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Islamic Banking, Accounting And Finance International Conference–
The 9
thiBAF 2020
Digital Marketing for Halal Tourism Provider: A Review
Noradilah Abdul Hadi
1, Mohd Rizal Muwazir
2, Nur Shuhada Kamarudin
1, Nurul Nazlia Jamil
1, Nurshamimitul Ezza Ramli
11Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia (USIM), Bandar Baru Nilai, 71800 Nilai, Negeri Sembilan Malaysia
Tel: +606 798 6385. E-mail: [email protected] Tel: +606 798 6409. E-mail: [email protected]
Tel: +606 797 8679. E-mail: [email protected] Tel: +606 7978765. E-mail: [email protected]
2Department of Shariah and Management, Academy of Islamic Studies, University of Malaya, 50603 Kuala Lumpur Malaysia
Tel: +603 7967 6165. E-mail: [email protected]
Abstract
Halal market becomes one of the most profitable market at present and has shown promising growth particularly in Malaysia.
The concept of halal is not only limited to food consumption, but also covers halal tourism which consists of halal hotels, halal transport (airlines), halal restaurants, halal tour packages and halal finance. Majority of tourists got information through travel websites, social media, blogs, travel agencies and advertising. This signifies the importance of digital marketing as the internet has changed the way people communicating and interacting with each other. This study aims to explore the concept of digital marketing and its potential in enhancing marketing strategies for halal tourism provider based on critical review of literature.
Halal tourism providers have been encouraged to improve their tourism promotion signifying the importance of digital promotion to increase global outreach of halal tourism services.
Keywords: digital marketing; halal tourism; digital promotion; islamic marketing
1. Introduction
It is evidenced that there have been significant changes in the use of technologies at present. Accordingly, there has been substantial development on the types of digital technology available for mass use within the last decade.
For instance, the development and extensive use of Web. Web 1.0 could be referred to the time where World Wide Web was developed and became readily accessible to the public in 1994, while Web 2.0 which also known as the
‘social web’ began to be recognized by the social users of technology since 2004, and has been described as the evolving use of digital technology (Lupton, 2014). The Web can be accessed by any person equipped with appropriate software, making the platform accessible to create and communicate advertisements and other marketing efforts (Kiani, 1998). Consequently, mobile digital devices that could connect their users to the internet from almost any location such as smartphones, tablets and wearable sensor-based devices have hit the market and became commonly adopted. Furthermore, social media tools, such as Twitter, Facebook, YouTube and Instagram, are designed to enable users to create content and share personal data. Indeed, Web 2.0 is characterised by the activities of online technology 'prosumers' or consumers who both generate and consume digital content (Ritzer et al., 2012).
It was argued that the Web could help in creating brands, creating consumers’ word-of-mouth interaction, buzz marketing, and crowdsourcing (Whitla, 2009). Accordingly, the Internet will boost the overall efficiency of the
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organisation to support the implementation of marketing campaigns (Smith, 2012). Meanwhile, researchers are now speculating that Web 3 is emerging as the next level of digital technologies. This may entail the interconnection of 'smart objects' which is able to exchange data without the necessity for human interference (Miorandi et al., 2012;
Lupton,2014).
The digital era provides exceptional opportunities to attain and interact with youth, for whom the use of social media has grown to be a regular routine. The potential to reach youngsters and generate content that evokes them to participate in and share campaign materials significantly contributes to efforts aimed towards improving the health of teenagers and young adults. At the same time, global commercial companies have allocated a huge advertisement budgets to allow them to experiment with innovative and creative ways to inspire young people to learn about, share knowledge and try products that are harmful to their health. There are several barriers to appropriate and efficient control of social media ads that can, where feasible, have a detrimental impact on young people. It is crucial that the teenagers and their parents are informed about the scope and nature of social media marketing within the absence of effective legislation, so that teenagers can grow into media-literate users (Dunlop et al., 2016).
2. Digital Marketing
Digital marketing is an efficient way to communicate with millennials because of their broad use of digital media (Smith, 2012). Every organisation today competes in two worlds as according to Rayport and Sviokla (1995): a physical world with resources that managers can see and touch, and a virtual world built with information. The latter has given rise to the electronic commerce world. The Internet and the Web are the most developing and innovative elements that contain specific and influential features which make them central to a marketing paradigm shift (e.g.
