SGIE Report 2024/25: Innovation, regional connectivity propel Muslim-friendly tourism

The travel industry across OIC (Organisation of Islamic Cooperation) countries continues to grow, propelled by tourism offerings, enhanced connectivity, and digital transformation. 

Muslim consumer spending on outbound travel surged by 43.2%, reaching $217 billion in 2023, with projections to hit $384 billion by 2028 at a CAGR of 12.1%, according to the State of the Global Islamic Economy (SGIE) 2024/25 Report. 

The study identified 17 deals across either mergers and acquisitions, private equity and venture capital funding during 2023/24. Transactions rose 30.77% on previous year’s 13 deals. 

Standardization efforts in halal tourism are advancing, though challenges pertinent to multiple standards remains. Meanwhile, post-conflict destinations such as Syria, Bangladesh, and Bosnia are expected to see renewed tourism interest.

Innovation becomes imperative 
AI-driven innovations are helping reshape the industry, with airlines, tourism boards, and hospitality providers conflating technologies for bespoke services, seamless travel experiences, and enhanced operational preparedness. 

Digital platforms and B2B marketplaces are also recording a surge in uptake, while digital payment solutions are ramping financial accessibility in travel. 

Saudi Arabia’s Nusuk Wallet, Thailand’s cryptocurrency payment initiative, and the EU’s Identity Wallet for secure travel transactions are prime examples of how financial ease is paving the way for greater accessibility. 

Meanwhile, the halal cruise sector is expanding with offerings from AROYA Cruises, Resorts World Cruises, and Antarctica’s first halal-certified voyage. 

Looking ahead, frontier technologies such as artificial intelligence will enhance traveller experiences through dynamic pricing, personalized itineraries, and service optimization.

Top-down approach reinforces sector
Governments are strengthening Muslim-friendly tourism through cross-border partnerships, national marketing campaigns, and infrastructure development. Businesses are following suit. 

Multi-destination travel is also gaining traction, with joint tourism campaigns. For instance, the unified GCC tourist visa is expected to enhance regional connectivity. GCC countries are also increasing investments in emerging markets, such as Indonesia, the Philippines, and Pakistan.

Medical tourism continues to attract investment, with new healthcare facilities and digital platforms supporting cross-border patient services.

Sustainability is also becoming a greater focus, with the UAE implementing a new law requiring travel businesses to report their carbon emissions, aligning with global climate goals.

Gold mine

The rise of Muslim hospitality as a distinct brand presents opportunities for hotels and tourism operators to offer culturally immersive, faith-aligned experiences, according to the SGIE report. 

Investors can explore emerging markets and mid-market hospitality, while governments can facilitate multi-destination travel and improve halal tourism standardization. 

To download a copy of the State of the Global Islamic Economy Report 2024/25, click here.