Halal Tourism Industry in Indonesia: Potential and Prospects

International Review of Management and Marketing ISSN: 2146-4405 available at http: www.econjournals.com International Review of Management and Marketing, 2017, 7(3), 25-34. Halal Tourism Industry in Indonesia: Potential and Prospects Aan Jaelani* Faculty of Shariah & Islamic Economic, State Islamic Institute Syekh Nurjati (IAIN Syekh Nurjati), Cirebon, Indonesia. *Email: iainanjal@gmail.com ABSTRACT This study conirms that halal tourism is a tourism industry which has contributed to economic growth in Indonesia, although the world economy slows down. In Indonesia, halal tourism has long been grown in the form of a pilgrimage undertaken by people with religious motivation. Along with the development of the global Islamic economy, then this type of tourism is undergoing a metamorphosis that requires a change in modern ranging from attractions, hotels, up to marketing. The paper combines descriptive of halal tourism industry and practices of Islamic law in Indonesia. This approach found that halal tourism industry can not be separated from the religious practices of the majority of Muslims in Indonesia, but also economically contribute to the local community, and tourist sites that display the beauty and hospitality for tourists Muslims and non-Muslims. This study concludes that halal tourism has become part of the national tourism industry to position Indonesia as a center for halal tourism in the world in the future. Keywords: Industry, Religion Tourism, Shariah Tourism, Halal Tourism JEL Classiications: L83, N53, Q57, Z31, Z32 1. INTRODUCTION Tourism religious and spiritual motivation has become widespread and became popular in recent decades, occupies an important segment of international tourism and has grown substantially in recent years. Religious tourism to be one of the less studied forms of tourism in tourism research (Timothy and Olsen, 2006). Consistent growth in this market segment has become a global trend in the tourism industry. Trend religious journey is not considered as a new phenomenon. To travel, religious travel has long been an integral motif and is usually regarded as the oldest form of an economic journey. Every year millions of people travel to the main pilgrimage destinations around the world. It is estimated that nearly 240 million people per year go on pilgrimages, some became Christian, Muslim, and Hindu. Religious tourism becomes synonymous with the growth of tourism in modern times. Religion plays an important role in the development of travel for centuries and has inluenced how people spend their spare time. Timothy and Olsen (2006) explains that an increase in the number of tourists with religious motivations has also attracted the attention of academia, government and tourism agencies to develop tourism. The study showed that the main purpose for the large number of tourists religion associated with visits to the sites of the Bible, the Koran or other sacred texts, or with spiritualism, such as miracles and revelation. There is a variable relationship between religious institutions and tourism. On the one hand, a religious tour can be identiied as a certain type of tourism that is motivated partly or exclusively for religious reasons (Rinschede, 1992). Sigaux (1996) and Vukonic (1996) explains that religious tourism to be one of the oldest forms of tourism, in the presence of human migration related to religion since the early days. This is manifested in the diversity of religious tourism activities, from traveling the long term (i.e., pilgrimage) to and/or remain in the religious centers to see from close range to the religious centers or sites for the purpose of religious celebration, contemplation or deliberation. In the irst case, the entire travel journey may have a religious purpose, whereas the latter case, a visit to a religious place has a multifunctional element in the form of a tour. On the other hand, tourism can be considered synonymous with a religion. In a secular society modern, not only free to have (i.e., discretionary or non-working) time, in general, be a space for International Review of Management and Marketing | Vol 7 • Issue 3 • 2017 25 Jaelani: Halal Tourism Industry in Indonesia: Potential and Prospects contemplative and creative, unity of thought and action (Vukonic, 1996), the opportunity for people to recognize and develop their spiritual needs, but also tourism, as a speciic use such as leisure time, has come to be viewed by some as an act of spiritual or sacred journey. Graburn (1983) observed that the functional and symbolic tourism par with other institutions used by humans to beautify and add meaning to their lives; can be understood either as a ritual secular regular (annual vacation), which acts as a relection in daily life and work, or as part of a ritual more speciic or personal transitions (Nash, 1996) conducted at the particular intersection in life people live (Graburn, 1998). In both cases, however, it can be said that tourism in its modern form is equivalent to the visit and pilgrimage are found in traditional societies, people who fear Allah (Graburn, 2001). The relationship varies between tourism and religion can be conceptualized as a continuum based on the level of intensity inherent religious motivation, as stated Smith (1989) as a search for something. On the one hand, there is the extreme form of which is the holy pilgrimage, a journey driven by faith, religion, and spiritual fulillment; while on the other hand, there are tourists who may seek to satisfy personal interests or spiritual needs through tourism. On two sides of this can be found differences in shape or intensity of religious tourism which is motivated by a greater degree or less with religion or, conversely, needs-based culture or knowledge. As conirmed Smith (1992) that, some travelers may serve as religious pilgrims, while others may as tourists from Hajj. However, although there is a relationship between tourism and religion, especially in a historical context, attention to the relatively few studies that have contributed to the subject in the tourism literature. More