Country Branding Index 2009 With Luis Francisco

2009 COUNTRY BRAND INDEX

COUNTRY BRAND INDEX 2009 1 Why Country Brands Matter For the past five years, FutureBrand has rallied around the idea that countries have the potential to become some of the world’s strongest brands, rivaling Nike, Sony and IBM. We have documented how well-branded countries can better promote economic value and export products; attract inbound investment, tourists and talent; redress stereotypes or clichés and build competitive advantage. All this remains true. We also see new and innovative ways countries are promoting themselves: using global sports to showcase a nation, creating strong and groundbreaking environmental policies and approaches, electing powerful leaders who inspire global goodwill, and creating icons of culture and the arts.

COUNTRY BRAND INDEX 2009 2 Why Country Brands Matter continued There are some who say that marketing alone cannot build a country brand and that a strong country brand requires a solid foundation of infrastructure, a stable economy and a secure government. While this is true to some extent, we have certainly all witnessed the powerful role marketing can play in advancing a nation, from its capacity to shift perceptions or introduce a new country to the world to its ability to communicate a destination’s focus or superior export. The UAE is a good example of a visionary nation that was able to successfully promote itself while much of its infrastructure and attractions were nowhere near complete. By aggressively identifying itself as a country filled with icons of wonder, luxury accommodations and modern conveniences amid a cosmopolitan Middle Eastern atmosphere, the UAE was effectively able to capture the attention of global tourists and investors. The brand and the nation were built concurrently. This is one small example of a nation we at FutureBrand are quite familiar with, having worked extensively with the government to brand The Palm and The World. It demonstrates how a powerful country brand, at its best, can stimulate interest, drive behavior and create advocates. We strongly encourage all countries to carefully consider how they market themselves and to candidly assess if they are communicating effectively and with true and relevant messages.

COUNTRY BRAND INDEX 2009 3 FutureBrand Philosophy OUR APPROACH: ARE YOU A FUTUREBRAND? True to our name, FutureBrand is about creating new standards of excellence. We build futurebrands that develop new businesses, reshape business models and reframe opportunities. They also help establish lasting value, forge an emotional bond and deliver measureable results. As a company that thinks ahead to stay ahead, FutureBrand embraces the possibility and potential tomorrow brings, ensuring that our clients’ brands are created and designed to stand the test of time. We have been pioneers in country branding for the past 10 years, working with Mexico, Singapore, Australia, St. Lucia and Qatar, to name a few, as well as shaping a number of country branded export products and helping to brand several cities, regions and country icons. COUNTRY BRAND METHODOLOGIES Creating a futurebrand requires global insight, marketplace expertise, best-in-breed disciplines and category superiority. Two tools we use to help us develop strong country brands are our Country Brand Framework and Hierarchical Decision Model. FRAMEwORk DECISION MODEL Identifying important considerations from essentials to essence and We use the Hierarchical Decision Model to identify a country brand’s assessing a country’s performance today gives us insight into its potential maturity; specifically, to determine how key audiences (residents, investors, for tomorrow. A country needs to capitalize on its mix of features to succeed, tourists, foreign governments) relate to the brand on a continuum from and our Country Brand Framework allows consideration of both a nation’s awareness to advocacy. The insights this model provides enable us to tangible and intangible factors. We look at a range of assets, from governance consider how well developed the brand is and to identify areas of need to and infrastructure to culture and ethos, as well as the shifting dynamics ensure that we address the right challenges. It is also an effective tracking of the future (e.g., population changes, spending patterns, macro- and tool to gauge progress and to measure how the country is performing. microeconomic factors) to uncover underleveraged opportunities and Creating futurebrands requires understanding a situation well enough overleveraged liabilities. Being a futurebrand means promoting all your to craft a strategic solution and having the tools to track its efficacy strengths and determining how to overcome and address key weaknesses. and progress.

COUNTRY BRAND INDEX 2009 4 Overview This year’s Country Brand Index, our fifth annual study, has increased its scope to examine 102 country brands. This breadth enables a study of nations on both an overall basis and within their respective geographic regions. Looking at a more diverse range of countries broadens our perspective, so we can better uncover the opportunities and challenges of this category and offer insight for countries of virtually any size or circumstance. This is particularly relevant in 2009, given the many effects of the global economic downturn. The result is our most comprehensive Index to date. Our intent is for the following pages to stimulate new thinking, lively debate, and a richer appreciation of country brands, a category we continue to feel has tremendous and untapped potential. YEAR IN REVIEw THEMES IN NATION BUILDING ISSUES IN COUNTRY BRAND MARkETING 6. 2009 Top Country Brand Rankings 30. Beyond Tourism: The Political and Economic 53. A New Focus on Value 7. Leaders at a Glance Sides of Country Branding 55. Smaller Destinations Offering Big Value: 9. News & Noteworthy 32. The Obamification of Brand USA The Next Wave of Country Brands? 10. Emerging Trends 34. Country Brands Influenced by National Companies 57. The Impact of Icons on Country Brand Image 13. Future Trends, Tourism and Country Branding 36. The Gap Between Perception and Reality 60. Revisiting Dangerous Travel 14. 2009 Experts 42. Country Brand Framework Analysis: 62. Country Branding and Social Media 16. Views from the Experts Aruba and St. Lucia 45. The World’s Worst Country Brand RANkINGS 2009 DIAGNOSTICS 47. How Sports Accelerate Country Brand Development 65. Regional 21. Assessing Brand Strength of the Top 10 49. The Olympic Effect on Brand China: A Follow Up 73. Detailed Country Brands 25. Top 10 Country Brand Weaknesses 27. The Next 10 28. Rising and Falling Country Brands

Year In Review 6. 2009 Top Country Brand Rankings 7. Leaders at a Glance 9. News & Noteworthy 10. Emerging Trends 13. Future Trends, Tourism and Country Branding 14. 2009 Experts 16. Views from the Experts COUNTRY BRAND INDEX 2009

COUNTRY BRAND INDEX 2009 YEAR IN REVIEw / 6 2009 Top Country Brand Rankings 01 USA 02 CANADA 03 AUSTRALIA 04 NEw ZEALAND 05 FRANCE 06 ITALY 07 JAPAN 08 Uk 09 GERMANY 10 SPAIN

COUNTRY BRAND INDEX 2009 YEAR IN REVIEw / 7 Leaders at a Glance The following chart details key facts of the Top 10 country brands for the past year1 1 2 3 4 5 USA CANADA AUSTRALIA NEw ZEALAND FRANCE POPULATION: POPULATION: POPULATION: POPULATION: POPULATION: 307,212,123 33,487,208 21,262,641 4,213,418 64,057,792 GDP: GDP: GDP: GDP: GDP: $14.3 trillion $1.3 trillion $800.2 billion $116.7 billion $2.1 trillion GDP COMPOSITION: GDP COMPOSITION: GDP COMPOSITION: GDP COMPOSITION: GDP COMPOSITION: Services: 79.6% Services: 69.6% Services: 69.8% Services: 69.9% Services: 77.6% Industry: 19.2% Industry: 28.4% Industry: 26.8% Industry: 25.7% Industry: 20.4% Agriculture: 1.2% Agriculture: 2.0% Agriculture: 3.4% Agriculture: 4.4% Agriculture: 2.0% SIZE: SIZE: SIZE: SIZE: SIZE: 3,794,083 sq. miles 3,855,103 sq. miles 2,967,909 sq. miles 103,738 sq. miles 248,429 sq. miles AIRPORTS: AIRPORTS: AIRPORTS: AIRPORTS: AIRPORTS: 15,095 1,388 464 120 475 TRAVEL & TOURISM % OF TRAVEL & TOURISM % OF TRAVEL & TOURISM % OF TRAVEL & TOURISM % OF TRAVEL & TOURISM % OF GOVERNMENT EXPENDITURE: GOVERNMENT EXPENDITURE: GOVERNMENT EXPENDITURE: GOVERNMENT EXPENDITURE: GOVERNMENT EXPENDITURE: 5.2% 4.1% 3.7% 3.2% 3.0% TRAVEL & TOURISM GROwTH: TRAVEL & TOURISM GROwTH: TRAVEL & TOURISM GROwTH: TRAVEL & TOURISM GROwTH: TRAVEL & TOURISM GROwTH: -4.2% -2.0% -2.6% 5.3% -4.5% TRAVEL & TOURISM INDUSTRY TRAVEL & TOURISM INDUSTRY TRAVEL & TOURISM INDUSTRY TRAVEL & TOURISM INDUSTRY TRAVEL & TOURISM INDUSTRY % OF GDP: % OF GDP: % OF GDP: % OF GDP: % OF GDP: 9.5% 8.7% 10.2% 13.2% 10.2% EXPERTS SAY: “The United EXPERTS SAY: “Canada continues EXPERTS SAY: “Australia is EXPERTS SAY: “New Zealand’s EXPERTS SAY: “From the States had a tattered brand to do an exceptional job with its a large country with a unique ‘100% Pure’ brand campaign is fashion of Paris and the romance two years ago, and now it is branding. Using all the country and diverse set of assets that consistently well managed, and of Provence to the serenity of back on track. The “Obama has to offer, it promotes the have been well packaged in the is very effectively delivered both Burgundy—France maintains factor” has reminded us of the experience of adventure, friendly country’s vibrant branding efforts through the tourist experience a consistent brand image that resilience and positive attitude people, diverse culture and and marketing materials.” and in products the country has continues to lure travelers of the American people.” beautiful landscapes.” on offer.” from all over the world.”

COUNTRY BRAND INDEX 2009 YEAR IN REVIEw / 8 Leaders at a Glance continued 6 7 8 9 10 ITALY JAPAN Uk GERMANY SPAIN POPULATION: POPULATION: POPULATION: POPULATION: POPULATION: 58,126,212 127,078,679 61,113,205 82,329,758 40,525,002 GDP: GDP: GDP: GDP: GDP: $1.8 trillion $4.3 trillion $2.3 trillion $2.9 trillion $1.4 trillion GDP COMPOSITION: GDP COMPOSITION: GDP COMPOSITION: GDP COMPOSITION: GDP COMPOSITION: Services: 71.0% Services: 72.2% Services: 74.5% Services: 69.0% Services: 67.6% Industry: 27.0% Industry: 26.3% Industry: 24.2% Industry: 30.1% Industry: 29.0% Agriculture: 2.0% Agriculture: 1.5% Agriculture: 1.3% Agriculture: 0.9% Agriculture: 3.4% SIZE: SIZE: SIZE: SIZE: SIZE: 116,306 sq. miles 145,883 sq. miles 94,526 sq. miles 137,846 sq. miles 195,124 sq. miles AIRPORTS: AIRPORTS: AIRPORTS: AIRPORTS: AIRPORTS: 132 176 506 550 153 TRAVEL & TOURISM % OF TRAVEL & TOURISM % OF TRAVEL & TOURISM % OF TRAVEL & TOURISM % OF TRAVEL & TOURISM % OF GOVERNMENT EXPENDITURE: GOVERNMENT EXPENDITURE: GOVERNMENT EXPENDITURE: GOVERNMENT EXPENDITURE: GOVERNMENT EXPENDITURE: 3.6% 4.2% 2.8% 2.0% 6.5% TRAVEL & TOURISM GROwTH: TRAVEL & TOURISM GROwTH: TRAVEL & TOURISM GROwTH: TRAVEL & TOURISM GROwTH: TRAVEL & TOURISM GROwTH: -4.4% -3.8% -0.6% -3.9% -4.9% TRAVEL & TOURISM INDUSTRY TRAVEL & TOURISM INDUSTRY TRAVEL & TOURISM INDUSTRY TRAVEL & TOURISM INDUSTRY TRAVEL & TOURISM INDUSTRY % OF GDP: % OF GDP: % OF GDP: % OF GDP: % OF GDP: 9.6% 9.1% 9.4% 7.9% 16.3% EXPERTS SAY: “Italy markets EXPERTS SAY: “Despite some EXPERTS SAY: “For its culture EXPERTS SAY: “Brand Germany EXPERTS SAY: “Spain has already the very best of itself well: tough economic times, Japan and charm, history and diversity, differentiates itself from other built a powerful name globally— the cradle of gourmet cuisine remains one of the global leaders business strength and diplomatic European countries by promoting its branding is impressive and is and art, the romance of Venice, in manufacturing, technology acumen, the UK stands as one an image based on having trendy, characterized by an ability to quickly the history of Rome, the art and and business. The country also of the most visible and admired cutting-edge cities, and this adapt to the changing habits of culture of Florence, the exclusivity does an excellent job of packaging country brands in the world.” positioning is helping the country new tourists while still embodying of the south and even the beauty its distinctive cultural offerings.” to attract a growing number of the Spanish way of living and the of its people.” tourists.” country’s rich cultural diversity.”

COUNTRY BRAND INDEX 2009 YEAR IN REVIEw / 9 News & Noteworthy 3.4% NEAR ZERO in global GDP was reported, a slowdown from the 4% average growth in global economic output experienced GROWTH from 2000 to 2007.2 PROJECTED GROwTH IN GLOBAL GDP FOR 2009.8 14% in global FDI inflows, from a high of $2.0 trillion in 2007 $1.2 TRILLION to $1.7 trillion in 2008, when developing and transition DECLINE economies increased their share of FDI by 43%, primarily at the expense of developed nations.3 IN FDI INFLOwS IS PROJECTED FOR 2009, A 29% REDUCTION $5.5 in economic activity is forecast for the Travel & Tourism industry, equivalent to 9.4% of the global FROM 2008. MODEST 17% GROwTH IS PROJECTED FOR 2010, TRILLION GDP, and more than 219,810,000 jobs, or 7.6% of wHICH SHOULD ACCELERATE TO 29% GROwTH IN 2011.9 total employment.4 3.3% DECLINE is estimated for the Travel & Tourism Economy in 2009. After four years of growth averaging 3.6% per annum, GDP growth for the industry slowed to just 1.0% in 2008. 247 MILLION INTERNATIONAL TOURIST ARRIVALS FROM JANUARY THROUGH A third difficult year is now forecast for 2010, with the Travel & Tourism economy expected to expand by only 0.3%.5 APRIL OF 2009. THIS FIGURE IS AN 8.2% DECLINE COMPARED wITH THE SAME PERIOD IN 2008.10 924 international tourist arrivals for 2008. A total 2% growth $3.0 TRILLION compared to 2007 resulted from a 5% increase during MILLION the first half of the year and a 1% decline in the second half of the year, compared to the same periods in 2007.6 ESTIMATED EXPENDITURES FOR TOTAL wORLD PERSONAL 4% in real GDP is projected on an average annual basis for the global Travel & Tourism Economy over the next 10 TRAVEL AND TOURISM IN 2009, wITH BUSINESS TRAVEL GROWTH years. Following an expected 3.5% decline in 2009, ACCOUNTING FOR AN ADDITIONAL $745 BILLION.11 THESE the industry expansion will add 56 million new Travel FIGURES REPRESENT ANNUAL DECLINES OF 6.3% AND & Tourism jobs worldwide during the next decade.7 11.6%, RESPECTIVELY.

COUNTRY BRAND INDEX 2009 YEAR IN REVIEw / 10 Emerging Trends As part of living up to our name, FutureBrand has continued to track travel and tourism trends. In this collection are trends that are beginning to emerge as well as others that are further off in the future. They center on three themes: value, planning and authenticity. A Value-Oriented Mindset Value-oriented Mindset The global economic downturn of 2009 has precipitated a financially “Where is the exchange rate favorable?” It is clear that many people driven way of thinking that is affecting how trips are planned and are treating vacation purchases as investments. This attitude demands inspiring the launch of interesting new products. Through it all, though, labor-intensive efforts such as watching real estate indices, monitoring the pure concept of value as more for less continues to flourish. corporate news to profit from sales that accompany territory expansions, and being vigilant to avoid losing frequent flyer miles to mergers. Born of THE PEOPLE’S RIGHT TO GOOD DEALS recession, these behaviors could shape decision making in a lasting way.13 Whatever type of vacation they are able to afford, consumers expect a bargain, and travel and hospitality providers are responding by providing VALUE REINVENTED more bang for the buck. Airline fares are down dramatically12 and hotels Many travelers have developed discerning tastes during boom times that from two-star to five-star are offering discounts, packages or flight credits have them seeking solutions beyond the traditional two-star hotel to save to entice travelers unwilling to pull the trigger without feeling they’re money on vacations. Some purchase used RVs and take their food and getting a deal. More the result of a temporary opportunity to capitalize on lodging with them. Others save to splurge, flying with a low-cost carrier but the weak travel climate, this mentality isn’t likely to create a permanent spending on first-class activities once they arrive.14 Still others are looking power shift. for high-style budget accommodations, and the industry is answering consumers’ calls with innovative properties like the Yotels inside the THE ECONOMIST’S APPROACH TO TRAVEL terminals at Schiphol and Heathrow airports (capsule hotels offering The current economy has many thinking like financial analysts, asking “as much fun in seven square meters as you’d find in most four-star questions like “Which destinations or properties are undervalued?” hotels”)15 and the Jane Hotel in New York (trendy bar scene-type “Where can I buy a vacation home that will appreciate in price?” and atmosphere but lacking en suite toilets).

