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The Muslim Travel Market

Opportunities for KZN to become the choicedestination for Muslim/Halaal (friendly) Tourism in Africa

Durban, KZN, South Africa

29th May 2013

Fazal BahardeenCEO, Crescentrating

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10 June 2013

Overview of the Muslim/Halaal (friendly) Tourism

Market & trends

Crescentratings Ranking & Rating

What other destinations are doing & opportunities for

KZN to become the choice destination for Muslim/Halaal

(friendly) Tourism in Africa

Copyright 2013 CRESCENTRATING PTE LTD. | ALL RIGHTS RESERVED

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10 June 2013

Overview of the Muslim/Halaal (friendly)Tourism Market & trends

Muslim Consumer Market overview Muslim Travel Market overview

Their faith based needs while travelling


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Islamic/Muslim/Halaal Market


10 June 2013

Only recently has the mainstream businesses

started looking at this segment as one

consumer segment

Still remains a hugely untapped market

Understanding their unique lifestyle choices is

key to tap into this lucrative market

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1. Fastest growing in terms ofpopulation growth

2. Come from some of the fastest growing

economies

3. A young population

4. Increasingly making lifestyle choices based on faith

4 reasons to look at this consumer segment


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The next generation consumers

10 June 2013

37%


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The Economist Intelligence Unit Report

10 June 2013

Ignore the Sharia-conscious consumer

at your peril.Since more than 50% of Muslimsworldwide are under the age of 25 and, together,

account for more than 10% of the worlds population.. ,

the prospects for the future look remarkably bright.

(The Sharia-Conscious Consumer Driving Demand - A report from the Economist Intelligence Unit May 2012)


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Heightened interest in this consumer segment

Recent reports / books

10 June 2013

Addressing the Muslim Market Can you afford not to? (AT Kerney 2007)

Marketing to the Muslims (JWT 2007)

Mapping the Global Muslim Population: A Report on the Size and

Distribution of the Worlds Muslim Population (Pew research Center, October

2009)

Brands, Islam and the New Muslim Consumer(Ogilvy

Noor 2010)

The Future of the Global Muslim Population for 2010

and 2030 (Pew Research Center, January 2011)

Book: Islamic Branding & Marketing (Paul Temporal

2011) The Sharia-Conscious Consumer - Driving Demand -

Economist Intelligence Unit (March 2012)


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Understanding some terms

10 June 2013

refers to those who practice the ic faithMuslim Islam

Halalrefers to what is lawful & permissible forMuslims - as opposed to Haram (non-permissible)

Tayyib refers to wholesome / good/ healthy

Halal + Tayyib = permissible + wholesome/healthy..

(the Way) refers to the set of teachings governing

the Islamic faith

Sharia


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Halal (+Tayyib) = a lifestyle

10 June 2013

Covers all aspects of a Muslims

lifestyle choices

Goes well beyond Foodo Food products, beverages,o Personal care and cosmetics, pharmaceuticalso Finance, Clothing, Logisticso

Hospitality, Tourism, Medical care, Wellness


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How the Halal industry has evolved

10 June 2013


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The Halal food industry10 June 2013

Halal Food market : close to US 1 Trillion globally

Muslims in France will soon consume around 4.5 billion worth of halal foods

each year (Solis quoted by EIU)

Wal-Mart now stocks halal foods in its US stores

Nestle : more than US$ 5 billion sales from Halal Products (2010) McDonalds, KFC, Pizza Hut etc. Outlets Halal certified in a number of countries

Australia: Largest exporters of Halal Beef

Netherlands: Rotterdam port one of the biggest Halal warehouses

Brazil : a substantial percentage of its meat exports are Halal products.

Thailand : aggressively positioning itself in the Halal Food market


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The Islamic Banking sector10 June 2013

Islamic finance industry : S&P expects the

$1 trillion global Islamic finance industry to

grow 20 per cent over 2011-15 doubling in

size over the period.

Some of the International Banks providing

Islamic Banking facilities in Malaysia

include, HSBC, StandardChartered,..


