SHARIAH COMPLIANCE IN HOTEL MANAGEMENT: A CONCEPTUAL FRAMEWORK

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1 SHARIAH COMPLIANCE IN HOTEL MANAGEMENT: A CONCEPTUAL FRAMEWORK Che Musa Che Omar, Noormuthaah Mohamad Ali Adaha, Nor Azzah Kamri chemusa@bis.unikl.edu.my, ruhiyah88@gmail.com, azzah@um.edu.my, UniKL Business School, Universiti Kuala Lumpur & Universiti Malaya Abstract: There are 2,724 hotels in Malaysia but only 315 tourist accommodations are considered providing halal food (1). These accommodations have been accredited by Malaysia Department of Islamic Development (JAKIM), Malaysia State Islamic Department (JAIN), Islamic State Council (MAIN) and Halal Industry Development Corporation (HDC). The purposes of this paper are to conceptualize the characteristics of Shariah compliance in hotel management and to differentiate between conventional and Shariah compliant hotel. This study used content analysis method through reviewed of literature and documents pertaining Shariah compliance in hotel management. The method was used to analyse, examine and select data systematically and objectively in order to formulate the conceptual framework on Shariah compliance in hotel management. The finding shows that the concept of Shariah compliance in hotel management is within tawhidic paradigm in gaining Allah blessings. It is hoped that this finding will facilitate hotel operators to apply the Shariah principles in attracting domestic and international Muslim guests and tourists visiting Malaysia. Keyword: Shariah compliance, Shariah principles, hotel management, halal 1.0 INTRODUCTION The growth of tourism industry in Malaysia has been tremendous over the years since the inception of Visit Malaysia year in 1990 and the aggressive promotion by Tourism Malaysia (TM). This has been justified from the number of arrivals in 2000 (10.22) million with receipts of 17.3 billion and in 2012 (25.03) million arrivals with tourist receipts of 60.6 billion as shown in Table 1 below. Growth of tourist arrivals is 1.28% between 2011 and 2012, but the growth of receipts is 3.8% over the same period of time. This signifies that more quality tourists visiting Malaysia.

2 Table 1: Number of Tourist Arrivals and Receipts in Malaysia (2) Year Arrivals Growth Receipts Growth Million 3.78% 56.5 Billion 5.47% Million 0.53% 58.3 Billion 3.09% Million 1.28% 60.6 Billion 3.80% Tourist accommodations which include hotels and resorts are complementing tourism products for travellers at respective destinations. The increasing demand of tourist arrivals to Malaysia influenced the development of hotels over the years. The number of hotels has increased from 2,367 in 2010 to 2,724 in 2012 as shown in Table 2 below. Table 2: Number of hotels in Malaysia (3) Year No. of Hotels , , ,724 The emerging of new tourist generating areas from Islamic countries to Malaysia as their destination is very encouraging due to the provisions of facilities that accommodate Muslim tourists. Table 3 below shows the increasing number of tourist arrivals from selected Muslim countries. There are two main factors that influenced Muslim tourist arrivals to this country such as easy access to halal foods and praying facilities (4). Table 3: Number of Tourist Arrivals from selected Islamic countries (2) No. Country Growth (%) 1 Singapore 13,372,647 13,014, Indonesia 2,382,606 2,134, Thailand 1,442,048 1,263, Brunei 1,258,070 1,239, India 693, , Iran 139, , Saudi Arabia 87, , Iraq 13,568 21, Bangladesh 65,603 86,

