‘Halal’ Travel’s Long Term Viability

World Halal Tourism Summit 2015, Abu Dhabi © DinarStandard 2005-2015World Halal Tourism Summit 2015, Abu Dhabi © DinarStandard 2005-2015

Presented at:Presented by:

‘Halal’ travel’s long term viabilityIs Halal travel just a fad or is it here to stay?

Disclaimer: Please note that the findings, conclusions and recommendations that DinarStandard has delivered are based

on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a

position to guarantee. Information shared in this presentation is intended to provide general information only and, as such,

should not be considered as legal or professional advice or a substitute for advice covering any specific situation.

DinarStandard specifically disclaim all liability arising out of any reliance placed on this material. DinarStandard make no

representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability or suitability of

this material for your purposes.

World Halal Tourism Summit 2015, Abu Dhabi © DinarStandard 2005-2015

$142Billion

2014

$233 Billion2020

2

Currently: Part of a major global tourism segmentFast growing and representing 11% of global travel spend

.

.

.

GLOBAL MUSLIM CONSUMER SPEND ON OUTBOUND TOURISM

Ecosystem• Travel Agents

• Online booking

• Travel media

• …

Hospitality Investments• Multi nationals:

Marriot,

Fairmont, IHG

• Regional: Shaza

Hotel, Resorts

• …

Non-OIC*Destinations• Australia

• Japan

• Germany

• …

OIC*Destinations• Turkey• Malaysia• UAE…

8.6% 2014-20 CAGR

Growth


Will any kind of ‘Halal’ rating even take hold?

How can hotels really attract investors being dry hotels?

Will ‘Halal’ needs influence most of the Muslim consumer spend?

Will this growth trajectory continue?

3

However…Is Halal travel just a fad or is it here to stay?


1 How are the opportunity drivers evolving?

2 How will the challenges impact growth?

4

Outline:

Halal Travel Market Overview

3 So is it a fad or here to stay?


Key attributes of ‘Halal’ travel

How are the opportunity drivers evolving?

OIC vs Non-OIC


8 Key ‘Halal’ travel opportunities drivers


Demographic

Islamic values-driven consumption

Economic climate

Entrepreneurship/Investments

Halal travel

market drivers

Global participation

Global Growth

needs

Ethical Consumption

Technology/ Innovation

Islamic market driversGlobal drivers


Young Population

Median Age 30 by 2030 compared to 44 in North

America

7

Demographic drivers remain strong


Demographic


Economic climate

Entrepreneurship

Islamic market drivers

Source: Pew Research Center’s Forum on Religion & Public Life

2.2 billion

by 2030 (26.4%)

2x population

growth compared to ROW


Religious affinity high but future not clear….


Demographic


Economic climate

Entrepreneurship


Source: 2012 Pew Research Center’s Forum on

Religion & Public Life

30% in

Europe; 56% in USA

Growth in Halal economy: Modest clothing, Islamic finance, Halal food…and travel shows current

adoption… BUT future uncertain not clear…

87%Muslims consider

religion ‘very important’

World Halal Tourism Summit 2015, Abu Dhabi © DinarStandard 2005-2015World Halal Tourism Summit 2015, Abu Dhabi © DinarStandard 2005-2015 9

Tourism gets increased economic focus….


Demographic


Economicclimate

Entrepreneurship


Increase focus on tourism to

boost diversification

Falling Oil

prices

$6.7 trillion

OIC (Organisation of Islamic Cooperation) 2013 GDP (current) 5.4% growth 2015-19

compared to 3.6% global


Shaza hotel

10

Entrepreneurship and investments build momentum


Demographic


Economic climate

Entrepreneurship/Investments


Serendipidity

Halaltrip.comHalalbooking.com


Muslim-friendly Travel Issues & Opportunities



Global Growth

needs

Ethical Consumption


Global drivers





Global Growth

needs

Ethical Consumption


Global driversThe Sharing Economy





Global Growth

needs

Ethical Consumption


Global driversImmersion/Experiential

& Responsible Travel




14

Outline:




Challenges could limit growth of Halal travel opportunity

How will the challenges impact growth?

Will Halal specific travel interests continue to grow?

Accommodating both Halal and non-

Halal

Raising Financing

Standards

Alienating non-Muslim customers

Political Instability

Dry-Hotel limitations




16

Outline:




So first, here’s our scorecard on Halal travel market future

So is it a fad or here to stay?

Global drivers

Global participation +ve

Global Growth needs Strong +ve

Ethical Consumption neutral


Strong +ve


Demographic Strong +ve

Islamic values consumption

+ve

Economic climate neutral

Entrepreneurship/ Investments

+ve

Challenges

Halal specific travel interests

neutral

Accommodating both Halal and non-Halal

neutral

Raising Financing -ve

Standards neutral

Alienating non-Muslim customers

neutral

Political Instability neutral

Dry-Hotel limitations neutral

FUTURE IMPACT SCORECARD


Our 5-7 year view is positive on ‘Halal’ travel proposition


+ve5- 7 year view*


OIC(Significant Muslim majority/strong affinity)

OIC (Sizeable Non-Muslim Minority/less affinity)

Non-OIC

Saudi Arabia/ Pakistan Turkey/ Indonesia USA/France/ Australia

AIRLINES • In-flight faith based entertainment content;

• on-plane prayer space • Halal food options; Ramadan

HOTELS/RESORTS

• Abundance of Muslim-friendly beach resorts

• More properties focusing on mid-market & luxury travelers

• Global investor interest• Destinations and hotels

openly marketing to Muslims

• More defined Halal standards for travel

DESTINATIONS • Destinations targeting the mid-market & luxury segments

• Heritage travel common19

What could Halal travel look like in the future



E: [email protected]

W: www.dinarstandard.com

G R O W T H S T R AT E G Y

R E S E A R C H & A D V I S O R Y

Halal/

Ethical

Lifestyle

Islamic

/Ethical

Finance

OIC

Economies

80 Broad Street, 5th Floor,

New York City, NY 10004, USA

Rafi-Uddin Shikoh, CEO/MD

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Date post:	11-Apr-2017
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