Proceedings of Applied International Business Conference 2008
LOCATION, STAR RATING AND INTERNATONAL CHAIN SSOCIATED WITH THE
HOTELIERS INTENTION FOR NOT APPLYING THE HALAL LOGO CERTIFICATION
Yudi Fernando, Suhaiza Zailaniψ and Aznan Mohamed
Universiti Sains Malaysia, Malaysia
___________________________________________________________________________________
Abstract
It is essential to develop and promote Malaysia’s global image as the producer of high quality Halal
products and services. This paper, however, tries to explore whether the hotel location, star rating and
International chain were differs for hoteliers intention for not applying the Halal logo certification. The
total number of the hotels in Malaysia was obtained from the online Malaysia yellow pages and
Department of Islamic Development Malaysia (JAKIM). A One-Way Analysis of Variance and t-test
was employed to analyze statistically different among each group. Findings of the present study
indicate that location, star rating and international chain are statistically different with hotelier’s
intention for not applying the Halal logo certification. Thus, the government role is important in
success implementation of Halal logo certification. The Malaysian government needs to educating and
giving awareness among the hotelier on important of Halal certification.
___________________________________________________________________________________
Keywords: Halal standard; Halal brand; Hotel industry; Certification; Malaysia.
JEL Classification Codes: K1; Q18.
1. Introduction
The Halal Industry has revolutionized and increased rapidly in Malaysia and all over the world.
Presently, with the world’s Muslim population approximately at 1.8 billion and estimated to be 3
billion by 2010, the market for the Halal Industry around the world is estimated to reach USD 150
billion (Halal Journal, 2006) and is expected to expand in the near future. Due to this fact, it is a right
time for the government to establish Malaysia as global Halal hub based on the potential markets for
Halal food and services around the world. The 9th Malaysian (2006-2010) plan clearly shows the
measures and strategies that must be taken by the government to make Malaysia as the global Halal
hub for the production and trade of Halal goods and services becomes a reality. These days, there has
been increased awareness of Halal products in the consumers especially the Muslim consumers in
Malaysia.
The use of Halal contents in the necessity products and also the preparation of Halal food at the food
premises by the displaying of Halal logo have been given a lot of attention by the consumers. Due to
the consumers’ concern of the Halal products, there has been an increased in the complaints and also
verifications on basic necessity products and food services that have invalid or dubious Halal logo.
Lately, the complaints and the verifications of Halal status from the customers, Consumers
Associations and Non Governmental Organizations are prevalent and have become issues in the major
newspapers and also other mass medias. The government should look seriously at this trend of concern
among the consumers, in order to make Malaysia the global Halal hub becomes a reality.
For this reason, the government, private sectors and academicians should join forces in analyzing and
identifying reasons as to why the Halal logo is still been doubted and why there are still a lot of
products and food premises that did not apply for the Halal logo. Is it because of the lack of efficiency
among the government sectors or personnel in managing the monitoring of the Halal status, or because
of the lack of awareness from the public and the private sectors on the importance of the Halal
certificate? Another possibility is because the lack of commitment and interest of the private sectors in
applying a Halal certificate or the approval of Halal certificate and other undefined reasons.
ψ
Corresponding author. Suhaiza Zailani. School Of Management, Universiti Sains Malaysia 11800
Penang, Malaysia. Corresponding author Email: [email protected]
Proceedings of Applied International Business Conference 2008
2. Malaysia hotel industry
Hotel industry plays an important role in Malaysia and thus should take the advantage on the
promotions being geared up for the Visit Malaysia Year 2007. There are various factors determining
the success of the hotel industry in making the Visit Malaysia Year a success. Complete and advanced
hotel facilities, efficient services that satisfied the customers and hygienic, clean and high quality food
preparations are among the most crucial thing in attracting the tourists and making sure they feel more
than welcome and in fact eager to visit Malaysia again. Relating to these aspects, the preparations of
Halal food will give an added competitive advantage to the hotels in attracting the local and foreign
tourists especially those from the Middle East, West Asia and other Islamic countries. Muslim tourists,
particularly from West Asia are increasingly sensitive and wanted access to more sophisticated holiday
destinations and Halal dining. In 2005, tourists arrivals from West Asia to Malaysia reached 47,646,
while these arrivals only accounted for 0.1 percent of the total arrivals, still they accounted for 0.3
percents of the total receipts (Halal Journal, 2006).
