Development of Halal Tourism and its Impact on The Economy in Indonesia

Abstract

This study examines the development of halal tourism in Indonesia and its economic impact within the framework of Islamic principles. Indonesia, as the country with the largest Muslim population and ranked first in the Global Muslim Tourism Index 2023, has significant potential to become a global halal tourism hub. Using a qualitative literature review method, this research analyzes data from electronic media, previous studies, and relevant tourism regulations. The findings show that halal tourism is not only a recreational activity but also reflects Islamic values such as worship, learning, and reflection. A halal destination is characterized by key components, including halal hotels, transportation, restaurants, food, logistics, Islamic financial systems, and Islamic tourism packages. Economically, halal tourism contributes to job creation, foreign exchange earnings, regional income growth, and local business development. Provinces such as Aceh and West Nusa Tenggara illustrate its positive regional impact. However, challenges remain in marketing strategies and ensuring inclusivity without compromising Islamic principles. Strengthening the halal tourism value chain through strategic planning is essential for sustainable growth.