Armstrong and Hagel, 1996; Blattberg et al., 1994; Glazer, 1991; Hoffman and Novak, 1996; Rayport and Sviokla, 1995; from the conventional "One-to-Many" communication model to the "Many-to-Many" model (Hoffman and Novak, 1996), from "supply-side" to "demand-side" theory (Rayport and Sviokla, 1995), and the change from
"differentiated goods in decentralised markets" to the "fifth phase" of marketing evaluation (Blattberg et al., 1994;
1997; Kiani, 1998). Tiago and Verissimo (2014) proposed that digital marketing is not only limited to the content of the message but also applies to consumer relationships and is a powerful tool to create, enhance and sustain the awareness of brands.
The most viable spot for reaching this generation is considered to be digital marketing (Smith, 2012). The internet enables millennial generation to assert control over the free market by sharing their views across various venues that severely affect a wide range of consumers and marketers. Millennials are motivated to be more involved in the marketing and development of goods and brands through social media, business websites, and interactive technologies. This online generation is very eager to write reviews, provide additional insight on products, and support their favourite brands. With the help of websites such as YouTube, V-Cam, and Google Video, consumer- generated advertisements, podcasts, and blogs are on the rise. The views of fellow consumers are perceived by this generation to be more reliable than conventional advertisements. Millennials have quite an impact on the marketplace by being more involved in the marketing and development of products and brands. Hundreds or even thousands of individuals can be targeted through online user feedback and WOM (Smith,2012).
Facebook is perhaps the most utilised, and thoroughly re-searched, social networking site. Facebook had 1.23 billion monthly users worldwide in 2013, less than a decade after its official launch (Dunlop et al., 2016). YouTube, an interactive video-sharing site where users can upload their own videos and receive reviews and feedback, is also a social networking site popular among youth. With over one billion users and video content hitting billions of views each day, YouTube is the second most popular social networking platform (Pew Research Center, 2014;
Dunlop et al.,2016). YouTube, Vimeo, Flickr and other social media platforms present the ability to broaden and improve this approach to production (O’mara, 2012). Digital video, once restricted to DVDs, broadcast television and other 'one-way' communication networks currently can be downloaded, shared, re-mixed and posted via YouTube, Vimeo, Facebook and other interactive sites that enable users build their own posts, stories and networked forms of communication (O’mara, 2012).
Digital marketing involved with two activities with the first one, to exploit the specific capabilities of modern interactive media. For instance, the World Wide Web, streaming platforms and proprietary dial-up platforms to establish new kinds of consumer-to-marketer experiences and transactions. Secondly, to incorporate interactive
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media with other elements of the marketing mix (Parsons et al., 1998). Mobile digital devices and applications ('apps'), websites and linked channels not only provide ready access to online medical and wellness records, but also new ways to track, measure and simulate the human body and exchange personal records and experiences with others (Lupton, 2014). As described by Dunlop et al. (2016), the use of mobile devices that allow access from anywhere at any time implies that individuals are subjected to social media marketing notifications near or at the point of purchase / decision-making.
In digital marketing, Leeflang et al., (2014) agree that the important factors for success include user attraction, engaging the attention and involvement of consumers, retaining and making sure users return to an application, knowing and learning about their interests and reflecting back to them to provide kind of personalized experience that represent the true ‘value bubble’ of digital marketing. The application of digital marketing could be seen in major sectors including tourism industry. This study highlights the applicability of digital marketing towards promoting halal tourism industry as the halal industry itself shows promising growth and significant development.
