Halal tourism is witnessing an impressive growth trajectory, with the market projected to reach $410.9 billion by 2032, up from $256.5 billion in 2023. This surge reflects a growing demand for travel options tailored to the needs of Muslim tourists, prompting destinations worldwide to introduce various initiatives aimed at attracting this burgeoning segment. According to Crescent Rating, Muslim tourist arrivals were estimated at 80 million in the first half of 2024, a figure that is set to increase to 230 million by 2028. These statistics are part of a broader trend, as the global Islamic Halal economy, encompassing tourism and other sectors, is expected to hit $7.7 trillion in 2025, more than doubling from $3.2 trillion in 2015.
Halal tourism refers to travel experiences that align with Islamic principles. The term “halal” itself means “permitted” in Arabic, and in the context of tourism, it covers a broad spectrum of needs. This includes halal food, prayer facilities, cleanliness with access to water for ablution, gender-segregated accommodations, and a general environment free from activities considered forbidden in Islam, such as alcohol consumption or gambling. However, it’s essential to note that Halal tourism is not solely for religious purposes; it also caters to the leisure and cultural interests of Muslim travelers, ensuring that they can experience the world without compromising their religious values.
The growing interest in halal tourism is a response to the unique needs of Muslim travelers who seek to explore different cultures and destinations while maintaining their faith-based requirements. As Fazal Bahardeen, CEO of Crescent Rating, points out, Muslim leisure travelers have similar motivations as any other tourist, but their experience needs to be compatible with their religious practices. In fact, the Muslim travel market is expected to reach a staggering $300 billion by 2026, presenting a significant opportunity for destinations and operators to engage this rapidly expanding audience.
The appeal of halal tourism is spreading across the globe. Initially, Muslim travelers would primarily visit religious sites or return to their home countries. However, as the Muslim middle class has grown, particularly among younger generations, there is now an increasing demand for travel that caters to their specific needs. This shift has not gone unnoticed, with popular destinations like Malaysia, Thailand, Singapore, and the United Kingdom enhancing their offerings to accommodate Muslim travelers. In fact, in 2024, Thailand launched a halal industry action plan to promote local products and improve industry standards, aiming to capitalize on the potential of the halal tourism sector to boost its tourism-dependent economy.
Similarly, other regions are following suit. In November 2024, the Hong Kong Tourism Board announced a series of initiatives aimed at developing Muslim-friendly tourism facilities. This includes encouraging restaurants, hotels, and other establishments to obtain halal certification, ensuring that Muslim visitors can enjoy their stay with peace of mind. Taiwan has consistently ranked highly for Muslim-friendly tourism, while the Philippines continues to develop as an emerging halal destination. The recognition of halal tourism’s potential by various countries is a clear indicator of its expanding global presence.
The rise of halal tourism is also fueled by demographic shifts, particularly the growing Muslim population, with approximately 70% of the global Muslim community under the age of 40. This age group is particularly travel-prone, with significant disposable income and a desire to explore new destinations. By 2034, experts predict that the Muslim population will experience notable increases in the middle-aged demographic, further driving demand for travel services that cater to their needs.
The evolution of halal tourism is not just about catering to a niche market anymore; it is now a significant part of the broader tourism industry. As Bahardeen reflects, the industry has transformed dramatically over the last 16 years. From a relatively obscure concept, it has grown into a widely recognized segment with dedicated resources and growing investments. The increasing awareness, innovation, and investment in this sector point to a future where halal tourism will be an integral part of the global travel landscape.
