A REVIEW OF ISLAMIC FINANCING OPTIONS FOR HALAL TOURISM MARKET DEVELOPMENT IN NIGERIA

Abstract

Muslim’s tourists all over the world are exploring new destinations and seeking authentic, unique travel experiences that diverge from the ordinary. This desire for discovery has made Muslim travelers one of the fastest growing segments in the global travel industry and with the tourism sector in 2019 accounting for some 330 million jobs worldwide, equivalent to 10.3 per cent of total global employment and one in 10 jobs globally, where for every directly created tourism job, nearly one and a half additional jobs are created on an indirect or induced basis, there arises the need for other financing options to cater for such wide and increasing niche travelers. The study therefore, seeks to identify such halal tourism products in Nigeria, financing options, gestation and its efficacy in tourism development for the country likewise quantify its contributions to the economy vis a vis other niche tourism products offered. The study adopted a desk literature approach by systematically reviewing literatures on halal tourism products, Islamic finance options for tourism development, applicability of regulatory framework for halal tourism market in Nigeria while a cross tabular analysis of the finance instruments as used in some countries was also used with a view to making inferences of its applicability in Nigeria. Findings revealed that there is a huge market for halal tourism in Nigeria with varying range of products, instruments for Islamic financing of tourism are also available and are highly reliable being that fluctuating interest rates do not affect the tenure nor its maturity in the market. Though there is no official regulatory framework for the segment in place and the benefits accruable for the tourism ecosystem are immense for the country where the study thus recommended a government-led destination marketing through strengthening Halal food and travel services compliance ecosystem and launching of seed marketing campaigns such as innovative programs, creating joint promotions and fostering bilateral relationships with established Halal Tourism Markets like Malysia and Turkey.