Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Research Article: 2021 Vol: 20 Issue: 6S

Halal Hotels Against Visiting Muslim Inbound Tourists' Decisions Moderated by Satisfaction in the Super Tourist Area of Lake Toba

Elfitra Desy Surya, Universitas Pembangunan Panca Budi

Megasari Gusandra Saragih, Universitas Pembangunan Panca Budi

Nurafrina Siregar, Universitas Pembangunan Panca Budi, Medan

Abstract

The concept of halal-based tourism is a response to Muslim lifestyle trends that have emerged as a result of the increased economic capacity of individuals in Islamic nations, particularly in the Middle East. Indonesia, with its diverse potentials, is committed to developing this sector to make it the greatest in the world. Various tourist locations, like the Lake Toba tourism area, are available as halal tourist destinations. The presence of halal hotels and supporting lodgings in the Super Lake Toba tourist area is one of the factors that contribute to the development of halal tourism in the area. As a result, the purpose of this study is to establish the suitability of a Halal hotel for Muslim tourists visiting the Lake Toba Super Tourism Area, which is moderated by the government. The quantitative approach employed in this study included data analysis methods such as the Structural Equation Model (SEM), which included an evaluation of the SEM model (examination of normality, evaluation of multicollinearity and singularity), moderation analysis, and mediation analysis. Halal hotels had an overall positive and significant effect on satisfaction, with a magnitude of 0.730 (70.0 percent), a confidence interval of 9.879, and a probability value of 0.0001; Halal hotels had an overall positive and significant effect on visiting decisions, with a magnitude of 0.23 (23 percent), a confidence interval of 0.280, and a probability value of 0.0001; and tourists had an overall positive and significant impact on the decision to visit, with a magnitude of 1.007.

Keywords

Halal Hotel, Visiting Decision, Muslim Tourist, Satisfaction.

Introduction

Tourism is a journey performed by one or more people with the goal of, among other things, obtaining enjoyment and satisfying a desire to learn about something new and different (Wang et al., 2002; Goossens, 2000; Chen & Chen, 2011). Tourism is one of the sectors of economic development that provides great benefits to a country's overall development (Crouch & Ritchie, 1999; Briedenhann & Wickens, 2004; Mansfeld & Winckler, 2004). Because of the numerous interactions involving a variety of parties, tourist sites and firms operating in this industry can be regarded as a business ecosystem with a high level of complexity (Lalicic, 2018; Kraus et al., 2018; Paramartha et al., 2021). Tourism is a sector that has the potential to grow the world economy because it is also a sector that is resistant to global crises, as evidenced by the development of world travel, which has experienced positive developments since 1950 with the number of tourist trips reaching 25 million people in 1950, 278 million people in 1980, 528 million people in 1995, and 1.1 billion people in 2014, as shown in the graph below (Ratman, 2016; Rizki, 2016).

Specifically, Chanin et al. (2015) stated that the tourist business is enormous and is widely recognized as a sector that accelerates economic growth in developing countries. The rising tourism business suggests that it has the potential to enhance tourist visits, government revenue, and provide benefits for local populations in the form of a source of income (Nawawi et al., 2019; El Gohary, 2016).

