Successful Management of Shariah Compliant Accommodation Sector in Malaysia

World Applied Sciences Journal 34 (12): 1876-1881, 2016 ISSN 1818-4952 IDOSI Publications, 2016 DOI: 10.5829/idosi.wasj.2016.1876.1881 Successful Management of Shariah Compliant Accommodation Sector in Malaysia 1 1 Ahmad Puad Mat Som, Myzatul Aini Maasor Mansor, 1 2 Yahaya Ibrahim and Satoshi Masutani 1 Faculty of Applied Social Sciences, Universiti Sultan ZainalAbidin, Malaysia 2 College of Tourism, Rikkyo University, Japan Abstract: In the hotel industry, there is a growing demand for Shariah-compliant hotels (SCH) to cater for largely untapped but lucrative niche of Islamic tourism market. According to many researchers, the main factor that has an impact on SCH development is the absence of SCH standard and requirements. By reviewing secondary data and conducting preliminary interviews, this exploratory research aims to enhance the understanding on how to successfully manage SCH as one of Islamic tourism typologies, since the current literature on the concept has been descriptive in nature due to lack of empirical data available related to it. With the rising demand of Islamic tourism and wide acceptance of Muslim and non-muslim travellers toward Islamic products, it can be contested that SCH concept is considered a service innovation to improve service quality, hotel reputation and guests revisit intention for hotels to remain viable in today s globally competitive tourism sector. Key words: Islamic tourism Religious tourism Shariah compliant hotel Malaysia INTRODUCTION products. Referring to [7], Malaysia promotes halal industry as bridging religious and scientific hygiene, Religion is known as a stable factor that influences safety and health standards, as an example of the consumer buying behaviour, resulting in more demand on compatibility of the state, modern Islam, business and religious-related products and services. This emergent Islamic consumption. Figure 1 shows that Malaysia has interest in halal tourism could beattributed partly to the become one of the world s leading destinationsand the growth of Muslim population worldwide [1]. As affirmed best halal travel destination and these global recognitions by [2] recently, some practises related to Halal tourism wereawarded from 2012 until 2016 by various accrediting have been observed. These practises which are applied agencies. in some destinations could be used as a benchmark for Table 1 shows foreign tourist arrivals to Malaysia other destinations to target Muslim tourists and/or to from selected markets in 2011-2012. The country received market the destination as Muslim friendly destination. 25.03 million tourists in 2012, as compared to 24.7 million According to [3] and [4], the concept of halal tourism is in the preceding year, with a growth rate of 1.3%. For both proved to be popular and is an opportunity on which consecutive years, Singapore topped the list with over 13 many hospitality providers have seen potential to million tourists, followed by Indonesia and China. Among capitalise by providing halal-friendly goods and services. the top ten markets, Indonesia and Brunei are Muslim [2] agreed that halal tourism has found a preferring countries with majority Muslim population. Brunei ranked amongst Muslim travellers who errand to choose goods fifth in both years and it is a good opportunity for this and services that follow the Islamic teachings so as country to promote Shariah Compliant accommodation to abide by Sharia (a set of rules derived from the among travellers from both Brunei and Indonesia. Quran and Prophet Muhammad s Sunnah or deeds that Affirmed by [8], Brunei, Indonesia and Malaysia are dictate the daily lives and practices of Muslimswhilst predominantly Muslim societies directed by Islamic travelling. principles, which also influence government [5] in [6] agreed that Malaysia has utilised the chance policymaking. Therefore, Muslims from overseas can be to cater to Muslim tourists needs especially ones from confident that their basic religious needs will be Middle Eastern countries by offering Muslim-friendly understood and met. Coprresponding Author: Ahmad Puad Mat Som, Faculty of Applied Social Sciences, Universiti Sultan ZainalAbidin, Malaysia. 1876

Fig. 1: Malaysia s Global Recognition 2012-2016 Source: Tourism Malaysia (2016) Table 1: Malaysia s Tourist Arrivals by Selected Markets in 2011-2012 Year ----------------------------------------------------------------- No Country of Nationality 2011 2012 Growth (%) 1 Singapore 13, 372, 647 13, 014, 268-2.7 2 Indonesia 2, 134, 381 2, 382, 606 11.6 3 China 1, 250, 536 1, 558, 785 24.6 4 Thailand 1, 442, 048 1, 263, 024-12.4 5 Brunei 1, 239, 404 1, 258, 070 1.5 6 India 693, 056 691, 271-0.3 7 Philippines 362, 101 508, 744 40.5 8 Australia 558, 411 507, 948-9.0 9 Japan 386, 974 470, 008 21.5 10 United Kingdom 403, 940 402, 207-0.4 Total Arrivals 25, 032, 708 24, 714, 324 1.3 Source: Tourism Malaysia (2012) As Muslimsare known to practice prayer five times a day and this is compulsory for them even