BRANDING MALAYSIA AS HALAL HOSPITALITY:

A CONCEPTUAL PAPER
Nor Shahrul Nizam Bin Muhamad Nor
Faculty of Business Management
Universiti Teknologi Mara (UiTM)
40450, Shah Alam, Selangor Malaysia
Norzaidi Bin Daud (Assoc Prof Dr)
Faculty of Business Management
Universiti Teknologi Mara (UiTM)
40450, Shah Alam, Selangor Malaysia

ABSTRACT
The objective of this article is to highlight halal hospitality in Malaysia.
The positioning strategy should be done by Malaysian tourism and private
sectors in promoting Malaysia as a brand for halal hospitality. Many
articles already highlighted halal products and meanwhile halal services
being a new scope of research especially in hospitality and tourism. As a
conceptual paper, this study expecting that tourist behavior intention will
be influenced by awareness, image, quality and value of branding
Malaysia as Halal Hospitality. The research will be conducted through
questionnaires.
Field of Research: Marketing

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1. INTRODUCTION
The number of Muslims population which estimated 1.7 billion globally emerging new
market sector which is The Halal Market. Thus it is the right time for companies with
halal products and services should react aggressively to cater the opportunity. However,
the companies especially multinational companies (MNC) face a very challenges task to
cater Muslims market due to difference in political, economy and socio-cultural aspects
(Shafie & Othman 2010). Therefore, Malaysian government grabs this opportunity by
introducing Malaysia as Halal Hub for Halal Product and services. The idea came by fifth
Malaysian Prime Minister, Dato Seri Haji Abdullah Ahmad Badawi. He proves it
through The Third Industrial Master Plan (IMP3) for 2006-2020 which Halal Hub
become one of the objectives whereby to make Malaysia the global hub for the
production and trade in Halal goods and services. This effort continued by the sixth Prime
Minister, Dato Seri Najib Tun Abdul Razak with strengthening HDC by centralized
Halal Logo and organizing Halal Forum. It also strengthens the services as well as
products especially in financial industry by implementing Islamic Banking system.
Meanwhile another service industry such as logistics and hospitality considered as new to
develop.
Marketing halal product and services keened by researchers and scholars in order to
optimize the potential through the various medium of marketing. Most of research
recently focused on halal product especially on halal meat which also discovered by non
Muslims researchers. They prefer to test the consumer perception and acceptance towards
these halal products and halal certifications (Shafie & Othman 2006). However, there
halal services being a new scope of research especially in hospitality and tourism.
Tourism and hospitality market is a part of important services industry for the economic
growth. This industry could be segmented according to eco, nature, heritage, religious
and so on (Weidenfeld 2006). Religious tourism means the individuals quest for shrines
and locales, whereby more on sites of historical and cultures that related to the religious
(Farahani & Henderson, 2010; Weidenfeld 2006). Related to Halal Hub introduced by
Malaysian government, this is opportunities should be taken by all services providers
such as MNCs and SMEs companies. Malaysian tourism report that expecting tourist year
by year are increasing by 4.9% (Malaysian Tourism Report Q1 2011) and it proved by
10.2 million tourist in year 2000 increase to 24.6 million 10 years later. From this figure,
target tourist fom Middle East which commonly are Muslims also increase. Mohd Salleh,
Othman & Mohd Noor (2010) in their preliminary research noted that Middle East tourist
to US and UK dropped drastically due Sept 11 and changes it to Muslims countries such
as Malaysia. Despite of Sept 11, they also looking for the hospitality can respect and
similar with their belief.
From that figure, this study is to develop right marketing strategies to establish Malaysia
as a brand for Halal Hospitality especially among SMEs companies. Branding is
considered as powerful marketing strategies for creating competitive advantages that
create identity for goods and services, and differentiate it from competitors (Kotler 2010)
which including travel destination (Aaker 1991) or brand destination (Buhalis 2000; Cai
2002).

2. PROBLEM STATEMENT
Research on halal dramatically draws a lot attention from scholars. Halal become hot
topic recently and more articles are published and presented in conferences done by
Muslims and Non Muslims scholar. Wilson & Liu (2010) suggest that there are gaps in
between understanding in business thinking and practices especially consumer-based
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perspectives. Saeed, Ahmed & Mukthar (2001) noted that lack of attention given by
researchers in marketing in Islamic perspective even though the growing importance of
Muslims target market.
Research on Halal is focusing on products such as meat, food, pharmaceutical and
cosmetics. Restaurants serving Halal food is a part of service industry that given attention
together with Halal food research. Financial industry is another Islamic perspective on
services which give a lot attention by scholars. However, other services industry is
considered as a new perspective to explore with Halal such as logistics and hospitality.
Weidenfeld (2006) noted that the tourism and hospitality need to explore new market
segment which is religiosity aspect to remain the competitiveness in the market. Farahani
& Henderson (2010) highlighted that the result from UNWTO (2008) shows that Turkey,
Malaysia and Egypt are the Muslims or OIC countries that become most popular among
non-Muslims.
Destination brand is another academic researchs interest but still need to develop (Cai
2002). Most of research of destination brand is more focus on destination image (Hall,
2002) and the image of Islamic or Halal still considered as new aspect of research
(Alserhan 2010; Farahani & Henderson 2010; Wilson & liu 2010).