speciically, although the presence of humans, as said Vukonic (1996) referred to as homo touristic religious, or religious tourism has been widely accepted and discussed to some extent on tourism literature, both in terms of consumption (Vukonic, 1996; Smith, 1992; Franklin, 2003) and supply (Shackley, 2001). Indonesia as the country with religious and cultural diversity has a legacy of history and tradition that is connected inseparably with religious aspects and the religious practices of the community. Cultural and religious heritage with the diversity of race, ethnicity, language, and customs into a potential for tourism development. In particular, the Muslims as the majority of people in Indonesia certainly has a uniqueness that characterizes the nation with tourism destinations that exist, such as the palace, mosque, heirlooms, tomb, until culinary incorporated (Jaelani et al., 2016). Polarization cultural and religious practices of Muslim attract tourists to visit the country later known as religious tourism. The term religious tourism is growing in line with the economic development of the global Islamic, then turned into a tourist term shariah and the last few years has shifted a term longer be kosher travel. Both of these terms (shariah and halal tourism) to be used simultaneously in the following article because it has substance and dimension of the same religion or the lawful term as part of ive types of Islamic law (mandatory, sunnah, permissible, makruh 26 and haram) in principle, derived from the term shariah (Jafari and Scott, 2014). The development of shariah or halal tourism an alternative for the travel industry in Indonesia in line with the trend of the halal tourism industry as part of the global Islamic economy (Samori et al., 2016). The dynamics of world tourism in the last 3 years, inluenced by the increased number of trips across the country and the growth of the economy, especially in the Asia-Paciic region. Total world travelers in 2014 reached 1.110 million overseas trips, up 5% compared to the previous year. In 2014 more than 300 million (27.1% of total world travelers) did travel to Asia and 96.7 million of them go to Southeast Asia. While in 2015 amid the global situation is not conducive, world traveler trip still grows by 4.5%. So, tourism continued to experience signiicant growth. Global economic rebound in 2016 as the driving factors of the tourism sector from the demand side. Indonesia also experienced an increase in world tourism, from 9.3 million in 2014 to 10.4 million in 2015 (up 2.9%), and in 2016 was able to break the 12 million tourist arrivals. Compared with other countries in ASEAN, Indonesia is ranked fourth, below Thailand, Malaysia, Singapore. Based on nationality, Singapore, Malaysia, and China are the third largest contributor of foreign tourists. Whereas from outside Asia are Australia, the United Kingdom, and the United States (Bappenas, 2016). Studies about this halaltourism to explore the meaning of cultural tourism that is integrated with cultural tourism as a spiritual experience of modern society. That is, although this includes contemporary shariah tourism forms as a modern phenomenon, then the secular society of the tourists seem seeks to meet some spiritual needs. It is different with the people in Indonesia, religious practice aims to meet the spiritual needs, including the practice of pilgrimage in Cirebon (Jaelani, 2016a) as part of the aspect of tourism (Jafari and Scott, 2014), it is becoming a religious tradition that has lasted a long time in line with developments history of Indonesian society. However, this context would be different if it is associated with the ield of tourism as part of an industrial or business activities that can provide economic beneits and projected in the government’s policy to increase people’s income (Jaelani, 2016b). In the end, halal tourism includes not only the existence of pilgrimage and religious sites but also include the availability of support facilities, such as restaurants and hotels that provide halal food and prayer, as well as other requirements. This article will describe some of the concept related to halal tourism that into global Islamic economic trends and this development on Muslim religious practices in Indonesia. The study will also explore how the development of shariah or halal tourism in Indonesia until 2016? how also tourism policy from the government of Indonesian on halal tourism practices of the potential and prospects of the development of the national tourism industry in the future?. It is quite unique among other things, that a study of the halal tourism classiied in a recent study that became the focus of researchers and travel business practitioners in Indonesia, although it was practiced since a long-standing, but the facts show that the phenomenon of halal tourism on several International Review of Management and Marketing | Vol 7 • Issue 3 • 2017 Jaelani: Halal Tourism Industry in Indonesia: Potential and Prospects tourist destinations in Indonesia is calculated that allows becoming a center of world halal tourism. 2. METHODOLOGY The study of the halal tourism industry in Indonesia is carried out with the following steps. First, browse information sourced from print and electronic media and tourism literature about the development of shariah tourism in world and Indonesia. Second, collect data in the form of government policy on tourism and this development from the Ministry of Tourism of the Republic Indonesia. Third, do the analysis to describe and interpret the data. In particular, the study of halal tourism as part of a Muslim religious practice is methodological will be described based on the perspective of the Qur’an and hadith. Fourth, make conclusions from the discussion that has been done. 3. TOURISM IN THE PERSPECTIVE OF THE QUR’AN AND THE HADITH Tourism is an activity that occurs when internationally, people cross borders for leisure or business and stay at least 24 h but less than 1 year (Mill and Morrison, 1998). Deinition of the World Tourism Organization (WTO) on tourism now become one of the most widely accepted worldwide. Chadwick (1994) deines tourism as an activity of people outside environment by a certain period and the main travel destinations in addition to education or gain experience by paying an activity in the place visited. Tourism is a complex concept includes a variety of considerations of social, behavioral, economic, political, cultural, and environmental. Medic and Middleton (1973) asserts that the concept of tourism made up of a series of activities, services, and beneits that provide a certain experience to the tourists. Buhalis (2000) believes that tourist destinations have ive essential elements, namely attractions, access, facilities, activities and services related to the tourism. In the Law of the Republic of Indonesia Number 10 Year 2009 concerning tourism, Chapter I, mentioned that tourism is an activity of a journey undertaken by a person or group of people to visit a particular place for the purpose of recreation, personal development, or to learn the unique tourist attraction that is visited in a period while. Tourism is a wide range of tourist activities and supported a variety of facilities and services provided by communities, businesses, governments, and local governments. Tourism is the overall activities related to tourism and is multidimensional and multidisciplinary emerging as a manifestation of the need for everyone and the country as well as the interaction between tourists and the local community, fellow travelers, government, local government, and employers. In the view of Islam, irst, the trip is considered as worship, because it is commanded to perform the obligations of the pillars of Islam, the Hajj and Umrah in a given month are conducted throughout the year to the House. Secondly, in the view of the Islamic world, travel is also connected with the concept of knowledge and learning. This has become the greatest trips conducted in early Islam with the aim of seeking and disseminating knowledge (Surah al-Tawbah: 112). Third, a tourist destination in Islam is to learn science and thought. Commands for traveled in the earth appear in several places in the Qur’an (Surah al-An’am: 11-12 and al-Naml: 69-70). Fourth, the biggest purpose of the trip in the travel of Islam is to invite people others to God and to convey to humanity the teachings of Islam revealed to the Prophet Muhammad. This is the mission of the Prophet and his companions. The companions of the Prophet Muhammad spread throughout the world, teaches kindness and invites them to live the truth. The concept was developed to achieve these goals. Finally, travel Islam also includes travel activities to relect on the wonders of God’s creation and enjoy the beauty of the universe, so it would make the human spirit to develop a strong faith in the oneness of God and will help a person to meet the obligations of life (Jaelani, 2016b). Not only for the spiritual beneit, but the travel activity is also essential for the physical beneits. On the other hand, tourism promotion on the basis of religious and historical places of interest for international travelers can earn additional income to a Muslim country. In addition, the Organization of Islamic Conference has emphasized to develop tourism activities for its member countries. More and more Muslim travelers in the world of Islam can lead to better understanding, stimulate collaboration and serve the public interest. The idea of religious tourism itself appears quite controversial, not only from the standpoint of religious authorities but also from the academic side in tourism studies. In any case, this situation does not have to use a scientiic approach in addressing this issue with some branches of the social sciences, including geographical knowledge can provide the specific contribution, especially through two perspectives in the form of religious geography and tourism geography. Instead, the subject of constant evolution as new patterns of behavior and attitudes towards religion, become almost mandatory to clarify some points through interdisciplinary research efforts. At this time there were several questions in the ields of geography, “why and on what basis a space deined as sacred; what the implications of this designation possible for the use and character of the area; how believers respond to the idea of a sacred place, and how their responses (especially through pilgrimage) is relected in the current geographical and regional pattern” (Park and Yoon, 2009). Tajzadeh (2013) conducted a review about shariah derived from the Qur’an. The shariah tourism means: Studying the life of the people of the past (Surah Qur’an, 3: 137); studying the destiny of the people of the past (Surah QS. 30:42); studying how Prophets were raised (Surah QS. 16: 36); studying the life of evildoers (Surah QS. 6:11); thinking about the creation; thinking about what happened to wrongdoers; visiting safe and prosperous towns (Surah QS. 34: 11); The Holy Quran calls people to travel and to learn lessons from what happened to the inidels and deniers of divine signs; in general, it can be said that traveling helps people Achieve theoretical and practical explanations and to reafirm International Review of Management and Marketing | Vol 7 • Issue 3 • 2017 27 Jaelani: Halal Tourism Industry in Indonesia: Potential and Prospects Reviews their Faiths in the resurrection day. Traveling helps people learn from the past and prevents tyranny and oppression; and traveling improves sight, hearing, and inner knowledge and rescue people from inactivity and inanition. Besides sourced from the Koran, shariahor halal tourism can be traced also in the tradition of the Prophet Muhammad saw, known as the hadith. Some of the hadith indicates an activity called the current tour. For example, Ibrahim Abu Isma’il As-Saksaki where the Prophet narrated Reported to have said: “I heard Abu Burda who accompanied Yazid bin Abi Kabsha on a journey. Yazid used to observe fasting on journeys. Abu Burda said to him, “I heard Abu Musa several times saying that Allah’s Apostle said, when a slave falls ill or travels, then he will get a reward similar to that he gets for good deeds practiced at home when in good