The tourism industry continues to undergo remarkable transformations, moving from being traditional (mass, entertainment, and sightseeing) to becoming a source of fulfillment for people's lives (Kim, 2014; Berno & Bricker, 2001; Chandra, 2014). The trend toward halal tourism as a means of achieving one's current lifestyle goals has grown into a global tourist force that is beginning to flourish at a rapid pace (Prayag, 2020; Pamukcu & Sariisik, 2020; Vargas-Sanchez, 2018). Internationally, the phrase "halal tourism" is referred to by a number of other names, including Islamic tourism, Halal Friendly Tourism Destination, Halal Travel, Muslim-Friendly Travel Destination, Halal Lifestyle, among others. Halal tourism is a novel approach to developing Indonesian tourism that maintains Islamic culture and values while promoting the country's heritage (Mahardika, 2020; Pratiwi et al., 2018). The concept of halal tourism is a relatively new concept in the tourism sector, and further development and a more comprehensive understanding of the partnership of Islamic values inherent in tourism activities are required (Widagdyo, 2015; Satriana & Faridah, 2018). The rise of Muslim tourists has ramifications for the global tourism sector as a whole. In order to draw more tourists to their nations, the tourism industries in Asia, Europe, and the Middle East are pushing halal tourism actively. As a result, various countries are working to promote halal tourism, and the World Halal Tourism Summit is a global gathering (WHTS). The WHTS (World Halal Tourism Summit) is a halal tourism-related worldwide summit. Exhibitors and attendees will have numerous halal tourism business options at WHTS. There were 202 exhibitors in 2015, representing countries such as Indonesia, Bosnia, Kenya, the United Arab Emirates, Thailand, Sri Lanka, Morocco, Jordan, Malaysia, Turkey, Oman, Palestine, Croatia, Iran, Egypt, Tanzania, the United Kingdom, Canada, the Maldives, and the Lebanese Levantine (Yuanita, 2016). The demographics of the countries taking part in this tourism event are diverse. Even though the country's population is predominantly non-Muslim, they are quite receptive to the idea of halal travel. Not only is halal tourism available to Muslims, but it is also open to anybody who wants to take advantage of the services offered by halal tourism (Battour et al., 2018).

It's expected to expand by another percent this year. It's estimated that by 2020, the number of Muslim visitors will exceed 160 million, spending USD 220 billion, with a compound annual growth rate of 27 percent, according to the Mastercard-Crescent Global Travel Market Index (GMTI) Report 2019. This rise will continue until 2026, when it is expected to reach $300 billion. World Travel and Tourism Council (WTTC) growth predictions for Muslim world travelers in 2018 were way off the mark, which states that world tourist growth will reach 6.4%. The rapid growth of Muslim tourists in the world has made many countries, both from Islamic countries (such as Malaysia, Turkey, Middle East countries) and non-Muslims (such as Singapore, Thailand, Western Europe, Japan, Korea), seriously develop halal tourism (Mohsin et al., 2016). Based on the 2019 GMTI Report, Indonesia currently occupies the first position as the best halal tourism destination in the Organization of the Islamic Conference, which many Muslim tourists worldwide visit. Indonesia's position in 2019 is better than the previous year, which is up to one level, wherein in 2018, Indonesia was in the second position. As the GMTI version of the most Muslim tourism destination in the world, Indonesia requires concrete guidance for all stakeholders, especially the halal tourism industry players. The Ministry of Tourism also targets Indonesia to reach 5 million Muslim tourists this year. That figure grew 42 percent from this year's 3.5 million or reached 25 percent of the target of 20 million foreign tourists. Indonesia is recognized as having great potential to become the center of world halal tourism because it is supported by natural beauty, cultural diversity, and the largest Muslim population in the world.

It's expected to expand by another percent this year. It's estimated that by 2020, the number of Muslim visitors will exceed 160 million, spending USD 220 billion, with a compound annual growth rate of 27 percent, according to the Mastercard-Crescent Global Travel Market Index (GMTI) Report 2019. This rise will continue until 2026, when it is expected to reach $300 billion. World Travel and Tourism Council (WTTC) growth predictions for Muslim world travelers in 2018 were way off the mark. New Indonesian tourism symbol Lake Toba Tourism Area is built on natural beauty in North Sumatra Province (Pardede & Suryawan, 2016). Because of Lake Toba, which spans seven districts, including Simalungun, North Tapanuli, Humbang Hasundutan, Dairi, Karo and Samosir with a combined size of approximately 1,145 kilometers, the Lake Toba area has been designated as one of the top locations for super-priority tourism. The largest lake in Southeast Asia by area and one of the deepest in the world by depth (450 meters) is the Lake Toba. The development of halal-based tourism in the Lake Toba tourist area is not in the sense of changing everything that is non-halal into halal or everything will be regulated based on Islamic sharia, which means that it will interfere with local wisdom in the Lake Toba tourist area (Tarigan & Basit, 2007). 2020) but is more limited to providing public facilities needed by Muslim tourists in halal restaurants and places of prayer when visiting tourist destinations.

