The next big opportunity

The Muslim tourist market is projected to contribute at least 230 million in global international tourist arrivals with a spending of US$225 billion by 2028. This forecast has prompted many popular destinations to come up with innovative offerings to attract Muslim tourists.

The Muslim tourist market is a goldmine for Malaysian businesses across various industries. Muslim tourists currently constitute about 20% of the total tourist arrivals to Malaysia, which contributed about RM14.7 billion to the local economy in 2023.

However, there is rising competition from other destinations, particularly from neighbouring countries such as Indonesia, Singapore and Thailand, which are also aggressively promoting their Muslim-Friendly Tourism and Hospitality (MFTH) products and services.

Recognising the rising competition from regional countries and the vast potential of Muslim tourists, the Islamic Tourism Centre (ITC), an agency under the Ministry of Tourism, Arts and Culture (MOTAC), is stepping up its efforts to strengthen Malaysia’s position as a top Muslim-friendly destination.

ITC introduced the Muslim-Friendly Tourism and Hospitality Assurance and Recognition (MFAR) and Muslim-Friendly Tourist Guide (MFTG) programmes to ensure quality products and services, enhance tourist confidence, and open new market opportunities.

ITC established MFAR in 2019, which is the first government-backed recognition for businesses offering Muslim-friendly services in the following areas: Tourist Accommodation; Spa and Wellness; Travel Agencies; Medical Facilities; Transportation Hubs; Tourism Products; Shopping Malls; Theme Parks; Rest and Refresh Centres at highways; and Convention and Trade Centres.

BUILDING TOURISM STANDARDS

ITC sees the importance of Muslim-friendly tourism and hospitality standards as a way to attract Muslim travellers and enhance their experience in Malaysia.

ITC Director-General Nizran Noordin says: “Just like how Jabatan Kemajuan Islam Malaysia’s (JAKIM) halal certification has been helpful for Muslims in their decision-making when it comes to food and consumer goods such as medicine and cosmetic products, for example, MFAR aims to provide the same recognition fo tourism products and services.”

According to Nizran, the purpose of MFAR is to optimise tourists’ satisfaction and experience in Malaysia, enabling them to explore the country’s cultural, natural and other attractions.

“This is where we see our MFAR and MFTG recognition programmes playing a key role in gaining the trust and confidence of Muslim travellers,” he says.

Although it emphasises Muslim-friendly tourism, MFAR recognition does not mean that the recognised premise rejects non-Muslim patrons.

“The MFAR is simply a marketing tool to communicate that the business operator can provide value-added services or facilities that Muslims may look for such as prayer facilities, water for ablution and halal food,” Nizran says.

“Increased Muslim tourist arrivals means that there will be demand for a variety of faith-based goods and services during the vacation period.

“Muslim tourists on holiday will look for activities and recreation that do not go against their faith obligations.”

Therefore, ITC sees opportunities for businesses in Malaysia to offer Muslim-friendly and family-friendly entertainment, activities and events, as well as spa and wellness services that are gender-conscious and provide privacy to their clients.

ASSURANCE FOR MUSLIMS

Malaysia has topped the ranking for Muslim-friendly destinations in the Mastercard-CrescentRating Global Muslim Travel Index (GMTI) since it was first published in 2015. In 2023, Malaysia was named “Muslim-Friendly Destination of the Year” and “Muslim Women-Friendly Destination of the Year” at the Halal in Travel Awards 2023.

All these recognitions point to Malaysia’s continuous attraction as a Muslim-friendly travel destination, along with its good transport infrastructure, communication proficiency, ease of entry for travellers from top Muslim outbound destinations, stakeholder awareness, safety, extensive halal dining options, availability of prayer places and Muslim-friendly accommodation options.

“These recognitions give ITC further motivation to reach out to more tourism industry players and inform them of the opportunities in Muslim-friendly tourism and hospitality,” Nizran says.

For the upcoming Visit Malaysia 2026, targeted tourist arrivals and receipts are 35.6 million and RM147.1 billion respectively.

In addition, MOTAC aims to position Malaysia as an Umrah hub in Southeast Asia, East Asia and Oceania to increase Muslim tourist arrivals in Malaysia.

“It’s clear that there are many opportunities for tourism industry players and entrepreneurs to take advantage of this development and create products and services for this market,” Nizran says.

He emphasises that the growth of the Muslim tourist market may well sustain sectors such as banking, finance and insurance through offerings of payment gateways, digital wallets and travel insurance products for the Muslim tourist market.

GUIDING THE WAY TO RECOGNITION

The updated MFAR recognises Muslim-friendly tourism products based on globally accepted standards developed by Malaysia (MS2610), including the welfare of workers and the United Nations Sustainable Development Goals (UNSDGs).

MFTG, on the other hand, recognises MOTAC-licensed tourist guides who have undergone a three-day ITC training session and passed the assessment on understanding the Muslim tourist market.

To make it easier for hotels to apply for MFAR recognition, ITC has developed a rating system where businesses can attain either silver, gold or platinum MFAR recognition, depending on their level of commitment and compliance with the guidelines.

“ITC hopes industry players will adopt all these recognitions to provide greater assurance to Muslim tourists, especially as we prepare for Malaysia to be an Umrah hub for Southeast Asia, East Asia and Oceania,” Nizran says.

By the end of year 2025, ITC endeavours to recognise 350 hotels with MFAR and 150 licensed tourist guides with MFTG. This shall bode well with Malaysia’s plan to be an Umrah hub.

CONTINUOUS GLOBAL ACKNOWLEDGMENTS

The industry’s dedication in making Malaysia a safe and worry-free destination for Muslim tourists has not gone unnoticed, as the country continues to receive recognition from its peers. Some highlights include:

1. Top-ranking Muslim-Friendly Destination (OIC), Mastercard-CrescentRating’s Global Muslim Travel Index (GMTI) Report (2015-2024) (No reports released in 2020), Mastercard-CrescentRating
2. Top Destination of the Year, Halal in Travel Awards (2022-2024)
3. Top Muslim Women-Friendly Destination, Halal in Travel Awards (2023)
4. No.1 Muslim-Friendly Travel Destination, DinarStandard’s State of the Global Islamic Economy Report (2014-2015, 2017, 2019-2022)

Looking ahead, ITC remains committed to advancing training modules and recognition initiatives, empowering local businesses and entrepreneurs to tap into this sector. An endeavour that promises mutual benefits for the economy, tourists and Malaysian stakeholders. – RnR