when are travelling. They also need to find proper place to stay and be sure halal food becomes priority no matter where they travel to. Hence, by introducing Shariah Compliant Hotel (SCH) in Malaysia, it becomes huge potential for the hoteliersto tap this lucrative market.sch concept is considered a service innovation to improve service quality, hotel reputation and guests revisit intention for hotels to remain viable in today s globally competitive tourism sector.in a study by [9] asserted [10] that the growing pattern for this concept shows a positive prospect to expand and succeed like other conventional hotels supporting by the rise in intra-region travellers market who prefer to stay in hotels that respect their values, cultures and health concern. [1] agreed that the availability of Muslimfriendly hotel is considered one of the most important attributes that attract Muslim travellers and encourage them to visit the destination. However, Muslim friendly hotel(known as Shariah Complaint Hotel) isfacing misconception by several of hoteliers in Malaysia. They were using the concept as marketing tools but do not implement it as it should be. Thus, the aim of this paper is to provide an understanding of SCH practices by Malaysian hotels and how to successfully manage them. Literature Review: Concept of Shariah Compliant Hotel (SCH): [11] defined Shariah Compliant Hotel as hotels where services offered and financial transactions are based on completely Shariah principles, not only limited to serving halal food 1877

Table 2: Characteristics of Shariah Compliant Hotel Characteristics Food and Beverage Separate Facilities Prayer Room Room Entertainment Management Practices Explanation Does not serve alcoholic beverages and serve only halal food. Have Halal Certification Separate entrance for women Disallow non-married couples to stay in the same room Separate recreational facilities (swimming pool, fitness centre or separate genders) Unmarried couples are barred from Occ pying the same bedroom Suitable enough to accommodate Muslim for congregation prayer at one time Quran and prayer mats and arrows indicating the direction of Mecca in every room Beds and toilets positioned so as not to be facing the direction of Mecca. Decoration should not display any art depicting the human form Appropriate entertainment (no night club/bar or adult television channels) Predominantly Muslim staff, Islamic staff dress code requirements Guest dress code must be posted at the hotel entrance or lobby MS1900:2005 (replace with MS1900:2014) and MS1500:2009 Hotel financed through Islamic financial instrument and beverages but also for health, safety, environment and online image of Malaysia as an Islamic and the benefits on economic aspects of all people, hub.according to Islamic Tourism Centre (ITC), the first despite any race, faith or culture. The definition stressed halal standards released in 2000 was an important out the SCH is guided not only by Islamic law andhealth milestone for Malaysia as it became the first country to secure, but also is developed forbeneficial social and have a documented and systematic Halal assurance economic as a whole. By adopting Shariah Compliant system. As agreed by [15], it seems that Malaysian hotel principles in the hotel operation, hoteliers and other industry has made a step into a new era where there are 5 industry practitioners should be guided by the star hotels that offer Muslim Friendly services which characteristics as follows, with modification from various comply with the elements of Islamic principles. Grand researchers [2], [5], [8], [18], [19]. Bluewave Hotel, located in Shah Alam, Selangor, was With the above notion, many of the researchers awarded with Quality Standard for Hotel Design and agreed that Shariah Compliant Hotel practices can be Architecture by Universal Crescent Standard Centerat the expanded by those characteristics and most of the International Conference on Islamic Tourism Standard in stipulations cited above are commonly accepted by the 2012. industry players. Researchers like [12] claimed that the Meanwhile, De Palma Hotel Ampangin Kuala special attributes and characteristics of Shariah Compliant Lumpurwas the first hotel in Malaysia that was recognized Hotel arethe competitive advantages which differentiate as a Shariah compliant hotel. Nevertheless, it only covers them from conventional hotel. Therefore, Shariah external aspects (halal food, staff attires and alcohol-free Compliant hotel owners must deliver services in food outlets) but lack in the internal aspects. According accordance with Islamic principles bygenerating the right to the Managing Director of the hotel, after convertingit themes, ambiances, architecture and exterior that would into Islamic Shariah Compliant, the hotel business was make the Muslims guests feel ease during their stay. [13] booming. This hotel was chosen as the winner of Halal affirmedthat it is highly recommended for the hotel to Journal Awards for Travel and Hospitality in World Halal educate their staff on cross cultural