3 10 Pakistan 73,046 79, TOTAL 19,527,954 18,760, Grand Total 24,714,324 25,032, % of Total 79% 75% 4.0% Dr Urasch the Vice-President of Venatol said that the demand for Shariah-compliant fourand five-star hotels is not just in the region but worldwide (5). Consequently, she said, according to the World Tourism Organization, the Gulf travellers spend more than Dh44 billion (RM38.28 billion) on leisure travel annually, where UAE contributed about 41% of Gulf travellers worldwide or 10 % of the world tourism market (5). Thus, Malaysia as one of OIC member country, should take the opportunity to attract tourist from Gulf States. 2.0 METHOD OF STUDY This study used the content analysis method to understand the conceptual framework of Shariah compliance in hotel management. References to various literatures and documents pertaining to tourists arrivals to Malaysia and the management approaches, both Conventional and Shariah compliant hotel. The purpose of this methodology is to build or support an argument and to investigate the important aspects of hotel management and Shariah compliant hotels. The method in reviewing the literatures related document is to understand the concept of both approaches as current applied in management hotels and resorts. Such as the first Shariah compliant resort by 2013 in Maldives by Lootah Hotel Management Company (LHMC) under UAE Al Jawhara group of hotels and apartments (6). The exclusive Islamic hospitality management offers comprehensive hotel management services and operations rooted in Islamic values and cater the family-oriented privacy needs of the Gulf society. a) Conventional Hotel Hotel is defined as an operation that provides accommodation and ancillary services to people away from home (7). Management is defined as a process of managing, directing, maintaining and operating organizations goal through coordinated and co-operative human effort (8). Hotel management is the art of managing the hotel to run effectively from top to bottom including front office, food & beverage, sale & marketing and other hotel services (9).

4 b) Shariah Compliant Hotel The root word of Shariah is shin ra a yn ( ), means law or code in Al-Miftah Dictionary. While Shariah in literal defined as the road to the watering place or the straight path to go along (10). Shariah is a rule or way of life which came from ALLAH to mankind through Prophet Muhammad (11). The primary source of Shariah is Al-Quran and Sunnah and the secondary sources of Shariah is Ijma (consensus of opinion), Qiyas (Analogical deduction), Urf (Customary Practice), Istihsan (Juristic preference), Maslahah Mursalah (Consideration of Public Interest), Sadd al-dharai (Blocking the means to evil) and Istishab (presumption of continuity) (10). Shariah comprise of three main components which is Aqidah (Belief), Fiqh (sayings and doings of the individuals and his relations with others) and Akhlak (moral &ethics). While, Compliance means adherence and obedience to all Allah S.W.T. ordered. It is described as in Arabic term means loyalty, fealty, fidelity and allegiance (12). Dictionary of " " described as obeying Allah and disclaiming syaitan, do everything Allah commandment us to do. Besides, the term compliance means an action or fact that complying with a rule or standards (13). On the other hand, Shariah compliant hotel can be understand as a hotel which provides services in bound with Shariah principles (14). Shariah compliant hotel is not only serve halal foods and beverages, facilities and financial systems but it is also including entire hotel operations which must be in line with Shariah principles (15). Shariah principles can be described as the principle of Maqasid Shariah (the ultimate objective of Shariah). Ibn Qayyim al-jawziyyah explains the ultimate objective of Shariah as protecting mankind and preventing harm from human in this world and hereafter (10). The essentials objective of Shariah is divided into the protection of the five fundamental values (al-daruriyyah alkhamsah) whereas religion (al-din), life (al-nafs), dignity or lignage (al- ird), intellect (al- aql) and property (al-mal ) (10). C) Distribution of Work The component of hotel management comprising front office, sales & marketing, food& beverage, housekeeping, maintenance, finance & accounting, security and human resources (7). Every department are playing significant role in achieving hotel goal. The general

5 manager is the supervisor of each department to work efficiently. The work flow in the hotel management comprised of: i. Front Office ii. Sales & Marketing iii. Food & Beverages iv. House Keeping v. Security vi. Maintenance vii. Financial & Accounting viii. Human Resources 3.0 ANALYSIS In analyzing the information gathered, the most popular definition of hotel management identifies it as effective management from top to bottom, front office, food & beverages, sale & marketing and other hotel services. However, according to Shariah compliant hotel management, hotel is not only serve halal foods and beverages, facilities and financial systems but it included the entire hotel operations, protecting guests and preventing harm to guests in this world and hereafter. The differentiation of Conventional hotel management and Shariah compliant hotel management is obvious in their objectives of offering hotels, where the spiritual aspect is offer at Shariah compliant hotel. Conventional hotel management is aimed at profit making and customer satisfaction. Shariah hotel is aimed at MardhatiLLAH (blessing of Allah) and in every activities and surrounding towards remembering Allah SWT. Shariah compliant hotel should show way of life to guest in every aspect of life. It is to safeguard guest welfare while staying in the hotel. The differentiation between Conventional and Shariah compliant hotel is shown in Table 4 below. Table 4: Differentiation of Conventional Hotel and Shariah Compliant Hotel (16) (17) Aspects Conventional Hotel Shariah Compliant Hotel Hotel objectives Profit making MardhatiLLAH (Blessing of Allah) Requirements Man-made According to Shariah principles Leadership style Theory of leadership create by human Leadership style of the prophet and the successful

