Advances in Economics, Business and Management Research, volume 193

Proceedings of the BISTIC Business Innovation Sustainability and Technology

International Conference (BISTIC 2021)

Halal Tourism, Implementation and What is Needed:

Indonesia Case

Madziatul Churiyah1*, Heri Pratikto2, Evi Susanti3 Filianti4, Lili Adi Wibowo5,
Adam Voak6

1,2
Faculty of Economics Universitas Negeri Malang Indonesia,
3
Faculty of Mathematics and Science Universitas Negeri Malang Indonesia,
4
High Tech Teacher Indonesia
5
Faculty of Economics and Business Education Universitas Pendidikan Indonesia,
6
James Cook University, Australia
*Corresponding author. Email: madziatul.churiyah.fe@um.ac.id

ABSTRACT
Halal Tourism is becoming a trend. The increasing number of Muslim tourists in the world spending hundreds
of billions of dollars in spending provides opportunities for Halal Tourism destinations. OIC and non-OIC
member countries are competing to respond to this opportunity by developing the concept of Halal Tourism.
Indonesia as the first ranked Halal Tourism destination by GMTI 2019 also prepared a strategy by making a
series of policies. As a Muslim majority country that has natural resources, ethnicity, race, history and culture,
it provides an opportunity for Indonesia to survive as the best Halal Tourism destination. However, its
implementation needs to be reviewed again in order to maintain the best service quality in accordance with
Islamic values in order to bring forth new strategic input in developing Halal Tourism. This literature study was
written by examining journals related to Halal Tourism and reports / documents from the Indonesian
government and global institutions. The aim is to contribute to the government of Indonesia and other countries
and businesses to develop and manage Halal Tourism which provides many benefits for economic and social
aspects.

Keywords: Halal Tourism, Economic, Social, Muslim

1. INTRODUCTION experience growth, in 2026 GMTI projects that around

USD 300 billion will be issued by Muslim tourists
The concept of Halal Tourism is becoming a trend from various parts of the world to shop for trips.
of discussion among many groups [1] [2]. This was Responding to this, many countries both OIC
preceded by the fact of increasing Muslim tourists (Organization of the Islamic Cooperation) and non-
visiting tourist destinations in several countries over OIC members are competing to prepare the best Halal
the past few years. PEW Research predicts that the Tourism destinations for Muslim tourists [4]. OIC
total world population is expected to increase to 9.3 members such as Malaysia, Indonesia, United Arab
billion in 2050, an increase of 35% from 2010. During Emirates, Turkey, and many more, each has prepared
the same period, the adherents of Islam are projected its strategy to become the best Halal Tourism
to increase by 73% from the amount of 1.6 billion in destination in the world. Non-OIC countries such as
2010, which is as much as 2, 8 billion. This is Thailand, Singapore, China, Australia, New Zealand
comparable in other projections in the form of and the Philippines are also trying to win the sympathy
continuing increases in the birth rates of babies of Muslim tourists.
adherents of Islam. In line with this, the 2019 Global The experts and researchers also helped enliven the
Muslim Travel Index (GMTI) projects that the number discussion on Halal Tourism. In recent years there has
of Muslim tourists in the world in 2020 will reach 160 been a lot of debate about the true meaning and concept
million tourists with total spending on spending of Halal Tourism. Until the conclusion that Halal
reaching USD 220 billion, experiencing a growth of Tourism is a concept of tourism carried out by Muslims
6% per year [3]. Nominally this will continue to for recreational purposes while looking at the creation

Copyright © 2021 The Authors. Published by Atlantis Press International B.V.