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The Islamic Banking sector10 June 2013


10 J 2013

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Other Halal Sectors

10 June 2013


10 J 2013

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Global Muslim Lifestyle Tourism Market 2012

10 June 2013

First-ever Global Study on the Muslim TravelMarket Landscape July 2012

Objective: Enable industry to evaluate the

potential & opportunities & develop key

engagement frameworks for market strategy

Approach: Market sizing, Primary survey,

Interviews, Case Studies &

Recommendations

Joint report by : Crescentrating & DinarStandard

(Downlo ad the Execut ive Summary atCrescentrat ing.com)


10 J 2013

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Global Muslim Lifestyle Tourism Market 2012

10 June 2013


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Changing landscape 2000/201010 June 2013

Source: World Tourism Organization (UNWTO)


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Muslim traveller expenditure in 2011 - $126 Billion

10 June 2013

12.3% of the total global outbound tourism expenditure in 2011

(around 3.5% in 1995)Global Muslim Lifestyle Tourism Market 2012 Report Crescentrating & Dinarstandard


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Projections for 2020

10 June 2013

Fast emerging economies, with higher than global averagepopulation growth rates, and a younger population (50% less than 25

years old)

The Muslim tourists expenditure annual growth rate is expected to be

at 4.8% through 2012-2020. Global expected average growth rateis 3.8% for the same period.

Global Muslim Lifestyle Tourism Market 2012 Report Crescentrating & Dinarstandard

By 2020, Muslim tourists expenditure is expected

to be $192 billion representing 13.4%

of global tourism expenditure.


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Expenditure by Source region - 2011

10 June 2013

Key sub-segments

GCC South East Asia Western Europe Other

Saudi Arabia Indonesia Germany Turkey

UAE Malaysia France Iran

Kuwait Singapore UK

Qatar Belgium

Oman

Bahrain

~37% ~10% ~7% ~16%

~70% of the global Muslim traveler expenditure


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Muslim Travel market

10 June 2013

Diverse Markets with strong

shared values

GCC South East Asia Western Europe Other


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Diverse Markets with shared values/lifestyle choices

10 June 2013

Source: Islamic Branding & Marketing-Paul Temporal

Shared values

Common Faith, values and identity as Muslims

Similar dietary requirements (Halal) Similar lifestyle requirements (finance, education,

entertainment)

Strong sense of community and welfare


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10 June 2013


Differences

Diverse locations

Multiple languages and dialects

Various cultural and lifestyle differences

Varying degree of Islamic adherence

Varying degree of education, affluence, and

marketing sophistication


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10 June 2013


Differences

Diverse locations

Multiple languages and dialects

Various cultural and lifestyle differences

Varying degree of Islamic adherence

Varying degree of education, affluence, and

marketing sophistication


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Understanding their common faith based needs

0 Ju e 0 3

Halal food services

Salaath (Prayer) facilitiesNeed to have

Good to have

Nice to have

Water usage friendly washrooms

Ramadhan (fasting) services & facilities

No non-Halal activities

Recreation facilities and services

Muslim traveller needs categorization by Crescentrating


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Applicable across the whole sector

10 June 2013

CRaHFTModel

NonHalal activities

Recreation services & facilities

Ramadhan services & facilities

Wudu friendly washrooms

Salaath (Prayer) facilities/information

Halal Food services

Halal Friendly -Travel Agents/Travel Operators/Tour packages

CrescentRatings Halal Friendly Travel (Reference) Model

Transp

ort

terminals

Leisure (Attractions, Shopping,

Nature & Adventure)

Healthcare (facilities)

MICE (venues)

HotelsVillas

Apartments

B&B

Camping parks Live Events (venues)

Business


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Halal Food tops the list (Survey)

Overall, which of

the following are

important to you

when travelling

for leisure?