3. Halal Tourism
Currently, halal market can be considered as one of the most effective and profitable market. Muslim customers’
expectation and demand to halal food, halal holiday and so on become significant factor to the growth of the halal industry (Akyol and Kilinc, 2014). The term halal (لﻼﺣ) originates from the sense of the Arabic language: lawful, appropriate, allowed, and/or lawful. This word is the primary source of the halal definition, which not only applies to food or food items (as most people anticipate or believe), but also extends beyond food to include all aspects of the life of a Muslim either male or female. Within this regard the definition of halal is based on the need for every Muslim to have goods that are allowable, appropriate, permitted, and permissible from a religious point of view. As such, the halal definition involves any Islamic Shari'ah-compliant product(s) including food and beverages, banking and finance, tourism, cosmetics, employment, travel, transport services and others (El-Gohary, 2016). In order to promote worship and dietary requirements that adhere to Shariah law, halal tourism means the provision of a tourism product and service that meets the needs of Muslim travellers.
Non-Muslim majority countries such as Spain, India, and the UK are now actively targeting the halal tourism sector as a result of the high importance of halal tourism (The World Halal Travel Summit, 2015; El-Gohary, 2016).
Muslim travel market is expected to grow a further US$80 billion to reach US$300 billion by 2026, with Malaysia was at third position among top 10 Muslim inbound destination (GMTI 2018). Many Muslim and non-Muslim countries are expected to capture the Muslim tourist market by providing tourism goods, facilities and infrastructure to meet their needs, because halal matters advancing the tourism industry (Zakiah Samori et al., 2016). The halal tourism market is a fast-growing market, but at the same time is under researched (Sanchez and Perano, 2018). It is argued that the absence or weak publicity, promotion and mass media exposure are obstacles for tourism development in the OIC member countries (Suradin, 2018). Zamani-Farahani and Henderson (2010) considered Islamic tourism and Halal tourism as similar concepts and described Islamic tourism as tourism primarily by Muslims who prefer to remain within their culture. This description illustrates the fact that Islamic tourism is for Muslims and Muslim country is where the activities take place. The term, however, neglects the criteria of Islamic law for tourism activities (Battour and Nazari Ismail, 2016). Islamic tourism is believed to draw many travelers’
attention who are totally interested in what is known as 'Islamic culture' (El-Gohary, 2016).
However, it should be noted that Islamic tourism varies from halal tourism. Defining a certain activity or product(s) as Islamic gives a clear picture that such activity or product(s) completely complies with Islamic laws, guidelines and specifications (which may not be the case in every single product and/or activity of halal tourism). In addition, the branding of halal tourism as Islamic tourism could give a misleading idea that such tourism activities and/or products are only for Muslims, which is not true as halal tourism products can also be consumed by non- Muslim customers for many reasons. As such, the word "halal tourism" is preferred to be used as the main and only word for branding and identifying tourism products and/or activities that completely comply with the halal definition and Islamic Shari'ah rules and guidance. This offers a much clearer way to grasp the true essence and importance of tourism activities of this sort (El-Gohary, 2016). According to Islamic teachings, halal tourism can be summarised by any subject or activity that is appropriate for use or participation in the tourism industry including behaviour, attire, attitudes and diet (Battour and Nazari Ismail, 2016). It is also defined by Halbase (2015) as:
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"Offering tour packages and destinations specifically designed to meet Muslim considerations and to address Muslim needs". As such, components such as: halal food, halal transportation, halal hotel, halal logistics, Islamic finance, Islamic travel packages, and halal spa are the fundamentals of halal tourism (Razalli et al., 2012).
Additionally, halal tourism is portrayed by Duman (2012) as the activities of Muslims who travel and stay above their usual environment in places. The consumers of halal tourism are therefore the end-user of products and services that are supposed to be compliant with halal, and thus the industry should respect their rights and interests if the needs of this sector are to be successfully met (Asad Mohsin et al., 2016). In order to gain religious and social objectives, travelling has also been promoted in Islam (Pickthall, 1976; Yusuf, 2005; Zamani-Farahani &
Henderson, 2009; Zakiah Samori et al., 2016). Religion can affect Muslims' day-to-day activities, whether at home or travelling, and thus affects the choice of a destination and what would be performed at the destination for discretionary purposes. The category of travel mandated in Islam can be defined as "purposeful" tourism that differs from the current practice of mass tourism that is primarily motivated by pleasure and hedonistic pursuits (Zakiah Samori et al., 2016). In the Quran, several verses urge people to travel and make a journey, as this will increase the awareness of the Oneness of Allah. Muslims are encouraged to travel around the globe in order to learn about the glory of God. Similarly, in Surat Al-An'am, Allah SWT urges people to wander around the earth to consider the fate of those who preceded them, especially those who cast aspersions (Zakiah Samori et al., 2016).