6 Ethic Example : 1.Trait Theory 2.Behavior Theory 3.Contingency Theory 4.Neocharismatic Theory Code of human conduct -Integrity Muslim leader approach. Islamic ethics Ikhlas (sincere) Working approach Customer satisfaction -seeking opportunities to maximize the cash flow of hotel Tawhidic approach (uniqueness of Allah) -Habl min Allah wa habl min al-nas Environment Effective environment -Neat and comfortable surroundings -room allocation Islamic environment -Syiar (symbol) of Islam All aspects of hotel management in Conventional hotel is good, however the aspect of spiritual offers in Shariah compliant hotel makes the hotel in the blessing of Allah. Management in Conventional hotel seems to be 100% perfect unfortunately it is not according to Shariah principles. The Shariah hotel management is not only covers the individual life but also the life within society and a team/group concept (habl min ALLAH wa habl min al-nas) (8). 4.0 DISCUSSION AND FINDINGS The differentiation of Conventional and Shariah compliant hotel is the objective of both hotels where as Conventional hotel is profit making and Shariah compliant hotel is to gain Allah blessing. The Conventional hotel is implementing man-made requirements according to the current customer demand however Shariah compliant hotel is practicing Shariah requirements. Style of leadership practiced in Conventional hotel leaders is according to the theory of Trait, Behavior, Contingency, and Neocharismatic while in Shariah compliant hotel following the Prophet and Muslim successful leader approach. Besides, the ethic being practiced in Conventional hotel is code by human conduct and Shariah compliant hotel is

practicing Islamic ethics referring to Al-quran, Sunnah, Ijma and Qiyas.

Shariah compliant hotel implementing Tawhidic approach in Habl min ALLAH wa habl min al-nas for the blessing of Allah.

5.0 CONCLUSION AND RECOMMENDATION The uniqueness of Shariah compliant hotel is the element of Ruh (soul) of Islam. Ruh of Islam comes with kalimah syahadah.

(18). The significant essence of Shariah compliant hotel is presenting the Ruh of Syahadah in entire of hotel operations. Syahadah is the key of MardhatiLLAH (the blessing of Allah).

7 practicing Islamic ethics referring to Al-quran, Sunnah, Ijma and Qiyas. The working approach in conventional hotel is effectively of customer demand satisfaction in order to maximize the hotel cash flow. Shariah compliant hotel implementing Tawhidic approach in Habl min ALLAH wa habl min al-nas for the blessing of Allah. Conventional hotel is offering effective environment in terms of neat and comfortable surroundings and room allocation. The Islamic environment offers in Shariah compliant hotel is the syiar of Islam. 5.0 CONCLUSION AND RECOMMENDATION The uniqueness of Shariah compliant hotel is the element of Ruh (soul) of Islam. Ruh of Islam comes with kalimah syahadah. As syahid Sayyid Qutb wrote in his popular book Tafsir Fi Zilalil Qur an where he had been studied system of learning and life of American unfortunately, he said Amerika have everything except Ruh (18). The significant essence of Shariah compliant hotel is presenting the Ruh of Syahadah in entire of hotel operations. Syahadah is the key of MardhatiLLAH (the blessing of Allah). It is illustrates in the model below. Figure 1 : The proposed concept of Shariah compliant hotel MARDHATILLAH (Blessing of Allah) SYAHADAH -RUH (Soul) SHARIAH HOTEL The Shariah hotel management is not only covers the individual life but also the life within society and a team/group concept (habl min ALLAH wa habl min al-nas) (8). The ultimate aim of Shariah compliant hotel is to seek mardhatillah (blessing of Allah). Conventional hotel is seems to be 100% perfect in man-made management but not fully complying Shariah. Every Muslim is doing Shariah but they do not know it was Shariah requirements. Shariah compliant hotel will benefit the hotel management, environment, guests and culture