(Please select at

least two

options)


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Halal food assurance for Restaurants

1. Certified by a Halal certification body

2. Self assurance


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Prayer facilities

A list of the nearby Mosques

Prayer direction

Prayer Timings

Prayer Mats

Prayer Rooms


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Good to have Water usage

Water usage in the washrooms


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Good to have Ramadhan facilities

http://www.crescentrating.com/en/downloads-for-hotels.html


10 June 2013
http://www.crescentrating.com/en/downloads-for-hotels.htmlhttp://www.crescentrating.com/en/downloads-for-hotels.htmlhttp://www.crescentrating.com/en/downloads-for-hotels.htmlhttp://www.crescentrating.com/en/downloads-for-hotels.htmlhttp://www.crescentrating.com/en/downloads-for-hotels.htmlhttp://www.crescentrating.com/en/downloads-for-hotels.html

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Nice to have No non-Halal activities


A sub segment of the market looking for these services but currently

difficult to find

Facilities and services with

Alcohol free environments

Swimming pools, Gyms and beaches which allow privacy for

females/families

Spas and wellness services catering separately to males and

females


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It is NOT about developing unique products to

cater to this segment only

Aligning services and facilities

It is about adapting existing products by

taking into account the requirements ofthis

segment as well


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Overview of the Muslim/Halaal (friendly) TourismMarket & trends


What other destinations are doing & Opportunities for




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Lunched the worlds first travel portal for Muslim

travellers in 2009

Along with the world first rating system to rate services

for Muslim/Halal friendliness

Today the world leader in this segment

Crescentrating


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What Crescentrating does How you could leverage1 Rating and Listing of travel and tourism facilities and services

Annual Ranking of Destinations, Airports, etc.

Crescentrating.com Premier travel site for Muslim Travelers

Develop services for Muslim Travelers - Air Travel Prayer TimeCalculator

Research, Training and Consultancy

2

3

4

5


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Rating and listing of travel services

A rating standard for travel and tourism facilities and services

for Halal friendliness


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Hotel Rating overview

Majority of the Hotels

can achieve this without any

structural changes

Many Hotels can

achieve this with a

few changes

Specialized Hotels

catering to Halal

friendly

requirements

Halal friendliness

Helpful Accommodates Specializes

Does not require any changes to the existing services

to other customers


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H

o

t

el

s


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Annual CRaHFT Ranking - 2013

Top 10 Halal Friendly Holiday Destinations (OIC & non OIC)

CRaHFT Scores for 25 OIC and 25 non-OIC Destinations

Top 10 Halal Friendly Shopping Destinations (OIC & non-OIC)

Top 10 Halal Friendly Airports (OIC & non-OIC)


10 June 2013

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Annual CRaHFT Ranking - 2013


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CRaHFT Ranking 2013


Key Criteria for Holiday destination ranking

A Holiday Destination

Halal Food Availability (Authentic + identifiable)

Prayer facilities availability

Halal Friendly Accommodation availability

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45

Score

Malaysia 8.3

Score

Bosnia & H 5.9

Thailand 5.9

Bangladesh 5.9

South Africa 5.8

Maldives 5.7

Kuwait 5.7

Iran 5.6

India 5.6

UK 5.3

Sri Lanka 5.2

Pakistan 5.0

Score

Egypt 6.7

UAE 6.6

Turkey 6.6

Saudi Arabia 6.4

Singapore 6.3

Indonesia 6.1

Morocco 6.1

Jordan 6.1

Brunei 6.0

Qatar 6.0

Tunisia 6.0Oman 6.0

Muslim Friendly Holiday destinations ranking - 2013


l dl l d d k

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46

ScoreKyrgyzstan 4.4

Tajikistan 4.4

Uzbekistan 4.3

Kazakhstan 4.3

Azerbaijan 4.3

Philippines 4.2

Spain 4.2

Canada 4.2

Russia 4.1

New Zealand 4.1

Nigeria 4.0

Italy 4.0

ScoreTaiwan 3.9

Japan 3.9

Ireland 3.9

Mexico 3.7

ScoreLebanon 4.8

Australia 4.7

Germany 4.5

Hong Kong 4.5

Kenya 4.5

Tanzania 4.5

China 4.5

USA 4.5

Austria 4.5

Senegal 4.5

Muslim Friendly Holiday destinations ranking - 2013


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47

What Crescentrating does How you could leverage

Crescentrating.com

Country guides - developed to suite the requirements of Muslims

Hotel guides - Highlighting the Halal friendly services and facilities

Halal Restaurant listing

Airline and Airport guides

Muslim traveler needs guideShopping Malls guide

Attractions guide

Coming soon: Travel Agents, Travel packages, Cruise ships,Hospitals, Educational Institutions etc.


