The GDP impact of the global Muslim tourism sector exceeded US$138 billion in 2015, as the industry generated 4.3 million jobs and contributed more than US$18bn in tax revenue, a new report has revealed.
The inaugural ‘Global Economic Impact of Muslim Tourism Report 2015’ by Salam Standard found that the US and the EU are the top beneficiaries of Muslim travel spending, netting nearly US$64bn of inbound expenditure in 2015, or around 44% of the total. These markets also collect the most Muslim tourist-related tax, at US$12.5bn.
But when it comes to the biggest spenders, the Middle East leads the pack, accounting for 60% of all outbound Muslim tourism expenditure, worth some US$60bn. Asia and Europe are the second largest markets in terms of outbound Muslim travel expenditure, each generating around 20% of total spend.
“To put this into perspective, a GDP impact of US$138bn is larger than the entire economy of Morocco or Kuwait,” said the report’s author, Faeez Fadhlillah, co-founder & CEO of Salam Standard.
“The Muslim travel sector accounts for more than 10% of total global tourism spend and has a significant impact on the economic wealth of many of the world’s leading markets, creating jobs and boosting public finances. Its power and potential should not be ignored.”
Middle Eastern nations accrue the largest share of their tourism GDP from Muslim travellers, at 28%. In terms of direct employment however, Thailand is the largest beneficiary, with more than a quarter of a million jobs supported by the Muslim travel industry. Overall, Asia has more than 2.3m people employed in this sector.
When taking into account the additional benefits Muslim travel delivers to economies around the world in terms of retail, transport, hotels, restaurants and cultural venues, the US and Europe benefit from more than half of the total GDP impact, worth US$85bn, or 10% of their overall inbound tourism markets.
“As the fastest-growing segment of the global tourism industry, the Muslim travel market provides a wealth of opportunities for policymakers and businesses in both advanced and emerging economies,” explains Fadhlillah. “The sector is expected to grow by 50% in volume and 35% in value over the next five years, but its potential is yet to be unlocked.
“We advise governments and tourism entities in key markets worldwide to put strategies in place that will foster the growth of their Muslim travel sectors and drive demand that will benefit their economies immeasurably.”
The report recommends destinations take ‘three basic steps’: to understand the needs and preferences of Muslim travellers; provide amenities that cater to those needs; and communicate the availability of Muslim-friendly features as a unique selling point.
“Muslim tourists represent a huge commercial opportunity,” the report concluded.
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