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UAE ranks as world's top Halal travel destination

With a well developed Shariah-friendly ecosystem, the UAE ranks as the world's top destination for halal travel, a sector that is expected to undergo rapid growth as Muslim spend on outbound travel is forecast to reach $243 billion by 2021.
The UAE is followed by Malaysia and Turkey in the global ranking system that evaluated countries based on four criteria: inbound Muslim travel, the quality of their Halal-friendly ecosystems, awareness campaigns, and the sector's contribution to employment, the 2016-17 Global Islamic Economy Report said.
According to the report, halal travel continues to broaden its reach with tremendous growth in halal beach resorts, the launch of several dedicated airlines and the launch of the Muslim answer to Airbnb, Bookhalalhomes, and TripAdvisor, Tripfez.
"While halal travel is a niche sector building momentum, the sector is expected to undergo rapid growth, with Muslim spend on outbound travel expected to reach $243 billion by 2021," said Mohammed Saleh Badri, secretary general of the International Halal Accreditation Forum (IHAF).
"The study has also proven that more and more Muslims are showing strong preference for halal destinations and travel services. Today, it is becoming more important for us to look into the industry and bridge the emerging gaps," he added.
Valued at $151 billion in 2015, the Muslim travel market is steadily expanding, marking a year-on-year growth rate of 4.9 per cent, even higher than the overall travel industry growth of three per cent, said the report developed and produced by Thomson Reuters.
The Muslim market, 72 per cent of which originated from OIC countries, is the second largest travel market next only to China ($168 billion) and ahead of the United States ($147 billion).
In the UAE, total spending on halal tourism is estimated to have risen by 4.4 per cent in 2016, according to a study conducted by the Dubai Chamber of Commerce and Industry. The report also predicted that the outbound family travel expenditure of Emirati citizens was set to rise by 3.6 per cent in 2016.
The UAE is considered both a top origin and top destination country for family tourism - an umbrella term used to refer to the body of Shariah-compliant, halal travel offerings. The UAE and Saudi Arabia are huge markets for halal travel with an estimated consumption value of $34.3 billion.
A recent Mastercard study also ranked the UAE among the most sought-after halal travel destination. In 2016, the UAE climbed one spot to rank second behind Malaysia and ahead of Turkey and Indonesia on the Global Muslim Travel Index released by MasterCard and CrescentRating, a consultancy that focuses on the halal travel market.
Badri said the UAE's upward trend presents good business opportunities for the industry. However, stakeholders should start addressing challenges to make the most of the momentum and boost tourism activities, he cautioned.
The key challenges affecting the industry are mainly rooted in relatively weak awareness campaigns, the study showed.
"We have to note that not everyone understands how halal travel services work, and what makes each component 100 per cent Halal. It is every industry stakeholder's responsibility to assure travelers that what they are availing of is absolutely halal," Badri said.
He said IHAF would be active in raising awareness on the importance of unified global halal standards to ensure that the highest quality of Halal products and services will be available to travellers and consumers alike.
"We endeavour to further improve the present halal-friendly ecosystem around the world and the UAE serves as a springboard to implement this. Once the standards are in place, we hope to bring back trust amongst consumers by making them feel confident that components of a travel package claimed to be Halal are indeed halal."
IHAF, headquartered in the UAE and backed the government, is striving to resolve these concerns with its primary objective to integrate the prevailing Halal criteria across the world into one credible, internationally accepted set of standards, he said.
- issacjohn@khaleejtimes.com