COUNTRY BRAND INDEX 2009 YEAR IN REVIEw / 11 Emerging Trends continued Attitudes Toward Travel Planning Current preferences are divided between those that favor impromptu OPEN ROAD TRIPS travel and those that prefer careful organization. Some impulse holidays Lower gas prices and higher vacancy rates in many destinations celebrate the liberty that technology brings, but current lifestyles often around the globe, combined with widely available technologies such as dictate that advance preparation is required to experience travel at its GPS devices and cell phone applications, are making it easy to travel most meaningful. without an itinerary. This is the playlist generation’s answer to navigation. With devices indicating nearby attractions, hotels, restaurants, traffic MUST-DO TRAVEL patterns and restrooms, vacationers can design trips on the fly, free from Even in the downturn, people are taking trips centered on events that the need to make reservations. are impossible to postpone. Destination weddings are the fastest-growing segment in the category,16 and 2009 attendance at the Kentucky Derby was only 2.7% off 2008’s second-largest attendance ever,17 despite the recession. The urgency/spontaneity spectrum for time-sensitive travel extends from an event-driven short vacation that happens at the last minute (a visit to the Super Bowl to cheer on your local team) to a truly once-in-a-lifetime happening (such as a best friend’s wedding or a gap-year backpacking trip). SEMIPERMANENT VACATIONS In countries where paid time off is short and work often encroaches, some people choose to plan more than just three weeks a year around travel. This ranges from putting normal lifestyles on hold for a while (perhaps teaching abroad while unemployed or taking a company-sponsored recession sabbatical) to embracing travel as a lifestyle (working from the beach, semi-retiring and classic backpacking).

COUNTRY BRAND INDEX 2009 YEAR IN REVIEw / 12 Emerging Trends continued The Mystery of Authenticity The importance of authenticity to travelers is well known—it’s a key temple at Atlantis, Paradise Island and the gondola rides at The Venetian, driver of destination choice. But differing attitudes toward and different Las Vegas. On the other are places like Molori Safari Lodge in South definitions of the idea mean that some nations are thriving despite a Africa and Australia’s Longitude 131, where tourists can pretend to marked lack of authenticity while other travel experiences are reinventing rough it while staying in five-star “tents” outfitted with amenities like air the concept. conditioning, high-end sound systems and bedside switches that raise the blinds for a view of the sunset. These vacationers get a real taste of SYNTHETIC DESTINATIONS their destinations through knowledgeable guides, who explain the varied The most popular “classic” tourist destinations of the past—places like wildlife or lively street scenes as they pass by—albeit from luxury 4x4s. France, the UK, Italy and Egypt—are richly endowed with monuments that bear witness to thousands of years of history and culture. The superstar TOMORROw’S HIDDEN JEwELS cities and nations of the future may be born of more conscious planning. Some travelers will always be on a quest for new, undiscovered locales Government officials and business leaders are spending big to grab a piece that are relatively free from tourists, planned activities and package tours. of the world tourism pie by upgrading infrastructure, building unique As yesterday’s off-the-beaten-track spots enter the realm of perennial attractions and creating cohesive brand stories with the power to attract favorites (think Czech Republic, Thailand and Croatia), new unspoiled both visitors and foreign investment. Examples of buying onto the map destinations become more accessible and popular among the cognoscenti. already in progress are in the Middle East: the United Arab Emirates’ The next places we expect to hit authenticity seekers’ radar screens are man-made islands, indoor ski slope and starchitected Saadiyat Island, and Azerbaijan, Ghana and the Balkans. Qatar’s Museum of Islamic Art. Pioneers of build-it-and-they-will-come techniques also include Las Vegas and Singapore. CRADLES OF CIVILIZATION Though many travelers thirst to understand our collective past, security FAUXTHENTIC TRAVEL is an issue at quite a few of the world’s most historic places. The Fertile People who desire authentic travel experiences but prefer not to get dirt Crescent in Iraq, the Indus Valley in Pakistan, and the ancient kingdoms under their fingernails are choosing from an increasing number of “faux of Mali and Songhai in modern-day Mali and Niger all stand to see a authentic” hotels and tours. On one end of the scale are attractions boost in tourism as these hot zones become safer for visitors, whether in offering replicated cultural experiences from afar, such as the Mayan perception or in reality.

COUNTRY BRAND INDEX 2009 YEAR IN REVIEw / 13 Future Trends, Tourism and Country Branding We’ve brought in renowned futurist Richard Watson to scope out the top ten most important trends for 2009 and beyond. Given his prognostications, we have developed some interesting implications for tourism and country branding. TREND DESCRIPTION IMPLICATION FEAR & LOATHING We are in a new age of anxiety where people are worried about jobs, As fear typically triggers the “fight-flight” response, there is an opportunity for places people homes, savings and the planet. It’s a general feeling that the world has can run away to, escaping their everyday stress and anxiety. Destinations and full-service spun out of control. cruises that comfort people, take care of every detail and eliminate worry should thrive. DE-LEVERAGING Tighter regulation and greater uncertainty will lead people and institutions Expect tourists to take shorter, less expensive and more regional or local trips or to save up to reduce dependency on debt financing, which could mean a new era of for a longer period of time for their more extravagant “dream” trips. Countries with modern thrift and delayed gratification. infrastructures in place should get a boost due to delays in developing nations. BACK TO BASICS Simplicity, transparency and products that are not over-engineered are The trend, exemplified by the big tried and true country brands dominating the Top 10 the order of the day. Uncertainty is driving people to what they know, in 2009, is likely to continue. Smaller nations with simple, basic offerings that are not understand and trust. over-engineered—like authentic culture and friendly locals—should do well too. DIGITAL DIETS People are drowning in data and are beginning to feel a need to become The opportunity is for off-the-beaten-track destinations to offer people an oasis from their less connected. This could mean terminating social network relationships data-driven lives. Whether it’s a high-end spa or river rafting in an isolated location, people or finding ways to unplug. will seek out ways to enjoy genuine connection with family, friends or experiences. ENOUGHISM Increasingly alarmed about the health of the planet and the influence Ecotourism, voluntourism, family vacations and experiential tourism (e.g., a culinary school of materialism, people are beginning to switch off, seeking to reconnect at a country tavern) should fare well moving forward as they provide the means for people to with the simpler pleasures of life. enhance their quality of life through non-material means. IMBY’S “In My Back Yard” is a reaction to disillusionment over globalization. Exotic locations around the world could find it difficult to attract people who feel the draw of Keeping it local, whether it’s produce or business, helps people feel localization. For these people, intra-national or regional options would be preferred—shorter more in control. distance trips to experience relatively nearby attractions. SERIOUSNESS In times of economic upheaval, there are two responses: to bury one’s In the more immediate future, this could mean a decline in the importance of social media head in the sand or to find out what is going on. For many, this will mean as a source for destination information with a return to prominence of the “expert” sources. a turning to more serious information sources. Interest in visiting serious attractions like the United Nations or the Hague could also spike. THE HUMAN BRAIN With neuro-enhancement around the corner, the brain is becoming hot. In the far future, direct digital interfaces to the brain, and in the more near-term future, While most implications relate to technology, particularly medical, there augmented reality will provide a means to enhance a visitor’s experience of a tourist are implications in many industries. attraction. Imagine being told what something is and what it means just by looking at it... ECO-WARS Global warming is a mega-issue that has polarized fanatics into two Real, effective carbon offset programs and resorts that have been built and are managed camps. The complexity of their debate keeps the majority in the middle sustainably are likely to become more in demand. Services will arise to help people who uninformed about what they already suspect is happening. desire to travel responsibly choose appropriate options. FEAR OF THE People are increasingly aware that the future is unknowable, that what People are more likely to control what they can control. This might make it more difficult for UNKNOWN happens next is almost as likely to be the unexpected as the expected. newer, less proven destinations, hotels, resorts or attractions. You can’t control the future, This leads to uncertainty and anxiety. but you can ensure a more likely outcome by choosing the tried and true.

COUNTRY BRAND INDEX 2009 YEAR IN REVIEw / 14 2009 Experts GASTÓN ACURIO SOLEDAD AGUADO MARwAN AL SARkAL JOÃO ANNIBALE CEO, Editorial Dir., CEO, Regional Dir., La Macha Revista Huéspedes Shurooq The Leading Hotels Peru Magazine United Arab Emirates of the World Argentina Brazil JOHN ANTONELLO kATHI APOSTOLIDIS JEAN-CLAUDE BESSUDO TONY CHARTERS Managing Dir., Partner, President, Principal, Travel & Leisure Group, Tourism Taskforce Aviatur Tony Charters and Assoc. Phoenix Marketing Intl. Greece Colombia Australia United States CARMEN COX GIACOMO DEL CHIAPPA LUIS DEL OLMO PEDRO JOSE DE ZAVALA Assoc. Prof., Asst. Prof. in Marketing, Executive VP DE ROMAÑA Hotel and Resort Mgmt., Faculty of Economics, Group Marketing, Marketing Manager, Bond University University of Sassari Sol Meliá Hotels & Resorts El Comercio Editorial Australia Italy Spain Peru THOMAS L. DOORLEY III IGOR FES LUIS S. FRANCISCO wENDY GOLD CEO, Publisher, Independent Tourism Principal, Sage Partners Tourism-Review.com Advisor/Consultant OpenCity Projects United States Czech Republic Portugal Canada MARTIN HOGAN GIORA ISRAEL OLIVIER JUNGERS JOHN kENT Executive VP, Sr. VP, General Dir., CEO, CIEE: Council on Intl. Port and Destination Dev., L’Officiel Voyage Magazine Youtravel.com Education Exchange Carnival Corporation & PLC France United Kingdom United States United States BRIAN kING ANDREAS MARkESSINIS CARRIE MCDOUGALL BERNARD METZGER Prof. of Tourism Mgmt., Founder, President, Founder & Chairman, Victoria University Nation-Branding.info Cultural Crossroads Travel & Tourism Australia Spain United States Foundation United Kingdom

COUNTRY BRAND INDEX 2009 YEAR IN REVIEw / 15 2009 Experts continued NITIN MOTwANI FREDDY NEIRA GUZMÁN NYOkABI NJUGUNA GREG NORMAN Principal & Managing Dir., Executive Dir., CEO, Pro Golfer and Founder, Miami Worldcenter Group Intl. Center of Tourism Marketing Strategies Great White Shark United States Studies & Solutions Enterprises Chile Kenya United States ROSSITZA OHRIDSkA- DR. STEVEN PIkE PAOLA RAFFO ALEX ROBERTSON TEXTOR OLSON Sr. Lecturer, School GANDOLFO Freelance Travel Writer President, of Tourism, Content Manager, and Editor, Vizantia Enterprises Inc. The University Cocha Various Publications United States of Queensland Chile United States Australia ANDREA SARTORI MONICA SIEVERS JOHN TAkER JOHN TERCEk Partner, Head of Real Principal, Tourism School, Purchasing Dir., VP Estate, Leisure and DuocUC Virgin Holidays Commercial Dev., Tourism in CEE, Chile United Kingdom Royal Caribbean Cruises Ltd. KPMG United States Hungary JENS THRAENHART LUIZ GONZAGA GODOI VERONICA VENZI DR. JOHANNES VON President, TRIGO Brand Dev. Manager, THADDEN Chameleon Strategies Inc. Dr., Leisure and Tourism Al Italia VP, Head of Political China of Escola de Artes, Italy Relations Germany, Ciências e Humanidades, EADS Astrium University de São Paulo Germany Brazil ARNIE wEISSMANN STEVE wHEELER DR. JEFF wILkS GONZALO ZEGARRA Editor in Chief, Sr. VP, Managing Dir., MULANOVIC Travel Weekly Advertising, Tourism Safety Executive Dir., United States Emirates Group Australia Semana Económica and United Arab Emirates Perú Económico Magazines Peru NOT PICTURED ROBERT BAILEY LEE kIT PUI YE XIA President & CEO, Corporate Dir., Brand Marketing Editor, Abacus Intl. Raffles Hotels & Resorts Business Travel Magazine Singapore Singapore China

COUNTRY BRAND INDEX 2009 YEAR IN REVIEw / 16 Views from the Experts wEB DECLARED MOST IMPORTANT CHANNEL THE NEw wORD OF MOUTH Continuing to grow in importance and sharing in an increasing portion Experts note the significance of social media in building trust, creating of country marketing budgets, experts see the web as an imperative dialogue and significantly influencing the decision-making processes platform for delivering key experiences. of travelers. “The Internet is the single most powerful and efficient marketing channel “Social networks now have the same influence as word of mouth— for the travel and tourism industry.” not only introducing new ways for consumers to learn about destinations and products, but enabling country brands and destinations to position “Marketers will continue to shift their budgets toward emerging digital themselves in a more dynamic way.” technologies—these are low cost, have global reach and have the greatest impact on sales.” “While social media will not eliminate traditional channels altogether, marketers will need to spend an increasing proportion of their time and “Online marketing offers more of a targeted approach than traditional media, resources incorporating them into their strategies and campaigns.” delivering a better return on investment.” “In the spirit of transparency, social networking forums offer important “The Internet is already a major tourism supplier and will replace the spaces for people to access and share information, news and personal traditional travel agent as the preferred choice for booking flights and opinion—also enabling travel and tourism professionals to manage and hotel rooms.” shape messages rather than control them.” aCCORdING TO THE EXPERTs COUNTRIES THAT MARkET THEMSELVES THE BEST: 1. NEW ZEaLaNd 2. ausTRaLIa (TIE) 2. INdIa (TIE)

COUNTRY BRAND INDEX 2009 YEAR IN REVIEw / 17 Views from the Experts continued THE NEXT BIG THING THE PRICE OF FAME Experts point out that an aging population, rising middle class, evolving Experts note that showcasing countries and destinations in popular films niche tourism sectors and the wealth of emerging markets are all driving and television is an effective way to add value and increase awareness. change in the global tourism industry. “It is important to recognize the potential value of nontraditional “Niche travel will continue to grow in variety and influence, with segments promotional outlets such as film, television or literature when trying to like eco-travel, medical tourism, senior citizen-friendly experiences, increase the familiarity of a particular destination.” and healthy or sustainable living becoming important.” “Blockbuster movies are just about the best marketing tool you can utilize “Consumers’ discretionary spending is shifting—from the developed to the for a city or country; what The Lord of the Rings did for New Zealand developing nations, and from younger to older audiences—the industry or the way the film Australia tied in with the country’s latest tourism must evolve to accommodate the needs of these new travelers.” campaign is invaluable.” “We are seeing shifts in travel demographics: the new middle classes are “When destinations are the setting for movies, reality TV, televised or emerging from China and India, and while tourism development and streamed sporting events and festivals, potential visitors get a feel for the industry is a major priority for mature countries, emerging economies personality of the place in a more realistic way compared to the pages of are catching up quickly.” a tourism brochure.” aCCORdING TO THE EXPERTs COUNTRIES THAT DO NOT PROMOTE THEMSELVES AS wELL AS THEY COULD: 1. CHINa 2. RussIa (TIE) 2. uNITEd sTaTEs (TIE)

COUNTRY BRAND INDEX 2009 YEAR IN REVIEw / 18 Views from the Experts continued THE YEAR OF THE DEAL THE NEw SIGNIFICANCE With value travel at an all-time high, even the most discerning traveler is Seeing is no longer believing, with travelers now seeking more of an active now demanding more for his or her money. role in the places they visit, immersing themselves in the culture and looking for emotional value within their travel experiences. “After several years of rising prices, 2009 will be remembered for the emergence of ‘value travel.’ While this concept is by no means a new one, “Travelers are tending to select destinations that offer cultural, historical rarely have we seen such dramatic cuts across the board, with pricing and natural attractions—people no longer just want to see places and dropping significantly over the past 12 months and incredible value added landscapes but understand who the people are who live in the places to hotels, packages and tours.” they visit.” “More passengers than ever are relying on loyalty points earned to purchase “Travel is no longer about getting heads on pillows; it is about facilitating flights and pay for hotel rooms.” the acquisition of knowledge; an exploration of nature, history and culture; and the sense of discovering the true spirit of the destination.” “Staying closer to home will be favored over long-haul travel. Last-minute decisions and late bookings are expected to increase. And as price becomes “People are looking for significance in their experiences (both financial and the key issue, countries with favorable exchange rates and value for money emotional), authenticity and, perhaps more than ever before, an opportunity will benefit.” to connect with the local people and culture of the destination.” aCCORdING TO THE EXPERTs UNDERRATED COUNTRIES ON THE RISE: 1. CHINa 2. INdIa 3. sOuTH afRICa

COUNTRY BRAND INDEX 2009 YEAR IN REVIEw / 19 Views from the Experts continued COUNTRY BRANDING 2.0 THE DOwNwARD SPIRAL? As competition heats up and the category continues to mature, experts While Travel & Tourism has taken a hit over the past 12 months, it’s not agree that an increasingly sophisticated branding effort is required to add all “doom and gloom.” Experts predict that economic challenges will value, create differentiation and drive travelers to a specific destination. open up a whole new set of possibilities for emerging countries/regions. “Branding is not a question of importance, it is a necessity—it is the “The industry has in general always been resilient. Following an upturn most powerful way to communicate a country’s story, set expectations in the economy, the tourism industry will continue to grow, but there will and drive visitation.” be destinations that will grow much faster, like China, South America, Southeast Asia, and Central and Eastern Europe.” “Competition among destinations is increasing along with the quality of their branding and marketing efforts. Countries that do not continue to lift “We are very optimistic about the prospects for the travel industry over the their game will fall behind.” next five years and beyond. Strong markets such as Australia and Canada will get stronger, but Eastern European countries and African nations will “Brand affects much more than tourism. It can have a hugely positive slowly emerge as viable players.” impact on the business sector, specifically the country’s potential for foreign investment and trade.” “With the economy’s decline and slow recovery anticipated, the focus will be on the budget traveler and the reliable luxury crowd but little “Brand plays a big part in the decision-making process and destination in between.” branding has a big impact on where travelers choose to go.” aCCORdING TO THE EXPERTs MOST IMPRESSIVE COUNTRIES GIVEN THE CURRENT ECONOMIC CLIMATE: 1. ausTRaLIa (TIE) 1. CHINa (TIE) 3. uNITEd sTaTEs

2009 diagnostics 21. Assessing Brand Strength of the Top 10 Country Brands 25. Top 10 Country Brand Weaknesses 27. The Next 10 28. Rising and Falling Country Brands COUNTRY BRAND INDEX 2009

COUNTRY BRAND INDEX 2009 2009 DIAGNOSTICS / 21 Assessing Brand Strength of the Top 10 Country Brands Looking at the leading country brands provides insight into To get a complete picture of country brand performance, we consider both the rating and ranking for each HDM measure. The rating is the percentage what has driven these nations to rise to the top. Interestingly, of respondents who answer in the affirmative. Rankings show the placement there is no single formula for success. of a country’s rating for a specific measure relative to how the other 101 countries in the study were rated for the same measure. For example, 52.2% of respondents rated the US as a country they are very or extremely FutureBrand’s proprietary Hierarchical Decision Model (HDM) familiar with; this was higher than the rating achieved by any other country, which is why the US is ranked #1 for familiarity. is the methodology used to assess brand development in terms of the place a brand occupies in the minds of its audiences. COMPONENTS The measures that compose HDM—from awareness to advocacy— AwARENESS: Do key audiences know that the country exists? How top of mind is it? provide a means for evaluating key dimensions of brand strength. FAMILIARITY: How well do people know the country and what it offers? ASSOCIATIONS: What qualities come to mind when people think of the country? PREFERENCE: How highly do audiences esteem the country? Does it resonate? CONSIDERATION: Is this one of the countries being thought about for a visit? DECISION / VISITATION: To what extent do people follow through and visit the country? ADVOCACY: Do visitors recommend the country to family, friends and colleagues?

