Islamic Finance and Halal Tourism: An Unexplored Bridge for Smart Specialization

Abstract

Since the 1960s, Halal industry and Islamic Finance have grown in parallel without implementing adequate synergies. Halal tourism is a fast-growing sector of Halal industry, and the connection with Islamic Finance has hardly been researched. The aim of this paper is to analyse whether Islamic Finance can play an active role in developing Halal Tourism. This topic has not been empirically researched in the literature. The methodology is based on a fuzzy hybrid multi-criteria method that satisfactorily handles the imprecise nature associated with the information provided by Likert scales. Our results show how culture has a direct moderating effect on the degree of agreement that respondents have over the active role that IF can play, finding that English respondents agree more than Spanish and Arabs respondents. Similarly, our results also show that the knowledge of the Halal concept makes respondents agree more with the active role of Islamic finance. This study provides insights to the main stakeholders, and it can be strategically used to foster adequate synergy between Islamic Finance and the development of Halal tourist products as a way to specialize in a more sustainable tourism.