This is an open access article distributed under the CC BY-NC 4.0 license -http://creativecommons.org/licenses/by-nc/4.0/. 1
 Advances in Economics, Business and Management Research, volume 193

of Allah SWT in order to appear gratitude for the 2. LITERATURE REVIEW

pleasure and majesty that Allah SWT has created.
During the trip, it is required for Muslims to remain 2.1. Halal Tourism Concept
bound by Islamic law [5]. Ryan (2016) recommends Islam is a unique religion whose legal sources
that researchers no longer only discuss the concept of include the regulation of all aspects of Muslim life.
Halal Tourism in general, but can conduct further Islamic laws, hereinafter known as syara law, have an
studies relating to the implementation of Halal impact on the attitudes, habits and behavior of
Tourism in order to make it more realized and accepted everyday Muslims in order to always follow what
by many people [6]. Allah SWT has commanded [12] [13]. Every deed of
The latest GMTI 2019 report placed Indonesia first the Muslims is determined whether or not (halal-
as the best Halal Tourism destination in the world, haram) is based on the Qur'an and the hadith of the
followed by Malaysia in the second place [3]. Prophet Muhammad [12]. Battor & Ismail (2016)
Indonesia consistently ranks up every year. But the states that even though it means anything that is
opposite happened in conventional tourism ranking by permissible in accordance with Shariah law '[14].
WEF (World Economic Forum) with the headline "The At present, the world community especially non-
Travel & Tourism Competitiveness Report 2019" Muslims often consider halal as a term in the concept
which placed Indonesia in 40th place out of 140
of food and drink only [15]. Furthermore, Samori et al.
countries as the best tourism destination in the world
(2016) say that halal is not only synonymous with food
[7]. This ranking is under Singapore, Malaysia and
and drink but also various types of products and
Thailand. Certainly this is very proud of Indonesia as a
services offered to Muslims, including Halal Tourism
Muslim-majority country that has a million natural
[12] [16].When traveling, Muslims have a series of
beauty, ethnicity, race, history, and culture. This
sharia laws' which must be implemented, that is, still
literature study aims to analyze the concept of Halal
paying attention to religious norms even for tourism
Tourism and its implementation in the country of
Indonesia and reviewing the Government of purposes [5].
Indonesia's strategy in developing the concept of Halal Many experts and researchers have debated the
Tourism through reviewing journals and reports / term Halal Tourism. Some figures stated that Halal
documents from the Government of Indonesia and Tourism refers to trips made by Muslims for
global institutions. This is done to contribute to the recreational and social purposes, although there is no
government of Indonesia and other countries and spiritual motivation to do so, but still wants to hold fast
related parties to provide an understanding of the to the shariah law '[6] [17]. Whereas Boğan & Sarıışık
application of the concept of Halal Tourism and what (2019) further defines it as Islamic Tourism which is
needs to be realized in the near future. the type of tourism that arises as a result of individual
It is important to understand what the true concept preferences to travel and has the goal of getting
of Halal Tourism is, including qualified human approval from Allah SWT [12].
resources in the field of Halal Tourism [8]. If this highlights the use of the term Halal Tourism,
concept is able to be applied seriously, the economic especially in Indonesia, referring only to values and
impact will be greatly felt [9] [10] [11]. The branding [4]. Value-based Halal Tourism relates to the
unemployment rate can be reduced through job development of all things related to tourism based on
opening in the field of Halal Tourism on a large scale syara law. While branding-based Halal Tourism is
and economic growth will increase significantly. In merely taking ideas related to halal as a marketing
addition, the promotion of Indonesia as the best Halal strategy to attract Muslim tourists. Whereas Wardi,
Tourism destination will be maintained. This article Abror, & Trinanda (2018) further simplified the
will discuss what has been deemed not formulated in definition of Halal Tourism as any tourism activities
the Halal Tourism development road map in Indonesia. carried out by Muslims based on syariah law '[18].
For business people, this research will provide Their research stated that Halal Tourism is tourism that
information about what Muslims need when they is in accordance with Islamic values and is carried out
travel, thus creating opportunities for running a more by Muslims where they want to maintain Islamic
sustainable and profitable business. More broadly, this values even though they are on a tour [19]. Other
research not only has a positive impact on the researchers highlighted the things that must be
Indonesian government but other countries' prepared by producers to prepare all the needs for
governments to compete with each other and even Muslims when traveling and this concept can not only
work together to create a Halal Tourism destination be done in Muslim-majority countries, but also non-
that is able to meet the needs of every Muslim traveler Muslim countries because in this case Halal Tourism
from around the world. is interpreted as any tourism object or activity based on
syara law '[14] [1] [20] [21].