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49

Market awareness workshops

Research & Consultancy for capability building for destinations andtravel services

Capability building for destinations and travel services

Developing Muslim Visitor Guides for the destination

Trainingfor Hotels, Theme parks, Hospitals etc.. targeting this segment

Other Crescentratings Services to the Travel Industry


10 June 2013

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Overview of the Muslim/Halaal (friendly) TourismMarket & trends


What other destinations are doing & Opportunities for




10 June 2013

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Destination : Gold Coast Queensland (1/2)


/

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Destination : Gold Coast Queensland (2/2)

Prayer rooms in malls & theme parks, halal

food at leading hotels. Qiblaand Quran inrooms..several mosques dotted across Gold Coast*

*Queensland Tourism Press Release, August 2012

Government has been jointly organising free Iftarat leading hotels Five-star Hilton Surfers Paradise - the 15th floor executive lounge turned into

Iftar lounge* Average length of stay is 3 weeks and spend per visitor excluding airfare is

$7,025 - almost triple the global average*

Halal Certification bodies certifying restaurants

Ranked among the Top 10 Halal Friendly Holidaydestinations (non-OIC) by Crescentrating in 2012


D i i Th il d

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Destination: Thailand


D i i N Z l d

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Destination: New Zealand


i i H K

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Destination: Hong Kong

http://youtu.be/6rfZdZXnPN8


10 June 2013

D i i M i h
http://youtu.be/6rfZdZXnPN8http://youtu.be/6rfZdZXnPN8

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Destination: Munich

D ti ti J

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Destination: Japan


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http://youtu.be/0_3Br0ymAKM


D ti ti T i T i

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http://youtu.be/0_3Br0ymAKMhttp://youtu.be/0_3Br0ymAKM

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Destination: Taiwan Tourism


D ti ti T i T i

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Destination: Taiwan Tourism


10 June 2013

H t l F i t Si

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Hotel: Fairmont Singapore

Interview with Fairmont

http://youtu.be/iXE5qSitWYs


Hotels: Fairmont Singapore

Opportunities for KZN

10 June 2013
http://localhost/var/www/Users/Owner/Desktop/Fairmount%20Singapore.mp4http://youtu.be/iXE5qSitWYshttp://youtu.be/iXE5qSitWYshttp://localhost/var/www/Users/Owner/Desktop/Fairmount%20Singapore.mp4

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Opportunities for KZN


Opportunities for KZN to become the

choice destination for Muslim/Halaal


KZN Understanding o r strengths10 June 2013

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1. A great Holiday destination providing many

unique experiences

2. A mature Halal certification environment

3. Access to Halal literate human resources

4. A huge domestic Muslim consumer market

KZN Understanding your strengths


Already ranked high by Crescentrating in - 201310 June 2013

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64

Score

Malaysia 8.3

Score

Bosnia & H 5.9

Thailand 5.9

Bangladesh 5.9

South Africa 5.8

Maldives 5.7

Kuwait 5.7

Iran 5.6

India 5.6

UK 5.3

Sri Lanka 5.2

Pakistan 5.0

Score

Egypt 6.7

UAE 6.6

Turkey 6.6

Saudi Arabia 6.4

Singapore 6.3

Indonesia 6.1

Morocco 6.1

Jordan 6.1

Brunei 6.0

Qatar 6.0

Tunisia 6.0Oman 6.0

Already ranked high by Crescentrating in - 2013


Opportunities: K b t10 June 2013

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GCC South East Asia Western Europe OtherSaudi Arabia Indonesia Germany Turkey