health” (Al-Bukhari, 2011). In a famous hadith, Duman (2011) quotes a hadith of Prophet Muhammad (Peace be upon him [PBUH]) said: “The reward of deeds depends upon the intentions and every person will get the reward according to what he/she has intended” (Al-Bukhari, 2011). Meanwhile, Din (1989) asserts that the act of travel in Islam is considered apurposefulroommates activity puts great emphasis on Islamic motivations as acting in the cause of God, submission to the ways of God (through the hajj and the umrah), realization of the smallness of man and the greatness of God, encouraging and strengthening the bond of silaturrahim (Muslim fraternity) and conducting business. Muslims are encouraged to achieve physical, social and spiritual goals by traveling (Din, 1989). Other hadith narrated by Abu Shuraih Al-Ka’bi: Where Rasulullah PBUH says: “Whoever believes in God and the Last Day, should serve his guest generously. The guest’s reward is: To provide him with a superior type of food for a night and a day and a guest is to be entertained with food for three days, and whatever is offered beyond that, is regarded as something given in charity, and it is not lawful for a guest to stay with his host for such a long period so as to put him in a critical position” (Al-Bukhari, 2011). Thus, the practice of halal tourism has been done since the time of Prophet Muhammad and his companions for the sake of social and spiritual. In terms of Islamic law, the prophet Muhammad. also, explains the existence of relief in the prayer by collecting or summarize the number raka’ah prayer when someone is doing a long journey with the purpose of worship. Thus, the Qur’an and hadith have provided an explanation of Islamic rule on the travel of shariah through the provisions of Islamic law. 4. THE CONCEPT OF RELIGIOUS, SHARIAH, AND HALAL TOURISM The term of shariah tourism in the literature generally equated with terms such as Islamic tourism, shariah tourism, shariahtravel, halal tourism, halal-friendly tourism destination, and Muslimfriendly travel destinations, halal lifestyle, and others. From the industry side, travel shariah is a complementary product and does not eliminate these types of conventional tourism. As a new way 28 to develop tourism in Indonesia which upholds the cultural and Islamic values without losing the uniqueness and originality of the area. Religious tourism that is intended to mean also a pilgrimage tour. Etymologically, the pilgrimage can mean a visit, both for the living and the dead, but in understanding the activity of public visits to people who have died through the grave. Activities are also commonly referred to grave pilgrimage. In Islam, considered an act of grave pilgrimage is sunnah. The practice of pilgrimage actually existed prior to Islam but exaggerated so that the Prophet had prohibited it. Even this tradition revived even advisable to remember the death. The practice of pilgrimage actually existed prior to Islam, but overload that Prophet Muhammad had prohibited it. Even this tradition revived even advisable to remember the death. Barber (1993) deines “pilgrimage as a journey from the resulting religious causes, externally to a holy site, and internally for spiritual purposes and internal understanding” (Galzacorta and Omil, 2016). Deinition of religious tourism is developed as well as all marketing efforts and product development directed at Muslims, although not related religious motivation (Henderson, 2010), or the effort that emphasizes the importance of Muslim tourists and non-Muslims as a new market and destination for tourism (Al-Hamarneh, 2011). In other words, Islamic tourism to promote tourism among Muslims, develop new tourist destinations, and to strengthen cooperation between organizations and inter-governmental in the Islamic World. Zamani-Farahani and Anderson (2009) asserts that “Islamic tourism can be deined as traveling activities of Muslims when moving from one place to another or when residing at one place outside reviews their place of normal residence for a period less than 1 year and to engage in activities with Islamic motivations. It should be noted that Islamic activities must be in accordance with generally accepted principles of Islam; i.e., halal.” Thus, Islamic tourism can be deined as the activities of Muslim travel when moving from one place to another or when it is in a place outside of their normal residence for a period of less than 1 year and to engage in activities with the Islamic motivation. It should be noted that tourist activities in Islam must be in accordance with Islamic principles generally accepted, that is halal. Based on some understanding of the above, the indicators of religious tourism in Islam can be concluded the following: 1. The concept of culture in relation to Islamic tourism (Islamic cultural site) (Al-Hamarneh, 2011). 2. Tourism synonymous with Muslim (subject to compliance with Islamic values), although it can be extended which includes non-Muslims (Shakiry, 2008) 3. Travel religion (pilgrimages and visits to shrines across the Islamic world) (Hassan, 2007). 4. Tourism Islam: A tourist with a new moral dimension that is based on values that are acceptable, ethical dimension and has a transcendental standard (Hassan, 2004) International Review of Management and Marketing | Vol 7 • Issue 3 • 2017 Jaelani: Halal Tourism Industry in Indonesia: Potential and Prospects 5. Islamic Tourism: A trip aimed at the motivation of “safety” or activities which mean it comes from Islamic motivation (Din, 1989). Islamic tourism or travel within Islam focused on issues such as the involvement of (Muslim), point (goal of Islam), the product (the area of housing, food, and drinks), dimensions (economic, cultural, religious, etc.), and management of processes services (marketing and ethical issues). Motivations and intentions are very important in Islam because they are related to attitudes and intentions (Al-Hamarneh, 2011; Hassan, 2007; Henderson, 2010). In some countries, such as Malaysia, Indonesia, and Brunei, the term of religious tourism or Islamic tourism is better known as shariahor halal tourism. Religious tourism showed