Based on the industrial setting above, this paper, however, tries to explore whether the hotel location,
star rating and International chain were differs for hoteliers intention for not applying the Halal logo
certification. Statistics from JAKIM has shown that only 101 hotels all around Malaysia have applied
and secured the Halal certificate from “ Jabatan Kemajuan Islam Malaysia”(JAKIM), “Majlis Agama
Islam Negeri”(MAIN), “Jabatan Agama Islam Negeri”(JAIN), while the rest still not doing so (JAKIM
Halal Bulletin, 2006).
It is necessary to investigate the hotel characteristics and their intention for not apply Halal logo
certification. This finding will contribute to lead more information to country policy maker regarding
Halal logo certification in Hotel industry. Understanding the advantage for applying Halal logo
certification will helping Hotelier sustain in competitive market. To best of our knowledge it is hard to
find the literature that reported location, star rating and International chain associated with the hoteliers
Intention for not applying the Halal logo certification. It is consider as exploratory study. Indeed, there
is an urgent need for more work to be carried out Halal topic, as the availability of literature in
marketing is very limited and further studies can help to develop this topic (Ahmed, 2008).
3. Previous study
In the past, Muslims simply avoided foods that did not meet their dietary standards. Nowadays,
Muslims are making their presence felt socially and politically and are requesting halal labeled food
products (Riaz and Chaudry, 2004). Religion plays one of the most influential roles shaping food
choice (Dindyal, 2003). According to Bonne et al (2007) in France Muslim society found that Muslims
with a low Muslim self-identity intend to eat Halal meat not only because they find it very important
for themselves, but also as their personal conviction, whereas Muslims with a strong Muslim selfidentity are rather influenced by peers in their social environment, their attitude towards Halal meat and
the degree of control they feel to have over eating Halal meat. When considering the degree of dietary
acculturation, low acculturated Muslims rely completely on their positive attitude towards Halal meat
whereas high dietary acculturated Muslims rely on attitude and perceived control.
Aggett (2007) study factors that have influenced growth in the UK’s boutique hotel sector, through the
identification of attributes that attract consumers to these hotels. She found that location, quality,
uniqueness, services provided and the personalized levels of service offered are identified as the top
five attributes attracting respondents to these hotels. The growth of the boutique hotel sector in the UK
may be attributable to consumers seeking alternatives to the standardized provision of more traditional
accommodation. Surveys the perceptions of attributes of three- to five-star hotels by marketing
managers and by senior citizen and who return to a satisfying Australian hotel setting. The attributes
studied were price, location, facilities, hotel restaurant, room furnishings, front-desk efficiency and
staff attitude. Results show that both seniors and marketing managers considered hotel facilities to be
the most important attribute (Wei et al., 1999).
4. Hypotheses development
Hotel location is strategic issue that attracts and influence customer to stay. The location offers an
exceptional view of the city, beach, airport and hill. Normally hotel located in the city people are
enjoying ancient buildings culminating, shopping at mall and streets. The beach location offers the fine
pearly white sand beach. This location is most stunning view of the setting sun available on the island.
A variety of water sports and shopping areas are available along this waterfront to enhance customer
vacation pleasure. Hotel located in the airport offers complimentary shuttle service to and from the
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airport. It is ideal location, whether customer are traveling on business or on a family vacation. Hotel
located in hill usually to be found at in a mountainous region. There is the benefit that hotel offers
accordingly to the location. However the location of the hotel is influence the hoteliers’ intention for
not applying the Halal logo certification. This is because the difference segment and target customer
that used. But it is depends on hotel philosophy and belief to serve International customer. Halal is a
culture and practices that improve everyday operations and the bottom line, while maintaining quality
service and meeting guest expectations.