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Based on the explanation above, it can be majority country as long as it will take a tour [22]. That
concluded that Halal Tourism is a tourism concept is, although the last few years there have been issues of
based on syara law 'and can be implemented in any sentiment towards Islamic values, the world
country as long as the producers, in this case the community especially non-Muslims can understand it
government and entrepreneurs in a particular country, as an ordinary political event and not so influential on
are able to accommodate the things that Muslims need tourist services.
during their tour. . Halal Tourism can not only be
enjoyed by Muslims but also non-Muslims [8] [15].
Because the things contained in Halal Tourism are not 2.3. The Benefit of Halal Tourism for Country
inversely proportional to the basic needs of non- The tourism sector plays an important role in the
Muslim tourists. However, there will be some pace of the world economy which is one of the main
restrictions on implementing Halal Tourism for non- contributors to economic development and
Muslims. unemployment reduction [16] (El-Gohary, 2016). The
Asia Pacific region, including Indonesia, is the fastest
2.2. Halal Tourism according to Non-Muslim growing region in the world. This is measured by
Perspective increasing foreign tourist arrivals, economic activity,
investment and employment [22] (Warsito et al.,
Battor et al. (2018) conducted a study of non-
Muslim tourists (Christians and atheists) who traveled 2019). For developing countries like Malaysia and
to Malaysia and Turkey regarding their acceptance of Indonesia, the tourism sector has great potential to
become a major economic driver for countries that
the concept of Halal Tourism [15]. First, they do not
want to diversify their income streams [9] (Isa et al.,
really know the concept of Halal Tourism because for
them the concept of halal is still limited to the absence 2018).
of pork and alcohol content in food. The majority of When there was economic instability in several
them said they could accept the values that exist in the countries in 2009, the tourism sector, especially Halal
concept of Halal Tourism and consider products and Tourism, has given a breath of immediate economic
services in Halal Tourism as a rare opportunity to learn development. This is supported by tourists from the
and understand Muslim culture. In fact, most of them Middle East region who make tourist visits and spend
feel it is not a problem to do what the shariah law a lot of money in meeting the needs of travel. In
'regulates. Likewise, non-Muslims can also enjoy halal Indonesia, tourism has been predicted to be the most
profitable economic sector, so many state development
tourism products for various reasons [16]. For
plans that prioritize tourism aspects. Because it is
example, hotels that are more family-friendly, halal recognized directly by focusing on tourism, there will
food is synonymous with health and hygiene and other be many clues such as providing employment, income,
services that prioritize the norms of politeness. and production to improve the welfare of the
Islam assumes that there is no compulsion for non-
community [10] [23] (Meiliana et al., 2017: Panjaitan,
Muslims to follow what the shariah law 'rules to
Muslims. However, the usefulness seen when 2020).
implementing syariah law 'is often a bargaining power Currently, an important trend in tourism is Halal
for non-Muslims to take part in enjoying syariah law', Tourism, which also plays an important role in
economic growth in the world, including Indonesia. As
including in this case Halal Tourism [16]. The
a Muslim-majority country, Indonesia has a wealth of
uniqueness of Islamic culture when compared with natural beauty, culture, ethnicity, race and history as
other religious cultures is often also the main well as a friendly population so that it has the
attraction. Therefore, it is not a problem to project advantage to be able to continue to present the
Halal Tourism to non-Muslims as well. Service
implementation of Halal Tourism in its [23]. The
differences in certain areas need to be considered by
producers as long as they do not interfere with Muslim Asian Tourism Market in 2015 said that Halal Tourism
tourists enjoying their holidays. Battor (2017) also is very likely to have a positive impact on a country's
underlined that producers can provide understanding to economy. Through the wealth of architecture, history
non-Muslim tourists related to the concept of Halal and cultural heritage left by the past Islamic
Tourism so that they do not experience confusion that civilization in certain countries, it provides an
opportunity to open a Halal Tourism destination which
results in violating the rules on Halal Tourism [8].
is very possible for Muslim tourists to visit [6].
Projecting Halal Tourism which is not only for
Muslims but also for non-Muslims is increasingly Based on the explanation above, Halal Tourism is
benefited by research from Warsito, Maksum, & highly recognized to be able to support the economy of
Herningtyas (2019) which says that non-Muslims pay a country including Indonesia. Not only for the next
little attention to political upheaval in a Muslim- few years but this will be a long journey of the world

