2nd International Conference on Islamic Finance, Economic and Business (ICIFEB) 2018 October 29, 2018 GROWING HALAL TOURISM IN JAKARTA, WHICH CAN INFLUENCE NATION’S COMPETITIVENESS Sri Widyastuti*, Sudarmin Parenrengi. **, Fatima Tuzzahara Alkaf. *** Faculty of Economic and Business, Universitas Pancasila Jl. Srengseng Sawah – Jagakarsa – Jakarta Selatan, Indonesia. *Email: [email protected] Tel: +628129383050 **Email: [email protected] ***Email: [email protected] ABSTRACT This study aims to find out how halal tourism in services, infrastructure, human resources and government policies that have a green concept will be able to influence the nation's competitiveness. The study was conducted in Jakarta and its surroundings with a purposive sample from the archipelago's visiting borders. The outcome of the study shows that tourism services, tourism infrastructure, and government policies in supporting green concept halal tourism were able to influence the nation's competitiveness. Human resources prepared to compensate for the growth of halal tourism have no effect, this is due to determining comfort, a satisfaction of tourists visiting the area human resources do not have good skills in halal tourism. They need to get a lot of business certification in the tourism sector. The training aims to make tourism human resources have competitiveness against tourism human resources in other ASEAN regions and can advance the halal tourism industry in Indonesia. Keywords: halal tourism, nation’s competitiveness. Introduction The tourism sector is growing rapidly in the world and produces the top export category with a total of USD 1.6 trillion, or USD 4 billion on average per day. The highest increase since the global economic crisis in 2009 and well above the long-term estimate of 3.8% per year for the period 2010 to 2020, (UNWTO Tourism Highlight, 2018). As many as 1,323 million international tourist arrivals grew by 6.8% in 2017, driven by sustainable travel demand to destinations in all regions of the world and driven by rising global economic growth. In addition, the tourism sector is a contributor to 9.8 million jobs or 8.4 percent. Employment grew by 30 percent in 5 years, where the lowest job creation was USD 5,000 per job. Furthermore, the fastest growing religion in the world is Muslim, with around one in four people worldwide becoming Muslim, making up more than 1.6 billion people, or about 23.4 percent of the world's total population, making Islam a religion with the largest number of adherents in the world. By 2050, this will increase to 2.8 billion or about one in three people around the world who practice Islam with the majority coming from the Asia Pacific region (PEW Research Center). Indonesia is a country that has natural beauty, a legacy of customs and culture that is abundant in the world. Residents who embrace Islam in Indonesia In 2010 some 12.7 percent of the total Muslim world or around 205 million people or 88.1 percent of the total population, (The Pew Forum on Religion & Public Life, 2010). Thus the Muslim travel market continues to grow rapidly and will continue to grow up to the tourismUS $ 80 billion to reach US $ 300 billion in 2026, (Master Card and Crescent rating (2018) in the Global Muslim Travel Index / GMTI). In 2017, an estimated 131 million 1 2nd International Conference on Islamic Finance, Economic and Business (ICIFEB) 2018 October 29, 2018 Muslim visitor arrivals globally rose from 121 million in 2016 and are expected to continue to grow to 156 million visitors in 2020 representing 10 percent of the travel segment. In 2020 it is estimated that the number of Muslim tourists will increase (Master Card and Crescent rating (2018) in the Global Muslim Travel Index / GMTI), to 156 million tourists and representing 11 percent of the tourism industry segment which is forecast with spending of US $ 220 billion. According to Siti Daulah Khoiriati (2018) with the largest Muslim population in the world, Indonesia follows the trend and takes part in the halal tourism market at the global level by introducing the Halal concept for several tourist destinations. With increasing competition in the world of tourism, no longer enough to rely solely on nature and culture tourist attraction, a creative strategy is needed to attract global tourists, namely halal tourism. Based on the 2018 GMTI in the Organization of Islamic Cooperation (OIC) destination group, Malaysia continues to be at the top of the index for the eighth consecutive year with an index score of 80.6. Malaysia has managed to maintain its leadership as one of the best destinations for Muslim tourists in terms of various criteria analyzed. Indonesia is still ranked second in the world halal tourism destination, below Malaysia. In 2015, Mataram in Indonesia won the 2015 Best Halal Destination Award and The 2015 Best Halal Honeymoon Award held in Abu Dhabi. This achievement has become a driver to enliven halal tourism potential in various provinces or regions in Indonesia. This reputation has been portrayed by