New source markets
The halal economy which encompasses halal tourism, food, clothing, cosmetics among others, is set to grow over the next few years valued at approximately $3.2 trillion in 2012, the halal sector is forecasted to increase to $6.4 trillion by 2018. In the State of the Global Islamic Economy 2015/2016 report, the Muslim travel market is valued at $142 billion – not accounting for Hajj and Umrah.
According to the 2014-2015 report by Thomson Reuters on the State of the Global Islamic Economy the global Muslim spending on travel (outbound) has increased 7.7 per cent to reach $140 billion in 2013 (excluding Hajj and Umrah). This is 11.6 per cent of the global expenditure and is expected to reach $238 billion by 2019. Top source countries of Muslim tourists based on 2013 expenditure were: Saudi Arabia ($17.8 billion), Iran ($14.3 billion), UAE ($11.2 billion), Qatar ($ 7.8 billion), Kuwait ($7.7 billion), and Indonesia ($7.5 billion). Meanwhile, Malaysia, UAE and Singapore lead the Halal Travel Indicator that focuses on the health of the family-friendly/Halal Travel ecosystem a country has relative to its size.
Recognising the potential in the rapidly growing Muslim population, and the increasing demand for halal alternatives in various retail sectors, many countries including non-Muslim countries are already opening up their markets for Muslim capital and tourists.
During this month, we can witness the Riyadh Travel fair, which is one of the biggest trade fairs in the region with a record number of exhibitors and visitors flocking to display, demonstrate and study on the resources available. Over 55 countries participate with more than 250 exhibitors representing tourism boards with their marketing plans. The 2016 edition is expected to be the largest on record with an increase in both the number of exhibitors and expected visitor arrivals. Over 50 national and regional pavilions will have a prominent presence with the show floor space also increased by 11 per cent compared to the 2015 event. The Riyadh Travel Fair is targeted at both travel professionals and the general public looking for in-depth destination information and special deals. Visitors to the 2016 edition will interact with various tourism authorities, hotels, airlines and travel agents from around the world.