Muslim Friendly Hotels are a type of Islamic tourism that can be established and aggressively marketed in Malaysia. Apart from the seriousness with which Islamic values are upheld in the hospitality sector, this Muslim-friendly hotel is successful in attracting travellers to Malaysia, particularly those from Muslim and Arab nations. Muslim-friendly hotel services include halal food and drink, Al-Quran books in the room, Qibla direction in the room, musolla, prayer rugs, separate rooms for single men and women, separate bathing areas for the sexes, and financial transactions that follow sharia law. Even while it appears that this Muslim-friendly hotel can draw in foreign visitors, there are still not enough hotels that adopt this Muslim-friendly concept. The goal of this study is to identify and assess the problems and obstacles facing hotels that cater to Muslims as Islamic tourism goods. This study is a qualitative one that collects and analyses data from secondary sources utilising library research as the method of data gathering. According to the study's findings, there are five primary problems and obstacles that must be overcome before Muslim-friendly hotels can be implemented. The first concern and challenge is with the terminology used in Islamic tourism. The second concern is with understanding and importance. The third concern is with operating guidelines and policies. The fourth concern is with running facilities and the last, the fifth concern is marketing the Islamic tourism industry. There will be many hotels with a Muslim friendly concept and be able to draw as many domestic and foreign tourists as feasible if these five concerns and challenges can be improved and addressed by the responsible parties.
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