COUNTRY BRAND INDEX 2009 2009 DIAGNOSTICS / 22 assessing Brand strength of the Top 10 Country Brands continued 1 2 3 4 5 COMPONENTS USA CANADA AUSTRALIA NEw ZEALAND FRANCE AwARENESS Ranking / Rating #1 (tie) / 90.9% #8 / 88.4% #9 / 87.8% #18 / 83.9% #1 (tie) / 90.9% FAMILIARITY Ranking / Rating #1 / 52.2% #7 / 40.7% #15 / 30.9% #17 / 30.6% #4 / 43.2% ASSOCIATIONS Families, Resort & Lodging Families, Resort & Lodging Authenticity, Families, Resort Authenticity, Families, Art & Culture, History, Resort RED = #1 ranking Options, Nightlife, Outdoor Options, Natural Beauty, Fine & Lodging Options, Natural Natural Beauty, Outdoor & Lodging Options, Nightlife, BLACK = Top 10 ranking Activities & Sports, Shopping, Dining, Outdoor Activities & Beauty, Outdoor Activities & Activities & Sports, Fine Dining, Shopping, Ease Easiest to Do Business In, Sports, Friendly Locals, Sports, Safety, Easiest to Do Friendly Locals, Safety, of Travel, Conferences, Ideal for Business, Safety, Shopping, Value for Business In, Ideal for Environmentalism, Standard of Living, Advanced Conferences, Standard of Money, Ease of Travel, Business, Standard of Living, Political Freedom, Technology, Most Like to Live Living, Political Freedom, Environmentalism, Easiest to Political Freedom, Desire to Desire to Visit/Visit Again, In, Quality Products Advanced Technology, Desire Do Business In, Ideal for Visit/Visit Again, Extend a Extend a Business Trip, to Visit/Visit Again, Extend a Business, Conferences, Business Trip, Most Like to Most Like to Live In Business Trip, Most Like to Standard of Living, Political Live In, New Country for Live In, Quality of Products, Freedom, Advanced Business New Country for Business Technology, Desire to Visit/ Visit Again, Extend a Business Trip, Most Like to Live In, Quality Products, New Country for Business PREFERENCE Ranking / Rating #2 / 15.9% #6 / 6.7% #1 / 17.1% #3 / 10.9% #5 / 7.9% CONSIDERATION Ranking / Rating #1 / 37.4% #8 / 21.7% #6 / 23.4% #10 / 16.5% #2 / 28.5% DECISION / VISITATION Ranking / Rating #2 / 50.8% #11 / 30.3% #16 / 21.0% #31 / 11.3% #1 / 57.5% ADVOCACY Ranking / Rating #2 / 10.1% #5 / 8.0% #18 / 4.3% #26 / 3.5% #3 / 8.9% Ranking = placement out of 102 countries evaluated / Rating = percentage of respondents (e.g., who are aware, who are familiar...)

COUNTRY BRAND INDEX 2009 2009 DIAGNOSTICS / 23 assessing Brand strength of the Top 10 Country Brands continued 6 7 8 9 10 COMPONENTS ITALY JAPAN Uk GERMANY SPAIN AwARENESS Ranking / Rating #3 / 90.7% #14 / 85.0% #5 / 90.0% #4 / 90.1% #6 / 89.5% FAMILIARITY Ranking / Rating #5 / 42.6% #14 / 31.5% #2 / 49.5% #6 / 41.6% #3 / 43.4% ASSOCIATIONS Art & Culture, History, Art & Culture, Authenticity, Art & Culture, Families, Art & Culture, Families, Nightlife, RED = #1 ranking Fine Dining, Shopping, Nightlife, Fine Dining, Safety, History, Nightlife, Shopping, Nightlife, Fine Dining, Ease of Travel BLACK = Top 10 ranking Desire to Visit/Visit Again, Shopping, Environmentalism, Easiest to Do Business In, Safety, Ease of Travel, Extend a Business Trip, Easiest to Do Business In, Ideal for Business, Environmentalism, Easiest Quality Products Ideal for Business, Conferences, Standard of to Do Business In, Ideal for Conferences, Standard of Living, Political Freedom, Business, Conferences, Living, Advanced Technology, Advanced Technology, Extend Standard of Living, Political Desire to Visit/Visit Again, a Business Trip, Most Like to Freedom, Advanced Extend a Business Trip, Live In, Quality Products, Technology, Quality Products Quality Products, New New Country for Business Country for Business PREFERENCE Ranking / Rating #4 / 9.9% #9 / 5.7% #7 / 6.7% #17 / 2.9% #10 / 5.4% CONSIDERATION Ranking / Rating #3 / 28.3% #19 / 11.8% #4 / 26.4% #7 / 22.0% #5 / 24.8% DECISION / VISITATION Ranking / Rating #4 / 45.6% #24 / 16.7% #5 / 44.9% #3 / 48.8% #6 / 42.7% ADVOCACY Ranking / Rating #4 / 8.0% #21 / 3.8% #8 / 6.2% #10 / 5.8% #1 / 10.2% Ranking = placement out of 102 countries evaluated / Rating = percentage of respondents (e.g., who are aware, who are familiar...)

COUNTRY BRAND INDEX 2009 2009 DIAGNOSTICS / 24 assessing Brand strength of the Top 10 Country Brands continued There appear to be three different “winning formulas” or ways of exhibiting brand strength among the Top 10 country brands. Identifying these is not intended to imply that nations have intentionally focused their brands along certain lines but rather to point out that specific patterns emerge when examining the leading country brands across the dimensions of brand strength. SCENARIO 1 SCENARIO 2 SCENARIO 3 AwARENESS AWARENESS AwARENESS FAMILIARITY FAMILIARITY FAMILIARITY ASSOCIATIONS ASSOCIATIONS ASSOCIATIONS PREFERENCE PREFERENCE PREFERENCE CONSIDERATION CONSIDERATION CONSIDERATION DECISION / VISITATION DECISION / VISITATION DECISION / VISITATION ADVOCACY ADVOCACY ADVOCACY The first formula is shared by the USA, Australia, Canada and Japan manifest a different pattern. France, Italy and Spain represent a third model. New Zealand, the UK and Germany. All show Both countries are strong across HDM measures All three are very strong in the awareness/ relatively equal degrees of strength across all but stand out in the area of associations. familiarity and visitation-related measures HDM measures. However, the countries have Canada is in the Top 10 in 22 of 29 image (i.e., preference, consideration, decision arrived at this formula along different paths: attributes, five of which are #1. Japan has six #1 and advocacy) and comparatively weaker Australia and New Zealand have promoted rankings, more than any other country, and 10 in associations. Spain is the most extreme more visibly, the UK and Germany have tourism additional Top 10 rankings. example, being in the Top 10 for all HDM boards and formal but less visible branding measures while achieving only two Top 10 efforts, while the US currently has no centrally association rankings. defined or managed brand.

COUNTRY BRAND INDEX 2009 2009 DIAGNOSTICS / 25 Top 10 Country Brand Weaknesses While the Top 10 list includes the best overall performing country brands in 2009— 01 USA based on a spectrum of 35 measures, from awareness to advocacy and including an Balancing its strong performance from awareness to advocacy is the largest set of array of image attributes—none is universally strong across every quality or asset. association weaknesses of any Top 10 brand: A number of these brands have significant perceived weaknesses (defined as a ASSOCIATION RANk ranking below 40 out of the 102 countries evaluated) relative to other nations. Art & Culture #49 This shows that no country brand can be a leader across every association or Authenticity #50 Ease of Travel #51 decision-making measure. Brand success is not about being perfect as much as Environmentalism #48 it is about capitalizing to turn assets into perceived strengths. Friendly Locals #53 Natural Beauty #61 Rest & Relaxation #47 02 CANADA 03 AUSTRALIA 04 NEw ZEALAND Canada is a country brand with virtually no Australia is another country brand that Similar to Australia, New Zealand is perceived weaknesses. Strong across almost shows few weaknesses in how people see it. outperformed by the US and Canada across every measure, Canada ranks in the Top 10 for Not as strong as the US or Canada in 2009, every measure of brand development in 2009. 22 of 29 measured country brand attributes. Australia has only one weakness according However, New Zealand is a country brand with Its one area of weakness is: to CBI data: only two perceived weaknesses: ASSOCIATION RANk ASSOCIATION RANk ASSOCIATION RANk Beach #84 Art & Culture #42 Art & Culture #41 History #66

COUNTRY BRAND INDEX 2009 2009 DIAGNOSTICS / 26 Top 10 Country Brand Weaknesses continued 05 FRANCE 06 ITALY 07 JAPAN From awareness to advocacy, France showed Like France, Italy is one of the strongest Japan’s true strength is in its associations. itself to be one of the strongest country brands. country brands from awareness through to With six #1 rankings out of 29 associations Similar to the US, France has a comparatively advocacy. However, Italy has a more limited set measured, Japan has one of the strongest robust set of association weaknesses: of association strengths and a broader set of country brand images of any nation. The country perceived weaknesses: has only two weaknesses according to our data: ASSOCIATION RANk ASSOCIATION RANk ASSOCIATION RANk Authenticity #59 Beach #48 Beach #64 Beach #51 Easiest to Do Business In #48 Outdoor Activities & Sports #52 Friendly Locals #69 Environmentalism #52 Natural Beauty #52 Friendly Locals #48 Value for Money #46 Outdoor Activities & Sports #45 Value for Money #56 08 Uk 09 GERMANY 10 SPAIN The UK remains a strong country brand across In the Country Brand Index Top 10 for the first Overall, Spain is a strong country brand with the most measures. Its four areas of perceived time, Germany is a country brand with few most limited set of strong associations among weakness include: perceived weaknesses. Among them are: the Top 10. Its perceived weaknesses include: ASSOCIATION RANk ASSOCIATION RANk ASSOCIATION RANk Authenticity #49 Extend a Business Trip #44 Authenticity #75 Beach #80 Rising Star #54 Environmentalism #57 Friendly Locals #50 Friendly Locals #47 Natural Beauty #60 Natural Beauty #58

COUNTRY BRAND INDEX 2009 2009 DIAGNOSTICS / 27 The Next 10 The Next 10 is a list of the nations that ranked 11–20 overall as country brands in 2009. These countries represent a broad range of geographies, types and sizes. 11 SwITZERLAND 12 IRELAND 13 SINGAPORE 14 GREECE 15 BERMUDA 16 FINLAND 17 ARUBA 18 INDIA 19 MALDIVES 20 THAILAND Switzerland, Ireland and Greece are all strong Western European country Singapore, Finland, India and Thailand are the most significant country brands that aggressively promote their destinations and broad country brands on the rise. Singapore has built on its foundation as a business offerings. These brands, while not often in the Top 10, have been hub to effectively promote tourism attributes like Shopping, Fine Dining top-performing nation brands in every Country Brand Index since 2006. and Nightlife. India continues to grow as a business powerhouse, which complements its strengths in Authenticity and Art & Culture. Finland has Bermuda, Aruba and the Maldives are three of the premier beach continued to gain momentum, moving beyond strengths in Environmentalism destinations and tourist hot spots in the world. Bermuda is well regarded and Standard of Living and establishing perceived strengths in Ideal for for its business focus, quality of life, beaches and easily-reached location. Business and Advanced Technology. Despite questions about security, Aruba creates a comfortable and approachable destination amid stunning Thailand has capitalized on strengths in Value for Money, Nightlife and beaches and perfect weather. The Maldives leverages its unique geography Friendly Locals to become one of the top Rising Star countries. Each of and “one island, one resort” policy to create considerable interest in its these country brands has the potential over time to find an enduring one-of-a-kind experience, both for tourists and investors. place in the Top 10 overall ranking.

COUNTRY BRAND INDEX 2009 2009 DIAGNOSTICS / 28 Rising and Falling Country Brands Based on data from CBI research over the past two years, considered from both global and regional bases, these 20 country brands experienced the most significant shifts up RISING: BERMuda or down over the past 12 months. fINLaNd INdIa RISING COsTa RICa The primary factor driving these country brands upward is a general BRaZIL momentum in how they are positively perceived around the world. sOuTH afRICa China, Singapore, Finland, India, Brazil, Uruguay and the Philippines PHILIPPINEs have been moving up consistently for a number of years. Countries like CHINa Costa Rica and South Africa have benefited from focused and effective uRuGuaY marketing campaigns. The Olympics and the FIFA World Cup have also brought worldwide attention to China and South Africa, respectively. DECLINING Many of these countries were particularly hard-hit by the economic downturn. DECLINING: Iceland declared itself bankrupt. The safety of three of these nations sWEdEN is increasingly in doubt: Kenya is in the midst of a three-year drought, ICELaNd Russia’s perception around the world wasn’t helped by its invasion of ausTRIa Georgia, and Egypt continues to experience turmoil both externally from dENMaRk groups unhappy with its ties to the US and Israel and internally from a EGYPT population losing its patience about the distribution of wealth despite growth jaMaICa in FDI and strong natural gas reserves. A number of these countries also kENYa appear to have significantly cut back on their marketing in the past year. HuNGaRY RussIa The fortunes of these and other country brands can change for good or ill MOROCCO quickly, as a result of natural disaster, the popularity of the nation’s foreign policy, disease, the ascension of an inspirational leader, an effective marketing campaign or any number of other factors.

COUNTRY BRAND INDEX 2009 Themes in Nation Building 30. Beyond Tourism: The Political and Economic Sides of Country Branding 32. The Obamification of Brand USA 34. Country Brands Influenced by National Companies 36. The Gap Between Perception and Reality 42. Country Brand Framework Analysis: Aruba and St. Lucia 45. The World’s Worst Country Brand 47. How Sports Accelerate Country Brand Development 49. The Olympic Effect on Brand China: A Follow Up COUNTRY BRAND INDEX 2009

COUNTRY BRAND INDEX 2009 THEMES IN NATION BUILDING / 30 Beyond Tourism: The Political and Economic Sides of Country Branding Globalization is redefining the way a country brand is established and destination. In a short period of time, this small country, with a population maintained. A country’s reputation is defined not just by its attractiveness of 727,785,20 has broken into the Top 20 brands for Ideal for Business, as a travel destination or the efforts of its tourism marketing but also by Easiest to Do Business In and Advanced Technology. its governance, its economic policies, its role in global diplomacy and the quality of its export products. Country reputation can also be defined by the role a nation’s leaders play in advancing international diplomacy and addressing shared global Twenty years ago, countries with the “right” political systems or economic problems such as climate change, poverty, nuclear proliferation, disease, policies enjoyed the best reputations for business and diplomacy. But political peace and security. Countries such as the US, Germany, France and the UK and economic reforms in Latin America, Eastern Europe and East Asia are expected to contribute to global solutions. But today, many nations— in the 1990s resulted in new countries emerging on the global stage. including European Union member states and emerging markets such International trade and investment expanded, creating new wealth and as Brazil, Mexico, South Africa, India and China—are more visible and middle-income societies. Singapore is one such country. With a global engaged in global diplomacy. Because no one country or society has economy that has grown an average of 6.7% per year over the last 20 years18 the resources to address today’s global challenges on its own, greater and a GDP per capita that ranks in the Top 10 in the world,19 Singapore is participation from the developing world’s political leadership and civil now seen as a leading business destination, ranked in the Top 5 in the societies is needed and welcomed. 2009 Country Brand Index for Ideal for Business, Easiest to Do Business In and New Country for Business. Countries seeking to expand their exports or attract inward investment today need to be concerned about a variety of reputational factors Political leaders began to recognize that it was no longer enough simply beyond geographic location and the quality and cost of their labor to adopt free market economic and development policies—they also had forces. These include adopting acceptable labor standards and the rule to aggressively market the competitiveness of their nations through the of law, supporting sound environmental practices, tackling corruption tools of modern communications. Many countries developed sophisticated and transnational crime, protecting intellectual property, promoting open branding strategies and invested heavily in export promotion and inward trade regimes, and offering transparency and sound political governance. investment marketing. The result has been increased global competition for business, with high stakes for economic growth, national wealth and employment. “Business Friendly Bahrain” is an excellent example of a brand that has focused on establishing its country as a business

COUNTRY BRAND INDEX 2009 THEMES IN NATION BUILDING / 31 Beyond Tourism: The Political and Economic sides of Country Branding continued A country’s export products also contribute to its brand among both business and consumer audiences: think German automobiles, Italian fashion, Japanese electronics, Indian call centers, American computer software and Swiss watches. A positive nation brand can also help political leaders attract high-profile world events, such as international summit meetings, the Olympic Games, global conferences and expositions. These can add prestige to a country’s diplomacy brand and reinforce the country as an attractive destination. As we will discuss in more detail, the 2008 Beijing Olympics, staged as a massive “coming out party” for Brand China, had a dramatic impact on the country’s visibility and stature internationally. In an increasingly global and interconnected world, the quality of a country’s political, diplomatic and business leadership is an integral component of its reputation and image on the world stage. Building a true country brand requires more than a focus on tourism. Effectively addressing the political and economic infrastructures will build a brand platform that enhances a nation’s ability to project a positive image, resulting in heightened political power, diplomatic clout, economic prosperity...and tourist arrivals. Interestingly, the Country Brand Index data shows that beyond factors like Authenticity, Natural Beauty and Friendly Locals, perceptions of a country along such characteristics as Political Freedom, Standard of Living and Quality Products also affect the desirability of the country as a tourist destination.

