This article begins by explaining the concept of Islamic Shariah. It explains the sources of Shariah as well as its higher objectives. The article focuses on the implications of observance of Shariah in the tourism and hospitality industries. Following this is a description of the recent phenomena of “Halal tourism" and “Islamic Hospitality” illustrated through selected examples from Muslim countries in Asia and the Middle East. The development of "Islamically oriented” standards is also discussed giving rise to new concepts such as “Shariah-compliant,” which refers to Islamic consideration of being alcohol free, gambling free, and the availability of “Halal” food. Lastly, the article discusses future trends and challenges related to Halal tourism.