activity trip with motivational or religious purposes carried out by religious groups (Muslim, Christian, Hindu, Buddhist), which is usually by visiting the holy places of religion or religious igures. The deinition applies also to the meaning of the pilgrimage as part of a tour activity. Therefore, religious tourism as an economic activity is more appropriate to use the term shariah tourism if the activity is a Muslim journey, along with the nomenclature on the economic development of Shariah in Indonesia. Religious tourism can serve as an activity that has motivated accordance with the principles of Islam. Such activities may include hajj, umrah, and so forth. Other forms can be an expression of gratitude to God Almighty and Merciful Rahman and recognition of his greatness that can be observed anywhere either in the past or present (Din, 1989). Religious tourism can be deined as the activities of Muslim journey when heading one place to another or when it is in a place outside of their normal residence for a period of less than 1 year and to engage in activities with religious motives. It should be noted that such activities must be in accordance with the principles of Islam, which is halal (Zamani-Farahani and Anderson, 2009). Sofyan (2012) asserts that a broader deinition of shariah tourism that is travel based on the values of the Islamic shariah. As recommended by the WTO, shariah tourism consumers not only Muslims but also non-Muslims who want to enjoy the local wisdom. The general criteria are shariah tourism; (1) oriented to the common good, (2) orientation enlightenment, refreshment, and serenity, (3) avoid idolatry and superstition, (4) free from sin, (5) maintain security and comfort; (6) protecting the environment, and (7) respect for social and cultural values and local wisdom. In particular, tourism is an activity of shariahor halal tourism. In Islamic literature, the term “halal” refers to all that is commanded in the teachings of religion and the basis for the behavior and activities of Muslims (Baskanlig, 2011). In particular, halal used to mean everything that can be consumed according to the Koran or the Hadith of the Prophet (Gulen, 2011). Otherwise, the term is “haram” which refers to the act of violation of religious teachings by Muslims. Therefore, a Muslim is required to beneit from the activity is lawful and avoid the things that are forbidden religion. The word “halal” means something that is allowed and is usually used in a legitimate sense. The concept of halal in Islam has a very speciic motive as to preserve the purity of religion, to maintain the mentality of Islam, to preserve life, to protect property, to protect future generations, to support the dignity and integrity. Also, the deinition of halal refers to all aspects of life such behavior is allowed, speech, dress, behavior, and diet means (Ijaj, 2011). In addition, the deinition of halal explored in various ways as the broadest sense of the use of language in the East and in the narrow context is also used in the West. For Muslims, what makes lawful or allowed normally restored on Islamic law that is largely uncertain and did not change, and unlike secular law. Shariah is a system of moral life that is not limited to the requirements of the food may be consumed and continues to grow in relation to the Muslim population. Therefore, the concept of halal is important to be part of the brand. Moreover, the word “halal” is not only the elements of the brand but also the part of the belief system, the code of ethics-moral, and integral to everyday life. Consequently, whether the term halal or compliance with the principles of shariah is a process or the value obtained in playing an important role to form thoughts, Muslim consumers, especially when it requires the consumption. However, the type of consumption at the product level what should be offered by many brands as a broader approach than the lawful deinition should be applied to branded goods or food (Ijaj, 2011). As a consequence, the growth of the market related to the consumption of halal, the Muslim consumer demographics in terms of focusing on this provision. Consumption of kosher inluence in opening up the possibility of new horizons. Large corporations that are multinational can be producing soft drinks, chewing gum, and health supplements, vaccines, formula, materials and more. Consumption of kosher targeting as a new marketing segment. In addition, kosher products for consumers provides space for everyone as a global association around this topic (Aminul and Karkkainen, 2013). Thus, the term “halal tourism” as socialized in Indonesia Halal Expo (INDHEX) in 2013 and the Global Halal Forum was held on October 30, 2013 - November 2, 2013, in Commerce Center Building, JIExpo (PRJ), Jakarta. President Islamic Nutrition Council of America, Muhammad Munir Chaudry, explains that “halal tourism is a new concept of tourism. This is not religious tourism as umrah and hajj. Halal tourism is tourism that serves holidays, holiday style by customizing according to the needs and demands of Muslim traveler.” In this case, the hotel that carries the Islamic principles do not serve alcohol and has a swimming pool and spa facilities, separate for men and women (Wuryasti, 2013). To be clearer, as detailed Hamzah and Yudiana (2015) and Andriani et al. (2015), the difference between the conventional travel, religious travel, and shariah tourism or halal tourism can be seen in the Table 1. International Review of Management and Marketing | Vol 7 • Issue 3 • 2017 29 Jaelani: Halal Tourism Industry in Indonesia: Potential and Prospects Table 1: Differences between conventional, religious, and shariah tourism No. 1 Aspects Object 2 3 Aim Target 4 Guide 5 6 7 8 Konventional tourism Nature, culture, heritage, culinary For entertainment To the satisfaction and pleasure that dimension lust, solely for entertainment To understand and master the information, so that can attract tourists to the sights Religious tourism Worship place, cultural heritage To increase spirituality to acquire the spiritual aspect that could soothe the soul and ind peace of mind to understand