Home Articles Growing Business Potential in the Halal Tourism Sector: How You Can Take Advantage

Growing Business Potential in the Halal Tourism Sector: How You Can Take Advantage

Explore the lucrative opportunity of halal tourism and learn how your business can tap into this fast-growing market to attract Muslim travelers globally.
A picture of halal energy drinks in different flavors.

From eco-friendly retreats to adventure tourism, the tourism sector continually adapts to meet the changing desires of travelers globally.

However, one of the most significant and potentially lucrative developments in recent years is the rise of halal tourism market.

Did You Know: The Muslim travel market is the fastest-growing sector in the tourism industry and is expected to reach $300 billion by 2026.

The modern Muslim travel market is young, dynamic, and ready to explore the world– making them a market segment to seriously consider by businesses associated with the tourism sector.

In this guide, we’re diving into why this market is flourishing and how your business can tap into its considerable growth potential.

Is Halal Tourism Relevant in Non-Muslim Countries?

Halal tourism is not only relevant but also progressively significant in non-Muslim countries. A few factors highlight its relevance:

  • Economic Benefit: As the second-largest religious group globally, the Muslim community carries significant purchasing power. A portion of that power is manifested through travel, with Muslim international tourists accounting for about 11% of the total.
  • Inclusivity: Providing halal tourism services as a non-Muslim country acknowledges the diverse needs of international tourists, enhancing the travel experience for Muslim tourists and sending an impactful message about respect and inclusion.
  • Tourism Appeal: Non-Muslim countries often hold a great attraction for Muslim tourists who want to experience different cultures, environments, and histories. Incorporating halal services in the tourism industry can increase a country’s appeal.

So, undoubtedly, halal tourism is indeed relevant in non-Muslim countries, driven by economic potential, the pledge of inclusivity, and the crucial opportunity to enhance competitive standing in the global market.

To further articulate this, below are the requirements of halal tourism:

Requirements of Halal Tourism

Halal tourism goes beyond just food.

It encompasses travel experiences that adhere to Islamic principles. It requires the availability of:

  • Prayer facilities
  • Alcohol-free environments
  • Accommodation options that cater to families and same-gender privacy.

However, here’s the exciting part– Muslim travelers are also very discerning and adventurous.

They crave unique, authentic experiences that cater to their specific needs. This presents a golden opportunity for tourism businesses to differentiate themselves and capture a loyal customer base.

Read More: Unlocking Halal Tourism: Attracting 2 Billion Halal Conscious Guests

Why Should Businesses Tap into Halal Tourism?

If you’re in the travel, hospitality, or food and beverage industry, considering halal tourism is an essential strategy for growth.

Here are 3 compelling reasons why your business should consider catering to the halal tourism market:

1. Untapped Potential:

The Halal tourism sector is still relatively young, offering a chance to be an early adopter and stand out from the competition. Currently, 5 out of the top 10 most populated countries have a significant Muslim majority.

2. Loyal Customers:

Muslim travelers tend to be loyal and appreciate businesses that cater to their needs. Once they have a positive experience, they’ll likely return and recommend you to others.80% of halal consumers tend to stick with their preferred brands, which is significantly higher than an average non-Muslim consumer.

Read More: Consumer Loyalty Trends: Why Halal Consumers Rank High in Brand Loyalty

3. Competitive Differentiation

Providing services that cater specifically to Muslim travelers, such as halal food, prayer facilities, and non-alcoholic environments, can be a unique selling proposition that attracts not only Muslim travelers but also those looking for wholesome and family-friendly travel options.

Key Opportunities for Entrepreneurs and Businesses

The explosive growth in halal tourism opens up several opportunities for entrepreneurs and existing businesses:

1. Accommodation Providers:

Hotels and resorts can offer prayer facilities, Qurans in rooms, and ensure their food services are halal certified.

These services will significantly enhance the attractiveness of accommodation providers to Muslim travelers, ensuring that their religious needs and preferences are met.

2. Travel Agencies and Tour Operators:

Creating tailored experiences for Muslim travelers, from guided tours to special packages, can set your services apart.

Travel agencies and operators can not only provide Islamic pilgrimage travel experiences, but also offer halal-friendly tours to Muslims in popular destinations all over the world.

3. Food and Beverage:

As halal tourism is on the rise, there’s a huge demand for dining options that cater to halal dietary requirements in each tourist destination.

F&B businesses all over the world can cater to this demand by obtaining halal certification for their establishments, offering a diverse range of halal-compliant dishes, and clearly labeling halal options on their menus.

4. Modest Fashion and Retail:

Catering to the need for modest fashion for Muslim tourists in beach resorts, swimming pools, and leisure activities represents a significant opportunity.

There has already been a rise of modest fashion in popular apparel culture with trends such as long-sleeved swimsuits, maxi dresses, and versatile scarves gaining mainstream popularity.

Read More: Halal Certification Requirements

Steps to Becoming Halal-Certified

Halal certification is a valuable tool to demonstrate your commitment to halal principles and successfully take advantage of the growing halal tourism segment. Here’s a simplified breakdown of the halal certification process at the American Halal Foundation (AHF):

Step 1. Research and Commitment:

Conduct a consultation session with an expert Account Executive to familiarize yourself with what halal certification entails for your specific business, whether it’s food service, accommodation, or travel packages.

Step 2. Audit Your Practices:

In this step, AHF’s Account Executive will assess your current practices and make necessary adjustments to comply with halal standards, from sourcing halal ingredients to implementing prayer facilities.

Step 3. Implementing Necessary Changes & Undergoing Halal Training:

This will range from sourcing halal-certified products and providing training to your staff regarding the successful implementation of halal practices to effectively accommodate Muslim travelers’ needs.

Step 4. Go Through the Certification Process:

The process typically includes an application, a thorough inspection of your premises, and an audit of your supply chain and practices.

Step 5. Market Your Halal Credentials:

Once certified, actively promote your halal credentials through marketing and social media to attract Muslim travelers. Remember that the halal logo is more than just a symbol– it’s a powerful assurance to Muslim consumers about your integrity and compliance.

Read More: The (Detailed) Halal Certification Process

3 Key Drivers of Future Halal Tourism Growth

Halal tourism is projected to experience further growth over the next few years. Below are 5 key factors driving that growth:

1. Rising Disposable Income

Muslim consumers globally spent a whopping $2 trillion, and this is expected to go up to $2.8 trillion by 2025. This economic uplift in many Muslim-majority countries has created a significant class of consumers wanting to travel the globe.

2. Youthful Demographics

The Muslim population is remarkably youthful, with around 30% of the 2 billion Muslim population aged between 15-29. These individuals are also highly tech-savvy and are keen on travel experiences that cater to their religious and digital consumption habits.

3. Cultural and Religious Awareness

There’s a growing awareness and acceptance of cultural and religious diversity worldwide, prompting destinations and businesses to adapt their offerings to cater to a broader audience, including 2 billion Muslims.

Read More: 9 Interesting Statistics on Halal that Everyone Should Know

The Potential Rewards Are Substantial

The halal tourism sector’s upward trajectory is undeniable, with projections only indicating more growth.

For businesses willing to make the necessary adjustments and investments into halal certification, the potential rewards are substantial.

Tap into the halal tourism market now by applying for halal certification through AHF today!

AHF is the leading internationally accredited and globally accepted halal certification agency in North America, with over $1 billion in business growth achieved through AHF halal certification in 10 years.

Get in Touch

Connect with a halal certification expert.

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Get in Touch

Connect with a halal certification expert.

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