7

ISLAMIC TOURISM

The practices of a Shariah-Compliant Hotel in De Palma Hotel, Malaysia

Sharifah Zannierah Syed Marzuki, C. Michael Hall, and Paul W. Ballantine

Introduction

Malaysia has retained its primary position among other members of the Organisation of Islamic Cooperation (OIC) as the most halal/Muslim-friendly holiday destination for five consecutive years (Crescent Rating 2016). It took 130 destinations worldwide to generate the destination benchmark index in the Muslim travel market. The notion of Islamic tourism or halal tourism that emerged in recent years showed a phenomenal situation in the tourism industry and it has the potential to grow still further. It is expected that 35 million Muslim travellers from the Middle East will arrive in Malaysia in 2020 (Ariffin & Hasim 2009). Under the Crescent Rating (2016) Index, Malaysia has an index score of 81.9 followed by the United Arab Emirates at 74.7, and Turkey at 73.9.

Looking from a wider perspective, the study by Crescent Rating (2016) also revealed that there were an estimated 117 million Muslim international tourists globally and that figure would grow to 168 million visitors by 2020, which represents 11 per cent of the global market with a market value exceeding US$200 billion. Malaysia’s tourism industry should be more proactive in tapping this niche market just as Japan and the Philippines have taken various initiatives to diversify their visitor arrivals. It would therefore be appropriate to understand the needs and preferences of Muslim travellers in order to gain advantage from this fast-growing opportunity.

The basis of Islamic tourism is that the industry must comply with what is stated in the Quran and Hadith. Muslim travellers are required to fulfil their religious duties, which include prayers five times a day and halal food in order to become a good Muslim. As such, hoteliers are keeping to these needs by having Shariah-compliant offerings. It is reported that there are 344 hotels in Malaysia that are halal certified although this refers to the certification of halal food section (Jabatan Kemajuan Islam Malaysia (JAKIM) 2017). However, there is no universal standard for the Shariah-Compliant Hotel (SCH) concept although there has been a growing focus on this Islamic service with respect to the hospitality industry. This is due to the fact that some hotels claim that they are SCH but some operations do not comply with the Shariah law, e.g. where Muslim female staff fail to fulfil an Islamic way of dress, and/or the facilities and amenities in the hotel room are still inadequate in meeting the demands of Muslim tourists.

Islamic tourism

Islamic tourism is a new trend as the number of Muslim travellers keeps growing at an increasing rate (Battour, Ismail & Battor 2010a, 2010b). This is in line with the overall growth in the number of Muslim followers (Zamani-Farahani & Henderson 2010). This is also an opportunity for Malaysia to promote Islamic tourism to this lucrative market as Islam emphasises that travel can improve health and well-being, reduce stress, and enable Muslims to serve God better (see also Chapters 1 and 2, this volume).

Apart from promoting the goodness of travelling, fulfilling Islamic requirements must also be taken into consideration as far as SCH is concerned. Islamic tourism is defined by three main goals that pertain to economic, cultural, and religious aspects (Neveu 2010). The first goal on economics is to further expand the development of tourism by focusing not only on the Muslim but also on the non-Muslim travellers. Looking at the cultural point of view, Islamic tourism is a means to promoting Islamic heritage and the norms of Islamic practices. As Zamani-Farahani and Henderson (2010: 79) suggest:

Islam is the foundation of public and private life in Muslim nations and its influence extends to politics, especially in theocracies where the state and religion are indivisible. In these countries, society is ordered in conformity with the principles of the Islamic way, which directly and indirectly affects recreation and travel. Religion thus influences individual host and guest experiences, but also the operation of the industry, tourism policy making and destination development.

Travelling is mentioned in many verses in the Quran that symbolically emphasise that a good Muslim must travel and experience new things in terms of spiritual and social goals as well as the linkages on the purpose of life, environment, people, Islamic religion, and good deeds to be brought to the Hereafter. The lesson gathered from travelling is to prepare the Muslim followers to be ready on the stages in life and after life without ignoring the rules provided in the Quran and Hadiths.

Ye shall surely travel from stage to stage.