the history of the characters and locations that become atourist attraction Fasilities of worship Complementary Complementary Culinary Relation of Society and Environment of Tourism Schedule of travel General Complementer and proit General Complementer and proit Everytime Certain times 5. HALAL TOURISM IN THE NATIONAL TOURISM INDUSTRY Indonesia has a lot of potential in the form of a beautiful natural landscape with 17,100 islands and 742 languages. In addition, the Indonesian population of 250 million people is the largest archipelago with a length of 5,120 km from west to east and 1,760 km from north to south. In shariah tourism needed some major aspects, namely the availability of halal food, prayer facilities were adequate, service iftar during Ramadan, as well as the restrictions on activities that are not in accordance with shariah (Asdhiana, 2013). As the country with the largest Muslim population in the world, Indonesia is constantly developing shariah travel in the country. Tourism competitiveness Indonesia now ranks 50 worlds, than ever being in position 70. Indonesia continues to be the best so that in 2019 Indonesia is targeted to be in position 30. Statistical data of foreign tourists at the Ministry of Tourism of Indonesia noted that tourist arrivals from 19 of the main entrance in 2015 as many as 9,420,240 people and the period January-December 2016 reached 10,405,947 people. This means also that tourist arrivals grew by 10.46 percent (The Ministry of TourismRepublic Indonesia, 2016). Meanwhile, Head of the National Development Planning Agency (Bappenas), Bambang Brojonegoro explained that the growth in the number of foreign tourists amounted to 21.2 percent in the third quarter period of 2015 - the third quarter of 2016. The average tourist arrivals in the third quarter 2016 amounted to 1,023,793 visits, and the highest attainment is based on the statistical record for monthly tourist arrivals. The impact is the tourism sector continued to be the biggest foreign exchange earner for Indonesia (Bappenas, 2016). Tourism in 2013 was able to reach 10.0541 million US dollars, while in 2016 increased to 11.761.7 million US Dollar. 30 Shariah/Halal tourism All To increase spirituality by way of entertainment To acquire the desire and pleasure, and growing religious awareness To make tourists interested in the object and evoke the spirit of religious tourists. Being able to explain the function and role of shariah in the form of inner happiness and fulillment in people’s lives Integrated by object of tourism, rituals become part of the entertainment package Especially, halal Integrated and interaction based principles of shariah Of the timing Therefore, Bappenas has planned the development of the tourism sector, which is consistent with the direction of development until 2025, is the development of tourism so as to encourage economic activity and improve the image of Indonesia, improve the welfare of local communities, as well as providing for the expansion of employment opportunities. Bambang Brojonegoro (2016) asserts that the development of tourism is done by utilizing the diversity of the beauty of nature, and the potential for marine tourism regions nationwide as the largest in the world. In addition to encouraging economic activities related to the development of national culture. Other policies, such as the location guarantees a tourist destination, the creation of the local economy and community support, convenient services for tourists visiting, human resource and institutional tourism, the development of the 10 priority destinations, and tourism promotion Indonesia. On the 4th Tourism National Coordination Meeting, December 6-7, 2016 in Jakarta with the theme “Indonesia Incorporated, Reaching Target for as many as 15 million foreign tourist arrivals and 265 million for travel travelers archipelago in the Year 2017,” which was attended by 700 tourism stakeholders Indonesia, the Ministry of Tourism irst announced the Indonesia Tourism Index (Index Pariwisata Indonesia [IPI]), which refers to the Travel and Tourism Competitive Index - World Economic Forum and the United Nations World Tourism Organization, adjusted to the conditions in Indonesia, to measure the readiness of the tourist destination. A number of other indicators are also applied, such as policy support (priority tourism, openness regional, price competitiveness, environment sustainability), tourism enabler (the business environment, security, health and hygiene, human resources and labor, readiness of information technology), infrastructure (airport infrastructure, port and road infrastructure, tourism service infrastructure), and natural and cultural resources (http://lifestyle.liputan6.com). Based on the IPI, the highest competitiveness of the tourism industry in Indonesia is still dominated by large cities. Denpasar Bali, IPI ranks highest with a score of 3.81 on the scale range of International Review of Management and Marketing | Vol 7 • Issue 3 • 2017 Jaelani: Halal Tourism Industry in Indonesia: Potential and Prospects 0-5. The following 10 counties and cities with the highest ranked Indonesian Tourism Index (Ibo, 2016), (Table 2) . could ensure his halal hotels for Muslim travelers, while ASITA can make tour packages to religious tourism and pilgrimage places. As seen from the indicators of environmental aspects of business support tourism, ranking cities in Indonesia can be seen (Ibo, 2016a) in the Table 3. Halal tourism is an activity that is supported by a wide range of facilities and services provided communities, businesses, governments, and local governments that comply with shariah (Ministry of Tourism Republic Indonesia, 2012). Halal tourism used by many people because of the characteristics of the products and services that are universal. Products and tourist services, attractions and tourism destinations in the shariah are the same with the products, services, attractions and tourism destinations generally, do not conlict with the values and ethics of shariah. So halal tourism is not limited to religious tour (Dini Andriani et al., 2015). For the governance aspects of tourism, the