Lake Toba is one of the five super-priority destinations in Indonesia, but most people living around Lake Toba are Christians. This will cause difficulties if halal tourism is developed, especially regarding halal hotels. Many hotels are available in the super area of Lake Toba but have not met the halal standards set by the Government. Even though more than seventy percent of tourists visiting Lake Toba are inbound Muslim tourists. Therefore, it is necessary to study the development of halal tourism in the Lake Toba area to increase inbound Muslim tourist visits.

Literature Review

Marketing

Marketing is frequently misunderstood as being limited to selling and advertising. Every day, we're inundated with advertising on TV, catalogs in the mail, sales calls, and emails pitching products and services. Sales and advertising, on the other hand, are just the beginning of the marketing process. Marketing, according to Kotler & Armstrong (2012), should not be interpreted in the traditional meaning of "telling and selling," but rather in the new sense of meeting client demands. Stanton and Stanton (2013) further state that marketing is a system of business operations aimed to help companies set goals and satisfy customer needs while also determining prices, promoting products, and disseminating them. It's a management and process through which people and groups get what they desire and need by creating and exchanging goods and services and value between themselves.

1. Halal Hotel

Basically, in Islam, there is no explicit regulation of the concept of a halal hotel. The idea carried out in providing halal hotels focuses on how to provide facilities such as toilets with the availability of holy water, services in providing halal food, and management following Islamic law. Chanin et al. (2015) argue that this type of halal hotel not only focuses on serving food and beverages but the company's operations must be regulated to comply with Islamic sharia. Henderson (2016) states that a halal hotel company can provide places of worship for Muslim tourists to make it easier to carry out prayers and other worship reminders of prayer times. Broadcast religious programs opposite swimming pool facilities for women and men.

According to Chookaew (2015), halal hotels must have several criteria: a. Availability of location/hotel room as a means of sanctification b. There is a Qibla wine pointer available. c. Prayer times reminder. d. Muscle or place of worship for Muslims. e. Preparation of non-halal food. f. Separation of public facilities for men and women such as gym, swimming pool, lounge. g. Religious viewing programs can be added. Some of the components above are not standard. Each pharmacy manager can arrange the types of services to maximize service. The thing to note is how this service does not conflict with Islamic law. Looking at the understanding and standards of sharia hotels described previously, it can be concluded that the difference between sharia hotels and conventional hotels is the application of sharia principles that are stricter on sharia hotels. Sharia hotels and conventional hotels both still have to meet general standards following applicable laws and regulations. Not a few traditional hotels meet several sharia hotel standards. The main difference is that in sharia hotels, the application of sharia principles is more attractive.

Sharia hotels must have the following five features in order to be classified as such: In Stephenson's (2014) words:

a. Employee policies on prayer times for Muslim employees, restrictions on team working hours during the month of Ramadan, and codes of behavior for employees and guests are all examples of human resources.

b. There are separate floors for women and families, prayer equipment, and the Qur'an are available in the private room. There are conservative television channels, Islamic room design patterns (calligraphy), and rooms and tablets not facing the Qibla are available.

c. There is a separate dining room for women and families and provisions for public areas, sculptures and decorations showing human and animal forms, no music that is controversial and teaches. Halal-certified cuisine does not contain pork or alcohol and has a separate dining area for women and families.

d. A few other things to note include the absence of a casino or gambling machines, gender-separate entertainment facilities (such as swimming pools and spas), separate prayer rooms for women and men equipped with the Koran, ablution facilities outside the worship room, the toilet not facing the Qibla, and no human or animal-shaped art objects.

e. Marketing and promotion ethics, CSR strategies (connected to Islamic values), and philanthropic donations, transactions, and institutions based on Islamic calculations and institutions, where the hotel must send a portion of its revenue to charity (known as "zakat"). It highlights the necessity of sharing and supporting those in need, as well as those who have more than you do.

