Economica: Jurnal Ekonomi Islam
Vol. 17 No. 1 (2026)

Does Hospitality Drive Halal Tourism, or Vice Versa? Dynamic Panel Evidence from OIC and Non-OIC Destinations

Zulfikar Hasan (Institut Agama Islam Negeri Datuk Laksemana Bengkalis)
Romzie Rosman (International Islamic University Malaysia)
Sona Muhardi (Universitas Ahmad Dahlan)



Article Info

Publish Date
30 May 2026

Abstract

This study examines the relationship among halal tourism, hospitality services, and Muslim-friendly travel experiences across the selected sample of OIC and non-OIC countries from 2010 to 2025, incorporating the latest observations for 2025. Using a quantitative design, the analysis applies Dynamic Panel Vector Autoregression to identify reciprocal causal relationships and System Generalized Method of Moments estimation to address endogeneity and test robustness based on first-differenced stationary variables. The PVAR results indicate bidirectional causality between halal tourism and both hospitality services and Muslim-friendly travel experiences. In addition, the System GMM estimates show that hospitality services significantly improve halal tourism (β = 0.274, p = 0.003), while Muslim-friendly travel experiences produce an even larger impact (β = 0.351, p < 0.001). The model also satisfies diagnostic tests, as the Hansen J-test confirms instrument validity (p = 0.290) and no second-order serial correlation is detected (p > 0.10). Taken together, these findings reinforce the tourism-led growth hypothesis and endogenous growth theory by demonstrating dynamic links among these sectors. Thus, OIC and non-OIC state authorities must defend Islamic-oriented hospitality, devise Muslim/halal-friendly tourism standards and branding within a framework of destination inclusivity in balance with real and sustainable halal certification.

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Journal Info

Abbrev

economica

Publisher

Subject

Economics, Econometrics & Finance Social Sciences Other

Description

EEconomica: Jurnal Ekonomi Islam is a scientific journal in the field of Islamic economics studies published twice a year by the Institute of Islamic Economic Research and Development (LP2EI), Faculty of Islamic Economics and Business UIN Walisongo Semarang. The editors receive scientific ...