Global / Regional Trends and Policies in Promoting MFT Products and Services Presented by: 4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. DinarStandard 2005-2015 2005-2016 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 2005-2015 2
Global / Regional Trends and Policies in Promoting MFT Products and Services Outline: 1 Current Momentum & Drivers 2 Profile of MFT Products & Services 3 Key Challenges & Opportunities 4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. DinarStandard 2005-2015 2005-2016 3
Current Momentum & Drivers MFT part of a global Muslim lifestyle economy trend GLOBAL MUSLIM LIFESTYLE ECONOMY 4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. DinarStandard 2005-2016 4
Muslim-Friendly Travel Key attributes OIC vs Non-OIC 4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. DinarStandard 2005-2016 5
Current Momentum & Drivers Fast growing and representing 11% of global travel spend GLOBAL MUSLIM CONSUMER SPEND ON OUTBOUND TOURISM $142 Billion 2014 8.6% 2014-20 CAGR Growth $233 Billion 2020. OIC* Destinations Turkey Malaysia UAE. Non-OIC* Destinations Australia Japan Germany. Hospitality Investments Multi nationals: Marriot, Fairmont, IHG Regional: Shaza Hotel, Resorts Ecosystem Travel Agents Online booking Travel media 4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. DinarStandard 2005-2016 6
How are the opportunity drivers evolving? 8 Key Halal travel opportunities drivers Global drivers Islamic market drivers Global participation Demographic Global Growth needs Ethical Consumption Halal travel market drivers Islamic valuesdriven consumption Economic climate Technology/ Innovation Entrepreneurship/ Investments 4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. DinarStandard 2005-2016 2005-2015 7
How are the opportunity drivers evolving? Demographic drivers remain strong Islamic market drivers Demographic Islamic valuesdriven consumption Economic climate Entrepreneurship 2.2 billion by 2030 (26.4%) Young Population Median Age 30 by 2030 compared to 44 in North America 2x population growth compared to ROW Source: Pew Research Center s Forum on Religion & Public Life 4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. DinarStandard 2005-2016 2005-2015 8
How are the opportunity drivers evolving? Religious affinity high but future not clear. Islamic market drivers Demographic Islamic valuesdriven consumption Economic climate Entrepreneurship 87% Muslims consider religion very important 30% in Europe; 56% in USA Source: 2012 Pew Research Center s Forum on Religion & Public Life Growth in Halal economy: Modest clothing, Islamic finance, Halal food and travel shows current adoption BUT future uncertain not clear 4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. DinarStandard 2005-2016 2005-2015 9
How are the opportunity drivers evolving? Tourism gets increased economic focus. Islamic market drivers Demographic Islamic valuesdriven consumption $6.7 trillion OIC (Organisation of Islamic Cooperation) 2013 GDP (current) 5.4% growth 2015-19 compared to 3.6% global Economic climate Entrepreneurship Falling Oil prices Increase focus on tourism to boost diversification 4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. DinarStandard 2005-2016 2005-2015 10
How are the opportunity drivers evolving? Entrepreneurship and investments build momentum Islamic market drivers Demographic Islamic valuesdriven consumption Economic climate Shaza hotel Halalbooking. com Serendipidity Halaltrip.com Entrepreneurship/ Investments 4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. DinarStandard 2005-2016 2005-2015 11
How are the opportunity drivers evolving? Muslim-friendly Travel Issues & Opportunities Global participation Global Growth needs Global drivers Ethical Consumption Technology/ Innovation 4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. DinarStandard 2005-2016 2005-2015 12
How are the opportunity drivers evolving? Muslim-friendly Travel Issues & Opportunities The Sharing Economy Global drivers Global participation Global Growth needs Ethical Consumption Technology/ Innovation 4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. DinarStandard 2005-2015 2005-2016 13
How are the opportunity drivers evolving? Muslim-friendly Travel Issues & Opportunities Immersion/Experiential & Responsible Travel Global participation Global drivers Global Growth needs Ethical Consumption Technology/ Innovation 4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. DinarStandard 2005-2015 2005-2016 14
Global / Regional Trends and Policies in Promoting MFT Products and Services Outline: 1 Current market momentum & drivers 2 Profile of MFT Product/Services & Trends 3 Key Trends, Challenges & Opportunities 4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. DinarStandard 2005-2016 2005-2015 15
Profile of MFT Product/Services & Trends Al Jawhara Hotels Marketing to Muslims and non-muslims 4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. DinarStandard 2005-2016 16
Profile of MFT Product/Services & Trends Holiday Bosnia: Immersion Trips & CSR 4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. DinarStandard 2005-2016 2005-2015
Profile of MFT Product/Services & Trends MasterCard Shari-Compliant Card Holders Tourism benefits MasterCard Halal Benefits Program for Indonesia, Malaysia 4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. DinarStandard 2005-2016 2005-2015 18
Profile of MFT Product/Services & Trends Marriott International: Multi-Cultural Marketing Webinar DinarStandard s MUSLIM KIT 4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. DinarStandard 2005-2016 2005-2015 19
Profile of MFT Product/Services & Trends Key value-chain areas addressing MFT market 4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. DinarStandard 2005-2015 2005-2016 20
Profile of MFT Product/Services & Trends Distinctions in OIC & Non-OIC environments 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; familyfriendly options; Gender options Halal food, Support guides 4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. DinarStandard 2005-2016 2005-2015 21
Profile of MFT Product/Services & Trends Current universe of MFT services/features 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 Special Tour packages No Adult Channels in rooms Prayer rooms Ramadan services 4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. DinarStandard 2005-2016 2005-2015 22
Global / Regional Trends and Policies in Promoting MFT Products and Services Outline: 1 Current market momentum & drivers 2 Profile of MFT Product/Services & Trends 3 Key Trends, Challenges & Opportunities 4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. DinarStandard 2005-2016 2005-2015 23
o Key Trends, Challenges & Opportunities Key recent developments 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 2005-2015 2005-2016 24
Key Trends, Challenges & Opportunities Key challenges facing MFT market Raising Financing Standards Political Instability Dry-Hotel limitations Accommodating both Halal and non- Halal Alienating non- Muslim customers Will Halal specific travel interests continue to grow? 4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. DinarStandard 2005-2016 2005-2015 25
Key Trends, Challenges & Opportunities Our 5-7 year view is positive on MFT travel proposition +ve 5-7 year view* 4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. DinarStandard 2005-2016 2005-2015 26
Key Trends, Challenges & Opportunities Market positioning: Authentic' yet Inclusive' GLOBAL DESTINATION APPEAL WITH FAMILY-FOCUS MUSLIM TOURISTS STRUCTURAL ALIGNMENT WITH VALUES & NEEDS CORE ISLAMIC TOURISM 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 2005-2015 27
Key Trends, Challenges & Opportunities What could Halal travel look like in the future AIRLINES HOTELS/ RESORTS OIC (Significant Muslim majority/strong affinity) OIC (Sizeable Non-Muslim Minority/less affinity) Non-OIC Saudi Arabia/ Pakistan Turkey/ Indonesia USA/France/ Australia In-flight faith based entertainment content; on-plane prayer space Abundance of Muslimfriendly beach resorts More properties focusing on mid-market & luxury travelers Global investor interest Halal food options; Ramadan 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 2005-2015 28
Islamic /Ethical Finance 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 80 Broad Street, 5th Floor, New York City, NY 10004, USA Rafi-Uddin Shikoh, CEO/MD E: rafiuddin.shikoh@dinarstandard.com W: www.dinarstandard.com OIC Economies 4th Meeting of the OIC/COMCEC Private Sector Tourism Forum. DinarStandard 2005-2016