2. Satisfaction

A person's sentiments of pleasure or disappointment arising from contrasting a product's perceived performance (or outcome) to their expectations are defined by Singh (2006) as satisfaction. Satisfaction can be linked to positive emotions such as acceptance, joy, relief, and enthusiasm, among others. Customer happiness is affected by a wide range of variables. Some of these qualities are pleasant and competent employees, prompt service, fair prices, high quality and good value, clear billing and prompt service. Others include nice and courteous staff. According to Aliman (2016), tourist satisfaction refers to the degree to which tourists are satisfied with travel-related product or service features that satisfy their expectations and aspirations. Consumer expectations are compared before and after consumption to determine customer satisfaction. Pre-trip expectations and post-trip experiences are the primary determinants of visitor happiness in the tourism industry. When a travel experience goes above and beyond expectations, travelers are happy.

As Cronin et al. (2000) point out, customer satisfaction has attracted much attention in the literature because of its potential influence on tourist behavior. As supported by Hoest & Knie Anderson (2004), many approaches to customer satisfaction are influenced by three antecedents, namely perceived quality, perceived value, and expectations, while tourist characteristics are also significant. Their satisfaction factor (Huh, 2002). Yi (1990) stated that satisfaction is a customer's judgment after a service encounter where goods and/or services are exchanged.

3. Visit Decision

When travelers believe their trip will be less enjoyable due to actual or perceived risks, they often select a different location (Sonmez et al., 1999). As people become more fearful about traveling to new places, data suggest that demand for tourism is decreasing (Floyd et al., 2004). The existence of trouble, whether genuine or imagined, has been found to influence travel decision-making, according to research in the tourist industry (Mawby, 2000). Constraints like time, budget, and physical distance are taken into consideration before the destination's reputation is settled on. The perception of crime, terrorism, or health issues like SARS, Asian flu, and swine flu create similar behavior, it's possible to conclude. Many researchers looked into how travelers saw the risks they were taking when they went on vacation. It was discovered that health, political unrest, terrorism, foreign food and cultural barriers such as political and religious orthodoxy were the most significant risk factors. Researchers have come to another conclusion: the primary risk variables influencing destination choice are natural disasters like tsunamis in Southeast Asia and hurricanes in the Caribbean (Huan et al., 2006). As previously stated, there are other items that tourists do not want (Crompton, 1992).

They can alter their travel habits if they so choose, or they can stick to their original arrangements if they so like (Amara, 2012). Travelers that are willing to take risks and seek adventure do not seek a lot of information (Murphy et al., 2007). Fearful travelers acquire information from a variety of sources and narrow their search to certain resorts and lodgings (Amara, 2012). In line with (Maser & Weiermair, 1998), people seek more information and make reasonable decisions when faced with higher perceived risks. To reduce uncertainty and boost the exchange's utility, potential passengers rely on the experiences of others when making travel decisions... Staying at home or choosing a less dangerous place means enormous losses for countries hit by terrorism in the tourism business (Sonmez et al., 1999). People who are making travel plans often go to places where there is a greater risk of terrorist attacks. As a result, terrorist acts have a detrimental impact on the host country since tourism services provided by that country are easily substituted. Tourists may want to put off their trip till things settle down a bit. It's possible that the activity will be redirected to a more secure location. Because of the unfavorable media portrayals of terrorist threats, some places may be excluded from the decision-making process due to the potential costs or hazards connected with them (Sonmez & Graefe, 1998).

4. Framework

Based on the theoretical basis of description, the conceptual framework in this study can be described as follows: as shows in Figure 1.

Figure 1: Framework

Method

Specifically, the quantitative research method is employed by the author in this study in order to determine the influence and link between two or more variables. When data contains precise numbers or numeric values, quantitative data analysis is used to analyze the information. The participants in this study are all Muslim tourists who have traveled to Lake Toba, albeit the exact number of participants cannot be known. The sample size for this study was 125 respondents, who were chosen using a non-probability sampling methodology and the accidental sampling method, which was utilized to choose the sample. It was decided to apply the Structural Equation Model (SEM) analysis technique in this study. This technique included evaluating the SEM model (including evaluation of normality, evaluation of multicollinearity, and singularity), moderating analysis, and mediation analysis.

