Exploring the $100b Plus Muslim Travel Market

Michael Wolf’s book, One Thousand Roads to Mecca: Ten Centuries of Travellers Writing about the Muslim Pilgrimage, captures the profound drive within Muslims to undertake travel, rooted in the spiritual quest of Hajj, one of the five pillars of Islam. This profound journey has been pursued by renowned explorers like Ibn Battuta, Ibn Jubair, and Malcolm X, illustrating the deep-seated cultural and religious motivations behind Muslim travel.

However, the $100 billion-plus Muslim travel market extends far beyond Hajj and Umrah, encompassing a rapidly growing leisure sector. Factors such as rising per capita income, demographic shifts, and the decreasing cost of travel are fueling this expansion. The Muslim travel market presents a significant growth opportunity, akin to the BRICS economies, waiting to be tapped by various industries.

Fazal Bahardeen, Founder and CEO of Crescentrating and HalalTrip, points out that most Muslim travelers are not solely seeking religious experiences but are interested in enjoying cultural, shopping, sightseeing, and dining experiences while adhering to their faith. This demographic seeks destinations that respect their religious practices without compromising on leisure and enjoyment.

Following the Global Islamic Economic Summit (GIES) in Dubai in November 2013, the Muslim travel market has increasingly been recognized as a valuable growth asset, attracting attention from both Muslim and non-Muslim countries eager to tap into the $137 billion market. Countries like Japan are proactively accommodating this market by integrating halal food options and prayer facilities to attract Muslim travelers. For example, the Japan Halal Summit 2014, held from August 4-6, featured sessions and workshops dedicated to enhancing Halal Travel between Japan and Indonesia.

Crescentrating, based in Singapore, has been at the forefront of evaluating and rating the Muslim travel market since 2009. Key observations from their research include:

• Demographic Growth: By 2020, Muslims are projected to comprise about 25% of the global population.
• Travel Expenditure: Muslim travelers are expected to spend $140 billion in 2014, with expenditure projected to grow to $192 billion by 2020, representing 13.4% of global tourism spending.
• Youthful Demographic: 50% of Muslims are under 25 years old.
• Family-Oriented Travel: 53% of Muslim travelers journey with family.
• Market Growth: The annual growth rate of Muslim tourist expenditure is expected to be 4.8% from 2012 to 2020, surpassing the global average growth rate of 3.8%.

Significant Muslim tourist expenditure comes from 15 key markets, with GCC countries contributing 37%, Southeast Asia 10%, Turkey/Iran 16%, and Western Europe 7%. Essential requirements for Muslim travelers include halal food services and prayer facilities, with additional preferences such as water-friendly washrooms and Ramadan services enhancing their travel experience.

Dubai exemplifies how cities are adapting to attract Muslim tourists, with an array of halal-friendly hotels, Islamic banks, and Muslim-friendly shopping options. This adaptation is part of a broader trend where destinations and service providers are beginning to address Muslim travel needs more inclusively.

The labeling of Muslim travel has evolved. While terms like “Shariah travel” and “Islamic travel” have been used, the industry now often refers to this segment as “Muslim-friendly travel,” reflecting a broader, more inclusive approach. The aim is to ensure that travel experiences cater to Muslim needs while being accessible and welcoming to a diverse audience.

In conclusion, the Muslim travel market, initially driven by religious pilgrimages, has burgeoned into a significant sector of family and leisure travel. As this market continues to expand, stakeholders from various sectors—hotels, airlines, restaurants, and retail—who understand and cater to Muslim travel preferences will find substantial growth opportunities. Embracing the diverse needs of Muslim travelers can unlock new revenue streams and foster greater inclusivity in the global tourism industry.

If you’re not willing to embrace and accommodate the unique needs of Muslim travelers, it might be best to stay home. But for those who do, the potential for growth and expanded revenue is enormous.