ABSTRACT

The development of the tourism industry is expected to improve people’s welfare through the creation of employment and supporting industries. The right business strategy implementation by halal tourism operators in Indonesia is required to enable them having a competitive advantage and survive in a turbulent business environment. The study aims to elaborate on the business strategy of halal tourism operators in Indonesia to create its competitive advantage. Descriptive research methodology was applied, and sampling calculation was made using Slovin’s formula. The research instrument was developed using an online survey platform which was sent to the members of the Halal Travel Consortium as respondents. The result shows business strategy has a positive, linear, and significant effect on the competitive advantage of halal tourism operators in Indonesia. Competitive strategy is chosen to focus on serving a specific segment (Std Dev 0.715), while cooperative strategy is selected to reduce risk and uncertainty (Std Dev 0.759).