communication to Forum, 2011 [16]. Other hotels claimed as Shariah allow them to treat Muslim tourists with respect and Compliant in Malaysia include PNB Darby Park Executive consider recruiting religious staff. Suite, Tabung Haji Hotels, Perdana Hotel, Ansar City Hotel, Al-Taqwa Hotel and De Rhu Beach Resort. Shariah Compliant Hotel Development in Malaysia: Agreed by [14] that there are plenty of tangible and Standard Requirements for Shariah Compliant Hotel in intangible Islamic attributes in Malaysia which may Malaysia: In the 1980s, state institutions such as the inspire Muslim tourists to visit the country. These are Islamic Development Department of Malaysia or JAKIM inclusion of Mosques and prayer facilities, halal food started regulating the proliferation of halal, although their paradise for Muslims, existence of local Muslim certification efforts remained limited to the realm of the communities, Islamic stability and safety of the country Malaysian state [7]. Malaysia is the only country in the 1878

Table 3: Malaysian Standards applied in SCH Malaysia Malaysian Standard (MS) MS2610:2015, Muslim friendly hospitality services - Requirements MS1500:2009, Halal Food - Production, preparation, handling and storage - General guidelines (Second revision) MS1900:2005, Quality management systems - Requirements from Islamic perspectives Source: Halal Industry Development Corporation (2016) Description Specifies guidelines and requirements for managing tourism facilities, products and services for Muslim travellers in accommodation premises, tour packages and tourist guides. The standards are generic and are intended to be applicable to all organisations and individuals managing Muslim friendly tourism products and services and not applicable for health and beauty facilities such as spa and massage or any balneotherapy facilities, products and services Provides practical guidance for the food industry on the preparation and handling of halal food (including nutrient supplements) and to serve as a basic requirement for Halal food product and food trade or business in Malaysia. Requirements for a quality management system where an organization needs to demonstrate its ability to consistently provide product that meets customer and applicable regulatory requirements and aims to enhance customer satisfaction through the effective application of the system, including processes for continual improvement of the system and the assurance of conformity to customer and applicable regulatory requirements world whereby the government provides full support in promoting the Halal Certification process on products and services. Halal Industry Development Corporation (HDC) strongly advises all halal certification applicants to comply with good manufacturing practice (GMP) and Hazard Analysis and Critical Control Point (HACCP) requirements. Thus, products certified Halal by JAKIM are halal products which are safe to consume or use, nutritious and with quality [17]. Malaysia has been a pioneer in the development of Halal standards and to date the published Malaysian Standards (MS) in Shariah Compliant Hotel are described in Table 3 as follows: The above notion was supported by [18] that the certification of Halal Hotel is given JAKIM. The hotels that use halal tourism concept are known to obey all the legal requirements of the JAKIM directives. In order for Malaysia s hotels to be listed as halal accommodation, it must practice MS1500:2009 Halal Food-Production, Preparation, Handling and Storage and MS1900:2005 Quality Management System- Requirements from Islamic Perspectives which were then replaced with MS1900:2014 Shariah-based Quality Management Systems. In January 2015, as stated by Islamic Tourism Centre, The Muslim Friendly Hospitality Services (MFHS), which the requirements were published as MS2610:2015. It provides guidelines on three critical components of the Islamic tourism supply chain namely the accommodation premises, tour packages and tourist guides. This was initiated and led by International Islamic University Malaysia (IIUM), submitted to the Department of Standard Malaysia (DSM) and appointed SIRIM as standard s secretariat and technical committee on Management System from Islamic Perspectives. According to [19], the existing universal standard of SCH is important to encourage more hotels in Malaysia to seriously adopt SCH. The benefits of SCH are many, one of it is SCH could be a competitive advantage. MATERIALS AND METHODS This study was conducted by reviewing secondary data and conducting preliminary interviews of respondents which included hotel managers, service providers and government agencies. All the interviews were recorded, transcribed and categorized based on topical issues and themes. The respondents were asked about their own opinionson topics related to Muslim friendly and SCH. Table 4 illustratesthe background of respondents. Table 4: Background of the respondents Respondent Gender Job Position Department Categories 1 Male Hotel Operation Hotel (5*) Private Manager Sector 2 Female Assistant Service Private Manager Provider Sector 3 Male Assistant State Director Government Government 4 Male Hotel Operation Budget Private Manager Hotel Sector 5 Male Hotel Shariah Hotel (5*) Private Compliant Sector Leader Team DISCUSSION The preliminary findings indicate that all respondentsagreed that hoteliers or tourism service providers must fully understand the concept and 1879