the Travel and Tourism Competitiveness Index (TTCI) in 2017, which was officially released by the World Economic Forum (WEF). After 2015, Indonesia's position from the top 70 board increased to 50. In the future, Indonesia can be projected to rise in the top 30 in the world and for this reason, the development of the tourism sector will likely be able to match Thailand or Malaysia in 4 or 5 years. From the WEF it is known that the main strength of Indonesian tourism is natural tourism (ranked 14th), (Nuran Wibisono, 2017), but there are still many cases of natural destruction in Indonesia, ranging from the opening of protected forests for gold mining, sea reclamation for business purposes, deforestation, also destroy karst for cement mines and so on. A set of green economy scenarios is to stimulate green economy policies in key sectors, including, for example, agriculture, energy, industry, tourism, waste, and water, (Andrea, 2016). Green tourism development supports efforts to preserve the natural and cultural environment and increases community participation and involvement in its management. The concept of green tourism is expected to guarantee the distribution of economic benefits to the local community and government and to preserve the environment. Based on the explanation above, this research was conducted with the aim to find out how halal tourism in services, infrastructure, human resources, and green concept government policies will be able to influence the nation's competitiveness. Literature Review Halal Tourism The phenomenon of tourism is not only limited to certain types of pilgrimage/religious tourism, but develops into new forms of universal values such as local wisdom, benefits for society, and elements of learning. Thus it is not impossible if Muslim tourists become a new segment that is developing in the world tourism arena, (The tourism ministry of the Republic 2 2nd International Conference on Islamic Finance, Economic and Business (ICIFEB) 2018 October 29, 2018 of Indonesia, 2015). At this time, Islamic tourism is considered as a very promising place in the near future, considering that Islamic tourism has received much interest in recent years, Kristel (2015). According to Sofyan (2012), the definition of sharia tourism is broader than religious tourism, namely tourism based on Islamic sharia values. As recommended by the World Tourism Organization (WTO), sharia tourism consumers are not only Muslims but also non-Muslims who want to enjoy local wisdom. The definition explains, the general criteria for sharia tourism are; has an orientation to public benefit, has an orientation of enlightenment, refreshment, and tranquility avoids polytheism and superstition, is free from immorality, maintains security and comfort, preserves the environment, and respects social- cultural values and local wisdom. Furthermore, the term sharia tourism, also known as Halal tourism. Halal tourism is a new concept of tourism and is not religious tourism such as umroh and performing Hajj. Halal tourism is tourism that serves holidays, by adjusting the holiday style according to the needs and requests of Muslim travelers. For example, hotels that carry sharia principles do not serve alcoholic beverages and have separate swimming pools and spa facilities for men and women, (Wuryasti, 2013). Halal tourism was launched to coincide with the Indonesia Halal Expo (Index) and the 2013 Global Halal Forum. Munirah (2012) described Islamic tourism as a tourism demand from a Muslim tourist based on lifestyle during the holidays. Jaelani (2016) added that Islamic tourism is a journey to contemplate miracles and enjoy the beauty of the universe created by Allah SWT so that it will make the soul of the traveler stronger in his faith and at the same time help the obligations of one's life. Islamic brand image combines culture, the point is religious attributes that characterize Muslim needs, beliefs and consumption patterns based on sharia law and the Quran. Then the Islamic brand is often synonymous with halal branding, Kristel (2015). According to Farahani & Henderson (2009), Islamic tourism can be interpreted as an act of traveling a Muslim from one place to another or being in one place outside their place of residence for a short period of time and involved in religious activities. Malaysia continues to strive to become a popular Islamic tourist destination in the world and builds a halal hub for financial products and services, Islamic and halal tourism, Shafaei & Mohamed, (2015). Tourism Services In measuring service quality, Servqual models may be the best, initially developed by Parasuraman, (1988). Tawinunt, Phimonsathien, & Fongsuwan (2015) explained that service quality, customer relationship management will provide a better response to buying needs and habits and contribute to management's strategic planning that builds better customer satisfaction standards. Hefer, (2014) showed that perceptions of service tangibility and overall service satisfaction levels are slightly above average.