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May 22, 2018,  by Allianz Partners Business Insights

Muslim travellers will spend 157 billion dollars between now and 2020

Boosted by Millennials and Saudi Arabians, the amount that Muslims spend on travelling could reach 157 billion dollars by 2020. Halal tourism is now one of the factors that industry professionals must consider. But they do not always understand the specific nature of this type of tourism, and some even offer "halal-friendly" holidays without realising it.

 

By 2020, Muslim travellers and tourists could spend up to 157 billion dollars on travel (131 billion euros). Those who spend the most are Generation X Millennials, born between 1980 and 2000. Saudi Arabians are also big-spenders, potentially spending up to 27.9 billion dollars (just over 23 billion euros) over the next three years  – a 17 % increase, reports Travel Daily News.

 

A factor that the industry should take into account

 

The halal travel market has graduated from its niche status to become an industry-shaping force, in its own right. It has become mainstream,” said Omar Ahmed, founder and CEO of  Sociable Earth, at the Global Halal Tourism Summit 2018, held on 24th April in Dubai (United Arab Emirates). During this summit, the results of recent study carried out among 35,000 Muslim travellers were revealed.

“The biggest countries and some of the fastest growing economies in the world are found in Asia and the Middle East,” analysed Faeez Fadhlillah, founder and CEO of the companies Salam Standard and Tripfez. “These regions typically have large Muslim populations which are young with prosperous middle classes.”

 

Increased purchasing power

 

“Second and third generation Muslim communities in developed economies such as Europe and North America now have far more purchasing power,” the specialist explained during the ‘Halal Tourism – How far have we come?’ seminar. “Overall, their combined growth generates increased demand for faith-based travel and tourism.”

This idea of “halal tourism” is not necessarily clear for all of the tourist industry’s stakeholders. Omar Ahmed believes that, “We also have to keep educating travellers (and destinations) about the term ‘Halal Travel’ as many are still unaware of what it actually means.” Some destinations offer “halal-friendly” conditions without even knowing it, and just need to communicate correctly in order to reach more potential guests.

 

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