COUNTRY BRAND INDEX 2009 THEMES IN NATION BUILDING / 32 The Obamification of Brand USA Despite his current struggles with healthcare reform and the economic crisis, President Obama has injected new life into Brand America. Regardless of how you feel about his politics, it cannot be denied that 2009 2008 the election of Barack Obama was an iconic event that changed the ASSOCIATION RANk RANk DIFFERENCE way people around the world see and feel about the United States. This election restored some of the best qualities of America, which had ENVIRONMENTALISM 48 62 +14 been largely lost in the war on terrorism after 9/11: hope, equality and fairness—the idea that in the United States, people can rise as POLITICAL FREEDOM 7 17 +10 far as their abilities will take them, regardless of race, sex or religious background. RISING STAR 16 26 +10 More than just the symbolic effect of the election, the new administration softened the tone of America’s dealings in world affairs. The heavy-handed, NEW COUNTRY FOR BUSINESS 2 9 +7 “big stick” approach of the Bush administration has been replaced by discourse and diplomacy, as evidenced in part by President Obama’s FOR FAMILIES 3 8 +5 recent award of the Nobel Peace Prize. The shift has made a difference. In the past year, despite the country’s SAFETY 40 45 +5 role in the global economic downturn and continued military presence in Iraq and Afghanistan, Brand USA jumped from the #3 position to the #1 STANDARD OF LIVING 9 14 +5 country brand in 2009. Moreover, several key perceptions of the US have also improved dramatically. MOST LIKE TO LIVE IN 5 7 +2

COUNTRY BRAND INDEX 2009 THEMES IN NATION BUILDING / 33 The Obamification of Brand usa continued Overall, Brand USA has grown stronger in the past year. The one area of decline, advocacy, may be a function of the relative COMPONENTS 2009 2008 09 vs. 08 strengthening of the dollar that contributed to a significant decline in the perception of America in terms of Value for AwARENESS Ranking / Rating #1 (TIE) / 90.9% #2 / 87.3% Money. With a stronger dollar compared to the previous two years, visitors to the United States get much less for their money. Even with this decline, the nation is still ranked #2 in advocacy. FAMILIARITY Ranking / Rating #1 / 52.2% #1 / 43.7% ASSOCIATIONS Families, Resort & Lodging Families, Resort & Lodging Options, Nightlife, Outdoor Options, Nightlife, Outdoor RED = #1 ranking Activities & Sports, Activities & Sports, BLACK = Top 10 ranking Shopping, Easiest to Do Shopping, Easiest to Do Business In, Ideal for Business In, Ideal for Business, Conferences, Business, Conferences, Standard of Living, Political Advanced Technology, Freedom, Advanced Extend a Business Trip, Technology, Desire to Visit/ Desire to Visit/Visit Again, Visit Again, Extend a Most Like to Live In, Quality Business Trip, Most Like to of Products, New Country for Live In, Quality of Products, Business, Value for Money New Country for Business HDM COMPARISON FOR BRAND AMERICA PREFERENCE No meaningful difference Ranking / Rating #2 / 15.9% #2 / 15.7% CONSIDERATION No meaningful difference Ranking / Rating #1 / 37.4% #1 / 40.0% DECISION / VISITATION No meaningful difference Ranking / Rating #2 / 50.8% #4 / 52.7% ADVOCACY Ranking / Rating #2 / 10.1% #1 / 14.1% Ranking = placement out of 102 countries evaluated Rating = percentage of respondents (e.g., who are aware, who are familiar...)

COUNTRY BRAND INDEX 2009 THEMES IN NATION BUILDING / 34 Country Brands Influenced by National Companies Countries are complex, multidimensional and dynamic brands with images that form as a result of many factors. There are cases, however, where a national company—a well-known and highly visible business clearly associated with one country—will influence how people perceive that country. These companies typically have a symbiotic relationship with their home nation. On the one hand, the company will embody a number of the nation brand’s salient qualities. The flip side of this is, as a visible representative of the country, the company’s brand image will reflect back on the country’s. Thus, national companies can be a significant asset...or a major liability. The following examples showcase a number of cases where national of technological advancements, it seems clear that Batelco has had companies have made vital contributions to the brand image of their some influence on Bahrain, contributing to the country’s achievement home country. of a #13 global ranking for Advanced Technology. COUNTRY NATIONAL COMPANY RELEVANT ASSOCIATION RANkINGS As the most valuable corporation in the world, based on 2006 research by FINLAND NOKIA Quality Products #4, Advanced Technology #6 the Financial Times and McKinsey, Saudi Aramco is one of the most visible BAHRAIN BATELCO Advanced Technology #13 aspects of Saudi Arabia, particularly to the non-Arab world. This company is renowned for its advanced upstream technologies across exploration, SAUDI ARABIA SAUDI ARAMCO Advanced Technology #18, Ideal for Business #12 extraction and refinement and is widely perceived as the most powerful CHINA LENOVO Advanced Technology #30 and influential oil company in the world.23 Given the size of Saudi Aramco and the importance of oil to the global economy, it appears to be an Without Nokia, could Finland—ranked 33rd in the world in GDP21— important driver of how Saudi Arabia is perceived relative to Advanced be perceived as the 4th strongest country for Quality Products or the 6th Technology and as a nation Ideal for Business. best in Advanced Technology? Finland is known for its strong technology infrastructure, but beyond Nokia, there is no other technology company Lenovo is not the biggest corporation in China, but to the majority of among the Top 20 companies in the country. In fact, Finland’s second- people outside the country, it is the most visible. The 2005 purchase leading company, Sampo, is an insurance firm22 that is probably not top of IBM’s PC division made Lenovo the world’s third-largest PC maker of mind to most international audiences. at the time, enhanced the company’s credibility internationally and significantly raised Lenovo’s global profile.24 While many factors are Similarly, Batelco, a well-known telecommunications company in the Middle involved, there can be little question that perceptions of Lenovo have East region, is known for having established Bahrain as the first country in played a role in the rise of China to a #30 ranking for Advanced the world with a nationwide next-generation network. With a long history Technology in 2009.

COUNTRY BRAND INDEX 2009 THEMES IN NATION BUILDING / 35 Country Brands Influenced by National Companies continued A TALE OF TwO BEERS THE UPS AND DOwNS OF NATIONAL CARRIERS Guinness and Corona are two of the most recognized international brands Aeroflot and Singapore Airlines are both national carriers and among the produced by their respective countries, Ireland and Mexico. Both beers best-known brands from their home countries. The experience they provide leverage the image of their home country in their marketing, creating is often one of the first direct impressions of the country a visitor, prospective brands that are as distinctive as they are appealing. Beyond that, these trade partner or investor has. brands and their nations could not be more different. Aeroflot has a 3 Star ranking from SKYTRAX, which signifies “a ‘satisfactory’ Typically enjoyed by the pint and with a history dating back to 1759,25 standard of core Product across most travel categories—but reflects poor or Guinness is a dark, full-bodied porter from Ireland, a country known for its less consistent standards of Staff Service/Product quality in selected Onboard rolling grassy hills, traditional music and friendly socializing. or Airport features.” Singapore Airlines has a 5 Star ranking, the highest level, that “recognizes airlines at the forefront of product and service delivery Corona is a newer, light, refreshing lager—popularly quaffed from the achievement, that generally set trends to be followed by other carriers.” bottle with a twist of lime—from Mexico, a vibrant land with a diverse cultural heritage and tourist attractions that range from beautiful beaches While the perceived strengths and weaknesses of the Russia and Singapore to iconic ruins of ancient civilizations. nation brands derive from many factors, several association rankings seem to reflect some influence by the airlines on the brand images of their home What is interesting about these two very different national beer brands countries. This does not mean that Russia can’t improve its nation brand is the way they contribute to similar perceived strengths—top quartile image as long as Aeroflot is seen as having substandard service. What it performance measures—for their otherwise dissimilar home country brands. means is that, insofar as Aeroflot is seen as “quintessentially Russian,” While not identical, both are seen as friendly places offering great nightlife the country brand would benefit if the airline brand were perceived as and opportunities to relax. offering better, friendlier service. 2009 TOP QUARTILE ASSOCIATION RANkINGS ASSOCIATION RANkINGS REST & FRIENDLY EASE OF FRIENDLY ADVANCED QUALITY COUNTRY BEER NIGHTLIFE COUNTRY AIRLINE RELAXATION LOCALS TRAVEL LOCALS TECHNOLOGY PRODUCTS IRELAND 24 22 2 RUSSIA 84 102 81 78 MEXICO 13 10 23 SINGAPORE 4 37 4 9

COUNTRY BRAND INDEX 2009 THEMES IN NATION BUILDING / 36 The Gap Between Perception and Reality For many government officials, analysts, investors and travelers, perception is reality. After reviewing respected independent sources measuring four important attributes—Standard of Living, Political Freedom, Easiest to Do Business In and Environmentalism—it is clear that for a number of nations there are significant differences between what people think and what is demonstrably true. The examples detailed over the next few pages comprise a minority of the total—in most cases, the differences between perception and reality are not so meaningful—but identifying the gaps is important given the opportunities they uncover. It can be difficult for well-esteemed countries to live up to their stellar reputations; ABOVE: Image taken in the Bahamas, used in an ad to promote Spain’s Costa Brava however, a much more frequent occurrence is a lack of awareness of the good BELOW: Actual image of Spain’s Costa Brava conditions that exist in many developing nations. In all cases, what people think drives their decision-making and behavior. For countries where perceptions lag behind reality, it is imperative to ensure that their lesser-known assets are well communicated. Where perceptions are better than reality, this provides countries with opportunities to develop strengths to avoid disappointing people who have unfairly elevated expectations. To identify underestimated and overestimated country brands for each attribute, FutureBrand calculated percentiles for CBI data and the relevant independent information, and then compared the two percentiles.

COUNTRY BRAND INDEX 2009 THEMES IN NATION BUILDING / 37 The Gap Between Perception and Reality continued KEY STANDARD OF LIVING, THE 12 LARGEST DIFFERENCES Perceptions of Standard of Living, measured by CBI CBI and Human Development Index (HDI) Realities of Standard of Living, measured by HDI 24.0% 15.5% 14.6% 11.9% DIFFERENCE DIFFERENCE DIFFERENCE DIFFERENCE 67.1% 62.2% DIFFERENCE DIFFERENCE 33.8% 35.2% DIFFERENCE DIFFERENCE 31.4% DIFFERENCE 20.9% DIFFERENCE 16.1% DIFFERENCE 13.5% DIFFERENCE 7.8% 74.9% 8.8% 71.0% 9.8% 43.6% 3.9% 39.1% 4.9% 36.3% 75.4% 99.4% 5.9% 26.8% 2.9% 19.0% 81.2% 96.7% 84.3% 98.9% 1.0% 14.5% 85.3% 97.2% CROATIA LIBYA EL SALVADOR INDONESIA VIETNAM ICELAND BHUTAN NEPAL NETHERLANDS NORwAY SENEGAL IRELAND Independent benchmark: Human Development Index (HDI), a measure compiled by the United Nations Development Programme from data collected in 179 countries CBI Standard of Living data was gauged against the United Nations but few are aware of these achievements. Likewise, Libya boasts a Human Development Index (HDI), a composite ranking of life expectancy, very high percentage of students in school, high purchasing power education and economic standard of living. The results show that both and relatively high life expectancy, but these factors are little known. Croatia and Libya are dramatically underestimated in public awareness. Standout HDI performers such as Iceland, Norway, Ireland and the HDI characterizes these countries as having a high level of human Netherlands are all ranked in the 97th percentile but are perceived as development, while CBI respondents perceive them to be in the bottom merely good, not great in CBI. 10% of countries surveyed. Croatia’s HDI ranking benefits from its very high literacy rate and very low incidence of indicators of human poverty,

COUNTRY BRAND INDEX 2009 THEMES IN NATION BUILDING / 38 The Gap Between Perception and Reality continued KEY POLITICAL FREEDOM, THE 12 LARGEST DIFFERENCES Perceptions of Political Freedom, measured by CBI CBI and World Bank Governance Index (WGI) Realities of Political Freedom, measured by WGI 22.0% 13.8% 13.3% 12.8% DIFFERENCE DIFFERENCE DIFFERENCE DIFFERENCE 49.7% DIFFERENCE 34.7% 36.1% DIFFERENCE 33.3% DIFFERENCE DIFFERENCE 32.3% DIFFERENCE 31.4% 21.6% DIFFERENCE DIFFERENCE 16.4% DIFFERENCE 1.0% 50.7% 8.8% 43.5% 7.8% 41.1% 5.9% 42.0% 3.9% 36.2% 2.0% 33.4% 6.9% 28.5% 77.5% 99.5% 4.9% 21.3% 84.3% 98.1% 85.3% 98.6% 83.3% 96.1% EL SALVADOR MOROCCO PERU MOZAMBIQUE UkRAINE INDONESIA VIETNAM DENMARk CAMBODIA SwITZERLAND SwEDEN NORwAY Independent benchmark: World Bank Governance Index (WGI), a measure compiled by the World Bank from data collected in 207 countries Assessing differences between the perception and reality of political In CBI, Mozambique, Morocco, Peru, Ukraine and Indonesia are all freedom, CBI data was compared to the World Bank Governance Index perceived to be in the bottom 10th percentile, although they are (WGI), a measure that ranks countries along six dimensions: political actually in the 33rd to 50th percentiles. Switzerland, like a number of stability, government effectiveness, voice and accountability, regulatory Scandinavian nations, is also significantly underestimated, meaning the quality, rule of law, and control of corruption. The biggest variance among issue is not unique to the developing world. the indices was for El Salvador, a nation that CBI respondents perceive as last among the countries reviewed but that actually ranks around the 50th percentile in five of the six dimensions (all but rule of law).

COUNTRY BRAND INDEX 2009 THEMES IN NATION BUILDING / 39 The Gap Between Perception and Reality continued KEY EASIEST TO DO BUSINESS IN, THE 12 LARGEST DIFFERENCES Perceptions of Easiest to Do Business In, measured by CBI CBI and Doing Business (DB) Realities of Easiest to Do Business In, measured by DB 41.3% DIFFERENCE 36.7% 78.0% 70.3% DIFFERENCE DIFFERENCE DIFFERENCE 58.0% DIFFERENCE 43.3% 32.6% DIFFERENCE DIFFERENCE 26.3% 24.9% DIFFERENCE DIFFERENCE 19.0% 17.7% DIFFERENCE DIFFERENCE 7.8% DIFFERENCE 1.0% 79.0% 9.8% 80.1% 7.8% 65.8% 2.0% 45.3% 55.9% 97.2% 57.8% 94.5% 8.8% 41.4% 6.9% 33.2% 4.9% 29.8% 5.9% 24.9% 3.9% 21.6% 4.9% 12.7% BOTSwANA SLOVAkIA PERU LEBANON DENMARk NORwAY CROATIA NEPAL TANZANIA ECUADOR IRAN ZIMBABwE Independent benchmark: Doing Business (DB), a measure compiled by the World Bank from data collected in 181 countries CBI’s Easiest to Do Business In data was compared with the World scores in a variety of DB categories. Denmark and Norway, two nations Bank’s Doing Business (DB) study, a compilation of country performance thought to be merely average in CBI, are ranked by DB in the 97th and regarding the ease of accomplishing 10 business-related tasks, including 95th percentiles, respectively. Peru (ranked #8 in Latin America and starting a business, dealing with construction permits, protecting investors, the Caribbean, and #62 overall by DB) and Lebanon (ranked #10 in the paying taxes, etc. Botswana—ranked by DB as #3 in sub-Saharan Africa Middle East and #99 overall) are two other nations where perceptions are and #38 of 181 countries overall—was underrated in CBI by 78%. significantly lower than performance. Slovakia, one of 30 OECD countries committed to democracy and market economies, is also undervalued by more than 70%, bolstered by strong

COUNTRY BRAND INDEX 2009 THEMES IN NATION BUILDING / 40 The Gap Between Perception and Reality continued KEY ENVIRONMENTALISM, THE 12 LARGEST DIFFERENCES Perceptions of Environmentalism, measured by CBI CBI and Environmental Performance Index (EPI) Realities of Environmentalism, measured by EPI 11.4% 53.8% DIFFERENCE DIFFERENCE 31.3% 13.9% DIFFERENCE DIFFERENCE 58.7% DIFFERENCE 50.1% 48.6% 47.8% DIFFERENCE DIFFERENCE DIFFERENCE 45.1% DIFFERENCE 35.2% DIFFERENCE 24.6% DIFFERENCE 20.8% DIFFERENCE 9.8% 68.5% 42.2% 96.0% 4.9% 55.0% 7.8% 56.4% 5.9% 53.7% 3.9% 49.0% 1.0% 36.2% 62.7% 94.0% 6.9% 31.5% 2.0% 22.8% 79.4% 93.3% 87.3% 98.7% MEXICO AUSTRIA IRAN EL SALVADOR GUATEMALA VIETNAM ZIMBABwE COLOMBIA INDONESIA SENEGAL FRANCE NORwAY Independent benchmark: Environmental Performance Index (EPI), a measure compiled by Columbia and Yale Universities from data collected in 149 countries FutureBrand compared CBI data to the Environmental Protection Index Similarly, Austria was ranked as the #6 most environmental country by (EPI) to examine the difference between perception and reality. This index EPI but was perceived by frequent travelers to be in the bottom half of is a composite score of environmental health and ecosystem vitality based countries evaluated. Colombia is in the EPI Top 10, but only in the 60th on measures of climate change, water health, natural resources, biodiversity percentile in CBI. Iran, El Salvador, Guatemala and Vietnam, according to and habitat, and air pollution. The biggest difference between the percentiles CBI are perceived as extremely poor performers in Environmentalism— was for Mexico, a country that placed in the top two-thirds of countries in the bottom 5% to 10% percent of nations—but in actuality, all are near rated in the EPI, while its perception for Environmentalism, as measured the middle of the group. in CBI, placed the country in the bottom 10% of nations surveyed.