H1: There is a difference in Hotel location with the hoteliers Intention for not applying the Halal logo
certification.
Orbitz (2008) classified the idea of hotel star rating. Five Stars is luxury hotels and treat customer well
with first-class services and accommodations. Hotel restaurants are often renowned for their famous
chefs and delectable dishes. Other amenities include: valet parking, concierge service, room service,
well-equipped fitness centers and state-of-the-art business centers. Four Stars is deluxe hotel refers to
comfort, class and quality. These hotels will usually be in a prime location and other amenities may
include: proximity to desirable shopping areas and restaurants, valet parking, concierge service, room
service, well-equipped fitness centers and state-of-the-art business centers. Three Stars is Mid-scale
hotel. It is discover convenience and comfort in the city or in the suburbs where many of these
properties are located. Amenities that may be available include: swimming pools, fitness centers, room
service, concierge service and parking. Two Stars is value properties. It is basics with these
comfortable properties that offer affordable prices. These properties are often located near office parks,
airports, and shopping and retail areas. Rooms are comfortably decorated but not overly elegant.
Usually, these properties do not have restaurants or room service, but offer free parking and sometimes,
swimming pools. Transportation is occasionally offered to nearby airports. One star is economy hotel
and motel. The concept is stay in simple accommodations that typically are located near major
highways and transportation. Amenities include free parking, local calls and cable television.
Restaurants are often located nearby, and room service is usually not available. Some economy hotels
and motels have swimming pools located on the property. The difference in star rating hotel is
associates with hotelier for not applying Halal certification. Because the visitor has own purpose for
not order the food and free to choose restaurant near the hotel.
H2: There is a difference in Hotel star rating with the hoteliers’ intention for not applying the Halal
logo certification.
The international chain hotels are owned, managed, or franchised to independent operators on
particular International cooperation. The International hotel managed or franchised needs to follow the
regulation made by senior manager. It is another reason the hotelier for not applying the Halal logo
certification.
H3: The intention of International chain hotel has significantly different with non International chain
hotel for not applying the Halal logo certification.
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Proceedings of Applied International Business Conference 2008
City
Beach
5 Stars
4 Stars
3 Stars
Airport
Hotel
location
Hotel star
rating
Hill
Hotelier intention for not
applying the Halal logo
certification
2 Stars
1 Star
Yes
International
chain hotel
No
Figure1: The research model
5. Methodology
The total number of the hotels in Malaysia was obtained from the Malaysia Internet yellow pages,
www.yellowpages.com.my that listed all the hotels, motels, hostels and guesthouses complete with the
addresses and phone numbers. There are all together 991 hotels in Peninsular Malaysia. The Internet
Yellow Pages list was believed to be the best resource for the complete hotel list as every hotel
required fixed telephone lines for their business operations. So it is justified that the list is reliable to
provide the complete list of hotels in Malaysia.
As for the hotels that already have the Halal Logo certification and registered with the JAKIM, the list
was obtained from the JAKIM homepage, www.halaljakim.com.my. From the JAKIM homepage, only
101 hotels were listed and all these hotels are also listed in the Internet Yellow Pages list. The total
numbers of 890 hotels that represent existing Hotels that do not have the Halal Logo certifications was
determined from the difference between the total number of hotels listed in the Malaysia Yellow Pages
and those registered to JAKIM homepage. It is Roscoe (1975) proposes the following rules of thumb
for determining the sample size. Sample size is larger than 30 and less than 500 are appropriate for
most research. Where samples are to be broken into sub samples: (male/females, juniors/senior, etc), a
minimum sample size of 30 for each category is necessary. In multivariate research (including multiple
regression analysis), the sample size should be several times (preferably 10 times or more) larger than
the number of variables in the study. For simple experimental research with tight experimental controls
(matched pairs, etc.), successful research is possible with samples as small as 10 to 20 sizes.
To ensure a good decision model when all the variables are taken into account as mention above, the
total numbers of 150 samples are being selected from the total population as to meet the above
requirements.
