BY KHIRTINI K KUMARAN

Together with CrescentRating it publishes reports including the annual Mastercard-Crescentrating Global Muslim Travel index and Muslim Lifestyle market reports . These insights unravel the evolving needs of faith-based travellers and how these needs can be better met to create more resilient tourism offerings .

Mastercard Southeast Asia Division President Safdar Khan said : “ Our longstanding partnership with CrescentRating stands as a testament to our strategic vision .”

“ In Malaysia and Indonesia , we collaborate with banks and Islamic issuers to deliver Shariah-compliant products featuring non-compounding interest , Islamic card designs , and restrictions on non-compliant purchases .

He said Mastercard takes great pride in actively championing an all-encompassing and sustainable digital economy through pioneering payment innovations .

“ In partnership with industry stakeholders across financial and non-financial institutions such as telcos , we develop tailored solutions to foster robust and comprehensive payment ecosystems .”

SUPPORTING MUSLIM- FRIENDLY HOSPITALITY

The Mastercard-CrescentRating Global Muslim Travel Index ( GMTI ) 2023 highlighted that over 31 per cent of Asia ’ s travellers are Muslim . Southeast Asia is preferred due to its substantial Muslim population and cultural assets .

Based on the Index , international Muslim arrivals hit 110 million in 2022 and are projected to reach 140 million this year . Estimates suggest a growth to 230 million arrivals by 2028 , accompanied by an anticipated expenditure of US $ 225 billion .

Safdar said : “ Addressing this opportunity is paramount for the travel industry , especially in our region . Muslim travellers seek travel plans that align with faith-based criteria , including halal food availability and prayer facilities .

“ To engage this segment , destinations and businesses must comprehend evolving habits post-pandemic , adapt to technological shifts , and cater to new demands effectively .”

He said Mastercard is proud to collaborate with the Islamic Tourism Centre ( ITC ) to support Islamic Tourism Month ( ITM ).

“ By highlighting Muslim-friendly hospitality and retail choices , ITM presents a valuable opportunity to build inclusivity and foster a stronger connection with faithbased travel .

Safdar Khan

“ To extend the event ’ s reach , we are also delighted to sponsor an exclusive TikTok campaign featuring 30 prepaid cards valued at RM1,000 each for recipients .”

This campaign aims to spotlight the expanding array of halal travel options . Even as changing demographics spur heightened demand for emerging trends like memorable experiences , eco-friendly travel , and well-being , this initiative remains timely and relevant .

Additionally , Mastercard has several strategic longtime partnerships across Southeast Asia . In Malaysia , it has partnered with Bank Rakyat for the nation ’ s first Shariah-compliant credit card for women . Similarly , it has collaborations with banks in Indonesia for Shariah-based cards .

“ Travel-wise , we collaborate with Bank Rakyat and Bank Islam for Hajj and Umrah packages . Our partnership with CrescentRating also caters to Muslim-friendly travel , offering lifestyle tips . Our curated halal offers and tailored experiences resonate with Muslim travellers , reflecting evolving sector demands .”

NEXT GENERATION OF TRAVELLERS

Based on the Mastercard-CrescentRating Muslim Gen Z : The Next Generation of Travelers report , Gen Z travellers are actively redefining what it means to travel

as they account for 27.2 per cent of the global Muslim population , Safdar shared .

“ Notably , around 11 per cent of these Gen Z travellers willingly pay for carbon offsets , while 14 per cent opt for closer tourist destinations to minimise long-haul flights .

“ Their intentional spending habits are evident , with 77 per cent willing to invest in sustainable practices such as curbing air travel , engaging in voluntourism ( volunteer tourism ), and supporting local businesses .

“ Debit / credit cards are favoured by 73 per cent for overseas transactions , and 57 per cent prefer cash .”

He added that Muslim Gen Z women , comprising over 70 per cent , were key decision-makers in family travel planning .

“ Their preferences lean toward cultural immersion , embracing local traditions , heritage , cuisine , and learning opportunities . Moreover , 76 per cent express the importance of social causes in their travel plans .

“ Additionally , sustainability gains prominence as Muslim travellers seek ecoconscious choices harmonising with their faith-driven values of stewardship and environmental care .”

TRAVEL INDUSTRY TREND AND CONSUMER SPENDING

Travel expenditure steadily increases , demonstrating a consistent surge in global

leisure and business travel . Research from the Mastercard Economics Institute shows that between March 2019 and March 2023 , both segments witnessed a remarkable 33 per cent increase .

“ Business travel , which recovered at a slower pace than leisure travel , has caught up and is now growing at a similar rate – thanks to a return to office culture and a demand for face-to-face business interactions ,” he said .

“ Given the strong interest from consumers , it is vital for businesses to maintain collaborative efforts with the public sector . Such partnerships are essential for introducing initiatives designed to attract more tourists .

“ One key trend we ’ ve noticed at Mastercard for the whole travel sector is that travellers prioritise spending on experiences over things , with expenditures on experiences soaring 65 per cent compared to 2019 as of March 2023 .

“ Notably , affluent travellers have been driving the demand . We are also seeing travellers explore new locations . Potentially influenced by social media and entertainment , they land in lesserknown destinations for greater cultural immersion .”

These trends are true across all profiles , including the influential Muslim travellers . This segment is a hugely important demographic for global travel and Asia in particular , with countries such as Indonesia , Malaysia and Singapore topping the list of preferred destinations for Muslim travellers in this year ’ s Mastercard- CrescentRating GMTI .

“ Turning to payment preferences , the Mastercard New Payments Index 2022 underscores the escalating acceptance of digital payment methods among consumers in the Asia Pacific region . The index revealed that in 2021 , 88 per cent of respondents in the Asia Pacific adopted digital payment technologies such as digital wallets , QR codes , and biometrics .

“ In light of this , travel businesses stand to benefit from strategic collaborations with diverse payment solution providers because such collaborations could foster the wider adoption of digital payment systems .”

However , as digital payments become more popular , he noted consumers are increasingly worried about security . Thus , travel businesses play a crucial part by collaborating with payment providers and the government . Focusing on educating consumers and continually improving the safety of digital payment systems can effectively ease these concerns .

“ Across all consumer segments , the global traveller is changing what they seek when overseas . The responsibility is on the travel industry to keep up , to adapt and be more digital-first to show resilience and meet new consumer demands .” — R & R