COUNTRY BRAND INDEX 2009 THEMES IN NATION BUILDING / 41 The Gap Between Perception and Reality continued KEY THE OVERRATED CBI Doing Business (World Bank) – Easiest to Do Business In CBI and Third-party Indices Human Development Index – Standard of Living Environmental Performance Index – Environmentalism World Bank Governance Index – Political Freedom 12.5% 7.4% 6.1% 7.7% 6.0% 11.7% 7.9% 7.7% 9.9% DIFFERENCE DIFFERENCE DIFFERENCE DIFFERENCE 6.7% DIFFERENCE DIFFERENCE DIFFERENCE DIFFERENCE DIFFERENCE DIFFERENCE 48.1% DIFFERENCE 100.0% 87.5% 96.1% 84.4% 97.1% 89.2% 95.1% 87.4% 99.0% 91.6% 94.1% 87.4% 100.0% 93.9% 52.0% 3.9% 96.1% 86.2% 99.0% 91.3% 98.0% 92.0% GERMANY SINGAPORE Uk BELGIUM GERMANY USA CANADA VENEZUELA GERMANY GERMANY CANADA STANDARD OF LIVING POLITICAL FREEDOM EASIEST TO DO BUSINESS IN ENVIRONMENTALISM While each of the previous four sets of graphs examines a specific quality— and governance in one way or another. Singapore, thought of as a relatively looking at underrated countries, nations whose perceptions do not measure affluent country, is overrated in Standard of Living according to CBI by more up to their reality—this graph looks at the opposite. Here, all four qualities than 10%. The most dramatic difference between perception and reality are examined together, with a focus on overrated countries where perceptions is in Venezuela’s Ease of Doing Business. That nation’s policies, including are better than reality. With its longstanding reputation for efficiency, very high worker protections, very weak investor protections and a total tax Germany is experiencing a halo effect—an image benefit of between 6% and rate of more than 56%, make it difficult to operate a business, but travelers 12%—in all four of these associations, which all relate to administration seem less aware of these facts.

COUNTRY BRAND INDEX 2009 THEMES IN NATION BUILDING / 42 Country Brand Framework Analysis: Aruba and St. Lucia Developed specifically for countries, FutureBrand’s framework crystallizes how we look at these highly complex and multilayered brands. By focusing on eight key dimensions that help to shape attitudes toward a country brand, the framework allows us to discern brand strengths, weaknesses and distinctive assets, facilitating the development of holistic country brand platforms. The framework encompasses a nation’s essentials: the places, practices, structures and standards related to business, travel and investment considerations—and its essence—the vibe and social experiences, and how the country resonates to elicit what you feel and remember. wANTS AUTHENTICITY ATTRACTIONS CULTURE People, Arts, music, Beliefs, mores, ETHOS Monuments, programming, intellectual customs, values, icons, places, rituals, events, output, creative history, legends, activities discovery environment mystique Topography, Communications, Industry, fiscal Domestic and GEOGRAPHY INFRASTRUCTURE ECONOMY GOVERNANCE climate, natural transportation, policies, standard foreign policy, resources, location healthcare, of living management, technology stability NEEDS

COUNTRY BRAND INDEX 2009 THEMES IN NATION BUILDING / 43 Country Brand framework analysis: aruba & st. Lucia continued KEY wEAkNESS STRENGTH Aruba OPPORTUNITY AUTHENTICITY ATTRACTIONS Great beaches— CULTURE open to everyone— ETHOS plus a full array Easygoing and wANTS of water sports, Minimal local arts friendly, but not tennis, golf Limited and culture distinctive Location outside of Efficient airport, Established Relatively stable GEOGRAPHY INFRASTRUCTURE GOVERNANCE ECONOMY the hurricane belt, good road system tourism industry, democratic NEEDS year-round sunny that makes it easy strong service government, part weather, miles of to traverse the culture, good of the Netherlands scenic beaches island, modern standard of living telecom St. Lucia AUTHENTICITY ATTRACTIONS Good beaches Friendly people, A welcoming, CULTURE and water sports, “jump up” street Creole culture open and ETHOS wANTS tropical rain forest, parties, fish fries, evident in local fun-loving people; drive-in volcano numerous music/ music, arts, crafts, multicultural and ruins cultural festivals language and food colonial history Beautiful and varied Few direct flights Loss of UK banana A democratic GEOGRAPHY INFRASTRUCTURE GOVERNANCE ECONOMY landscape with lush from the US or subsidy not yet government with NEEDS vegetation, mountains, Europe, spotty replaced by a free press and beaches, volcano, roads, adequate tourism, limited strong protection rain forest telecom/internet service culture, of civil liberties some poverty

COUNTRY BRAND INDEX 2009 THEMES IN NATION BUILDING / 44 Country Brand framework analysis: aruba & st. Lucia continued Aruba and St. Lucia are two nations for which the country brand framework opportunities for discovery or a distinctive local culture. It is not perceived provides valuable insight. There are a number of similarities between as offering an authentic Caribbean experience, but its beaches are great, the two: both are Caribbean beach destinations, both have populations of and the country does an excellent job of both managing and packaging between 100,000 and 200,000 people, both took significant hits to a the assets it has. The results speak for themselves: tourist arrivals and major sector of their economies and responded with greater emphasis on GDP per capita are both approximately double St. Lucia’s. tourism (Aruba with the 1985 shutdown of its oil refinery, and St. Lucia with the 1993 quotas imposed on banana production).26 But here the St. Lucia, although far less developed, has more assets and similar similarities end. The framework analysis shows that Aruba and St. Lucia are long-term potential as a tourist destination. Its strength is the rich and taking two very different paths to defining themselves as tourist destinations. varied authentic experience it offers—from lush vegetation and beautiful terrain to Creole culture, weekly street parties and abundant opportunities Aruba’s real strengths are in the needs-based dimensions plus its focused to mix with locals and explore. While St. Lucia has some nice beaches set of attractions. Sunny climate, beautiful beaches, good infrastructure, and excellent water sports, the vibe and overall experience are completely one of the highest standards of living in the Caribbean, an established different than Aruba’s. The economy and infrastructure, both weaknesses service culture and a breadth of water sports sum up Aruba’s strengths. in St. Lucia, may be slowing the country’s growth as a tourism destination, Aruba is a desert island that does not have a wide variety of attractions, but the country has the assets to succeed in the long run.

COUNTRY BRAND INDEX 2009 THEMES IN NATION BUILDING / 45 The World’s Worst Country Brand Finishing last in the Country Brand Index overall rankings for the last two years, Libya has earned the distinction as the worst country brand. In 2008, Libya was ranked 78 out of the 78 country brands tracked and this year the nation ranked 102 out of 102. wHY? Why does Brand Libya fare so poorly despite the fact that UN sanctions Looking at the HDM analysis of Libya, it is clear that the brand is not were lifted in 2003 and total international visitors to Libya increased by well known and that those who know it don’t think well of it or want to a compound annual rate of 5.8% from 2001 to 2007?27 visit. The few who do visit rarely recommend Libya to friends and family. In terms of associations, from living standards (Standard of Living, Safety, Libya has strong oil reserves, a growing economy and tourism industry, Most Like to Live In, Environmentalism) to infrastructure (Ease of Travel, excellent Mediterranean beaches, striking topography and a rich history Resort & Lodging Options, Advanced Technology) to tourist attractions that dates back to the Phoenicians. There is no fundamental reason why (Beach, Natural Beauty, Nightlife, Fine Dining, Outdoor Activities & Sports, Libya shouldn’t be a nation brand on the rise, but it’s not. Rest & Relaxation) to business-related measures (Ideal for Business, New Country for Business), Libya shows a broad base of weakness with no current areas of perceived strength. It would also appear that Libya suffers as a brand due to the behavior of its government. Recently, Libya was back in the news for hosting a celebration for the terminally ill Abdelbeset Ali Mohmed al Megrahi, the man convicted of bombing Pan Am Flight 103 over Lockerbie, Scotland,28 and for Muammar al-Qaddafi’s rambling speech at the UN.29 Rather than being promoted for its historical treasures, untapped development market, etc., Libya continues to be linked with the dangerous and the disturbing, resulting in its standing as the lowest-ranked country brand two years running. Despite its shortcomings, Libya has the assets, which if effectively managed would enable the country to become a vibrant destination and strong nation brand.

COUNTRY BRAND INDEX 2009 THEMES IN NATION BUILDING / 46 The World’s Worst Country Brand continued GLOBAL GLOBAL RANk / COMPONENTS RANk / RATING TOP 2 BOX RATING AwARENESS Ranking / Rating #94 / 50.9% FAMILIARITY Ranking / Rating #99 / 8.1% ASSOCIATIONS Beach, Resort & Lodging Options, Natural Beauty Bottom 10 Rankings Nightlife, Fine Dining, Outdoor Activities & Sports, Rest & Relaxation, Safety, Shopping, Ease of Travel, Environmentalism, Ideal for Business, Standard of Living, Advanced Technology, Desire to Visit/Visit Again, Most Like to Live In, New Country for Business, Rising Star PREFERENCE Ranking / Rating #94 / 0.1% 2009 HDM ANALYSIS OF LIBYA CONSIDERATION Ranking / Rating #98 / 0.8% DECISION / VISITATION Ranking / Rating #101 / 0.9% ADVOCACY Ranking / Rating #98 / 0.3% Ranking = placement out of 102 countries evaluated / Rating = percentage of respondents (e.g., who are aware, who are familiar...)

COUNTRY BRAND INDEX 2009 THEMES IN NATION BUILDING / 47 How Sports Accelerate Country Brand Development Many countries may not fully appreciate just how powerful a major sporting event can be as a nation brand building tool. Sports represent a fast-growing global industry, and in the most basic way, a high-visibility event can make the host country top of mind with millions of potential visitors and investors around the world. This year, after staging the Olympics, Brand China saw its awareness jump 22%, while perceived familiarity with the nation increased a whopping 71%. Beyond the visibility factor is the credibility that hosting a major event One of the greatest opportunities a major sporting event offers a country provides. South Africa, host of the 2010 FIFA World Cup, saw its overall brand is permission to display its true essence and unique offerings. ranking rise from #59 to #33, while its ranking for Desire to Visit/Visit Again Unlike conventional mass tourism marketing, a sporting event provides increased from #33 to #18. Over the course of one month, from June 11 a chance to share a detailed, authentic experience of the host nation. to July 11, 2010, an estimated three million visitors—many new to the The richer images and messages in such an experience have great country, will be experiencing South Africa as the host of the FIFA World potential to affect the long-term associations people have with the Cup. This upsurge in tourism is creating 159,000 new jobs, according to country and to bring to life the essence of the local culture in a way that the South African government.30 As for the TV audience, FIFA estimates an advertising campaign never can. Importantly, events like these typically that the 2010 World Cup, which will be broadcast in 214 countries and necessitate infrastructure improvements that provide lasting value to the territories, will be viewed by a cumulative audience of more than 26 host country and its residents as well as to its visitors. billion people over the course of its 64 game schedule.31

COUNTRY BRAND INDEX 2009 THEMES IN NATION BUILDING / 48 How sports accelerate Country Brand development continued The benefits of hosting a global sporting event can be long lasting. While the investment to properly stage and execute a major sporting event For example, it is no coincidence that Australia still rates so strongly for can be significant—with some events requiring hundreds of millions of Friendly Locals (#14 ranking in the 2009 CBI). An image cemented by the dollars—it is clear that the return on investment and overall benefits contribution of the volunteers in the Sydney 2000 Games was a strong part can more than make up for the expense. Hosting a major sporting event of the visitor experience and even the media coverage. In addition, major provides a stage that can attract the eyes of the world, making each event sporting events generate lasting economic benefits for the host country. a unique opportunity to showcase a country, build its brand, and develop The 2006 Ryder Cup in Ireland was estimated to contribute 143 million to its tourism base and overall economy. the Irish economy. Research showed that American tourists who went to the three-day event stayed an extra 4.7 days in Ireland. The 143 million total also does not include the ‘downstream’ effect of the additional expenditure generated by the Ryder Cup, where direct spending is filtered through the economy, bringing further benefit. By applying carefully selected economic models, Deloitte calculated that when this effect is taken into account, the full impact of the 2006 Ryder Cup on the Irish economy was around 240 million.32 Denmark and Qatar are two countries aggressively leveraging sports in their country branding efforts. Sports are an important part of Denmark’s nation branding action plan. In 2009, Denmark will host more than 50 major international sports events, showcasing the country as an ideal host as well as a creative nation, tourist destination and investment location. Qatar is also using major sporting events as a way to get its message out. After hosting the 2006 Asian Games, the country pulled out all stops in a bid for the 2016 Summer Olympics and now for its bid to host the FIFA World Cup in 2022. Positioning Qatar as a leader of the Arab world, Hassan Ali Bin Ali, chairman of the Doha 2016 bid committee, said, “Our bid will be focused on our shared future so that Arab youth better understand the wider world and the youth of the rest of the world gain a true picture of Arab culture and hospitality.”33

COUNTRY BRAND INDEX 2009 THEMES IN NATION BUILDING / 49 The Olympic Effect on Brand China: A Follow Up One year after Beijing hosted the 2008 Olympic Games—one of the most noteworthy and memorable productions of the event in its history—the full impact and legacy of the Games as a nation-building tool is still in question. By comparing CBI data from 2008 and 2009, FutureBrand has examined the initial effects of the Olympics on Brand China, identifying areas in which the country has reaped benefits and those for which the impact of the Olympics has not yet been felt. ONE YEAR LATER On August 8, 2009, festivities were held outside the landmark Bird’s as tourist attractions. Managers say the Water Cube will eventually be Nest stadium. With 34,000 practitioners of tai chi setting a Guinness transformed into a leisure center with a water park, spas and shopping. World Record to mark the first annual National Fitness Day, a holiday Leveraging these, and the other 34 venues it has spent more than US was created to commemorate and extend the effect of the 2008 Games. $40 billion to build in order to boost its international reputation, is a Currently, the Bird’s Nest and the Water Cube aquatic center are operating signficant challenge for China.34

COUNTRY BRAND INDEX 2009 THEMES IN NATION BUILDING / 50 The Olympic Effect on Brand China: a follow up continued In general, Brand China reaped a positive effect from the COMPONENTS 2009 2008 08 vs. 09 Olympics, rising eight places from #56 to #48 in the overall CBI rankings this year. However, given its gargantuan investment AwARENESS and attention to detail in the way the event was staged and Ranking / Rating #13 / 85.6% #22 / 70.2% televised, this lift may not be as much as the country would have expected. FAMILIARITY Ranking / Rating #26 / 26.3% #27 / 15.4% The extensive, almost unavoidable media coverage of the Games resulted in dramatic increases in awareness (+22%) ASSOCIATIONS History (6), History (7), No meaningful and familiarity (+71%) for Brand China. The country brand Art & Culture (8), Art & Culture (9), difference Rising Star (2), Rising Star (1), also experienced a jump in consideration, rising from a #25 Ideal for Business (7), Ideal for Business (7), ranking to #16 as more people’s interest in traveling to China (Authenticity, 12) Authenticity (10) was piqued by their new knowledge of the country. The brand image attributes or associations for which China ranked in the Top 10 globally—Rising Star, History, Ideal for Business, Art & Culture and Authenticity—remained effectively the same. The more significant changes in associations occurred further down in the rankings, as perceptions about China’s infrastructure, business environment and living HDM COMPARISON FOR BRAND CHINA conditions shifted. PREFERENCE No meaningful difference Ranking / Rating #13 / 4.2% #13 / 4.0% CONSIDERATION Ranking / Rating #16 / 12.4% #25 / 12.7% DECISION / VISITATION No meaningful difference Ranking / Rating #23 / 17.5% #24 / 17.7% ADVOCACY Ranking / Rating #33 / 3.0% #24 / 4.1% Ranking = placement out of 102 countries evaluated / Rating = percentage of respondents (e.g., who are aware, who are familiar...)