Result and Discussion

Descriptive Analysis

In the halal hotel variable, there are six indicators used with an average standard deviation of 0.8604. This shows that the overall value of the standard deviation does not exceed twice the median value, so it can be concluded that the distribution of the data is good. The average respondent's answer to the image variable is 5.7435. This figure is also in the excellent category. In the visit decision variable, there are five indicators with an average standard deviation of 1.3657. This shows that the overall value of the standard deviation does not exceed twice the median value, so it can be concluded that the distribution of the data is good. The average respondent's answer to the satisfaction variable is 5.2773. This figure is included in the excellent category. In the tourist satisfaction variable, there are seven indicators with an average standard deviation of 1.2867. This shows that the overall value of the standard deviation does not exceed twice the median value, so it can be concluded that the distribution of the data is good. The average respondent's answer to the satisfaction variable is 4.5500. This figure is included in the category of doubt.

1. Structural Equation Model (SEM) Analysis

Each indicator in each research variable has a standardized direct effects value > 0.40 and a coefficient value > 0.70, so it can be said that the indicators in this study are valid and reliable.

Normality Evaluation

C.R. value. For skewness and kurtosis, all data are univariately smaller than 2.58. this means that all data meet the assumption of univariate normality at = 0.01. Meanwhile, the multivariate value of .64312 is smaller than the specified critical value (2.58). Thus, the premise of multivariate normality is met.

Evaluation of Multicollinearity and Singularity

It may be concluded that there is no multicollinearity or singularity in the sample covariance matrix because its determinant is 0.00173, which is more than zero. As a result, the information contained in this study is usable.

Full Model SEM Analysis Results

There are two steps to the complete model testing process: the full model is tested before alteration, and then the full model is tested afterwards. Comprehensive model testing is carried out before conversion to establish the extent to which the initial model produced fits the Goodness of Fit (GOF) standards before the model is updated. Here is an example of a complete model image that will be shown before it is restricted: as shows in Figure 2.

Figure 2: Full Model Before Modification

This is because, as shown in Figure 2, the GFI (0.863 0.90) and AGFI (0.825 0.90) values are not satisfied, and the p-value (0.016) is also not significant. Due to Figure 2's inadequate explanation of the study model, changes must be made. as shows in Figure 3.

Figure 3: Complete Model After Modification

All of the constructs, as shown in Figure 3, have been changed to meet the GOF standards. There is a high probability that the model developed is significant because the P-value is 0.074. With the exception of the GFI and AGFI readings, which are just somewhat better than average.

Discussion

The C.R. value exceeds 2.58, and the P value is less than 0.05, indicating that the hypothesis is accepted. The following table shows the relationship between the independent and dependent variables: as shows in Table 1.

Table 1
Effect Of Independent Variables On Dependent Variables
Influence between Variables Estimate S.E. C.R. P
Satisfaction <--- Halal Hotels 0.730 0.074 9.879 ***
Visiting Decision <--- Halal Hotels 0.023 0.082 0.280 0.779
Visiting Decision <--- Satisfaction 1.007 0.113 8.929 ***

Table 1 will be used to describe the research in order to answer the following hypothesis:

The Effect of Halal Hotels on Satisfaction

Halal hotels have a positive and statistically significant impact on customer satisfaction, with a magnitude of 0.730 (73.0 percent), a coefficient of determination (C.R.) of 9.879, and a probability of 0.0001. This means that the greater the number of options for halal accommodations available to visitors to the popular tourist destination of Lake Toba, the higher the level of Customer Satisfaction. This is in accordance with the theories of Zailani et al. (2016) and Battour et al. (2016). (2014). In terms of the dimensions of halal tourism, Muslim tourists will be concerned about things such as the availability of Islamic facilities (such as prayer mats and the Qibla direction in Indonesia) and the assurances of halal food emanating from the kitchens of tourist destinations. Muslim tourists will be satisfied if they are offered halal contracts in resorts that have halal hotel amenities, which means that they will be able to fulfill all of their demands without having to worry about halal products. Thus, halal hotels have a considerable and favorable impact on customer satisfaction levels, as demonstrated above. The existent influence is a positive influence, which indicates that the higher the presence of Halal tourism, the greater the level of Customer Satisfaction reported by the respondents to the study. Customer happiness will be influenced by the Halal value, which relates to the conditional value in consumer value theory, according to Yeo, Mohamed, and Muda (2016). It is assumed that the product or service has matched the customer's perceived value, which may have an impact on his or her happiness with the product or service. Visitors at halal-based hotels express satisfaction with their visit since halal-based hotels offer sharia tourism that is both family-friendly and safe for everyone to enjoy. In order to actualize a comfortable, secure, and beneficial experience for every tourist, the development of tourism has a concept that tries to achieve these goals.

