4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 © DinarStandard 2005-2015
Presented by:
Global / Regional Trends and Policies in
Promoting MFT Products and Services
At: 4th Meeting of the OIC/COMCEC
Private Sector Tourism Forum
January 14, 2016
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 © DinarStandard 2005-2015 2
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 © DinarStandard 2005-2015
1 Current Momentum & Drivers
2 Profile of MFT Products & Services
3
Outline:
Global / Regional Trends and Policies in Promoting
MFT Products and Services
3 Key Challenges & Opportunities
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 4
MFT part of a global Muslim lifestyle economy trend
Current Momentum & Drivers
GLOBAL
MUSLIM
“LIFESTYLE”
ECONOMY
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 5
OIC vs Non-OIC
Muslim-Friendly Travel Key attributes
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016
$142 Billion
2014
$233 Billion 2020
6
.
.
.
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
Fast growing and representing 11% of global travel spend
Current Momentum & Drivers
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 © DinarStandard 2005-2015 7
8 Key ‘Halal’ travel opportunities drivers
How are the opportunity drivers evolving?
Demographic
Islamic values-driven consumption
Economic climate
Entrepreneurship/ Investments
Halal travel
market drivers
Global participation
Global Growth
needs
Ethical Consumption
Technology/ Innovation
Islamic market drivers Global drivers
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 © DinarStandard 2005-2015
Young Population
Median Age 30 by 2030 compared to 44 in North
America
8
Demographic drivers remain strong
How are the opportunity drivers evolving?
.
Demographic
Islamic values-driven consumption
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
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 © DinarStandard 2005-2015 9
Religious affinity high but future not clear….
How are the opportunity drivers evolving?
.
Demographic
Islamic values-driven consumption
Economic climate
Entrepreneurship
Islamic market drivers
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’
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 © DinarStandard 2005-2015 10
Tourism gets increased economic focus….
How are the opportunity drivers evolving?
.
Demographic
Islamic values-driven consumption
Economic climate
Entrepreneurship
Islamic market drivers
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
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 © DinarStandard 2005-2015
Shaza hotel
11
Entrepreneurship and investments build momentum
How are the opportunity drivers evolving?
.
Demographic
Islamic values-driven consumption
Economic climate
Entrepreneurship/ Investments
Islamic market drivers
Serendipidity
Halaltrip.com Halalbooking. com
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 © DinarStandard 2005-2015 12
Muslim-friendly Travel Issues & Opportunities
How are the opportunity drivers evolving?
.
Global participation
Global Growth
needs
Ethical Consumption
Technology/ Innovation
Global drivers
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 © DinarStandard 2005-2015 13
Muslim-friendly Travel Issues & Opportunities
How are the opportunity drivers evolving?
.
Global participation
Global Growth
needs
Ethical Consumption
Technology/ Innovation
Global drivers The Sharing Economy
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 © DinarStandard 2005-2015 14
Muslim-friendly Travel Issues & Opportunities
How are the opportunity drivers evolving?
.