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of all time. GMTI 2019 has even projected that the Indonesia is serious about the Halal Tourism project
number of Muslim tourists in the world in 2020 will [28].
reach 160 million tourists with total spending on The prospects for halal tourism in Indonesia
spending reaching USD 220 billion [3], experiencing can be summarized as follows: 1) Natural tourism
growth of 6% per year. Nominally this will continue to which includes beaches, mountains, mountains,
experience growth, in 2026 GMTI projects that around waterfalls, lakes and more; 2) Cultural tourism which
USD 300 billion will be issued by Muslim tourists includes conservative Muslim traditions in Indonesia
from various parts of the world to shop for trips. or the like; 3) Educational tourism which includes
boarding schools with a variety of uniqueness each; 4)
Heritage tourism which includes building
3. METHOD characterizing Islam such as mosques and so on; and
This research is a literature study that examines 5) Historical tours that include the history of Indonesia
various scientific articles on the topic of Halal such as how nine Sunan preached Islam to the
Tourism, Halal Food and other matters related to the Indonesian homeland.
concept of Halal Tourism. In addition, studies of The world recognizes Indonesia's natural and
various official reports / documents issued by the cultural riches, even the WEF (World Economic
Indonesian government and global institutions (PEW Forum) report titled "The Travel & Tourism
Research Center, World Economic Forum, Mastercard Competitiveness Report 2019" ranks Indonesia 18th
and Cresrecent-Rating) both relate to tourism in out of 140 countries in terms of its natural and cultural
general, Halal Tourism as well as studies of the riches [7]. Further wealth of various tourism prospects
economy and religion in the world also done [24] [25]. in Indonesia is conveyed in the Halal Tourism
Development Strategy Plan document 2019-2024
namely Indonesia is the largest archipelago in the
4. RESULT AND DISCUSSION world with a total of 17,508 islands and a sea area of
4.1. Indonesia Opportunity on Halal Tourism about 3.1 million km²[27]. This has brought Indonesia
to be known as the country with the largest marine
GMTI 2019 put Indonesia in the first place as the biodiversity and biodiversity in the world. Even
best Halal Tourism destination in the world, beating according to the WTO (World Trade Organization) six
the defending champion Malaysia [3]. Previously, of the most beautiful and best coral reef ecosystems in
Indonesia, represented by the NTB Province, had the world are in Indonesia, namely Raja Ampat,
received awards in the form of the best Halal Tourism Wakatobi, Taka Bone Rate, Bunaken, Karimun Jawa,
destinations and honeymoon destinations for the best and Pulau Weh. Cultural wealth is reflected in
Muslims in the world. Through this, the central and Indonesia inhabited by more than 300 ethnic groups,
regional governments are serious in managing and and has 742 languages and dialects as well as with all
developing Halal Tourism in Indonesia, even in the the cultural expressions and customs of this tradition
Indonesian Islamic Master Plan 2019-2024 [26], Halal Indonesia is recognized worldwide as a world cultural
Tourism is one of the important aspects that will be heritage site. Another nickname for the country of
projected to have a positive impact on the growth of Indonesia is the third country biodiversity after Brazil
the Islamic economy in Indonesia. and Zaire. Indonesia is also a country that is on the ring
The Indonesian government is serious about of fire (ring of fire) is active in the world with the most
working on Halal Tourism as a promising project for mountain distribution in the world. In the historical
the interests of the country, especially economic and aspect of Indonesia, it also has a wealth such as the
social. This is also supported by the existence of the history of Admiral Cheng Ho, the exploration of Sir
2019-2024 Halal Tourism Development Strategy Plan Arthur Wallacea (operation Wallacea), the silk
issued by the Deputy for Industrial and Institutional shipping route (silk route), and the spice route (spice
Development of the Ministry of Tourism in 2019 [27]. route).
Furthermore, through the release of the Halal Tourism In Table 1 the following is illustrated as a regional
Organization Guidelines issued by the same ministry distribution, there are many Provinces that comprise
in 2019 also strengthened that the Government of various cities and regencies in Indonesia which are
prospected as future Halal Tourism concepts.

