The Emergence and Global Development of Niche Economic Sectors

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To better understand the factors that contribute to the emergence, development, and success of niche economic sectors, this project asks, what are the economic and social implications of recent changes in international tourism? Since its development beginning in the late 19th century, consumer-driven mass tourism (international tourism) has become a vital global industry. International tourism accounts for 10% of global gross domestic product (GDP), 9% of jobs worldwide, and constitutes the largest global circulation of goods, services, information and populations of our time. The international tourism industry is also central to many countries' economic development plans, including their attempts at fostering job growth in multiple sectors (e.g. service sector, craft industries), generating foreign currency, stimulating national and international investment, and improving national infrastructure such as roads, ports and airports. Over the past decade, the international tourism sector has undergone significant changes, marked by shifts in sites of tourism and the demographic composition of tourists. In the Middle East, conflicts have not only rerouted where tourists seek to go, but actors in the region have also begun to develop niche markets to attract growing populations of middle class Muslims from throughout Asia, the Middle East, North America and Europe. This industry (which is colloquially referred to as 'halal tourism') is massive, expected to grow from $140 to $230 billion over the next five years. Understanding the factors that account for the development of niche markets like halal tourism, and the impact they are having on global tourism is critical for developing economic programs and policies that will benefit all Americans in the face of changing global economic relations and processes. The research will be conducted in the greater Istanbul area, a hub of the nascent halal tourism niche industry, and will focus on a transnational network of halal tourism purveyors and consumers from the Gulf Cooperation Council states, South-East Asia and the United Kingdom. This is a particularly apt research milieu because the investigator has conducted extensive preliminary fieldwork over the past five years to lay the groundwork for this project, and has over fifteen years of research experience in the greater Middle East region, and of researching Muslim networks that span the Middle East, South Asia, Europe and North America. As such, the investigator can leverage existing infrastructure and support, which allows a small amount of funding to produce significant research impact. The investigator will assess how the halal tourism niche sector is developing in relation to conventional forms of mass tourism and what religious understandings and practice shape the emergence of this sector. In examining these issues, the investigator will research three dimensions of this niche sector: purveyors, consumers, and sites of halal tourism. The investigator will attend trade conferences; interview entrepreneurs, tourism officials and consumers; and collect information on hotels, tours, restaurants and other halal tourism infrastructure. Findings from this research will provide insight into factors that promote the development of niche economic sectors by examining the extent to which religious understandings and practices impact entrepreneurs' and consumers' economic activities and decision-making processes.