Halal tourism in Yogyakarta, Indonesia: Opportunities and challenges in policy and practice

Abstract

Halal tourism has emerged as a key growth driver within the global tourism economy, shaped by rising Muslim travel demand and the increasing importance of religiously compliant consumption. Yogyakarta, Indonesia, with its strong cultural heritage and Islamic traditions, holds significant potential to position itself as a competitive halal tourism destination. However, integration of halal principles into the region’s tourism sector faces several challenges, including fragmented policy frameworks, high certification costs for small and medium enterprises (SMEs), and inconsistent application of halal standards across hospitality and service providers. This study employs a qualitative desk-research methodology through literature review and policy analysis to examine the current state of halal tourism in Yogyakarta. Findings reveal that although awareness of halal tourism is growing, its implementation remains uneven. Opportunities exist in leveraging Yogyakarta’s Islamic cultural assets, youthful demographics, and digital innovation to attract Muslim travelers. The paper concludes that harmonised policies, stronger certification support, and cohesive branding are essential for aligning Yogyakarta’s tourism development with global halal market trends.