city ranked in Indonesia can be seen in the Table 4. While aspects of tourism support with indicators of tourism support infrastructure aspect, the data ranking the following Table 5. While the views of indicators of the potential aspects of nature and artiicial travel, ranking the data can be seen in the Table 6. To realize the halal tourist development in the national tourism industry, the Director General of Tourism Marketing will conduct training of human resources, capacity building, as well as socialization. The Ministry of Tourism will also learn from other countries which already apply the halal tourism concept, such as Malaysia, which was already well known as a halal tourist destination, as well as socializing with organizations perpetrators of tourism in Indonesia, for example, the Association of Indonesian Hotels and Restaurants and the Association of the Indonesian Tours and Travel. Association of Indonesian Hotels and Restaurants Table 2: Ten Highest Rated Indonesia Tourism Index 2016 No 1 2 3 4 5 6 7 8 9 10 Cities Denpasar, Bali Surabaya, Jawa Timur Batam, Riau Sleman, Yogyakarta Semarang, Jawa Tengah Badung Bandung, Jawa Barat Banyuwangi, Jawa Timur Bogor, Jawa Barat Bantul, Jawa Timur Tourism Indeks 3,81 3,74 3,73 3,72 3,59 3,55 3,39 3,30 3,27 3,22 Source: http://lifestyle.liputan6.com In the development of halal tourism, the Law of Ministry of Tourism No. 2 Year 2014 on guidelines for implementation of shariah hotel business, article 1, which referred to the principles of shariah Islamic law as stipulated fatwa and/or approved by the Indonesian Ulama Council (Majelis Ulama Indonesia [MUI]) (The Ministry of Tourism Republic Indonesia, 2014). The term began to be used in Indonesian shariah banking industry since 1992. From the banking industry evolve into other sectors, namely takaful, shariah hotel, and shariah tourism. The development of tourism based on the principles is realized through the implementation of tourism development plans with due regard to the diversity, uniqueness, and distinctiveness of culture and nature, and the human need for travel. The development of tourism includes the tourism industry, tourism destination, marketing, and institutional tourism. As for the tourism business as stipulated in the Law of Republic Indonesia Number 10 Year 2009 on Tourism, Chapter VI, include tourist attraction, the area of tourism, the services of transportation travel, travel services, food and beverage services, provision of accommodation, the organization of the entertainment and recreation, organizing meetings, incentive travel, conference, and exhibition, tourism information services, tourism consulting Table 3: Five Highest Rated Environmental Aspects of Business Support Tourism Year 2016 Table 5: Five Highest Rated Aspects of Tourism Support Infrastructure 2016 No 1 2 3 4 5 No 1 2 3 4 5 Cities Denpasar Sleman Semarang Surabaya Bantul Tourism Indeks 3,71 3,42 3,26 3,21 3,19 Cities Makasar Denpasar Bandung Surabaya Palembang Tourism Indeks 4,33 4,12 4,12 3,89 3,75 Source: http://lifestyle.liputan6.com Source: http://lifestyle.liputan6.com Table 4: Five Highest Rated Governance Aspect Tourism Year 2016 Table 6: Five Highest Rated Potential Aspects of Nature and Techno Tourism No 1 2 3 4 5 No 1 2 3 4 5 Cities Surakarta Denpasar Badung Makasar Yogyakarta Source: http://lifestyle.liputan6.com Tourism Indeks 3,99 3,79 3,68 3,59 3,54 Cities Sukabumi Badung Bogor Wakatobi Raja Ampat Tourism Indeks 3,79 3,45 3,39 3,29 3,25 Source: http://lifestyle.liputan6.com International Review of Management and Marketing | Vol 7 • Issue 3 • 2017 31 Jaelani: Halal Tourism Industry in Indonesia: Potential and Prospects services, tour guide services, water tourism, and spa (The Ministry of Tourism Republic Indonesia, 2009). The development of tourism is based on tourism development master plan consisting of a master plan for tourism development of national, provincial tourism development master plan and master plan for tourism development in the district/city. The development of tourism is an integral part of a long-term national development plan. In the Law of Republic Indonesia Number 10 Year 2009 on Tourism, Chapter I, section 3, it is stated that the tourism function physical needs, spiritual, and intellectual every tourist to recreation and travel as well as increase the income of the state for the welfare of the people. The purpose of the national tourism can be shown in Figure 1. In shariah tourism development, the Ministry of Tourism in collaboration with the National Shariah Council (Dewan Syari’ah Nasional), the Indonesian Ulama Council (MUI) and the Institute of Business Certiication (LSU). They will work together to develop the tourism potential and uphold standards of culture and Islamic values. The halal tourism standards will be set forth in the Regulation of the Minister of Tourism and Creative Economy No. 2/2014 on Guidelines for Implementation of Shariah Hotel Business (this regulation has been repealed by the regulation of the Minister of Tourism Number 11 in 2016). Halal tourism destination is to increase tourist visits and abroad to visit various destinations and tourist attractions that have Islamic values, which are spread throughout Indonesia. Another aim is to encourage the growth and development of Islamic inance in the tourism industry (www.indonesiatravel). 