With the growing demand for halal tourism in the Middle East and North Africa, Gulf hospitality operators are looking to increase their share of the market. However, to succeed, they need to adapt to the changing needs of younger generations of Muslim travelers.
According to experts, the key to success lies in diversifying and digitizing offerings to cater to the preferences of Gen Z and millennial travelers. This includes providing halal-friendly accommodations, attractions, and activities that are culturally relevant to the destination.
Key Trends in Halal Tourism
- Eco, Ethical, and All-Female Tourism: Panelists discussed the growing popularity of eco-friendly, ethical, and all-female tourism initiatives, which are gaining traction among Muslim travelers.
- Experiential and Gastro Tourism: Experiential and gastro tourism are also on the rise, offering travelers unique experiences and culinary delights.
- Digitalization and Technology: The adoption of digital technology is becoming increasingly important in the halal tourism sector, with industry-wide investment in travel technology standing at approximately USD 40 million.
| Destination | Investment | Year |
| Orange County, USA | USD 1 million | 2018 |
| Cape Town, South Africa | USD 2 million | 2017 | Japan | USD 5 million | 2019 |
Success Stories from Non-Muslim Destinations
“Gen Z and millennial travelers are setting the trends in halal tourism. The biggest challenge for us involves the resort side of the market – providing the privacy and facilities that Muslim guests need while delivering the entertainment they are looking for.” – Chris Nader, Vice President, Shaza Hotels
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Wego is collaborating with tourism boards to educate people about the opportunities available to Muslim travelers.
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Shaza Hotels is developing culturally relevant experiences for Muslim guests.
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Tripfez is meeting demand from Muslim travelers through online services.
Diversifying and Digitizing Offerings
Experts emphasize the importance of diversifying and digitizing offerings to cater to the preferences of Gen Z and millennial travelers. This includes providing halal-friendly accommodations, attractions, and activities that are culturally relevant to the destination.
For instance, Wego is using social media to educate people about the opportunities available to Muslim travelers, while Shaza Hotels is developing culturally relevant experiences for Muslim guests.
Chris Nader, Vice President, Shaza Hotels, highlights the importance of creating a mix of privacy and facilities for Muslim guests while delivering entertainment. He notes that Muslim travelers don’t necessarily need to see halal branding but they do need to know that halal services are available.
The Impact of Digitalization on Halal Tourism
Industry-wide investment in halal tourism-related travel technology currently stands at approximately USD 40 million. Panelists agree that this figure is likely to grow further in the future, as younger Muslim travelers continue to drive innovation in online services.
Faeez Fadhlillah, CEO, Tripfez, notes that online travel agencies are interested in meeting demand from Muslim travelers and companies are doing everything they can to capture this market.
The Future of Halal Tourism
The GDP impact of Muslim travel in the Middle East is expected to hit USD 36 billion by 2020, with the halal tourism segment creating 1.2 million regional direct and indirect jobs by next year. As the market continues to grow, Gulf hospitality operators need to adapt to the changing needs of younger generations of Muslim travelers.
Experts emphasize the importance of diversifying and digitizing offerings to cater to the preferences of Gen Z and millennial travelers.
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