attributes of SCH, especially when it is being implemented ACKNOWLEDGEMENT in a multiracial country like Malaysia. SCH is not limited to serving halal food and beverages, but its entire operation Fundamental Research Grant Scheme (FRGS) funded must comply with Islamic principles. One respondent this study under Universiti Sultan ZainalAbidin, pointed out that a team of religious advisors should Terengganu, Malaysia, Grant No: regularly monitor and enforce the implementation of SCH FRGS/1/2015/WAB12/UNISZA/01/1 (RR154). Special at the premises, foresee the operational management and thanks to Project Leader, Professor Dr. Ahmad Puad Mat financial aspects of the respective hotels that claimed to Som, who has given his considerable efforts to advise, be Shariah compliant. check, amend and improve this study. Another respondent highlighted that Shariah compliant is a new concept that is growing worldwide REFERENCES especially in Muslim countries. It can be considered as a service innovation and can be marketed as a promotional 1. Battour, M. and M.N Ismail, 2015. Halal tourism: tool especially among Muslim travellers to the country. Concepts, practises, challenges and future. Tourism Among the guests benefits include the provision of Management Perspectives, pp: 8-12. Musolla or a common prayer room in the hotel, Imam or a 2. Carboni, M., C. Perelli and G. Sistu, 2014. Is Islamic religious officer to lead congregational prayer five times tourism a viable option for Tunisian tourism? daily and provision of halal food and beverages. Insights from Djerba. Tourism Management Additional benefits, according to several respondents, Perspectives, 11: 1-9. include higher staff motivation, adherence to Muslim 3. Wilson, J.A. and J. Liu, 2011. The challenges of dress code while on duty, friendlier communication Islamic branding: navigating emotions and Halal. between staff and guests and more hygiene environment Journal of Islamic Marketing, 2: 28-42. in the hotel premises. The clean environment as claimed 4. Bon, M. and M. Hussain, 2010. Halal food and by one respondent has attracted non-muslim travellers to tourism: Prospects and challenges In N. Scott and J. stay at SCH. It can be contested from the findings that Jafari (Ed.), Tourism in the Muslim World Bingley: SCH concept has been well received by both Muslim and Emerald Group Publishing, pp: 47-59. non-muslim markets. 5. Henderson, J.C., 2010b. Sharia-compliant hotels. Most respondents argued that the respective Tourism and Hospitality Research, 10(3): 246-254. government agencies must engage in aggressive 6. Abdul-razzaq, S., 2016. An Exploratory Study into the promotion to create awareness among travellers and to halal-friendliness of Accommodation Providers in increase the demand for SCH in Malaysia. Hoteliers, at the New Zealand Table of Contents. University of same time, must continuously come up with product and Centerbury, Christchurch New Zealand service innovation to tap this lucrative market. Additional 7. Fischer, J., 2008. Religion, science and markets. selling points for SCH will be their strategic location and EMBO Reports, 9(9): 828-831. proximity to attractions like shopping malls, Islamic 8. Henderson, J.C., 2010a. Chapter 6 Islam and tourism museums or galleries, mosques, amusement parks, etc. in Noel Scott, Jafar Jafari (ed.). Bridging Tourism Theory and Practice (Vol. 2). Emerald Group CONCLUSION Publishing Limited. 9. Ahmat, N.C., A.H.A. Ridzuan and M.S.M. Zahari, The existence of the universal standard and primary 2012a. Customer Awareness TowardsShariah attributes of SCH is important to encourage more hotels Compliant Hotel. International Conference on in Malaysia to seriously adopt SCH, although the Innovation, Management and Technology Research, development is still in the infancy stage. The overall pp: 124-128. discussion clearly indicates thathoteliers must understand 10. Husain, S., 2007. Bringing hospitality in line with the attributes of SCH and develop awareness among their Sharia Retrieved 20th May, 2010, from staff to deliver high quality Islamic based services to http://gulfnews.com warrant compliance to Shariah and to ensure guest 11. Yusuf, S., 2009. The Real Sense of Shariah Hospitality satisfaction and intention to return. In sum, the SC Hotels Concept. In The World Halal Forum. must focus not only on the Islamicity of the offering, but 12. Idris, J. and N.A. Wahab, 2015. The Competitive also on satisfying customers who are looking for product, Advantages of Sharia-Compliant Hotel Concept in guest experience, services, location and value for money. Malaysia?: Swot Analysis, pp: 200-209. 1880

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