compliance: Malaysia released a draft its Muslim-Friendly Hospitality Services

(MFHS) Standard in August 2014

Aviation Hospitality Travel agencies Digital market platforms

• Airports adding Halal certified restaurants and prayer spaces (Japan)

• Airlines started offering Halal Food on board at their flights (Thai)

• Hotels are adapting to differentiate (Aerostar Hotel in Moscow has had it’s kitchen )

• Investment activity picking up: Maldives is seeking to develop a resort build on Muslim principles

• Themed/curated travel: Serendipity tailor-made (UK) has premium travel experiences like Halal Tour of China and Hong Kong, a trip to the Seychelles or a Tanzanian Safari.

• HalalTrip.com, based in Singapore, rates hotels and resorts in terms of their Halal-friendliness since December 2013.

• HalalBooking.com provides Muslim-Friendly holidays to travelers and caters to family needs.


Key challenges facing MFT market


Will Halal specific travel interests continue to grow?

Accommodating both Halal and non-

Halal

Raising Financing

Standards

Alienating non-Muslim customers

Political Instability

Dry-Hotel limitations


Our 5-7 year view is positive on MFT travel proposition


+ve

5- 7 year view*


Market positioning: ‘Authentic' yet ‘Inclusive'


CORE ISLAMIC

TOURISM

MUSLIM TOURISTS –

STRUCTURAL ALIGNMENT

WITH VALUES & NEEDS

GLOBAL DESTINATION

APPEAL WITH FAMILY-FOCUS

• Hajj

• Ummrah

• Heritage

Market positioning should

be ‘authentic’ and

‘inclusive’.

Positioning consideration:

• Family-friendly

• Halal & Wholesome food

• Ramadan/ Festival

specials

• Religious Heritage

• Eco-friendly

• Explore the world in

‘knowing one another’…


What could Halal travel look like in the future


OIC (Significant Muslim majority/strong affinity)

OIC (Sizeable Non-Muslim Minority/less affinity)

Non-OIC

Saudi Arabia/ Pakistan Turkey/ Indonesia USA/France/ Australia AIRLINES • In-flight faith based

entertainment content; • on-plane prayer space

• Halal food options; Ramadan

HOTELS/ RESORTS

• Abundance of Muslim-friendly beach resorts

• More properties focusing on mid-market & luxury travelers

• Global investor interest

• Destinations and hotels openly marketing to Muslims

• More defined Halal standards for travel

DESTINATIONS • Destinations targeting the mid-market & luxury segments

• Heritage travel common

4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016

E: [email protected] W: www.dinarstandard.com

G R O W T H S T R A T E G Y R E S E A R C H & A D V I S O R Y

Halal/

Ethical

Lifestyle

Islamic

/Ethical

Finance

OIC

Economies

80 Broad Street, 5th Floor, New York City, NY 10004, USA Rafi-Uddin Shikoh, CEO/MD

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Global / Regional Trends and Policies in Promoting MFT ... · Holiday Bosnia: Immersion Trips & CSR ... Halal Food Halal Food Non-Muslim majority destinations Inflight Audio Prayer