@Halal XTRA November/December 2021 | Page 15

Potential and perspectives Malaysia must be ready for the massive opportunity for businesses to tap into
November-December 2021
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MIHAS 2021

Potential and perspectives Malaysia must be ready for the massive opportunity for businesses to tap into

BY ALISA AMINUDIN

IN TANDEM with the expected opening of international borders , there will be vast and lucrative opportunities in the tourism and halal sectors .

Given this expectation , it was timely to engage with a global audience via the Muslim-Friendly Tourism and Hospitality Forum organised by Islamic Tourism Centre ( ITC ) in conjunction with the 17th Malaysia International Halal Showcase ( MIHAS ).
Ministry of Tourism , Arts and Culture ( MOTAC ) Secretary-General Datuk Wira Dr Noor Zari Hamat , who is also ITC chairman , said the global halal market was expected to reach RM10 trillion ( US $ 2.5 trillion ) by 2024 . It is across food , pharmaceuticals , cosmetics , Islamic finance , and tourism .
It represented , he pointed out , a massive opportunity for businesses to tap into , and there is a world of opportunities to explore .
“ With regards to Muslim-Friendly Tourism , it means catering to the unique needs and requirements of the Muslim tourist market ,” said Noor Zari .
“ This segment has specific faithbased needs when it comes to travel . Key among these needs is halal food , or that which is permissible by Islam , and a place to pray .
“ At the height of tourism , just before the global pandemic hit , the Muslim tourist market had high volume and high economic value . It showed great promise for further growth .”
In stressing that the industry needed to be ready , Noor Zari shared :
• In the State of the Global Islamic Economy Report 2020 / 2021 , it was reported that 200.3 million Muslim travellers contributed US $ 194 billion in global travel spend in 2019 . It further predicted the market would be worth US $ 208 billion by 2024 , after considering the Covid-19 impact .
• According to Pew Research Centre , the global Muslim population was massive , standing at more than 1.8 billion . In Southeast Asia alone ,
there was an estimated 255 million Muslim population . Thus , the Muslim market is a vast consumer base for food products , cosmetics , fashion , finance , and tourism .
• And indeed , many destinations and businesses saw the opportunity in tourism . Even non-Muslim or Muslim-minority countries such as Thailand , Singapore , Japan , Taiwan , Hong Kong , South Korea and Australia were formulating strategies to capture a share of this lucrative market . Their Muslim- Friendly tourism campaigns spoke of halal food , access to prayer facilities , and exciting tourism experiences . These destinations and the business community understood that the potential of the Muslim tourist market was vast and expanding and was quick to adapt and respond accordingly .
• Being one of the pioneering destinations to welcome vast numbers of Muslim tourists after 9 / 11 , Malaysia saw tremendous market growth from early on . In 2019 , Malaysia ’ s Muslim tourist arrivals reached 5.3 million , contributing RM16.72 billion or approximately US $ 4 billion towards the economy . To emphasise the market strength and economic value , Noor Zari said arrivals from Indonesia alone was two million tourists contributing tourist receipts of RM7.3 billion ( US $ 1.8 billion ).
In 2019 , he said , Saudi Arabian tourists ’ average length of stay was 10.8 days , from Kuwait 10.2 days and UAE 9.7 days . Their per capita expenditure was RM11,660 ( US $ 2,915 ), RM9,080 ( US $ 2,270 ) and RM10,095 ( US $ 2,523 ) respectively .
Opening international borders
International borders are expected to open up gradually later this year . The MasterCard-CrescentRating Global Muslim Travel Index 2021 report estimated international Muslim tourist arrivals would reach 26 million in 2021 . It is projected the Muslim travel market will recover up to 80 per cent of the 2019 levels in 2023 .
“ We believe this market will continue to flourish beyond Covid-19 due to overall pent-up demand for travel .
It opens up opportunities for tourism destinations and businesses in the halal economy .
“ Strategies and actions need to be in place now to feed the demand for Muslim-friendly products and services throughout the tourism journey and experience .
“ What should be the strategy of destinations to attract this lucrative Muslim tourist market ? Muslim tourists travel for the same reasons as everyone .
