Islamic banking practices in pilgrimage management and case study of religious tourism.

What is it about?

Tabung Haji (TH) is solely for Muslims. TH used to be called Lembaga Urusan dan Tabung Haji (LUTH). TH is established to help Muslims manage their finances and lifelong savings so that they can have the required amount of savings to finance for Hajj trip to Makkah and Medina. This is one of the obligatory duties of Muslims who are able to travel for pilgrimage to undertake the rituals once in life time. Basically, TH's goal is to give service to Malaysian Muslims in three different services: first is to serve its clients for Hajj management; second to provide those savings and withdrawal services from their accounts; and third to manage their investment for them. What TH is doing is very simple. Money is collected from people as deposits and would be invested in Shariah compliance manner. The returns will be given to depositors. At the same time, with that income from investments, TH serves them with providing Hajj management services.

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Photo by Haidan on Unsplash

Photo by Haidan on Unsplash

Why is it important?

One of the early Islamic banking practices was adopted in managing Islamic and religious tourism. Tabung Haji (TH) is not a bank but it operates just like an Islamic bank. So far TH has been giving Malaysian Muslims very competitive bonus proving efficient and effective management practices to be bench marked by others.

Perspectives