Since the main objective of the study is focusing on the same group of people in the Hotel industry i.e.
Hotel General Manager/ Duty Manager/Facility Manager/Events manager, the non-probability
purposive sampling method was used in this study. The questionnaires will be distributed to specific
targeted hotels, as the primary aim of this study is to explore the reasons influence hoteliers for not
applying the Halal Logo certification. However due to the time and money constraint, the 150
questionnaires will be distributed to hotels within northern states of Malaysia i.e. Perlis, Kedah and
Penang.
The respondents for this study were targeted to a General Manager/ Events Manager/Hotel Manager/
Facility Manager or at least Assistant Manager of the Hotel who directly involved in the food services.
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In order to ensure that the respondents clearly understood and interpreted the statement correctly, a
total number of 61 sets of questionnaires were personally presented to the Hotel Managers/
representatives by the researcher to the hotels in Penang through direct visit and door to door approach.
The balance of 89 questionnaires were sent through mail to the respective persons in hotels bearing
“IMPORTANT” on the envelope together with the reply pre-paid self addressed envelope. The
questionnaires were attached by a cover letter assuring Respondents of anonymity and highlighted the
benefits of the study to the Hotel and Food Services industry and to the academic research as well.
6. Result
A total of 150 questionnaires were distributed to all hotels in Northern Malaysia i.e. Penang, Kedah and
Perlis that fall under the categories of without Halal logo certification The researcher used four
approaches in order to ensure positive response by the hoteliers. These approaches consisted of direct
visits to the hotels, sending e-mails, mailing of the questionnaires together with self addressed
envelopes as well as sending questionnaires through friends that already have contact with the hotels.
From the personal profile of respondents that was summarized in Table 1, majority of respondents,
with 26 out of 63 (41.3%) were manager/ general manager while the number of executive, director and
others respondents were represented by 31.7%, 7.9% and 19.0% respectively. In terms of education
level, majority or 34 respondents (54%) were SPM and STPM certification holders. The second highest
qualification was degree holders with 12 (19%) respondents followed by diploma holders, which was
represented by 11 respondents or 17.5%. A further 7.9% or 5 of the total respondents were with
professional certificate and finally one respondent is a master holder. Analysis on length of service
with the hotel indicated that 41.3% or 26 respondents have worked between 6 to 10 years, 28.6 % or 18
respondents have worked / for less than 5 years. 22.3% or 14 respondents worked more than 15 years
and finally only 5 or 7.9% respondents have worked between 11 to 15 years.
Table 1: Respondents’ profile
Respondents’ Background
Designation
Executive
Manager/GM
Director/Managing
Others
Total
Qualification
SPM & STPM
Diploma
Degree
Master
Professional Certificate
Other
Total
Length of service
< 5 years
6 – 10 years
11 – 15 years
> 15 years
Total
Frequency
Percent
20
26
5
12
63
31.7
41.3
7.9
19.0
100.0
34
11
12
1
5
0
63
54
17.5
19.0
1.6
7.9
0
100.0
18
26
5
14
63
28.6
41.3
7.9
22.3
100.0
Table 2 shows the test of difference on hotel location towards intention of hotelier for not applying
halal logo certification. Test of difference on variance was used a One Way ANOVA. Hotels are
located in the city is the highset standard deviation and hotels in Hill were the lowest one. The result of
test is significantly difference among hotel location for hotelier intention for not applying Halal logo
certification (F= 5.562; p =0.006). Figure 2 demonstrate that the majority hotels are located in the city
(n=48).
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Table 2: The test of difference on hotel location
N
City
Beach
Hill
Total
48
12
3
63
Std. Deviation Std. Error
1.455
.490
.000
1.398
.210
.141
.000
.176
Min
Max
F
Sig.
0
3
3
0
5
5
3
5
5.562
.006
Figure 2: The bar chart of hotel location
Table 3 summary the test of difference on star hotel rating that found two star hotels have the highest
standard deviation and five stars were the lowest. The star rating hotel is significantly difference for
hotelier not applying Halal logo certification (F=10.904; p =0.000). Majority participants in this study
are non rating hotel that consist of 30 hotels.