COUNTRY BRAND INDEX 2009 THEMES IN NATION BUILDING / 51 The Olympic Effect on Brand China: a follow up continued CHINA’S SHIFTING IMAGE 2008 2009 ASSOCIATION RANk / RATING RANk / RATING DIFFERENCE The Olympics boosted China’s reputation in many areas, though in a significant number of ways, the country still falls in the bottom third of FRIENDLY LOCALS #68 / 32.7% #54 / 34.5% +14 brands surveyed. Its ranking in both Friendly Locals and Outdoor Activities & EVENT RELATED Sports increased, natural consequences of the athletic nature of the Olympics OUTDOOR ACTIVITIES & SPORTS #71 / 22.6% #63 / 23.6% +8 and its 15 million smiling volunteers. However, though Beijing enjoyed its best air quality this decade in the first half of 2009—a result of factory ENVIRONMENTALISM #77 / 8.0% #82 / 16.5% -5 cleanups, traffic measures and construction hiatuses—China’s ranking for Environmentalism fell five places to #82, likely because the coverage of REST & RELAXATION #77 / 20.3% #83 / 23.7% -6 the Games put Beijing’s pollution issue front and center before a wider INFRASTRUCTURE ADVANCED TECHNOLOGY #34 / 29.9% #30 / 30.8% +4 audience than ever before. RESORT & LODGING OPTIONS #72 / 25.4% #70 / 22.9% +2 The brand also experienced a jump in the standings for the infrastructure- related attributes, Advanced Technology and Resort & Lodging Options, EASE OF TRAVEL #76 / 18.0% #89 / 19.9% -13 although it fell 13 places in the Ease of Travel measure, perhaps as visitors to the Games experienced the difficulties of obtaining a Chinese visa EASIEST TO DO BUSINESS IN #54 / 19.0% #31 / 25.6% +23 (new restrictions were imposed in the run-up to the event that limited and even denied visas35). POLITICAL FREEDOM #77 / 5.9% #65 / 17.6% +12 LIVING & BUSINESS The impact of the Olympics on living- and business-related measures was NIGHTLIFE #66 / 20.3% #54 / 23.7% +12 mixed, with China improving a meaningful 23 places in Easiest to Do Business SHOPPING #22 / 41.8% #16 / 38.0% +6 In and showing positive movement in Nightlife, Shopping and Fine Dining. However, China fell slightly in Standard of Living and Quality Products. FINE DINING #37 / 38.8% #34 / 33.5% +3 Travelers’ impressions of China’s Political Freedom improved 12 places. While China made gains in many categories, it fell 10 places to #37 in Desire QUALITY PRODUCTS #27 / 27.8% #29 / 25.9% -2 to Visit/Visit Again, perhaps because the 2008 numbers may have been elevated by the large numbers of people who wanted to attend the Games. ECONOMIC STANDARD OF LIVING #62 / 15.1% #66 / 14.8% -4 REPUTATION However, the fact that Brand China’s ranking in advocacy dropped 9 places OVERALL RANkING #56 #48 +8 OVERALL also indicates that the country could improve its delivery relative to visitor expectations. Moving forward, how China addresses its weaknesses and DESIRE TO VISIT / VISIT AGAIN #27 / 58.8% #37 / 53.8% -10 capitalizes on recent improvements will dictate whether its current Ranking = placement out of 102 countries evaluated momentum will continue or slow. Rating = percentage of respondents (e.g., who are aware, who are familiar...)

COUNTRY BRAND INDEX 2009 Issues in Country Brand Marketing 53. A New Focus on Value 55. Smaller Destinations Offering Big Value: The Next Wave of Country Brands? 57. The Impact of Icons on Country Brand Image 60. Revisiting Dangerous Travel 62. Country Branding and Social Media COUNTRY BRAND INDEX 2009

COUNTRY BRAND INDEX 2009 ISSUES IN COUNTRY BRAND MARkETING / 53 a New focus on Value Economic and financial concerns are cited by approximately 75% of frequent travelers who say they will decrease their leisure travel in 2009 and 2010—more than eight times those who named the next most popular reason, health concerns and pandemics. In response to this, several countries—particularly those for which tourism is a large percentage of GDP—have changed the way they market and, in some cases, the very focus of their country brand. The promise to “provide value” appears to be one that many nations are striving to convey. From actually revising their brand identities to adopting aggressive public relations strategies and relying heavily on promotions, we have seen a variety of countries utilize a multitude of marketing approaches. REVISING THE BRAND VALUE CAMPAIGNS Thailand, a country that is ranked #3 in Value for Money—and spent the Targeted campaigns, imbuing country brands with clear associations of prior three years at #1—has decided to leverage this quality overtly. In 2009, added value, have become more popular. In a widely run print ad, Greece Thailand more forcefully promoted its price advantages by revising its tagline pronounced itself “a masterpiece you can afford.” VisitBritain, the UK’s from “Amazing Thailand” to “Amazing Thailand, Amazing Value” and national tourism agency, spread the important news that the British pound affixing that line to the country brand logo. In updated marketing materials, had fallen against the dollar and euro in the US and Europe via a £1.8 the new brand identity communicates the value concept alongside million public relations effort.36 New Zealand, which has also benefited complementary messaging like “amazing experiences at amazing value” from changes in exchange rates, employed this same approach as part of and “super deals.” No other country appears to integrate value with its a multifaceted PR campaign aimed at spiking travel during its summer core identity to this degree. season in January and February.37 THAILAND VALUE NEwSPAPER PRINT AD VISIT BRITAIN

COUNTRY BRAND INDEX 2009 ISSUES IN COUNTRY BRAND MARkETING / 54 a New focus on Value continued DEALS & PROMOTIONS Some destinations have put themselves on sale during the economic downturn. This tactic may leave a country brand’s essence intact, but it becomes one of the connections travelers have with the destination and thus has the potential to alter their long-term impressions of the brand. Running online ads with lines such as “Relaxing in paradise is no reason not to get the most out of your vacation dollars,” the Bahamas offered MEXICO’S OFERTAS VIVE MEXICO wEBSITE reduced pricing on hotels and all-inclusive packages. In conjunction with its 400th anniversary, Bermuda ran a broad-based series of promotions, including a four-day sale, offers with partners such as JetBlue and a giveaway of 400 plane tickets. Lastly, as part of a comprehensive $92 million PR program to stimulate travel to and within the country, Mexico launched a new website, ofertasvivemexico.com, to aggregate the plethora of available discounts in one place.38 BERMUDA ONLINE ADS FOCUS ON ESSENTIALS Many country brands have chosen not to incorporate a value angle into their tourism marketing, focusing instead on their brand fundamentals. Canada’s “Keep Exploring” television commercials, Panama’s “It Will Never Leave You” print ads and Turkey’s “Unlimited” outdoor advertising are examples. Affluent destinations have also declined to overtly incorporate the notion of value in order to preserve their upscale images. Small countries such as Monaco, the Maldives and St. Bart’s fit into this category. CONCLUSION While value is one answer to the very real challenges country brands are facing, only a select few have chosen to aggressively address this on a national level. For many of these, the choice was a matter of survival—tourism receipts comprise a large portion of the national economy. While desperate circumstances call for desperate measures, it will be interesting to see how these short-term approaches affect the country brands in the long term: creating new fans or leaving these nations with affordable, downscale images. TURkEY AD CANADA TELEVISION COMMERCIAL

COUNTRY BRAND INDEX 2009 ISSUES IN COUNTRY BRAND MARkETING / 55 Smaller Destinations Offering Big Value: The Next Wave of Country Brands? For the past several years, the top country brands have proven that bigger is better, with nations like Australia, Canada and the US dominating the top rankings. It is clear that these destinations are powerhouse brands that can offer a plethora of choices. However, for many visitors, these nations can also be overwhelming as destinations, necessitating significant time and investment to visit or truly experience. Thus, their very strength (breadth of offerings, variety of experiences) can also be seen as a potential weakness. As travelers constantly seek the next big thing, it may in fact be small things Diminutive destinations, by circumstance or strategy, appear to have that rise to the top. A number of smaller destinations are wising up to the several different approaches to getting the most out of their size. “big boys” and offering big value in a more manageable size. With these Although specific to the assets and components within the countries countries, visitors no longer need to debate which cities to visit, how to themselves, all of the following options seem like effective platforms to best use their time or what to sacrifice. This also appeals to short-break showcase these smaller countries in ways that successfully compete behavior or travelers that can essentially see it all, more easily manage with larger nations. travel plans and feel capable of discovering the entire nation.

COUNTRY BRAND INDEX 2009 ISSUES IN COUNTRY BRAND MARkETING / 56 smaller destinations Offering Big Value: The Next Wave of Country Brands? continued A CORE ASSET AND SUPPORT ATTRACTIONS SOMETHING FOR EVERYONE A common and growing area of focus seems to be countries that are known Lastly, although small in size, several modest-sized countries promote for one core asset yet are able to also offer ancillary (and sometimes the breadth of their activities and the convenience of “doing it all.” surprising) activities to appeal more broadly to visitors. Some Caribbean This direction is a mini version of what countries like Canada and the US islands, established as ideal beach resorts, now offer more varied initiatives. offer and can be seen in Singapore, a destination that markets itself as St. Lucia promotes its rain forest, Piton mountains, fusion cuisine and a unique and varied melting pot. Festivals, history, shopping, nightlife, festivals. Curacao often attracts visitors who want more than just beach: entertainment and dining are all strongly promoted. Israel is another it showcases its unique Dutch and trading histories. This approach can nation that, despite its obvious and rich religious history, has promoted also be seen in Monaco, originally a gambling hub and now broadening to its modern cities like Tel Aviv, beach resorts like Eilat, and nightclubs include dining and cultural experiences. and entertainment. Qatar has also showcased itself as a destination rich in both history and in modern offerings. From cultural attractions like the new Museum of Islamic Art to ancient souks, the inland sea and SMALL AND SPECIAL water sports, Qatar is presenting itself as a place to do many things Leveraging a small size can also reinforce a nation’s limited and special in a premium atmosphere. qualities. Many destinations choose to emphasize this attribute above all else and attract visitors based on their authentic and unique assets. Small countries can break through the clutter of the larger, more dominant Naturally, this would be a much more difficult claim for a larger country to destinations by leveraging their size as an advantage to travelers. Whether make. Bhutan is a good example of how small size can be positioned as a it is highlighting a core asset and complementing it with additional, benefit, promoting its government-restricted tourist volume side by side less-established activities, focusing on limited status along with authentic with its continuous history, unique culture and pristine ecology. This platform and unique qualities, or delivering a variety of offerings to visitors in a will likely benefit Bhutan in the coming years as more nations become more manageable, approachable size, what is clear is that emphasizing part of a familiar global community. Jordan, although featuring a variety of rather than ignoring a smaller size may prove to be a key benefit in the assets, is able to truly stand out for its unique wonder of the world—Petra— coming years. as well as its biblical sites and desert castles. Its distinctive historic places give the country a special advantage. Djibouti, located in the Horn of Africa, has a long history of trade. It is aiming to avail its unique topography toward an eco- and sea-tourism focus, complementing an experience of a storied African nation with that of a haven for water sports.

COUNTRY BRAND INDEX 2009 ISSUES IN COUNTRY BRAND MARkETING / 57 The Impact of Icons on Country Brand Image Every country has assets that can be leveraged to create an image and to position its brand in the minds of visitors, investors and citizens. Some nations, however, are “blessed” with a truly iconic feature that to some degree dominates what people think of when they consider the country. On the positive side, a dominant feature will help to shape overall image The pyramids of Giza include the last remaining of the original Seven and differentiate the country brand. On the negative side, it can be a Wonders of the World. Collectively, they may be the world’s best-known barrier to a broader and possibly more relevant image for the country. country brand icon and have helped Egypt rank well in History (#1), Art & Two examples are Australia and Egypt. Culture (#6) and Authenticity (#19). However, Egypt has struggled to find a way to use this asset while positioning itself as a modern, multifaceted The use of the kangaroo, a well-known species found only in Australia, nation that includes world-class beach resorts, engaging cities, a wide could be expected and clichéd. Instead, Australia has embraced the variety of attractions, famed exports and diverse investment opportunities. kangaroo as a symbol of how different everything is in the country and Egypt uses an alternative and undifferentiated symbol, the sun, in its brand used this as the basis to create a compelling and enduring brand platform. identity, and the pyramids play a minimal role in the country’s marketing. It is a platform that has helped the country rank in the Top 3 overall in The result has been a slow decline in Egypt’s overall brand strength, all five Country Brand Indexes to date (2005–2009). falling from a #8 overall ranking in 2005 to a #40 ranking in 2009.

COUNTRY BRAND INDEX 2009 ISSUES IN COUNTRY BRAND MARkETING / 58 The Impact of Icons on Country Brand Image continued COUNTRY ICON IMAGE QUALITIES EVOkED RELEVANT BRAND IMAGE RANkINGS CAMBODIA Angkor Wat Ancient, Magnificent, Cultural, Stirring History (#12), Art & Culture (#26), Authenticity (#4) CHINA Great Wall Ancient, Monumental, Cultural, Stirring History (#6), Art & Culture (#8), Authenticity (#12) HISTORIC MONUMENTS EGYPT Pyramids of Giza Ancient, Monumental, Cultural, Stirring History (#1), Art & Culture (#6), Authenticity (#19) GREECE Parthenon Ancient, Magnificent, Cultural, Stirring History (#7), Art & Culture (#5), Authenticity (#22) INDIA Taj Mahal Beautiful, Magnificent, Cultural, Stirring History (#2), Art & Culture (#3), Authenticity (#2) PERU Machu Picchu Ancient, Magnificent, Cultural, Stirring History (#3), Art & Culture (#7), Authenticity (#3) Authenticity (#8), Outdoor Activities & Sports (#1), AUSTRALIA Kangaroo Unique, Outdoor, Rugged, Engaging Natural Beauty (#10) BRAZIL Carnival Celebration, Abandon, Colorful, Engaging Nightlife (#4), Art & Culture (#23), Authenticity (#26) DEFINING SYMBOLS Authenticity (#10), Natural Beauty (#13), NEPAL Mount Everest Monumental, Majestic, Challenging, Unspoiled Outdoor Activities & Sports (#21) ST. LUCIA Pitons Beautiful, Verdant, Paradise, Unspoiled Natural Beauty (#19), Rest & Relaxation (#7), Beach (#9) Mount Kilimanjaro / Natural Beauty (#29), Authenticity (#30), Outdoor TANZANIA Majestic, Beautiful, Nature, Untamed Serengeti Activities & Sports (#23) Rising Star (#1), Advanced Technology (#11), UAE The Palm, Dubai Innovative, Ingenious, Premium, Inspiring Standard of Living (#11)

COUNTRY BRAND INDEX 2009 ISSUES IN COUNTRY BRAND MARkETING / 59 The Impact of Icons on Country Brand Image continued As diverse as the six historic monuments on the previous page are, the country Whether a country brand powerhouse like Australia or a slowly declining brands these icons contribute to (Cambodia, China, Egypt, Greece, India brand like Egypt, significant icons play a vital role in how the brand is and Peru) all benefit similarly, showing strength in History, Art & Culture and perceived. How a nation leverages a dominant asset will largely determine Authenticity. This is not to say that in each case the historic monument the degree to which the country’s brand benefits from the association. is the only contributor to the nation’s image along these dimensions but In each case, the icon presents its country with a quandary: if you choose rather that countries with a historic monument as a dominant icon tend to to not leverage the icon, as Egypt has done, you risk weakening the brand be perceived very strongly for History, Art & Culture and Authenticity. image qualities the icon helped associate with the country. The converse is true as well. Too strong an overt focus on an icon could prove limiting The defining symbols similarly benefit their host countries, albeit very to a country brand. Cambodia has done well capitalizing on Angkor Wat. differently. The Palm in Dubai has helped the UAE quickly establish itself The question for the country moving forward will be how to move beyond as a Rising Star with Advanced Technology and a high Standard of Living. the image and associations brought forth by this icon. The Carnival celebration helps to position Brazil as one of the best countries for Nightlife in the world. The Pitons of St. Lucia provide a powerful image of Another approach that has proven effective for several nations is to leverage verdant Natural Beauty that shapes the way visitors see the island, while a dominant icon by universalizing it. Australia uses the uniqueness and Mount Kilimanjaro and the Serengeti—which may be better known to expressive personality of the kangaroo as a symbol to underscore its some than the country of Tanzania itself—help showcase the country as distinctiveness. Naturally Nepal makes the mountain a symbol of naturalism one of the most noteworthy in Natural Beauty, Authenticity and Outdoor and not just a portrayal of Mount Everest. St. Lucia shades the Pitons with Activities & Sports. the colors of its flag to transform the mountains into a pride mark for citizens. NATION / TOURISM LOGOS THAT LEVERAGE THE COUNTRY ICON NATION / TOURISM LOGOS THAT DO NOT LEVERAGE THE COUNTRY ICON

COUNTRY BRAND INDEX 2009 ISSUES IN COUNTRY BRAND MARkETING / 60 Revisiting dangerous Travel In 2008, the Country Brand Index first reported on the idea that perceptions of safety do not always negatively affect the desirability of a destination. The trend has continued in 2009 where the swine flu pandemic has added to the list of things to fear. In 2009, there are a wide variety of countries that are perceived as unsafe—whether from terrorism, violence, crime or health concerns—that rank much higher in Desire to Visit/Visit Again. The chart on the next page shows the differential between the rankings of the 20 countries seen as least safe and the related desire to visit these countries. Interestingly, the countries included are all comparatively desirable destinations. This shows that there appears to be a segment of travelers drawn to “danger destinations.” For others, a compelling tourism experience can overcome many issues, including safety.