3.

LITERATURE REVIEW

3.1 Halal
Halal could be defined as Things or actions permitted by Syariah law without
punishment imposed on doer. (Department of Standard Malaysia, 2009, p 1). Meanwhile
Wahab (2004) define Halal generally as a term means permitted, allowed, authorized,
approved, sanctioned, lawful, legal, legitimate or licit (p 4). Meanwhile Halal according
to MITI and JAKIM:
Is In Arabic meaning lawful or permitted. The opposite Halal is Haram, which means
unlawful or prohibited. Halal and Haram is a universal term that applies to all facet of
life. However we will use these terms only in relation to food products, poultry products,
cosmetics, personal care products, food ingredients, and food contact materials.
Potential halal market due to population of muslims and the understanding of non
muslims towards halal despites of Islamphobia.
3.2 Hospitality
Hospitality or tourism is part of services which become more important industry to the
countries. Tourism industry could be segmented according to eco, nature, heritage,
religious and so on (Weidenfeld 2006). Religious tourism means the individuals quest
for shrines and locales, whereby more on sites of historical and cultures that related to the
religious (Weidenfeld 2006). He (Weidenfeld 2006) found that hospitality and tourism
industry need to cater religious needs of tourist which he test on 179 Christians tourist in
Israel. Meanwhile, Farahani & Henderson (2010) described as the tourists; Muslim must
obey the rules stated by syariah and prefer to choose familiar cultures and provided their
special needs such as Halal meat and hotel signage pointing to Mecca for prayers. Again
Farahani & Henderson (2010) mentioned that economic and political background,
tourism resources and official policies are potential factors contributing Islamic
hospitality and tourism.
In hospitality and tourism, destination branding becomes attractive factor to consider by
tourist. Destination branding is visualization of places that promoting and attracting the
tourist (Pike 2004). Pike (2004) furthermore mentioned that places could be continents,
countries, states, resorts areas or villas, and cities which attached with their own theme or
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idea of destination. It could be eco, nature, religious tourism etc (Weidenfeld 2006).
Therefore, destination could not be a place anymore.
3.3 Brand Destination
Effective marketing to promote these places as part of branding could strengthen their
competitiveness and economics for their local people and countries which could be
known as travel destination (Aaker 1991) or brand destination (Buhalis 2000; Cai 2002).
Destination brand plays four functions as to shape the public perceptions toward the
place, to package the place selectively, to make the destination compete with others
globally, and to shape tourism experiences (Ooi 2004). The brand equity approach is the
most effective measurement for brand destination but Cai (2002) argued that academic
investigation regarding brand destination still lacking and need more interest in marketing
literature (Ooi 2004).
Brand image in general could be defined as brand associations such as attributes and
benefits that perceived in consumer memory (Keller 1993). Cai (2002) and Blain et al
(2005) noted that brand image must be associated with brand destination. Cretu & Brodie
(2005) suggest from their study that brand image positively related with brand value.
The objective of marketing the destination is to create unique brand awareness regarding
that place (Jago et al 2003). Brand awareness according to Aaker (1991) as the ability of
a potential buyer to recognize or recall that a brand is a member of a certain product
category (p.61). Aaker (1991) also mentioned that brand awareness create brand value.
Meanwhile, perceived quality generally defined as customer perception toward overall
quality or superiority of product or services (Aaker 1991). Keller (1993) assumed that
brand quality part of brand judgement. Buhalis (2000) related perceived quality with
brand quality. Cretu & Brodie (2005) noted that brand quality has positive relationship
with brand value.
Brand value is based on brand Equity which being discussed by many authors including
Keller (1993). Kassem & Lee (2004) noted that tourist attitude that consists of tourist
behavioral intention is based on Ajzen theory of Planned Behavior and they found the
variables have relationship with brand equity.
3.4 Proposed Conceptual Framework
Brand destination which consist of brand image, brand awareness and brand quality
positively influence brand value (Aaker 191; Cretu and Brodie 2005). Meanwhile tourist
behavioral intention is based on Ajzen Theory of planned behavior (Ajzan 1971) and
have positive relationship with brand value (kassem & Lee 2004; Keller 1993).

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Figure 3.1: proposed conceptual framework

4. METHODOLOGIES
This research will use self-administered survey. Respondents will be selected among
tourists who just arrive or departure at international entrance such as KLIA. The sample
size would be 200 of respondents and the data will be analyzed by Structural Equation
Model (SEM) which provides a comprehensive understanding of multidimensional nature
of destination brand (Hair et al 1998).

5. EXPECTED RESULT
The result from SEM analysis should support the hypotheses and proposed conceptual
framework. Brand image, awareness and brand quality positively influence brand value.
Meanwhile brand value is positively affecting tourist behavioral intention.

6. CONCLUSION
The framework gives a new dimension of branding in creating Halal Hospitality as part
of destination brand. The conceptual paper is the part of PhD research on how branding
Malaysia as Halal Hospitality from the tourists perspectives. The finding of this study
will assist government, and hospitality and tourism players strategies to attract more
tourists and boost up the economic growth.

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