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Challenges and Prospects of the Halal Hotel Industry in Muslim-majority and Muslim-minority Countries: The Case of Malaysia and Thailand

The number of Muslim tourists has surged in recent years due to increased number of Muslim population with higher segment of better educated and more prosperous Muslim community. Although this is undoubtedly an opportunity for the hotel industry, the unique religious and cultural needs of Muslims pose some challenges for hoteliers. A response to this has been the development of halal hotels which offer food, accommodation and entertainment that is halal. While establishing halal hotels in Muslim-majority countries like Malaysia seems to be easier with the inherent good understanding of Islamic practices as well as support from the government, halal hotel industry could also give competitive advantage to Muslim-minority industry such as Thailand. It is therefore pertinent and timely to look into the challenges and prospects of halal hotel industry in Malaysia and Thailand. The comparative research framework must include a considerable number of hotels encompassing a variety of scales of operation from both countries to obtain reliable qualitative data. The findings could assist policymakers and relevant authorities in setting the way forward for the industry particularly by establishing relevant regulation and economic environment that support the industry.