UAE Malaysia France Iran

Kuwait Singapore UK

Qatar

Oman

Bahrain

~37% ~10% ~6% ~16%

~70% of the global Muslim traveler expenditure

Opportunities: Key sub-segments


Opportunity: Market Access10 June 2013

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Opportunity: Market Access

Within 9

hours flight

+40% ofMuslim travel

(expenditure)

Market


Opportunities: Looking for new destinations10 June 2013

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Increasingly interested in discovering new destinations,

activities & experiences

KZN has a lot to offer

Re-package existing products taking into account these

travelers needs

Opportunities: Looking for new destinations


Sight Seeing, Beach Experiences, Shopping, DiningAdventure, Wild life experiences, etc

10 June 2013

Opportunities: Look at some niche sub segments

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Nice to have No non-Halal activities


Facilities and services with

Alcohol free environments

Swimming pools, Gyms and beaches which allow privacy for

females/families

Spas and wellness services catering separately to males and

females


Opportunities: Look at some niche sub-segments

Opportunities: Develop products focussing10 June 2013

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on some of their values


Shared values

Common Faith, values and identity as Muslims

Similar dietary requirements (Halal)

Similar lifestyle requirements (finance, education,

entertainment)

Strong sense of community and welfare


This could be translated into opportunities in:10 June 2013

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Environment friendly Tourism

Sustainable Tourism

Tourism along with volunteer work

Ethical tourism

Eco Tourism

Local community friendly tourism

This could be translated into opportunities in:


Opportunities: SMEs + Job creation10 June 2013

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Tour guides

Travel Agents

Transport services

Translators

.

Opportunities: SMEs + Job creation


Capability building: Faith based needs10 June 2013

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Capability building: Faith based needs

Halal food services

Salaath (Prayer) facilitiesNeed to have

Good to have

Nice to have

Water usage friendly washrooms

Ramadhan (fasting) services & facilities

No non-Halal activities


Muslim traveller needs categorization by Crescentrating


Implementing them across the value chain

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Implementing them across the value chain

Transport

te

rminals

Hotels

Villas

ApartmentsB&B

Camping parks


Nature & Adventure)

Healthcare & EducationMICE

Live Events

Business

CRaHFTModel


Authenticating these services and facilities through

Crescentratings rating and & SANHAs food certification

Capability building: Key travel habits10 June 2013

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Generally Travel with their families / sometimes

with their extended families

Implications on types of accommodationavailable

Generally travel during school holidays

Capability building: Key travel habits


Developing a plan for KZN10 June 2013

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p g p


Developing Services, facilities and human resources Create awareness among the KZN travel industry (Workshops etc)

Evaluate the existing facilities and services in KZN (based on the

tourism products)

Gap analysis and develop plans to fill the gaps

Develop Muslim Visitor guide for KZN (English & Arabic)

Human Resource development - Cultural Sensitization Training

(Hotel staff, Visitor Information Center, Attraction staff, Tour

operators etc.)

Marketing and Promotion

Opportunities in the whole value chain for KZN

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Opportunities in the whole value chain for KZN

Transpo

rt

termina

ls

Hotels

Villas

Apartments

B&B

Camping parks


Nature & Adventure)

Healthcare & Education

MICE

Live Events

Business

CRaHFTModel


Conclusion

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Conclusion

Muslim (Halal) Friendly Travel & Hospitality is set to be the next big Halalindustry

Will be a USD 200 Billion market by 2020

Many destinations are now targeting this market

At Crescentrating, we are committed to leading & facilitating

the development of Halal Friendly Travel and Hospitality services & facilities worldwide

to benefit the travellers, the service providers, destinations, ...

www.crescentrating.com


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Thank You

www.crescentrating.com

www.facebook.com/crescentrating

www.twitter.com/crescentrating

www.youtube.com/crescentrating

Email : [email protected]

Documents

FB - Durban 29th May 2013