Table 3: The test of difference on star hotel rating
F
Sig
Std.
Std.
Deviation
Error
N
Min
Max
One Star
6
.411
.168
2
3
10.904
.000
Two Star
7
2.215
.837
0
5
Three Star
11
.584
.176
3
5
Four Star
7
.456
.173
4
5
Five Star
2
.000
.000
5
5
Non Star
30
.965
.176
1
4
Total
63
1.398
.176
0
5
Figure 3: The bar chart of star hotel rating
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Proceedings of Applied International Business Conference 2008
Table 4 confirm that significantly difference between International chain and non International chain
hotel towards their intention for not applying Halal logo certification (F=8.787; p =0.004). Figure 4
show that majority respondents do not have International chain hotel management (n=55).
Table 4: The test of difference on International chain hotel
International
Std.
Std. Error F
Chain
N
Deviation
Mean
Intention for not applying Halal Yes
8
.432
.153
8.787
Logo certification
No
55
1.336
.180
Sig.
.004
Figure 4: The bar chart of International chain hotel
7. Discussion
The aim of the paper is to explore whether the hotel location, star rating and International chain were
differs for hotelier’s intention for not applying the Halal logo certification. The study found that the
hotel location, star rating and International chain were differs for hoteliers intention for not applying
the Halal logo certification. There are two implications from current study to government and
academic. It is need more aggressive approach by policy maker to conducting briefing to the Hotel’s
Owner Association, Chinese Chamber of Business, Indian Chamber of Business, Restaurant Operator
Association and etc should be organized more frequently by JAKIM, MAIN and JAIN. Another
approach where JAKIM can anticipate is by participating in other major seminar organized by the
certain body such as Federation of Food Manufacturing, Tourism Seminar by Tourism Development
Corporation and others can contribute toward increasing the awareness among the hoteliers.
The other factor on Halal certification procedure needs special attention by JAKIM whereby the
procedure needs to realign in order to make it more users friendly and customer oriented. However the
new approach doesn’t mean that the integrity on the Halal and Haram according to Hukum Syarak can
be compromise. The improvement in the delivery system cycle time of Halal certification need to be
addressed as soon as possible by JAKIM as it is very crucial. The setting up of the Halal Certification
Promotion Units must be implemented at the earliest possible in order to be seemed as more business
oriented entity. An aggressive measure such as the placement of JAKIM’s consultant officer to the
hotelier needs to be increased by appointing an agent or consultant for the Halal Certification.
The government needs to play important roles in educating and giving awareness among the hotelier.
Proactive step to promote the Halal certification to the hotel industry can be done through special
incentive such as deducting corporate tax, advertising and promotion by Tourist Development
Corporation ( TDC ) and etc. Other incentives such as, joining TDC, Matrade and government bodies
in the overseas business promotion.
From methodological approach this study found that direct visits to the hotels are proven to be the most
effective approach, whereby 46 (30.6%) questionnaires are fully answered by the hoteliers from a total
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Proceedings of Applied International Business Conference 2008
of 57 visits made. The researcher has asked the hotel management staff i.e. Managing Director, General
Manager, Events manager or Duty manager to answer the questionnaires. Some souvenirs are given to
the staff for answering the questionnaires such as invitation to Industrial Business Seminar, notebooks,
toothpicks holder/dispenser and ball pens as a token of appreciation. The second most effective
approach is sending the questionnaires through electronic mails to a total of 65 hotels in Penang, Kedah
and Perlis. A first follow up notice was sent to all respondents that do not answer the questionnaires
after receiving the questionnaires a week after receiving them. Then second and third reminders were
sent four and eight days respectively after the first reminder. A total of 9 (6%) respondents reply within
the stipulated timeframe and 3 were considered as invalid since the hotels have been certified by Halal
certification. Mails and through friends approaches contribute to 8 (5.3%) answered questionnaires
from the total of 28 given. 5 were considered as invalid due to the same reason.
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