8 in the real life and hereafter. The expertise in Usuluddin (Allah), Fiqh (Work culture), Architecture (Work environment) and Management (Employees) should discuss and come out with guidelines to be practice in Shariah compliant hotel and it will be implemented in hotel industry. In order to materialized Islamic (Tawhidic) approach the doctrine of hotel management should comprise the relationship of operators/managers with Allah, hotel employees, work environment and the sustaining of Malay/Islamic culture as shown in Figure 2 below. Figure 2: Doctrine of Islamic Approach in Hotel Management Allah Employees OPERATOR /MANAGER Work Environment Work Culture References: (1) Halal JAKIM.gov.my (retrieved on 4 November 2013) (2) Tourism Malaysia.gov.my (retrieved on 30 October 2013) (3) MOTOUR & MBHA (Malaysian Budget Hotel Association) website (retrieved on 30 October 2013) (4) Lina Munirah Binti Kamarudin & Hairul Nizam Ismail. (2012). Proceedings of the Tourism and Hospitality International Conference (THIC 2012). (5) Halal Focus.net, pubished on 2009 (retrieved on 28 September 2013) (6) Halal Media.net, published on 2011 (retrieved on 7 November 2013) (7) Peter Jones, Andrew Lockwood. (2004). The Management of Hotel Operations. TJ International, Padstow, Cornwall, UK. (8) Mohamad Fauzan Noordin, Roslina Othman. (2011). Islamic Management: A Citation Analysis.International Islamic University Malaysia (IIUM) press. (9) Michael J.O Fallon, Denney G. Rutherford. (2010). hotel management & operations. 5thed. John Willey & Sons, Inc.

9 (10)Mohamad Akram Laldin. (2011). Introduction to shari ah and Islamic Jurisprudence, (3 rd ed.). Kuala Lumpur: CERT Publications. (11)Mahmood Zuhdi Abdul Majid & Paizah Ismail. (2004). Pengantar Pengajian Syariah (2 nd ed.). Akademi Pengajian Islam Universiti Malaya, Kuala Lumpur: Al-Baian Corporation Sdn.Bhd. (12) Electronic Al-Miftah dictionary (2003) version 2.0 (13) Oxford Dictionary online (retrieved on 2 November 2013) (14) Shamim Yusuf. (2009). The Real Sense of Shariah Hospitality Concept. Paper Presented at The World Halal Forum, Kuala Lumpur, Malaysia. (15) Wan Shahida, Suhaimi Ab Rahman, Khairil Awang, & Yaakob Che Man. (2011).The Implementation of Shariah Compliance Concept Hotel:De Palma Hotel Ampang, Malaysia. 2nd International Conference on Humanities, Historical and Social Sciences, Press, Singapore, pp.141 (16) Muhammad Loqman, Afroza Bulbul. (2011). Convergence and divergence between conventional approach and Islamic approach to Management. International Islamic University Malaysia (IIUM) press. (17) Tain-Fung Wu, Mei-Hui Tsai, Yeh-Hsun Fey & Robert T.Y.Wu.(2006). A Study of the Relationship between Manager s Leadership Style and Organizational Commitment in Taiwan s International Tourist Hotels. Asian Journal of Management and Humanity Sciences, Vol.1, No.3,pp (18) Sayyid Qutb. (1952). Tafsir Fi Zilalil Quran. Gema Insani Press, Jakarta, pp.13

PERSPECTIVES ON ISLAMIC TOURISM AND SHARIAH COMPLIANCE IN THE HOTEL MANAGEMENT IN MALAYSIA

Paper Proceeding Islamic Economics and Business Vol I, No.1, July 2013: 1-8 PERSPECTIVES ON ISLAMIC TOURISM AND SHARIAH COMPLIANCE IN THE HOTEL MANAGEMENT IN MALAYSIA 1 Che Musa Che Omar, 2 Mohammad Serazul