Understanding the Economics of Halal Tourism

7/28/2019 Understanding the Economics of Halal Tourism

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Understanding the economics

of Halal Tourism

Prof. Melville SaaymanTREES

(Tourism Research in Economic Environs and Society)North West University


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Agenda

Introduction

What is Halal tourism?

Halal Trade Global tourism expenditure

Tourism behaviour

Where do they come from?

Where do they travel to? What destinations need to remember

Conclusion


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Introduction European and North American consumers

account for 60% of worldwide tourism

(2010)

Travellers from Asia are on the increase

Growth in incomes in both emerging anddeveloped Asian economies is driving thisrise

The WTO report (2007) shows that Islamictourism has the potential to develop into aresilient market

Mauritius and Japan is already focusing onthis market

Malaysia is the premier Halal tourism

destination


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Introducti

on

Muslim global population 1.57bn to 1.9bn


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Totalp

opulation


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There is no single Muslim consumer,only a consumer to whom we have torespond, who has wants, needs anddesires.

We must ask: Can these consumers bereached based on their Islamic identitydespite cultural and geographicdifferences?

Many Muslim consumers lives aredefined by the dietary, lifestyle andfinancial rules of the Islamic faith, theyare far from homogeneous

Muslim tourists can differ in terms of

Language

Style of clothing

Dietary preferences


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What is Halal tourism?

Halal tourism is the total tourismexperience permissible under

Islamic law


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Relationship of tourism

and trade

TradeTourismexperience

Accommodation

Transport

Food andbeverages

Attractions

Entertainment

Services


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Global halal market sizes1.51.412.3Global Halal market sizes by region in US $ billions

Region 2004 2005 2009 2010

Global Halal Food Market

Size

587.2 596.1 634.5 651.5

1. Africa 136.9 139.5 150.3 153.4

2. Asian Countries 369.6 375.8 400.1 416.1

GCC Countries 38.4 39.5 43.8 44.7

Indonesia 72.9 73.9 77.6 78.5

China 18.5 18.9 20.8 21.2

India 21.8 22.1 23.6 24.0

Malaysia 6.6 6.9 8.2 8.4

3. Europe 64.3 64.4 66.6 67.0

France 16.4 16.5 17.4 17.6

Russian

Federation

20.7 20.8 21.7 21.9

United Kingdom 3.4 3.5 4.1 4.2

4. Australia 1.1 1.1 1.5 1.6

5. American 15.3 15.5 16.1 16.2

United States 12.3 12.5 12.9 13.1

Canada 1.4 1.5 1.8 1.9


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Trade

Nestl has become the biggest food manufacturer inthe Halal sector

More than $3 billion in annual sales

75 of 481 factories world wide producing Halal food Halal food accounts for 5 % of Nestl sales

Global Muslim tourism market in 2011 was $126.1 billion inoutbound expenditure


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Global tourism expenditure

Spending in Saudi Arabia $8.4 billion in 2011and expected to reach $14.3 billion by 2020.Umrah would represent 6.2% of the total

Muslim tourism expenditure.By 2020, the total Muslim tourists

expenditure is estimated to be $192 billionThis constitutes 12.3% of the total global

outbound tourism expenditure in 2011 of$1.034 billion as estimated by UNTWOGrowth is estimated at 4,8% to 2020


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Where do they come from?

Top source countries (from OICcountries, based on Muslim

outbound tourism expenditure

2011)

Saudi Arabia

Iran, Islamic Rep.

United Arab Emirates

Indonesia

Kuwait

Turkey

Nigeria

Malaysia

Qatar

Egypt

Top source countries (from non-OICcountries, based n Muslim outbound

tourism expenditure

2011)

Germany

Russian Federation

France

United KingdomSingapore

United States

Belgium

India

Canada

Italy


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Malaysia

Turkey

UAE

Singapore

Russia

China

France

Thailand

Italy

Where do they travel to


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Where is Muslim purchasing power?Largest Muslim

populationLargest Muslim %

of total populationHighest purchasingpower of Muslim

population

Indonesia Bahrain Saudi Arabia

Pakistan Kuwait Turkey

India Saudi Arabia Iran

Bangladesh Algeria Malaysia

Turkey Iran Qatar

Egypt Oman Russia

Iran Turkey France

Nigeria Yemen Libya

China Tunisia UAE

Ethiopia Iraq United StatesAlgeria Libya Algeria

Morocco Pakistan Singapore

Sudan UAE Indonesia

Afghanistan Qatar Egypt

Iraq Egypt The Netherlands


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The Muslim market

$126.124

$111.889

$93.999

$65.369

$60.689

$14.741

$0.000 $20.000 $40.000 $60.000 $80.000 $100.000 $120.000 $140.000

Muslim Market

Germany

United States

China

United Kingdom

India


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What destinations need to remember


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Guidelines

Provide maps that indicate location ofmosques/ prayer facilities

Provision of prayer time tables

No alcoholic drinks in hotel rooms

Address Islamic culture in order to providepackages that satisfy their needs

Ban adult channels in hotel entertainment

Hotels should provide Siwak for Muslim

tourists Travel agents should choose hotels for Muslims

that are far from red light districts

Toilet and bathroom facilities

Separate swimming pools and gyms


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Guidelines (continue) Hotels should hire female staff who

observe Islamic dress codes

Allocate female staff for woman andmale staff for men such as availabilityof taxis with female drivers

With regards to food and drink, Islamicscholars have laid down three guidelines:

Consumption must include only Halal foodproducts.

The food and food products must be obtained

through Halal means. The material in contact with the food or food

products must not be harmful to health.


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Conclusion Halal tourism is a reality and a major

opportunity

Conscious decision to focus on this

market and to promote it accordingly

Durban and KZN to take the lead

o

Create specific websites / mapsetc.

o Host conferences and workshops

on the theme

o Develop a strategy (strategicmarketing plan

o Inform the industry (networks)

o Attend shows and exhibitions

o Research is required


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Thank you!

Documents

Understanding the Economics of Halal Tourism