(Al-Inshiqaq [The Sundering] verse 19)

Travel through the earth and see what was the end of those who rejected Truth.

(Al-An’Am [The Cattle] verse 11)

Syed Marzuki (2012) defined Islamic tourism as primarily including tourism undertaken mainly by Muslims although it can extend to non-believers motivated to travel by Islam in the Muslim world. In contrast, Zailani, Omar and Kopong (2011) believed that halal tourism is an offering of tour packages and destinations that are particularly designed to cater for Muslim considerations and address Muslim needs. Importantly they note that it is not just applied to food but also includes any Shariah-compliant products ranging from bank dealings and finance to cosmetics and vaccines.

The value of the fast-growing Muslim tourism market is estimated at USD$500 billion annually and the halal market is worth USD$2.1 trillion (Zailani et al. 2011). Not surprisingly, the tourism sector has therefore been identified as one of the key drivers of economic activity in Malaysia (Sahida, Ab Rahman, Awang & Che Man 2011) and a key source of foreign exchange (Md Salleh, Abdul Hamid, Hashim & Omain 2014). The growth of Islamic tourism therefore opens an opportunity to the hospitality industry players to explore and take advantage of this lucrative market which, as well as requiring accommodation, will also increase demand for food and shopping.

Concept and operation of Shariah-Compliant Hotel (SCH)

Previous researchers have defined SCH as a hotel or other lodging that provides services in accordance with Shariah principles (Yusuf 2009; Sahida et al. 2011; Md Salleh et al. 2014; Ab. Halim, Syed Marzuki, Ab. Ghani Hilmi, Ali & Ishak 2016). Md Salleh et al. (2014) identified several factors that have contributed to the growth of SCH:

  1. Proactiveness in developing the tourism industry among Organisation of Islamic Conference (OIC) countries including supporting travelling between its members;
  2. Travellers from the Middle East have high spending power and they are most likely to stay longer when travelling;
  3. Stringent security and difficulty in getting visas to travel to many Western countries have given the opportunity to other countries to gain a competitive advantage in the tourism industry with respect to offering SCH;
  4. The growing awareness of Muslim travellers worldwide to search for hotel services that fulfill their religious needs;
  5. Investors are increasingly interested in investing in Islamic tourism and SCH given the growth of the market; and
  6. The emergence of global halal business valued at USD$500 billion annually and a halal market that is worth USD$2.1 trillion indicates the economic potential for SCH.

Nevertheless, as noted above, as well as various other chapters in this volume (e.g. see Chapter 2), there is no universal standard for a SCH but several attributes have been identified that include: the offering of halal food, separate facilities for women and men like gymnasium and swimming pool, the Islamic room amenities such as prayer mat, prayer clothing for both genders, a copy of Quran, qiblat direction (the direction that should be faced when a Muslim prays during prayer as it is fixed as the direction of the Kaaba in Mecca), Muslim staff working in a SCH, no night club, conservative television channels, and art that does not depict human form (Rosenberg & Choufany 2009; Henderson 2010; Razzaq, Hall & Prayag 2016). Saad, Ali and Abdel-Ati (2014) reiterated that the basis of SCH is to have the design, operations, and financial system that conform to the Shariah rules and principles. However, the concept of SCH about which they wrote in the Egyptian context is not one supported by formal accreditation procedures and is perhaps closer to being a set of guidelines for advertising and promotion.

SCH potentially faces a major challenge with respect to the absence of alcoholic drinks being offered on its premises (Saad et al. 2014). Any hotels that do not provide alcohol are considered as a ‘dry’ hotel and this may lead to a decrease of guests and number of stays. Henderson (2010), for example, indicated that SCH is taking up the challenge of not offering alcohol to guests although this action will reduce the number of patrons. Nevertheless, SCH may offer other forms of competitive advantage that can balance out any loss of revenue from no alcohol sales. However, as noted above, there is a lack of standards, specifications, and requirements for SCH that can distinguish them from other types of hotels (Rosenberg & Choufany 2009; Henderson 2010) and which may more clearly position the concept in the market.