COUNTRY BRAND INDEX 2009 ISSUES IN COUNTRY BRAND MARkETING / 61 Revisiting dangerous Travel continued THE BOTTOM 20 COUNTRIES RANkED FOR SAFETY RANkING FOR SAFETY RANkING FOR DESIRE TO VISIT/VISIT AGAIN DIFFERENCE TANZANIA 83 65 +18 RUSSIA 84 55 +29 VIETNAM 85 25 +60 SOUTH AFRICA 86 18 +68 ECUADOR 87 53 +34 UKRAINE 88 82 +6 BOTSWANA 89 57 +32 MOROCCO 90 69 +21 LAOS 91 75 +16 LEBANON 92 79 +13 SENEGAL 93 90 +3 NAMIBIA 94 35 +59 GUATEMALA 95 93 +2 LIBYA 96 101 -5 ZIMBABWE 97 95 +2 CAMBODIA 98 74 +24 IRAN 99 98 +1 MOZAMBIQUE 100 77 +23 AZERBAIJAN 101 102 -1 KENYA 102 31 +71 AVERAGE 93 69 +24

COUNTRY BRAND INDEX 2009 ISSUES IN COUNTRY BRAND MARkETING / 62 Country Branding and social Media In one way or another, most country brand marketing efforts attempt to Today, we are seeing increasing efforts to aggregate genuine endorsements, encapsulate and communicate the essential experience of the destination facilitate spirited conversation, and participate with the kind of credible in order to lure potential visitors. Ironically, many of the attempts fall short of planning information consumers have always expected of a destination the mark because of the difficulty of conveying directly to a broad public the representative. Blogs large and small, video-sharing sites like YouTube, real feel of a day on one of the world’s most beautiful beaches, the clatter and real-time discovery platforms like Twitter provide powerful tools for and color of a local bazaar, or the personal fulfillment of a true adventure. countries to communicate the essence of their brands and to provide a It has been traditionally assumed that the best way to communicate the better feel of the experience of the destination. It shouldn’t be surprising, experience of a place, and the best travel writing in general, comes only then, that many national tourism boards are now scrambling to capitalize from professional editors and reporters. However, the emergence of social on the social media phenomenon to get their messages to potential visitors. media has completely undermined this thinking. Democracy has come to the travel business. Individuals are sharing their firsthand experiences of destinations through the written word, photographs and video, and the public is responding. For example, the travelogue, with a rich legacy in the history of world travel, has now been democratized and amplified by technology. Sites like TripAdvisor.com and Wikitravel.com provide consumer reviews that aid potential visitors in making the choices that will result in better vacation experiences and more powerful word-of-mouth referrals when they return home. As a communications channel, social media has undergone such dramatic growth that its increasingly important role in tourism marketing was inevitable. Consider that using social networks and blogs is already the fourth most popular online activity—more popular than email. Facebook now has 200 million users, YouTube is projected to serve more than 75 billion video streams to approximately 375 million people and Flickr now hosts more than 3.6 billion user images. Through social media, the syndication of tourism information has become a part of the routine experience of a massive global audience.39 SOUTH AFRICA’S YOUTUBE PAGE

COUNTRY BRAND INDEX 2009 ISSUES IN COUNTRY BRAND MARkETING / 63 Country Branding and social Media continued A frequently referenced social media tourism campaign executed this world focused on South Africa. To date, the program has been a success. past year was the “Best Job in the World” Island Caretaker contest According to FIFA on the FIFA 2010 World Cup Blog, “Twenty-four hours (www.islandreefjob.com) created by Tourism Queensland. The position was after the online tickets went on sale, applications from 128 countries for a newly created role designed to help promote the islands of the Great Barrier 216,975 tickets had been received via the website, excluding the hard Reef to the world by paying the winner to work for six months exploring paper applications handed in by South African residents at FNB branches the islands and reporting on his or her travels through regular blog posts. in the host country...‘These are fantastic numbers, underlining yet again A winner was selected from the more than 34,000 people from around the fervour taking hold around the world for the 2010 FIFA World Cup, the globe who applied by sending in 60-second videos showing their the first on the African continent...’ says David Will, FIFA Honorary creativity and skills. The campaign’s success can be attributed to many Vice-President and Chairman of the FIFA Ticketing Sub-Committee.” factors, most notably its universal appeal, effective use of multiple social media channels and delivery of an experience money can’t buy. It was recently awarded the PR Grand Prix at the Cannes Lions International Advertising Festival.40 The Bahamas Ministry of Tourism recently ran an online promotion with the intent to be entertaining and humorous but also relevant—focusing on people’s inherent need or desire to escape to the islands. “Bahama Fridays” (www.bahamafridays.com) was launched as a digital marketing campaign that included a spoof viral video about a company whose policy encouraged SOUTH AFRICA’S FACEBOOk PAGE QUEENSLAND, AUSTRALIA’S ISLANDFREEJOB.COM employees to wear their beach attire to work on Fridays. The campaign was extended through a consumer ambush event in New York City’s Grand Central Terminal, a sweepstakes giveaway to the Bahamas, an email blast Social media campaigns may look spontaneous, simple to the country’s visitor database, and other social media components such and free. They are not. An effective social media program as a “Bahama Fridays” Facebook page. This summer campaign generated more than 4.2 million impressions for the Bahamas.41 is based on a solid strategy that considers audience and objectives before technology. Beyond this, it requires an South Africa is using the FIFA World Cup 2010 as the focal point of a ongoing investment of time and talent to facilitate and social media campaign that extends beyond the event itself to promote the country as a tourist destination (www.fifa.com/worldcup/destination/ perpetuate the conversation in a way that ensures the index.html). Across Facebook, Twitter, Blogger and Flickr, South Africa is continued participation of the destination while benefitting telling its story to millions of fans, building its nation brand while turning people’s attention to an event that, for a month, will have the eyes of the both its prior and potential visitors.

COUNTRY BRAND INDEX 2009 Rankings 65. Regional 73. Detailed COUNTRY BRAND INDEX 2009

COUNTRY BRAND INDEX 2009 RANkINGS / 65 Top Country Brand Regions With the expansion of the Country Brand Index in 2009 to cover and evaluate 102 nations, we were able for the first time to evaluate broad geographic areas. The rankings below are based on the composite average ratings achieved by the countries in their specific regions and reflect the average country brand strength of constituent countries. 01 wESTERN EUROPE 02 ASIA PACIFIC 03 CARIBBEAN 04 AMERICAS 05 MENA (MIddLE EasT, NORTH afRICa) 06 SUB-SAHARAN AFRICA 07 CENTRAL / EASTERN EUROPE With some of the most mature country brands and five of the 2009 Top 10, At the other end of the spectrum, the countries of MENA, sub-Saharan Africa Western Europe performed as expected, rising to the top position as the and Central/Eastern Europe have come to country branding much more region with the strongest overall nation brands. recently, which shows in the comparative lack of development of their brands.

COUNTRY BRAND INDEX 2009 RANkINGS / 66 Top Country Brands of Western Europe No surprise: it is the usual suspects—France, Italy, UK, Germany and Spain—that are at the top of the rankings in Western Europe. There are several brand associations dominated by Western European countries. Collectively, these image attributes set the region apart. For Quality Products, Political Freedom and Ease of Travel, the region accounts for six of the Top 10 brands; for Art & Culture, Standard of Living and Regional Ranking Country Brand Rank Environmentalism, five of the global Top 10 are from the region. FRANCE 01 1 Beyond the top five brands in the region, all of which were among the Top ITALY 02 10 overall country brands for 2009, there is a very strong second tier with UNITED kINGDOM 03 Switzerland, Ireland and Greece. GERMANY 04 SPAIN 05 One of the noteworthy outcomes of 2009 is the relatively modest showing of SwITZERLAND 06 the Scandinavian nation brands, given that—with the exception of Finland— IRELAND 07 the countries (Denmark, Iceland, Norway and Sweden) have shown stronger GREECE 08 country brand performances in recent years. Their declines might be driven by the reduced demand for tourism globally, which may have focused FINLAND 09 50 more traveler attention on the better established, larger tourism destinations. SwEDEN 10 PORTUGAL 11 NORwAY 12 NETHERLANDS 13 SPOTLIGHT ON GERMANY ICELAND 14 While Germany has been a strong brand through every Country Brand Index, in 2009 it climbed into the overall Top 10 for the AUSTRIA 15 first time. Driven by strong performance across all HDM brand DENMARk 16 strength measures from awareness to advocacy, including 14 top BELGIUM 17 10 rankings in country brand associations, Germany has the brand CYPRUS 18 assets to retain a top ranking for at least the near-term. MALTA 19 102

COUNTRY BRAND INDEX 2009 RANkINGS / 67 Top Country Brands of asia Pacific Australia, New Zealand and Japan are strong, diverse brands that lead the region. Regional Rank Country Brand Rank Asia Pacific is a region on the rise, with countries showing a concentration AUSTRALIA 01 of strong associations as both tourist and business destinations. The region 1 accounts for seven of the Top 10 country brands ranked for Authenticity; NEw ZEALAND 02 six of the Top 10 in Value for Money; and five of the Top 10 in Desire to JAPAN 03 Visit/Visit Again, Ideal for Business and Extend a Business Trip. SINGAPORE 04 INDIA 05 Beyond Australia, New Zealand and Japan—all Top 10 country brands MALDIVES 06 in 2009—there are a number of second-tier nations in the region that THAILAND 07 are developing into strong brands. Among these are Singapore, India, TAHITI 08 Thailand, Malaysia, China, South Korea and the Philippines. MALAYSIA 09 FIJI 10 50 In addition, the Maldives, Tahiti and Fiji remain relatively strong brands that are among the most highly esteemed beach destinations in the world. PHILIPPINES 11 SOUTH kOREA 12 CHINA 13 INDONESIA 14 SPOTLIGHT ON SINGAPORE VIETNAM 15 Singapore has quietly risen to the #13 overall ranking among country BHUTAN 16 brands. Long-known as a strong business locale, Singapore has become a truly well-rounded destination, with Top 10 rankings in Shopping (#1), NEPAL 17 Fine Dining (#5), Nightlife (#7) and Environmentalism (#8). CAMBODIA 18 LAOS 19 102

COUNTRY BRAND INDEX 2009 RANkINGS / 68 Top Country Brands of the Caribbean With relatively strong brands from top to bottom, the Caribbean is a strong region that earned its #3 position in the regional Top 10 list. Given its geography and weather, there should be little surprise that the Caribbean is the top region in the world for Beaches (six of the Top 10) and Rest & Relaxation (five of the Top 10). Regional Rank Country Brand Rank The Bahamas and Jamaica, country brands that have traditionally led the region, were the most hard-hit in 2009. The ascendance of Bermuda and BERMUDA 01 1 Aruba in a year that saw declines in tourist arrivals may be due to the ARUBA 02 increased advertising and marketing that both countries did to minimize BAHAMAS 03 the impact of the global downturn. While the Bahamas also promoted BARBADOS 04 heavily, its focus on low-cost deals did not enhance perceptions of its ST. LUCIA 05 country brand; in fact, the Bahamas’ global ranking for Value for Money DOMINICAN REPUBLIC 06 dropped from #34 to #57 in the past year. JAMAICA 07 TRINIDAD & TOBAGO 08 Overall, Barbados and St. Lucia both ranked well, particularly when CUBA 09 considering the relative size of their populations. 50 SPOTLIGHT ON BERMUDA Bermuda is another quietly rising country brand, reaching a #15 overall ranking in 2009. In a year that saw traditional Caribbean leaders Jamaica and the Bahamas fall as country brands, Bermuda rose. Given its rankings in 2009, Bermuda looks like a powerhouse destination: #2 for Beaches, #5 for Friendly Locals, #6 for Rest & Relaxation, #7 for Resort & Lodging Options, #8 for Outdoor Activities & Sports and #5 for both Safety and Ease of Travel. 102

COUNTRY BRAND INDEX 2009 RANkINGS / 69 Top Country Brands of the Americas The North American brands dominate the region, but a strong second group of country brands has emerged. The Americas is one of the most polarized regions with regard to country brand development. The region is home to the top two ranked nation Regional Rank Country Brand Rank brands overall in 2009, the US and Canada, as well as a number of USA 01 1 countries showing minimal brand maturity. As a whole, the region stands CANADA 02 out for only one association—Outdoor Activities & Sports, with five of the MEXICO 03 Top 10 country brands ranked for this attribute. COSTA RICA 04 Mexico, Costa Rica, Brazil and Argentina have emerged as relatively strong BRAZIL 05 country brands (each is ranked in the top 40 overall), while Belize, Uruguay, ARGENTINA 06 Peru, Chile and Panama all appear to be on the rise. BELIZE 07 URUGUAY 08 The other nations in the region are all largely undeveloped as brands, although PERU 09 Colombia has recently embarked on an aggressive branding campaign. 50 CHILE 10 PANAMA 11 VENEZUELA 12 ECUADOR 13 SPOTLIGHT ON COSTA RICA COLOMBIA 14 Costa Rica has done an excellent job of positioning itself as an eco- NICARAGUA 15 friendly, exotic destination. Top 10 rankings include #2 for Natural GUATEMALA 16 Beauty, #3 for Outdoor Activities & Sports, #6 for Authenticity and EL SALVADOR 17 #6 for Environmentalism. This combination of strengths is unique and is helping Costa Rica become a top-tier destination. 102

COUNTRY BRAND INDEX 2009 RANkINGS / 70 Top Country Brands of MENa (Middle East, North africa) The UAE has risen to take the top country brand spot traditionally held by Egypt in the region. Overall, MENA is a region of relatively underdeveloped country brands, albeit with a number of truly iconic destinations. There are no associations “owned” by the region; History is the strongest common attribute, with three of the Top 10 country brands. Regional Rank Country Brand Rank Driven largely by the meteoric rise of Dubai as a world city and the emergence UNITED ARAB EMIRATES 01 of Abu Dhabi as an economic powerhouse, the UAE has become a relatively 1 strong country brand that is still maturing. EGYPT 02 ISRAEL 03 Egypt, Israel and Turkey remain nation brands with distinctive strengths, TURkEY* 04 but none shows movement toward a top ranking in the region at this time. OMAN 05 SAUDI ARABIA 06 The tier below, consisting of Oman, Saudi Arabia, Qatar, Bahrain, Jordan QATAR 07 and Tunisia are all on the rise and should help raise the profile of the BAHRAIN 08 region overall in coming years. Morocco, Lebanon, Syria, Algeria and JORDAN 09 Azerbaijan are all underperforming country brands considering the assets MOROCCO 10 50 each country has. TUNISIA 11 LEBANON 12 SPOTLIGHT ON EGYPT SYRIA 13 The ascension of the United Arab Emirates to the top spot in the ALGERIA 14 region has been coupled by the slow decline of Egypt. While still ranked #1 in History and #6 for Art & Culture, Egypt’s brand has IRAN 15 begun to soften overall. To date, the country has failed to capitalize AZERBAIJAN* 16 on its secondary assets. A great example is the surprising #50 LIBYA 17 ranking for Beach despite the regional popularity of Sharm el Sheikh and numerous other Red Sea and Mediterranean resorts. *Not traditional MENa countries 102

COUNTRY BRAND INDEX 2009 RANkINGS / 71 Top Country Brands of sub-saharan africa South Africa, with significant upward movement, has established itself as the dominant country brand in the region. Sub-Saharan Africa is a region of great mystique and richness that shows a comparatively low level of country brand development across all its countries. The two leading country brands in the region include the first African nation to host the FIFA World Cup (in 2010), South Africa, and an emerging Regional Rank Country Brand Rank global beach destination, Mauritius. These two countries account for all SOUTH AFRICA 01 of the region’s Top 10 rankings: South Africa for Rising Star and Natural 1 Beauty, and Mauritius for Beaches and Rest & Relaxation. MAURITIUS 02 kENYA 03 The other nations in the region have significant country brand assets but TANZANIA 04 have not leveraged these through consistent branding programs to create NAMIBIA 05 perceived strengths. BOTSwANA 06 NIGERIA 07 On the flip side, however, the region may best be characterized overall MOZAMBIQUE 08 by its continued negative association with danger, as five of the bottom SENEGAL 09 10 countries ranked for Safety are located in the region. 50 ZIMBABwE 10 SPOTLIGHT ON KENYA Known for its natural beauty, spectacular wildlife and robust economy, Kenya was becoming a leading destination in the sub-continent, with 16.4% average annual growth in tourist arrivals from 2003–2007. However, three years of drought and an embattled government have shifted the fortunes of this once Rising Star. In 2008, Kenya reported a decrease of 33.8% in tourist arrivals compared to 2007,42 further exacerbating the country’s difficulties. 102

COUNTRY BRAND INDEX 2009 RANkINGS / 72 Top Country Brands of Central/Eastern Europe A region with younger, less mature country brands, Central and Eastern Europe is an area of great potential, with a number of emerging nations. While the countries in this region have significant assets in History, Art & Culture and Natural Beauty, many still bear the “scars” 20 years later from having been part of the Soviet Union—namely, the commonplace Regional Rank Country Brand Rank lack of a service culture and the often-poor preservation of historical CZECH REPUBLIC 01 1 monuments and cultural icons. BULGARIA 02 CROATIA 03 All the country brands in this region are comparatively undeveloped: the Czech Republic is the region’s highest-ranked brand in 2009, with a HUNGARY 04 #56 overall ranking out of the 102 countries measured. None of the nations SLOVENIA 05 in this region stands out with any positive associations. Only Croatia, as a RUSSIAN FEDERATION 06 Rising Star, achieves a Top 10 ranking. There are, however, two important UkRAINE 07 negative associations: Central/Eastern Europe accounts for six of the bottom ROMANIA 08 10 nations ranked for Authenticity and five of the bottom 10 ranked for POLAND 09 Friendly Locals. 50 SLOVAkIA 10 ESTONIA 11 SPOTLIGHT ON CZECH REPUBLIC The Czech Republic is an example of a country brand that may be overshadowed by its capital city. While Prague is seen as a vibrant urban hotspot in Europe, the Czech Republic is a young country, formed in 1993, that has a comparatively low profile. With Top 20 global rankings in #17 for decision/visitation, #14 for Art & Culture and #19 for History, the Czech Republic is a relatively undeveloped country brand. 102

