Hardius USMAN, Nurdin SOBARI, Fahadil Amin AL HASAN / Journal of Business, Economics and Environmental Studies 10-3 (2020) 5-12 5 Print ISSN: 2671-4981 / Online ISSN: 2671-499X JBEES website: http://www.jbees.or.kr/ Doi: 10.13106/jbees.2020.vol10.no3.5 The Impact of Sharia Compliance on Sharia Hotel Services and Customers Satisfaction Hardius USMAN 1 , Nurdin SOBARI 2 , Fahadil Amin AL HASAN 3 Received: January 16, 2020. Revised: February 04, 2020. Accepted: July 05, 2020 Abstract Purpose: The main purposes of this study are to examine what the most important hotel facilities that sharia hotels must provide, and to study the relationship between importance of sharia compliance and Muslim tourists' judgment on the performance of sharia hotels. Research Design, Data, and Methodology: The data were collected in Lombok Island. Questionnaires were distributed to Muslim tourists who stayed at one of the sharia hotels, with a total sample of 205 respondents. Factor Analysis Method and Two Independent Sample Tests have been applied in this research to analyze and interpret the data. Result: The results show only one factor is formed from all statements of Sharia compliance variable, and there is a significant difference in the customer experience and customer satisfaction ratings based on the importance of hotel facilities. Conclusion: The present study revealed that Muslim tourists who place a high level of importance in sharia compliance present a more positive assessment for all services provided by sharia hotels. The assessment from Muslim tourists with higher level of importance in Sharia compliance is more positive about their experiences during their stay at the sharia hotels, which also affects their satisfaction. Keywords: Sharia Hotel, Sharia Compliance, Customer Experience, Satisfaction JEL Classification Code: L83, M31, O53 1. Introduction 1 2 The halal tourism industry was born due to the special needs of Muslim tourists. As Islam is the way of life, a Muslim is required to perform religious duties everywhere (Begg, 1997), even though they are traveling or on a journey (Jais, 2016). The obligation to live according to Islamic law (sharia) is what causes the special needs of Muslim tourists. The special needs of these Muslim tourists 1 First Author, Professor, Program Studi Statistika Politeknik Statistika STIS Jl. Otista 64 C, Jakarta Timur 13330. Email: hardius@stis.ac.id 2 Professor, Kajian Timur Tengah dan Islam Universitas Indonesia Gd. IASTH Lt. IV. Kampus UI Salemba, Jakarta Pusat 10430 3. Professor, Kajian Timur Tengah dan Islam Universitas Indonesia Gd. IASTH Lt. IV. Kampus UI Salemba, Jakarta Pusat 10430 © Copyright: The Author(s) This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (https://creativecommons.org/licenses/by-nc/4.0/) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited. should be satisfied by tour operators (Din, 1989). Therefore it can be stated that halal tourism is a variety of efforts aimed at satisfying Muslim tourists, through the provision of facilities to meet their special needs. One of the elements of halal tourism that is needed by Muslim tourists is sharia hotels. By definition, a sharia compliance hotel is a hotel that provides services in accordance with the sharia principles (Yusuf, 2009). In conducting its business, sharia hotels provide services that are not different from conventional hotels; yet, sharia hotels are concerned about extended services of conditions and needs of Muslim tourists (Battour, 2015). In other words, sharia hotels are hotels that operate on the basis of sharia values and principles and provide facilities that ease the Muslim tourist in fulfilling their religious obligations. Nevertheless, satisfying all the special needs of Muslims is not an easy matter because sharia compliance requires the availability of extensive and varied facilities, which bring higher cost consequences. Should the hotel provide a mosque to give Muslim tourists the convenience of praying?