De Palma—rebranding into Shariah-Compliant Hotel

This case study focuses on the concept of a SCH being operated by De Palma Hotel in Ampang, Selangor, which is a trendsetter of this Islamic concept in the midst of hundreds of conventional hotels in Malaysia. An in-depth interview with the management and observation of the operations were conducted. Semi-structured questions were asked to gather more findings on the uniqueness of the operations and facilities.

The transformation and rebranding to a SCH was launched in 2008 after receiving the support and guidance from a specially set up panel of Shariah Islamic Compliance and the consent of Selangor Islamic Department/Jabatan Agama Islam Selangor (JAIS). The concept was very encouraging and in less than a year people came to accept its existence, with it becoming the catalyst for the philosophy of visitation, worship, missionary values, and comradeship. From its introduction the De Palma Hotel was designed to create a clean and morally healthy image that is conducive to undertaking Islamic worship and facilitating a clear conscience for guests and visitors alike from the hotel experience.

De Palma is the first SCH chain in Asia, and has a range of halal hospitality facilities that can be found in the following locations in Malaysia:

The De Palma Group of Hotels is one of the few in Malaysia that has received halal certification from the Department of Islamic Development Malaysia/Jabatan Kemajuan Islam Malaysia (JAKIM). Halal certification plays an increasingly significant role in the Malaysian hospitality industry (Syed Marzuki, Hall & Ballantine 2012a, 2012b, 2013). Within this context, De Palma provides facilities for Muslim guests to worship while travelling as well as other Muslim-friendly services. The sixth floor of the hotel in Ampang has been designated as an Islamic floor. It contains 29 rooms with special Islamic features such as an ablution tap, prayer mat, prayer clothing, a copy of Quran and hadith. The call of prayer can also be heard in the corridors. Islamic amenities provided by De Palma Hotel include:

Apart from the amenities, this Islamic-friendly hotel also provides Islamic snacks such as dates and raisins in the hotel room. Arabic writings and Islamic replicas, such as swords, are also visible in corridors and rooms. A piece of sarong (a long piece of cloth) is available in shower rooms to comply with the Shariah rules while bathing. Referring to human resources, female Muslim staff are required to adhere to the Shariah dress code and a prayer is recited to welcome the hotel guests and before they leave. This prayer is for the safe journey of the hotel patrons.

De Palma has faced several challenges in launching their SCH products. Firstly, the public, hotel owners, and hotel guests have been very complacent with respect to changes to conventional hospitality concepts and are not used to religious-based hospitality products although most of the hotel guests are Muslims. Secondly, there is a review of thinking of what is required in providing Shariah-compliant services. Thirdly, this concept is considered to be costly from a business point of view. Finally, there was no precedent in this kind of concept and not taking a risk is regarded by many as a better option. However, the introduction of this SCH has benefited several parties including entrepreneurs, Islamic-based organisations and agencies, and the government, in various ways.

Conclusion

SCH is gaining acceptance among Muslim travellers in particular and it may be an appropriate time for the hospitality industry to adopt this business model. Providing an Islamic concept hotel is appropriate for attracting the Islamic tourism market. Non-Muslim tourists, and especially family markets, may also be attracted to use the facilities offered by hotels that claim to follow the Shariah concept although certain food and beverages are prohibited for consumption on the premises.

The De Palma Hotel, Ampang, has positioned itself as a pioneer in implementing the Shariah concept in its facilities and operations although the provision of the extra Islamic-based facilities has contributed to an increase in the operating budget. However, this has been counterbalanced by high occupancy rates and rising margins. The attributes of this hotel are unique and more comprehensive with respect to Shariah elements of its product if compared to counterparts that offer similar concepts in other countries and within Malaysia.

Of the greatest importance in delivering the SCH services is the competence of staff, cleanliness of facilities, and reasonable pricing. De Palma Hotel is aiming to embark on a new phase which is to introduce the Shariah concept to other states in Malaysia and to take its product internationally. There is a belief in a bright future for this sector in line with the demand from domestic and international Muslim travellers, the strength of Islamic concept, and the improvement in the transportation service for both inbound and outbound tourists. The company expect that the SCH provides a competitive advantage and has the potential to surpass the capability of conventional hotels with offerings to the Islamic market.

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