COVER STORY

@ Halal | July-August. 2025

� Global Muslim travel spending surges amid rising traveller demand

� Malaysia tops the GIEI 2024 rankings in Muslim-friendly travel

� DinarStandard Partner says Malaysia is well-positioned to attract rising GCC investments

Reem El Shafaki

BY ZAFIRAH ZAFRUDDIN

“ This consistent year-on-year growth highlights the rising demand from Muslim travellers worldwide,” remarked DinarStandard Partner Reem El Shafaki.

The rise in expenditure also signals a market shift, one driven by travellers’ evolving expectations and nuanced preferences.

“ Muslim travellers are getting more and more sophisticated. They expect a certain level of service, high-quality products, and authentic experiences.”

The discourse on Muslim-friendly travel has moved beyond just halal meals and prayer rooms.“ Those are now a given,” she asserted.

“ Destinations need to go further and address the specific needs of their target markets. These may vary based on the source country, traveller psychographics, and the type of travel they’ re seeking.”

MALAYSIA’ S LEADERSHIP

Malaysia’ s top position in the Muslim-friendly travel category of the Global Islamic Economy Indicator( GIEI) 2024 are attributed to two main factors: a strong rebound in international arrivals and consistent industry commitment, as per the SGIE Report 2024 / 2025.

2024 / 25

STATE OF THE GLOBAL

ISLAMIC

ECONOMY REPORT

FROM CRISIS TO CATALYST: EVOLVING ISLAMIC ECONOMY

OPPORTUNITIES

PRODUCED BY IN PARTNERSHIP WITH SUPPORTED BY

The report revealed that traveller arrivals have rebounded to pre-pandemic levels, while stakeholders are engaging more actively in Muslim-friendly targeted events.

Much of this impetus, according to Reem, is owed to the Islamic Tourism Centre( ITC).

“ ITC has been instrumental in developing standards, training programmes, and industry engagement initiatives that have helped institutionalise Muslim-friendly practices across the tourism value chain.”

She noted that while Malaysia had the infrastructure to support Muslim travellers, ITC’ s post-pandemic efforts in the past five years have been crucial. These initiatives prove successful in aligning the industry more strategically with global halal tourism trends.

The Muslim-Friendly Tourism and Hospitality Assurance and Recognition( MFAR) programme is cited as a key initiative. The programme outlines clear standards for service providers and incentivises compliance through awards and recognitions.

“ Any policy or programme that increases tourism spending or draws more visitors ultimately contributes to gross domestic product( GDP),” stressed Reem. Furthermore, Malaysia’ s economic gains from Muslim-friendly tourism are supported by its cross-sector collaboration.

Through concerted efforts, government agencies, private sector entities, religious authorities, and certification bodies ensure the implementation of Muslim-friendly tourism standards nationwide.

ITC emerges as a key enabler behind this progress.“ ITC plays a vital role not only in developing standards, but in ensuring industry uptake through education, certification, and coordination across sectors.”

GCC INVESTMENTS

Recognising the promising prospects of Muslim-friendly tourism, Gulf Cooperation Council( GCC) nations are directing significant investments toward the sector.

Over the past year, several landmark investments have reshaped the Muslim-friendly tourism landscape. Qatar has channelled funding into halal travel initiatives for the Philippines, while the United Arab Emir-

Malaysia’ s strong performance across key sub-indicators reflects its global leadership in Muslim-friendly tourism.

ates( UAE) invested US $ 3 billion to bolster Indonesia’ s tourism infrastructure.

“ The commercial success of Turkey’ s halal beach resorts, for example, has strengthened investor confidence in the sector’ s viability,” added Reem.

On the other hand, Malaysia, with its global recognition under the GIEI, is strategically positioned to attract growing GCC investments. Nonetheless, to sustain its leadership, the SGIEI 2024 / 25 report outlines crucial areas requiring focus:

• Innovation: Enhance overall preparedness for digital technology adoption and foster a more robust environment for innovation and entrepreneurship.

• Tourism arrivals: Maintaining substantial visitor numbers to preserve momentum.

• Awareness: Sustaining high visibility through events, certification programmes, and education.

• Strong halal-friendly ecosys- tem: Continue to support and expand this core competitive advantage.

In addition to these priorities,

several high-impact initiatives with measurable economic outcomes are required. Suggestions put forward include:

• Tourism initiatives: Launching an Islamic-themed hotel brand and a Muslim-friendly family retreat product.

• Branding and events: Positioning Malaysia as a pioneer through a Prophetic Traditions Spa brand and an Islamic Economy Web 3.0 event and awards platform.

• Marketing and growth: Developing marketing campaigns around Islamic heritage experiences and building the capacity of SME experience providers.

LOOKING AHEAD

While Malaysia has demonstrated consistent leadership in Muslim-friendly tourism, Reem believes the real opportunity now lies in sustaining this momentum.

With institutions like ITC to guide, train, and empower the sector, Malaysia is well-positioned not just to lead but to define what’ s next for the global Muslim-friendly tourism industry.-