Opportunities for growth

Global initiatives like COP26 underline environmental urgency and governance’s role in driving industry-wide sustainability initiatives. It reflects a broader trend towards regulatory monitoring and accountability for industry environmental and social issues.

Muslim-friendly tourism can also benefit from these trends as part of the broader movement towards sustainable tourism. Integrating Environmental, Social, and Governance (ESG) principles can cater to a significant and growing market while promoting responsible and ethical travel practices.

RAM Holdings Berhad (RAM Group) CEO and Executive Director Chris W.K. Lee noted a growing interest in ESG principles to enhance sustainability within the tourism sector.

“One notable shift in the environmental domain is sustainable resource management. Businesses, especially hotels, can leverage green financing and incentives to invest in eco-friendly initiatives.”

According to Lee, financial institutions in Malaysia offer lower loan rates to companies that fulfil their ESG responsibilities.

NEW POLICIES WITHIN HOTEL INDUSTRY

Lee also touched on the changing policies regarding sustainability within the hotel industry, notably among large international hotel chains. These changes involve hotel services like daily bedsheet and towel changes, which will only be available upon request, often for an additional fee.

With a fee imposed, guests are more inclined to reuse, which prompts them to be more ecologically responsible. Additionally, these changes can reduce the water and energy required for laundry, ultimately reducing operational costs.

“It’s a vicious cycle, and everyone has to work together to make sure that the industry balances its comfort level as well as the sustainable level itself,” Lee remarked.

OPPORTUNITIES IN MUSLIM-FRIENDLY TOURISM

“What I’m seeing positively is that we are making more of our airports international,” observed Lee.

More Malaysian airports are becoming international, making direct and charter flights to various destinations possible.

Improving flight connectivity and destination accessibility presents significant growth opportunities for the Muslim-friendly tourism sector. Given the remarkable success in attracting tourists from specific East Asian markets to East Malaysia, this initiative is essential.

When travelling to Malaysia, tourists may be inconvenienced by taking additional domestic flights to reach other regions. Addressing these inconveniences will reinforce Malaysia’s commitment to being a Muslim-friendly destination and generate higher tourism revenue.

Furthermore, there is great potential in the Muslim-friendly tourism market by continuing to ensure safety and Muslim-friendly accommodations. Lee stated that practically all hotel rooms in Malaysia are Muslim-friendly and equipped with the necessary amenities.

“To further solidify Malaysia’s reputation as a top choice for Muslim-friendly travel, we need to have more data regarding the kind of tourists coming here to Malaysia,” he added.

This data can help the industry determine whether tourists travel independently or through organised tour packages. It can also help adapt services to meet guests’ needs.

MULTICULTURAL DESTINATION

As a predominantly Muslim country, Malaysia has a well-developed halal food sector. Most food available is halal-certified, encompassing a diverse range of options, from traditional Malaysian cuisine to international cuisines like French, Italian, Chinese, and Indonesian.

The culinary diversity of Malaysia’s halal offerings contributes to its appeal as a Muslim-friendly destination. By showcasing this, Malaysia can position itself as a leading choice for tourists seeking high-quality halal cuisine.

Lee did, however, emphasise that Muslim-friendly tourism should not be viewed simplistically, particularly when promoting Malaysia.

Malaysia has been marketing itself as a Muslim-friendly destination by targeting countries with large Muslim populations. This approach centred mainly on providing basic religious accommodations like halal food and prayer facilities.

While both are important in Muslim-friendly tourism, the broader range of interests and experiences that tourists, in general, might seek needs to be considered.

Hence, Lee stressed the importance of creativity in designing travel packages. Travel agents and their partners can also include offering premium services. The idea is to move beyond just promoting Malaysia as a food destination and provide a broader and richer experience.

“Malaysia, as I mentioned, is strong in halal food, but there also have to be other attractions,” said Lee.

RAM Group specialises in credit ratings across various industries. Since 2016, RAM Group has expanded its services to include sustainability services, focusing on helping industries adopt more sustainable practices.

–RnR