COUNTRY BRAND INDEX 2009 RANkINGS / 73 AUTHENTICITY HISTORY ART & CULTURE Delivering distinctive, genuine and unique Magnificent pasts celebrated by citizens and A thriving environment for the arts, architecture, cultural experiences visitors alike literature and performing arts 1. JAPAN (2) 1. EGYPT (1) 1. ITALY (1) Dedicated to preserving its distinctive With a wealth of well-preserved treasures Tourists travel from all corners of the essence, Japan continues to highlight its of a time long past, Egypt has one of the globe to revel in the history and beauty architecture and gardens, traditional dress most fascinating histories in the world. of Italy’s art, music and architecture. and cuisine, and thriving popular culture. 2. India (4) 2. India (8) 2. France (2) 3. Peru (7) 3. Peru (9) 3. India (8) 4. Cambodia 4. Israel (5) 4. Japan (4) 5. Bhutan 5. Italy (2) 5. Greece (5) 6. Costa Rica 6. China (7) 6. Egypt (3) 7. Belize (8) 7. Greece (4) 7. Peru 8. Australia (9) 8. United Kingdom (6) 8. China (9) 9. New Zealand (1) 9. France (3) 9. Germany (10) 10. Nepal 10. Jordan 10. United Kingdom (6)

COUNTRY BRAND INDEX 2009 RANkINGS / 74 RESORT & LODGING OPTIONS EASE OF TRAVEL SAFETY A superior variety of accommodation options The ability to easily enter, travel within and exit Considered most stable and secure a country 1. CANADA (6) 1. GERMANY (5) 1. CANADA (6) Canada’s diversity of hotels and resorts Positioned in Western Europe and equipped A stable government, high health and cater to visitors of all means and preferences, with modern, highly-efficient international safety standards and low crime rates making the country’s diverse landscapes and domestic transport networks, getting make Canada the safest-rated country and varied activities accessible to all. to, from and around Germany is simple. this year. 2. Tahiti (10) 2. Ireland 2. Germany 3. Bahamas (7) 3. Canada (3) 3. Japan 4. United States (2) 4. Singapore 4. New Zealand (3) 5. Mexico 5. Bermuda 5. Bermuda 6. Australia (4) 6. France (10) 6. Singapore 7. Bermuda 7. Argentina 7. Finland 8. Maldives (3) 8. Finland 8. Ireland 9. France 9. Belgium 9. Switzerland (2) 10. Malaysia 10. Spain (2) 10. Australia (10)

COUNTRY BRAND INDEX 2009 RANkINGS / 75 REST & RELAXATION NATURAL BEAUTY BEACH The ideal array of tranquil and rejuvenating Striking topography and physical assets Pristine beaches, from remote to mainstream activities 1. TAHITI (2) 1. TAHITI (9) 1. TAHITI (2) Offering the ultimate in seclusion in the middle of From its beautiful beaches and crystal-clear The 118 idyllic islands across five archipelagos the South Pacific, Tahiti’s intimate resorts, small, lagoons to lush tropical valleys and soaring that comprise Tahiti offer miles of beautiful peaceful villages and miles of quiet, pristine volcanic cliffs, Tahiti may be the most striking beaches, some with pure white sand, others with beaches offer unmatched serenity. collection of islands on earth. pink or black basalt sand. 2. Barbados 2. Costa Rica 2. Bermuda (9) 3. Aruba (7) 3. Canada (7) 3. Aruba 4. Fiji (4) 4. New Zealand (1) 4. Barbados (7) 5. Bahamas (5) 5. Fiji 5. Bahamas (3) 6. Bermuda (6) 6. South Africa 6. Fiji (6) 7. St. Lucia 7. Belize 7. Jamaica 8. Maldives (1) 8. Ireland (6) 8. Maldives (1) 9. Mauritius 9. Peru 9. St. Lucia 10. Mexico 10. Australia (5) 10. Mauritius

COUNTRY BRAND INDEX 2009 RANkINGS / 76 NIGHTLIFE SHOPPING FINE DINING Noteworthy bar, nightclub and late-night scene Accessible, diverse and abundant retail choices Superior culinary offerings and experiences 1. JAPAN (1) 1. SINGAPORE (3) 1. FRANCE (2) With an eclectic mix of traditional, after-dark From the wealth of designer brands available on A world-famous cuisine with a tradition of not-to- entertainment enjoyed for centuries as well as the famous Orchard Road to bargaining in Little be-missed foods, fine dining in France incorporates Western-style bars, clubs and discos, Japan has India and duty-free shopping at Changi Airport, diverse regional ingredients and inspiration from some of the best nightlife in the world. travelers the world over enjoy the diversity of the the rolling vineyards of Burgundy to the coastline shopping experience in Singapore. of Normandy. 2. United Kingdom (9) 2. United States (1) 2. Italy (1) 3. United States (5) 3. Japan (5) 3. Japan (3) 4. Brazil (2) 4. United Arab Emirates (2) 4. Argentina 5. Thailand (4) 5. United Kingdom (9) 5. Singapore (4) 6. Germany 6. South Korea (10) 6. South Korea 7. Singapore (7) 7. Italy (7) 7. India 8. Spain (3) 8. France (6) 8. Canada 9. France (10) 9. Canada 9. Germany 10. Argentina 10. Thailand (4) 10. Portugal

COUNTRY BRAND INDEX 2009 RANkINGS / 77 OUTDOOR ACTIVITIES & SPORTS FRIENDLY LOCALS FAMILIES Best conditions, terrain and opportunities for Welcoming citizens who make visitors feel Providing diverse activities and offerings for land or water sports comfortable visitors of all ages 1. AUSTRALIA (1) 1. FIJI (8) 1. CANADA (1) From exploring the outback and climbing the Sydney The warmth, hospitality and naturally friendly Canada has a large array of natural wonders, Harbour Bridge to diving in the Great Barrier Reef disposition of its citizens help make Fiji the outdoor activities and events to discover, and skiing the Snowy Mountains, Australia offers an leading country brand in this category. making it a perfect destination for families extensive array of active opportunities. to explore. 2. New Zealand (2) 2. Ireland (2) 2. Australia (4) 3. Costa Rica 3. Aruba 3. United States (8) 4. Canada (3) 4. Thailand (3) 4. New Zealand (5) 5. Aruba (7) 5. Bermuda 5. Portugal 6. United States (8) 6. Tahiti 6. Ireland (9) 7. Belize (4) 7. Trinidad & Tobago 7. Cyprus 8. Bermuda 8. Uruguay 8. Aruba 9. Tahiti 9. Canada (4) 9. Germany 10. Brazil 10. New Zealand (1) 10. United Kingdom

COUNTRY BRAND INDEX 2009 RANkINGS / 78 VALUE FOR MONEY RISING STAR STANDARD OF LIVING Offering the most in return for the price you pay On their way to becoming major destinations Countries with the best quality of life 1. INDIA (2) 1. UNITED ARAB EMIRATES (2) 1. GERMANY (8) In addition to having a vibrant and authentic The UAE has established itself as the up- Germany combines a historically strong business culture, excellent cuisine and a fascinating and-coming destination of the year, home to climate, high GDP per capita, comparatively history, India is also one of the most affordable an abundance of extraordinary architecture, low unemployment, cosmopolitan cities and destinations in the world. luxurious hospitality and cultural experiences. modern infrastructure. 2. Mexico (3) 2. China (1) 2. Canada (7) 3. Thailand (1) 3. Vietnam (4) 3. Japan (6) 4. Vietnam 4. Croatia (3) 4. Finland 5. Bulgaria 5. South Africa 5. Singapore 6. Indonesia 6. India (5) 6. Australia (4) 7. Malaysia (7) 7. Cuba (6) 7. United Kingdom 8. Philippines 8. Turkey (8) 8. France 9. Canada 9. Costa Rica (7) 9. United States 10. Ecuador 10. Thailand 10. Switzerland (5)

COUNTRY BRAND INDEX 2009 RANkINGS / 79 IDEAL FOR BUSINESS EASIEST TO DO BUSINESS IN NEw COUNTRY FOR BUSINESS Considered best to do business in or with Welcoming and facilitating business culture The place where people would most like to start doing business 1. UNITED STATES (1) 1. SINGAPORE (7) 1. JAPAN (1) The United States provides the broadest range Open to all languages, cultures and business Japan’s reputation as a prosperous nation with of opportunities for doing business, and with opportunities, Singapore is renowned for its a wealth of business opportunities makes it the the largest and most diversified economy in stable environment, good governance and #1 country where people would like to start the world, it is this year’s leader for business. progressive foreign trade policy. doing business. 2. Singapore 2. United States (2) 2. United States (9) 3. Japan (10) 3. Canada (1) 3. United Kingdom 4. Germany (2) 4. United Kingdom (6) 4. India 5. Canada (9) 5. Germany (3) 5. Singapore (3) 6. United Kingdom (3) 6. Australia (8) 6. Australia 7. China (7) 7. Ireland (5) 7. Switzerland (6) 8. United Arab Emirates 8. Japan (9) 8. Canada (4) 9. India 9. Belgium 9. Finland 10. Australia (6) 10. Bermuda 10. Israel

COUNTRY BRAND INDEX 2009 RANkINGS / 80 CONFERENCES EXTEND A BUSINESS TRIP POLITICAL FREEDOM Preferred off-site convention destination Where travelers want to extend business travel Noted for democratic institutions and into personal vacation civil liberties 1. JAPAN (1) 1. AUSTRALIA (1) 1. CANADA (6) Japan’s high-quality of meeting facilities, Attending a business engagement in Australia Canada’s low level of corruption, legalization of intriguing people and culture, and advanced offers the perfect excuse to stay a little longer same-sex marriage, and freedom of the press, to experience the wide variety of great leisure technology make it the #1 country for religion and education makes it one of the most attractions that make this such a desirable conferences and conventions in the world. tourist destination. politically free societies in the world. 2. Germany (4) 2. Japan (4) 2. Germany 3. Singapore (3) 3. Italy (9) 3. Australia (8) 4. United States (2) 4. United States (6) 4. United Kingdom (10) 5. United Kingdom (8) 5. New Zealand (2) 5. New Zealand (2) 6. Canada (5) 6. Canada (8) 6. Belgium (7) 7. United Arab Emirates (7) 7. India 7. United States 8. France 8. Ireland (5) 8. Finland 9. India 9. Singapore 9. Ireland 10. Finland 10. United Kingdom 10. Netherlands (1)

COUNTRY BRAND INDEX 2009 RANkINGS / 81 MOST LIkE TO LIVE IN QUALITY PRODUCTS DESIRE TO VISIT / VISIT AGAIN Where people would choose to live, outside their Producer of the most high-quality goods The country travelers would most like to visit home country and services or return to 1. CANADA (3) 1. JAPAN (1) 1. AUSTRALIA (3) A multitude of natural wonders, diverse culture, Manufacturing high-quality products is one Warm and hospitable people, ideal weather, sophisticated cities, high-quality healthcare of the attributes Japan is best known for captivating natural beauty and a plethora of and education, and a stable government make around the world. things to do and see make Australia the country Canada the place more people would want to live. most would like to visit or revisit. 2. Australia (1) 2. United States (2) 2. New Zealand (1) 3. New Zealand (2) 3. Germany (3) 3. Maldives (5) 4. Switzerland (4) 4. Finland 4. Tahiti 5. United States (7) 5. Switzerland (7) 5. United States (4) 6. United Kingdom (10) 6. Italy (5) 6. Japan (8) 7. Bermuda 7. France (4) 7. Italy (2) 8. France 8. Canada (8) 8. Canada (9) 9. Singapore 9. Singapore 9. India 10. Ireland (8) 10. United Kingdom (6) 10. Greece

COUNTRY BRAND INDEX 2009 RANkINGS / 82 ADVANCED TECHNOLOGY ENVIRONMENTALISM The country where the latest technologies are Most oriented toward environmental protection most prevalent 1. JAPAN (1) 1. FINLAND (5) Having made noteworthy contributions in the Finland is very successful in minimizing air and fields of automobiles, electronics, machinery, water pollution, developing policies for ecologically sustainable development, and maintaining some optics and chemicals, Japan is seen as the of the lowest levels of greenhouse gas emissions in leading nation for advanced technology. the world. 2. Germany (5) 2. Germany (8) 3. United States (2) 3. Canada (9) 4. Singapore (6) 4. New Zealand (4) 5. United Kingdom (3) 5. Iceland (6) 6. Finland (8) 6. Costa Rica 7. Canada 7. Sweden (1) 8. South Korea (9) 8. Singapore 9. France 9. Switzerland (3) 10. Israel 10. Japan

COUNTRY BRAND INDEX 2009 83 kEY CONTACT ACkNOwLEDGEMENT For more information about the Country Brand Index, marketing seminars, The Country Brand Index was FutureBrand’s services, or to purchase customized data, please contact: developed in conjunction with: Rina Plapler SOURCES rplapler@futurebrand.com 1. 2009 Travel and Tourism Economic Research, World Travel & Tourism Council; CIA World Factbook, 2009 +1 212 931 6443 2. “World View,” World Bank World Development Indicators, 2009 3. “World Investment Report 2009,” United Nations Conference on Trade and Development, 2009 4-5. Tourism Impact Data and Forecasts, Key Facts At A Glance, World Travel & Tourism Council METHODOLOGY 6. UNWTO World Tourism Barometer, Volume 7, No. 1, January 2009 7. Tourism Impact Data and Forecasts, Key Facts At A Glance, World Travel & Tourism Council FutureBrand has developed a three-tiered system for examining and ranking 8. “World View,” World Bank World Development Indicators, 2009 country brands. The Country Brand Index incorporates global quantitative research, 9. “World Investment Report 2009,” United Nations Conference on Trade and Development, 2009 expert opinions, and relevant secondary sources for statistics that link brand equity 10. UNWTO World Tourism Barometer, Volume 6, No. 2, June 2008 11. Worldwide Travel & Tourism Economic Impact, 2009, World Travel & Tourism Council to assets, growth and expansion. The result is a unique evaluation system that 12. U.S. Department of Transportation’s Bureau of Transportation Statistics, July 2009 provides the basis of our rankings and insights about the complexities and dynamics 13. “World On Sale,” Condé Nast Traveler, June 2009 of country brands. The 2009 survey tracks the perceptions of approximately 3,000 14. Hospitality 2010, Deloitte, August 2006 15. About Yotel, www.yotel.com, 2009 international business and leisure travelers from nine countries—the US, the UK, 16. “Destination Wedding and Honeymoon Spending on the Rise,” Destination Weddings & Honeymoons Magazine, China, Australia, Japan, Brazil, the UAE, Germany and Russia. This sample has a May 18, 2009 margin of error of ±1.8% at the 95% confidence level. Participants were screened 17. “Kentucky Derby Attendance and Handle Dip Slightly,” Thoroughbred Times, May 2, 2009 18. Singapore Department of Statistics, 2009 to include frequent international travelers (who travel internationally more than once 19. The 2008 World Factbook a year) between the ages of 21 and 65, with a balanced split between men and 20. CIA World Factbook, 2009 women. Respondent perceptions of 102 country brands were quantified through 21. World Development Indicators Database, World Bank, October 7, 2009 22. “Forbes Companies in Finland,” www.EconomyWatch.com, 2009 questions about behavior around destination selection; country associations across 23. The James A. Baker III Institute for Public Policy, Rice University, “Corporate Strategies of Saudi Aramco,” an array of 29 image attributes; and overall awareness, familiarity, past visits, Yoshikazu Kobayashi, March 2007 intent to visit, and willingness to recommend destinations to others. Survey results 24. InformationWeek, “IBM Completes Sale of PC Business to Lenovo,” May 2, 2005 25. The Story, www.Guinness.com, 2009 were aggregated and weighted in proportion to regional volume of travel consumption. 26. CIA World Factbook, 2009 This was done in order to minimize potential bias around preferred locations from 27. “Libya—A Prosperous Prospect,” www.4Hoteliers.com, September 23, 2008 respondents from regions that may have been over-represented in the sample. 28. “Fury Grows Over Release of Lockerbie Convict,” New York Times, August 24, 2009 29. “Libyan Leader Delivers a Scolding in U.N. Debut,” New York Times, September 23, 2009 Our 2009 expert panel consists of 47 tourism, development, policy and academic 30. “An African World Cup Experience,” www.southafrica.net, 2009 professionals who are not associated with one specific destination. 31. Facts and Figures, www.fifa.com, 2009 32. “Economic Impact of Ryder Cup Exceeds Pre Event Predictions,” Deloitte, April 26, 2007 33. “New Complex To Boost Doha’s 2016 Summer Games Bid,” www.GamesBids.com, June 1, 2008 34. “China Marks Olympic Anniversary, Reflects on Olympic Legacy,” VOANews.com, August 10, 2009 35. “Beijing Olympics: China’s Game Face,” www.Broadcasting.com, August 3, 2008 36. “£1.8 Million Campaign Urges Europeans to ‘See More of Britain for Less,’” www.visitbritain.org, April 9, 2009 The FutureBrand 2009 Country Brand Index Full Report (“2009 CBI Full Report”) is copyright ©2009 37. “Tourism New Zealand Selects H&K as AOR,” www.prweekus.com, July 29, 2009 FutureBrand. All rights reserved. This means the 2009 CBI Full Report may not be resold in any manner, 38. “Vive Mexico: A Public Relations Campaign to Promote Travel to Mexico,” www.boomersabroad.com, June 18, 2009 given away or posted on the internet, including without limitation making sections of the 2009 CBI Full 39. “Social Media Statistics to Surprise You,” www.bizzia.com, September 29, 2009 Report available on any public network, webserver, email server, FTP or Peer-to-Peer network in any form. 40. B&T, “ Connes: ‘Best Job’ Bags PR Grand Prix for CumminsNitro,” June 23, 2009 Transferring the 2009 CBI Full Report onto any webserver or public network, even without the presence of 41. Weber Shandwick, Social Media Tracking, 2009 the file being publicized, is not permitted. 42. Facts and Figures, www.tourism.go.ke, 2009

Country Branding Index 2009 With Luis Francisco

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