6. INDONESIA AS THE CENTER FOR WORLD HALAL TOURISM Halal tourism development is important because the beneits are not only felt by Muslim travelers. Halal tourism is open to everyone. The Ministry of Tourism will stir halal tourism in the hotel, restaurant, and spa. Halal tourism can expect to make Indonesia as a friendly destination for Muslim travelers and requires standardization. Characteristics of halal tourism among others travel there tour packages covering Muslim-friendly travel destinations, as well as hotels, restaurants, and spas are halal. Figure 1: Aims of National Tourism One objective of the Ministry of Tourism launched a shariah tourism is attracting more and more foreign tourists, especially Muslims. Tucked also another reason underlying the launch of this type of travel. Based on data from the Ministry of Tourism in 2013, from about 7 million tourists in the world, 1.2 million of whom are Muslims, who certainly expect shariah-based travel. Travel with shariah, they will easily ind the halal food and places of worship. However, Indonesia launched a halal tourism not only to attract foreign tourists to increase the number of visits per year. The desire of domestic tourists is also a reason for according to the Ministry of Tourism, more and more tourists are expressing their need for halal tourism. Esthy Reko Astuti, Director General of Tourism Marketing in the Ministry of Tourism Republic Indonesia stated that for domestic travelers, their consciousness to desire the higher halal products, so more and more in demand. More and more tourists who want halal restaurant and hotel safe for families and children. Automatic halal travel here is needed to meet these demands (http://lifestyle. liputan6.com). In addition, tourism organized with the following principles: 1. Upholding the religious norms and cultural values as the embodiment of the concept of life in the balance of the relationship between man and God Almighty, the relationship between man and his fellow man, and the relationship between humans and the environment; 2. Uphold human rights, cultural diversity, and local knowledge; 3. Benefits for the people’s welfare, justice, equality, and proportionality; 4. Preserve nature and the environment; 5. Empowering local communities; 6. Ensure the integration between sectors, between regions, between the center and the area which is a single unit within the framework of regional autonomy, and integration between stakeholders; 7. Comply with the code of conduct world tourism and international agreements in the ield of tourism; and 8. Strengthening the integrity of the Unitary Republic of Indonesia (Law of Tourism Number 10 Year 2009, Chapter III). Halal tourism serves a variety of halal products are safe for consumption by Muslim travelers. However, that does not mean non-Muslim tourists can not enjoy halal tourism. In applying halal tourism in Indonesia who launched in 2014, the Ministry of Tourism in collaboration with the Indonesian Ulama Council (MUI) to determine the halal standards for tourism products. MUI and the Ministry of Tourism ensure that the halal certiication is not only can be used by Muslim travelers, but also by all the tourists. Ma’ruf Amin, chairman of MUI, asserts that for Muslim tourists, halal tourism is part of the propaganda. For non-Muslims, halal tourism with halal products is healthier guarantee MUI halal certiication has passed the Food and Drug Supervisory Agency (Badan Pengawasan Obat dan Makanan, BPOM) so it must be guaranteed a healthy and clean. For Muslim tourists need not 32 International Review of Management and Marketing | Vol 7 • Issue 3 • 2017 Jaelani: Halal Tourism Industry in Indonesia: Potential and Prospects worry about the halal status, and for non-Muslim tourists can be conident that this food must be healthy and clean. In halal tourism, destinations managed obliged to provide halal food, providing easy access to places of worship, and also provide accommodation and services according to standards of shariah. The Ministry of Parisiwata launches halal tourism in Indonesia with the aim of making Indonesia a friendly destination for Muslim tourists. Not just a tourist destination, facilities that support it should be according to the standard of halal (certiied) of MUI. Therefore, halal tourism should be developed through a travel agent, thus encouraging tourists Muslim into halal tourism a friendly and comfortable. In the competition of the World Halal Tourism Awards 2016 in Abu Dhabi, the United Arab Emirates, 24 October to 25 November 2016, Indonesia won 12 awards from 16 categories contested. Minister of Tourism, Arief Yahya, conirmed that this victory would be a beginning to build a new ecosystem for halal tourism in Indonesia, and makes a great contribution to the achievement of a tourist visit. Thus, Indonesia has become the center for the world halal tourism. The award in the World Halal Tourism Awards 2016, with 12 categories that have been won by Indonesia are: 1. World’s Best Airline for Halal Travelers: Garuda Indonesia. 2. World’s Best Airport for Halal Travelers: Sultan Iskandar Muda International Airport, Aceh Indonesia. 3. World’s Best Family Friendly Hotel: The Rhadana Hotel, Kuta, Bali, Indonesia. 4. World’s Most Luxurious Family Friendly Hotel: Trans Luxury Hotel Bandung, Indonesia. 5. World’s Best Halal Beach Resort: Novotel Lombok Resort and Villas, Lombok, NTB. 6. World’s Best Halal Tour Operator: Tour Ero, West Sumatra, Indonesia. 7. Wo r l d ’s B e s t H a l a l To u r i s m We b s i t e : w w w. wonderfullomboksumbawa.com, Indonesia. 8. World’s Best Halal Honeymoon Destination: Sembalun Village Region, Lombok, West Nusa Tenggara, Indonesia. 9. World’s Best Hajj and Umrah Operator: ESQ Tours and Travel, Jakarta, Indonesia. 10. World’s Best Halal Destination: West Sumatra, Indonesia. 11. World’s Best Halal Culinary Destination: West Sumatra, Indonesia 12. World’s Best Halal Cultural Destination: Aceh, Indonesia. Meanwhile, the Head of Deputy of Development and Promotion of Arrchipelago Tourism, Esthy Reko Astuty said that, a lot of reasons why Indonesia could become the center for the world halal tourism. First, Indonesia has many tourist attractions the world that is equipped with amenities, such as an international-standard hotel. Secondly, accessibility, ie airports with international standard and domestic, as well as efforts to develop the soft infrastructure in the form of human resources. Third, halal tourism product is an alternative tourism product, meaning that any traveler can take advantage of a variety of amenities. Halal tourism products not only for the Middle East tourists, but also to countries like China, Korea, and Japan is also a potential market. Fourth, Indonesia is the largest halal travel market which is reinforced by a team of accelerating the development of halal tourism products (http://lifestyle.liputan6.com). 7. 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