Global participation
Global Growth
needs
Ethical Consumption
Technology/ Innovation
Global drivers Immersion/Experiential
& Responsible Travel
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 © DinarStandard 2005-2015
1 Current market momentum & drivers
2 Profile of MFT Product/Services & Trends
15
Outline:
Global / Regional Trends and Policies in Promoting
MFT Products and Services
3 Key Trends, Challenges & Opportunities
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 16
Al Jawhara Hotels – Marketing to Muslims and non-Muslims
Profile of MFT Product/Services & Trends
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 © DinarStandard 2005-2015
Holiday Bosnia: Immersion Trips & CSR
Profile of MFT Product/Services & Trends
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 © DinarStandard 2005-2015 18
MasterCard Halal Benefits Program for Indonesia, Malaysia
MasterCard Shari-Compliant Card Holders Tourism benefits
Profile of MFT Product/Services & Trends
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 © DinarStandard 2005-2015 19
DinarStandard’s
MUSLIM KIT
Webinar
Marriott International: Multi-Cultural Marketing
Profile of MFT Product/Services & Trends
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 © DinarStandard 2005-2015 20
Key value-chain areas addressing MFT market
Profile of MFT Product/Services & Trends
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 © DinarStandard 2005-2015
OIC (Significant Muslim majority/strong affinity)
OIC (Sizeable Non-Muslim Minority/less affinity)
Non-OIC
Saudi Arabia/ Pakistan
Turkey/ Malaysia
USA/France/ Australia
AIRLINES • On-plane prayer space; take-off prayer; Dry…
• Halal food; Dry?; Ramadan meals…
•MOML (‘Muslim meals); Airport prayer space
HOTELS/ RESORTS
• Prayer space; No inappropriate TV; women separate srvc…
• Halal food; Dry?; Ramadan meals…
•Halal food, Support services (i.e. Mosque direction)
DESTINATIONS • Assumed all ‘Halal’; Family-friendly…
• Halal food; family-friendly options; Gender options
•Halal food, Support guides…
21
Distinctions in OIC & Non-OIC environments
Profile of MFT Product/Services & Trends
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 © DinarStandard 2005-2015 22
Current universe of MFT services/features
Profile of MFT Product/Services & Trends
AIRLINES HOTELS DESTINATIONS
Halal Food Halal Food Non-Muslim majority destinations
Inflight Audio Prayer direction & mats Islamic Heritage/ Culture destinations
Alcohol-free No Alcohol on premises Niche Services:
Take off prayer Gender based floors (Spas; Medical travel; Themed Travel)
Airport prayer space Gender based swimming options
Inflight prayer space Toilet facilities (e.g. bidet)
Ramadan Services No Adult Channels in rooms
Special Tour packages Prayer rooms
Ramadan services
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 © DinarStandard 2005-2015
1 Current market momentum & drivers
2 Profile of MFT Product/Services & Trends
23
Outline:
Global / Regional Trends and Policies in Promoting
MFT Products and Services
3 Key Trends, Challenges & Opportunities
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 © DinarStandard 2005-2015 24
Key recent developments
Key Trends, Challenges & Opportunities
o Compliance: Malaysia released a draft its Muslim-Friendly Hospitality Services
(MFHS) Standard in August 2014
Aviation Hospitality Travel agencies Digital market platforms
• Airports adding Halal certified restaurants and prayer spaces (Japan)
• Airlines started offering Halal Food on board at their flights (Thai)
• Hotels are adapting to differentiate (Aerostar Hotel in Moscow has had it’s kitchen )
• Investment activity picking up: Maldives is seeking to develop a resort build on Muslim principles
• Themed/curated travel: Serendipity tailor-made (UK) has premium travel experiences like Halal Tour of China and Hong Kong, a trip to the Seychelles or a Tanzanian Safari.
• HalalTrip.com, based in Singapore, rates hotels and resorts in terms of their Halal-friendliness since December 2013.
• HalalBooking.com provides Muslim-Friendly holidays to travelers and caters to family needs.
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 © DinarStandard 2005-2015 25
Key challenges facing MFT market
Key Trends, Challenges & Opportunities
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
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 © DinarStandard 2005-2015 26
Our 5-7 year view is positive on MFT travel proposition
Key Trends, Challenges & Opportunities
+ve
5- 7 year view*
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 © DinarStandard 2005-2015 27
Market positioning: ‘Authentic' yet ‘Inclusive'
Key Trends, Challenges & Opportunities
CORE ISLAMIC
TOURISM
MUSLIM TOURISTS –
STRUCTURAL ALIGNMENT
WITH VALUES & NEEDS
GLOBAL DESTINATION
APPEAL WITH FAMILY-FOCUS
• Hajj
• Ummrah
• Heritage
Market positioning should
be ‘authentic’ and
‘inclusive’.
Positioning consideration:
• Family-friendly
• Halal & Wholesome food
• Ramadan/ Festival
specials
• Religious Heritage
• Eco-friendly
• Explore the world in
‘knowing one another’…
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016 © DinarStandard 2005-2015 28
What could Halal travel look like in the future
Key Trends, Challenges & Opportunities
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 common
4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. © DinarStandard 2005-2016
E: [email protected] W: www.dinarstandard.com
G R O W T H S T R A T 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