The critical role of innovation in meeting the expanding demand for halal products and services was discussed at the recent Halal In Travel - Global Summit 2024 (HITGS 2024) in Singapore.

During the session “Fostering Innovation in the Halal Industry: Challenges and Opportunities in Developing an Ecosystem for Growth,” panellists highlighted the necessity of a robust ecosystem for industry growth, emphasising technological advancements and addressing unique sector challenges.

Tech, digitalisation and AI

Digital technology offers extensive opportunities for the Muslim-friendly tourism and hospitality sector. Nizran Noordin, director general of Islamic Tourism Centre (ITC), noted, “E-commerce and digital marketing strategies can significantly boost the visibility and accessibility of halal products and services, particularly among younger, tech-savvy consumers.”

He added that technology can also address structural inequalities and the lack of standardised quality in halal products and services. By exploring tech solutions, such as fintech and halal applications, the industry can create a more efficient and sustainable halal tourism space.

Noordin further mentioned, “The subject of AI was referenced throughout the conference, and there is potential to use AI to craft bespoke itineraries for Muslim travellers to travel with ease.”

Leveraging research and development

Research drives innovation and enhances the quality of services. One key hindrance to halal market expansion is the lack of universally-accepted standards. Citing halal certification as an example, Dino Selimovic, senior adviser to the Minister of Foreign Affairs of Bosnia and Herzegovina said this can easily be addressed by using technology that can strengthen halal certification through traceability and authenticity in the halal supply chain.

“We could also look at collaborations between various stakeholders, including government agencies and the private sector to lead research and initiatives that can expand the halal tourism marketplace.

Travellers today want immersive experiences. In Bosnia, for example, research can guide the development of tourism practices that can help with heritage preservation ensuring that tourism growth does not come at the expense of the environment.”

Supporting start-ups and entrepreneurs

Access to funding and investment is key to fuelling innovative ideas. By implementing supportive regulations and providing incentives for halal businesses, governments can stimulate growth and attract new ideas and innovation.

Noordin cited ITC’s Islamic Tourism Entrepreneurial and Leadership Seminar (ITELS) as an example. “ITELS facilitates connections between local businesses or individuals aiming to expand their presence in the Muslim-friendly and hospitality sectors and organisations that provide financial assistance or other support.”

During ITELS, banks, governmental bodies like the Malaysian Digital Economy Corporation (MDEC), and other entities are invited to present their programmes designed to help entrepreneurs implement their innovative ideas. The Ministry of Tourism, Arts and Culture Malaysia (MOTAC) also offers grants and financial assistance through its tourism marketing agency, Tourism Malaysia.

“This initiative exemplifies how funding can be made accessible to local businesses in the Halal sector,” Noordin concluded.

The 4th edition of HITGS 2024 also saw the release of the Mastercard-Crescentrating Global Muslim Travel Index (GMTI) 2024 report in which Malaysia retained its top spot as premier destination for Musim travellers.