The Influence of Halal Hotels on Visiting Decisions

Halal hotels have a favorable and statistically significant impact on visitor decisions, with a magnitude of 0.23 (23 percent), a coefficient of determination (C.R.) of 0.280, and a likelihood of 0.0001 for each visit. More tourists will choose to travel to Lake Toba as a result of the high number of halal-based accommodations that are now available. Battour et al. (2010) postulate that "Islamic religious traits are bound to be a key consideration when Muslims opt to travel overseas," and the findings of this study consistently confirm this hypothesis. Before embarking on a journey, a Muslim will check with the destination's religious authorities to ensure that worship facilities are available. Some of the above-mentioned justifications demonstrate that the presence of Islamic features (particularly halal facilities and hotels) will enhance the number of Muslim tourists visiting a destination. According to Rahman (2014), this data lends support to prior research, which found that Islamic tourists are urged to adhere to Islamic principles, which both directly and indirectly impact their decision to travel to various tourist locations. The availability of facilities for Muslims to worship, halal food, halal hotels, the lack of unclean liquids, and Islamic morals, according to Battour et al. (2011), are Islamic qualities of a place that can affect tourists' decisions, such as those regarding tour packages. Because of this, the provision of halal cuisine in every tourist site is a critical necessity for visitors.

The Effect of Satisfaction on Visiting Decisions

With a magnitude of 1.007 (100.7 percent), a C.R. value of 8.929, and a probability value of 0.0001, tourist satisfaction has a positive and significant impact on travel decisions. This indicates that the more satisfied tourists are, the more likely they are to return to Lake Toba's super-tourism area. According to Sutisna (2001), brands that can meet the expectations of the highest level of importance will be chosen by consumers. This shows that consumers' expectations are met, which will lead to consumer satisfaction which then affects the purchasing decisions of a product by consumers. Therefore, the increasing satisfaction of visiting will also increase the decision to visit again from tourists. Meanwhile, according to Hima Pradipta (2019), Tourist Satisfaction has a significant positive effect on Visiting Decisions. This shows that higher tourist satisfaction will increase the number of tourists visiting. This is because tourists get what is obtained and expected in seeing to have an impression on their journey, which can finally decide to visit again. These results are consistent with Yuliana Pinaringsih Kristiutami (2017), showing that satisfaction can influence visiting.

Satisfaction Moderates the Effect of Halal Hotels on Visiting Decisions

To determine whether or not there is a mediating effect of visiting satisfaction variables on halal hotels and visiting decisions, it begins by calculating the standard error coefficient of the H.H.→V.D'→S path. The Sobel test shows a significant moderating effect of visitor satisfaction between the relationship between the halal hotel variables and the decision to return. Based on the results of the Sobel test, the results show that there is a partial moderating effect on visitor satisfaction which is signed between the relationship between the halal hotel variables and the decision to return so that the hypothesis of the influence between hotels on the decision to revisit through visitor satisfaction is accepted. This is following the research of Istikhomah & Nugraha (2019). Based on the study results, the results showed that there was a significant intervening effect of visitor satisfaction between the relationship between price and service quality variables on the decision to return. Where the influence of intervening given is partially intervening effect. Visitors expressed that they felt happy and satisfied after visiting the Ecotourism of the Indonesian Water Park. Then, coupled with a system of criticism and suggestions that assist visitors in channeling complaints.

Conclusion

The conclusions obtained from the results of the study: (1) The effect of halal hotels has a positive and significant effect on the satisfaction of visiting tourists to the super tourist area of Lake Toba; (2) Halal hotels have a positive and significant effect on the decision to visit tourists in the super tourist area of Lake Toba; (3) Tourist satisfaction influences the decision to visit the super tourist area of Lake Toba; and (4) Halal hotels influence the decision to visit the super tourist area of Lake Toba with tourist satisfaction as a partial mediation.

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