On the other hand, halal tourism is also accessible for non-Muslims who may want to take advantage or benefit from halal tourism such as a Jewish family living in Israel and consuming halal food while travelling outside Israel as an alternative to Kosher food when staying in a halal hotel; and the non-Muslims consuming halal food while staying in a halal hotel as a healthy alternative food. Accordingly, due to its universal existence, non-Muslims can also enjoy halal tourism (Islamic Tourism Centre, 2015; El-Gohary, 2016).
4. Discussion
The internet serves as an important platform for information exchange between the customers and the industry players such as hotels, transportation services, travel agents as well as governments (Akyol and Kilinc, 2014).
Majority of tourists got information through travel websites, social media, blogs, travel agencies and advertising (Comcec Coordination Office, 2016). The distinctive features of the internet marketing include low cost, easy access, global reach and extensive information (Akyol and Kilinc, 2014). Marketing policies particularly in digital promotion has been identified as key areas of halal tourism marketing gaps and opportunities (Comcec Coordination Office, 2016). The Comcec also encourage OIC member countries to improve their tourism promotion signifying the importance of digital promotion to increase global outreach of halal tourism services. As halal tourism offers a significant business opportunity for Malaysia, it is very important for the halal tourism providers to design and market their services according to the principles of Shariah. For instance, the digital promotion should include informative and persuasive advertising without compromising the Islamic values in their promotion. However, limited research has been done regarding digital promotion among halal tourism providers particularly in Malaysia.
In particular, the information on how halal tourism providers create, communicate and deliver the Islamic values to their customers are scarce and limited.
Previous studies suggested that halal tourism operators should use Islamic Attributes of Destination in their marketing campaigns (Suradin, 2018). However, this could cause a concern among the non-Muslim tourists (Battour and Ismail, 2016). Accordingly, a common approach on standards of doing digital promotion is underdeveloped.
Digital promotion refers to the use of web-enabled technologies and the internet to reach and engage consumers through various promotional activities. Digital promotion examples include search engine optimization, email, mobile, social media, blogs and wearable or virtual reality marketing. Digital promotion represents the strongest market growth segment, which can be seen as Digital Ad Spending accounted for 29.9 percent of total Media Ad spending worldwide in 2015, which is expected to increase to 39.3 percent in 2019 (Comcec Coordination Office, 2016). The content of digital promotion is central to the promotion of halal tourism as it provides all the information needed by the potential tourists. For instance, the availability of information regarding halal cuisine, halal hotels and permissible activities provided. Future developments related to halal tourism have been described as a market opportunity that is expected to expand in the years ahead. It is important to be more aware of the consequences of
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greater Shariah observance by Muslims for people and organisations involved in the tourism and hospitality industries (M. Battour et al., 2010).
5. Conclusion
This study explores the concept of digital marketing and its applicability in current environment with the focus on halal tourism industry. Future research is recommended to recognise the current practice of digital marketing amongst halal tourism provider especially in Malaysia. Analysing the practices of advertising by halal tourism providers in Malaysia will assist marketers in their understanding and application of business communication towards their potential customers. The halal tourism providers must have knowledge as well as guidelines on how to promote their business and activities. Saeed et al., (2001) stated that “either as consumers or marketers, people’s behaviour should be guided by the principles of justice, magnanimity, cooperation, exhorting goodness and forbidding wrong, and above all, seeking Allah’s pleasure by serving consumers and society at large”. Therefore, advertising messages should portray good images and positive influence to potential tourists.
Acknowledgements
This research is benefited from the funding from Malaysian Ministry of Higher Education (MoHE) under the FRGS Funding Ref: FRGS/1/2019/SS01/USIM/02/8 with code: USIM/FRGS/FEM/055002/52019 (Conceptualizing a Theoretical Framework of Digital Promotion for Halal Tourism Providers in Malaysia).
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