Table 1. Eight Provinces are projected to become Halal Tourism destinations in Indonesia
Main Economic Sector Islamic Economic Potential
Development Sector
Aceh  Agriculture, forestry and fisheries (29,60%)  Islamic finance
 Halal food and beverages

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 Wholesale, retail, motor vehicle reparation  Halal tourism

(16,07%)
 Government administration, defense and
compulsory social guarantees (9,56%)
East Sumatra  Agriculture, forestry and fisheries (23,55%)  Halal food and beverages
 Wholesale, retail, motor vehicle reparation  Halal tourism
(15,05%)
 Transportation and werehaousing (12,64)
West Java  Processing industry (42,29)  Modest fashion
 Wholesale, retail, motor vehicle reparation  Halal food and beverages
(15,10%)  Halal tourism
 Construction (8,26%)
East Java  Processing industry (13,12)  Halal food and beverages
 Wholesale, retail, motor vehicle reparation  Halal tourism
(18,18%)  SMEs (UMKM)
 Agriculture, forestry and fisheries (12,80%)
Yogyakarta  Processing industry (13,12)  Halal food and beverages
 Provision of accomodation, food and  Halal tourism
beverages (10,32)  Halal media and recreation
 Agriculture (10.01)  Modest fashion

West Nusa  Agriculture, forestry and fisheries (22,9%)  Halal tourism

Tenggara  Mining and excavation (19,45)  Agriculture
 Wholesale, retail, motor vehicle reparation  SMEs (UMKM)
(13,22%)

South Sulawesi  Agriculture, forestry and fisheries (22,9%)  Halal food and beverages
 Wholesale, retail, motor vehicle reparation  Halal tourism
(13,9%)  Halal cosmetics
 Processing industry (13,7)
South Kalimantan  Mining and excavation (20,75)  Halal food and beverages
 Agriculture, forestry and fisheries (14,59%)  Halal tourism
 Processing industry (14,39%)
Source: Indonesia Islamic Masterplan 2019-2024 [26]

Reflecting on all the potential that Indonesia has above, Halal Tourism in the world has not been comparable
it is not difficult for Indonesia to continue to open and with the development of institutions and infrastructure
develop Halal Tourism destinations. Included in this that are in line with the concept of Halal Tourism based
case is preparing all the needs needed by Muslim on Islamic values [4]. Lombok NTB is an area that is
tourists such as sharia hotels, sharia restaurants, sharia highly projected to become a model for Halal Tourism
transportation, sharia finance (banking) and many destinations in Indonesia. Even in 2015 the NTB
more. Although it must be admitted that there are still Provincial Government has welcomed by issuing
some obstacles to realize it all to the maximum in the special regulations relating to the development of Halal
near future. Including not a case that is difficult for Tourism. But in reality there are still many homeworks
Indonesia to participate in projecting the opening of that need to be completed in order to realize this
Halal Tourism targeting non-Muslim tourists where recognition. Furthermore, Khoiriati et al. (2018)
they want the experience of getting Islamic-nuanced pinned on Lombok as a Halal Tourism destination on
tourism services. the basis of branding, not values [4].
GMTI 2019 arranges the things needed by Muslim
4.2. Indonesia's Readiness on the Halal Tourism tourists in the concept of Halal Tourism during their
Project travel as shown in Figure 1 below:
Khoiriati et al. (2018) in his study criticized that
recognition of Lombok (NTB, Indonesia) as the best

