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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!