“ They travel for business , wellness , leisure , luxury , sports and recreation , and wish to indulge in niche and special interests through travelling .
“ Their needs in each instance may be different but provide tremendous business opportunities for the entire tourism supply chain ,” said Noor Zari .
The following observations were made by Expedia Group , MasterCard- CrescentRating and DinarStandard :
In their joint GMTI 2021 report , MasterCard and CrescentRating anticipate travel decisions will be made based on the readiness of destinations and which destinations are perceived to be trusted and viewed favourably by travellers .
While pent-up demand for travel will be high , tourists will likely make more considered travel choices . They will prioritise health and safety above all else in their travel decisions , said Expedia in their July Traveler Value Index , which surveyed the views of 8,000 people in eight countries .
The anticipation of travelling again will also mean that travellers will have a higher than usual expectation for the quality of the touristic experience , says DinarStandard in its “ 13 Signals of a Post-Covid-19 New Normal ” study . It identified health and hygiene , contactless travel and innovations in digital payments , and sustainability among the emerging consumer trends in travel .
“ When applied to the Muslim- Friendly Tourism context , this gives another perspective of how this segment can create further demand and tremendous opportunities in other sectors within the halal economy .
“ It will benefit businesses involved in Islamic Finance , Halal Food and Beverages , Halal Pharmaceuticals ,
At the height of tourism , just before the global pandemic hit , the Muslim tourist market had high volume and high economic value . It showed great promise for further growth .” — Datuk Wira Dr Noor Zari Hamat
Halal Cosmetics , and Islamic-themed media and recreation ,” said Noor Zari .
Conclusion
Noor Zari shared the country ’ s National Tourism Plan 2020-2030 prioritised the development of Malaysia as a Muslim-Friendly Tourism destination .
ITC was mandated as the lead agency to fulfil this aspiration through smart partnerships in standards and certification , research and intelligence , Islamic lifestyle and business events , tourism and hospitality , and healthcare and wellness .
ITC has also established standards for Muslim-Friendly Tourism , provided training to upskill businesses and industry players to better equip themselves to serve the market , established guidelines for the industry , and commissioned academic and applied research to explore the industry ’ s potential further .
ITC also expanded the “ Muslim- Friendly Tourism ” term to “ Muslim-Friendly Tourism and Hospitality ”, reflecting the broader opportunities available in the market . – Xtra
“ Over the years , the healthcare in our country offered comprehensive packages with all the right ingredients for healthcare travellers .”
As a healthcare travel destination , Mohd Daud shared MHTC provided specific services for Muslim healthcare travellers where the patients can request to be tended to by the same gender medical staff in line with ITC ’ s plan to enhance Malaysia as a Muslim-friendly destination .
“ Our hospitals have a good proportion of female medical professionals to look after female patients ,” added Mohd Daud , as Malaysia established a fully Shariah-compliant hospital , which has excellent potential to serve Muslim healthcare travellers .
In 2019 alone , Malaysia attracted more than 1.2 million healthcare travellers with several arrivals from Muslim-majority countries . It included Indonesia , Bangladesh ,
Yemen and Libya .
After seeing the figures , MHTC aspired to explore opportunities to attract more Muslim travellers to strengthen Malaysia ’ s position as a leading global halal destination .
Hence , there is a huge demand for halal vaccines and halal medical alternatives for the market .
“ This will pave the way for us to tap into new markets such as UAE , Saudi Arabia , Qatar and Oman .”
Mohd Daud also introduced several niche branding initiatives such as positioning Malaysia as the cardiology and fertility hub of Asia , establishing cancer centres of excellence , establishing flagship medical tourism , hospitals , and developing Malaysia as an aged care destination .
Mohd Daud hoped to attract foreign investors to explore opportunities in Malaysia to develop more Muslim family offerings . – Xtra