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considered again such as opening a study program

related to the regulation of Halal Tourism in Indonesia.
Because inevitably the concept of Halal Tourism is
very broad in scope so it requires scholarship from
skilled personnel in the scope of formal education.

4.3. What Must Be Done Immediately?

Many countries are competing to prepare the best
Halal Tourism destinations in their country. Not only
OIC member countries but also Muslim minority
countries. The great potential of Muslim tourists in the
Figure 1. Needs that must be met in Halal Tourism next few years must be immediately responded to by
Source: GMTI 2019 [3] the state's readiness in providing services in
It is important for Indonesia as a Muslim-majority accordance with the needs of Muslim tourists.
country that projects large profits from the Halal Furthermore, the projecting of Halal Tourism
Tourism trend to highlight the implementation and destinations for non-Muslims also needs to be
plans that have been made so far to develop Halal considered because this provides distinct advantages
Tourism in several regions. One of the most important for the country in terms of economic and social
aspects of Halal Tourism is the creation of qualified aspects.
human resources in the matter of Halal Tourism. In the Specifically, in the following Table 2, it is
2019 Halal Tourism Implementation Guide document, explained what must be done by the Indonesian
HR issues will be addressed by conducting training or government and other countries in prospecting large
similar [28]. However, long-term goals need to be revenues through the current trend of Halal Tourism:

Table 2. Aspects That Must Be Done Immediately

Aspects Urgency
The practice of applying the concept of Fulfillment of three basic needs of Muslims when traveling, namely
Halal Tourism the need to have, good to have and nice to have. This also includes all
necessary physical and digital infrastructure.
HR supporting Halal Tourism The implementation of professional certification for workers in the
field of Halal Tourism and in the long term goal of opening study
programs related to the concept of Halal Tourism in Higher Education.
Determination of Halal Tourism area The projecting of the area has been carried out, but the most important
thing is to execute certain regions to become Halal Tourism
destinations in several fields such as nature, culture, history and
heritage. Another important thing is projecting certain areas as Halal
Tourism destinations that can be enjoyed by non-Muslims.
Halal Tourism Projection for non- Regional projection and the provision of services that can be provided
Muslim tourists to non-Muslim tourists in order to continue to enjoy the concept of
Halal Tourism.
Promotion seriously Introduction to the world both Muslims and non-Muslims relates to
Indonesia as the best Halal Tourism destination.
Sources: formulated by reserachers
The state must move quickly and carefully in executing millennial as digital native and highly educated so as
Muslim tourist requests and provide understanding to to bring up technology-based services [29].
business people to participate in the successful
implementation of Halal Tourism. The more complete 5. CONCLUSIONS
the services provided to Muslim tourists, the more
satisfaction they will have so that it impacts on repeat The Halal Tourism trend will continue in the next
visits and recommends tourist destinations to others [9] few years even throughout the ages along with the
[18]. This raises the consequences so that tourism increasing number of Muslim tourists from various
services as a whole can be adjusted to Islamic religious countries who increasingly have the awareness to
values [17]. Another important thing is to pay attention always be bound by Islamic law ', including when they
to the composition of Muslim tourists who are mostly travel. This is a very promising economic and social
opportunity for a country where Muslim tourists are

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projected to spend ever increasing spending on [7] World Economic Forum, Insight Report. (2019).
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