Country Branding Index 2009 With Luis Francisco

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I participated as the Portuguese expert on this international study about Country Branding 2009.
The study was delivered during WTM, London.

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Country Branding Index 2009 With Luis Francisco

  1. 1. 2009 COUNTRY BRAND INDEX
  2. 2. 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.
  3. 3. 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.
  4. 4. 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.
  5. 5. 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
  6. 6. 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
  7. 7. 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
  8. 8. 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.”
  9. 9. 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.”
  10. 10. 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.
  11. 11. 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).
  12. 12. 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).
  13. 13. 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.
  14. 14. 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.
  15. 15. 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
  16. 16. 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
  17. 17. 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)
  18. 18. 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)
  19. 19. 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
  20. 20. 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
  21. 21. 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
  22. 22. 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?
  23. 23. 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...)
  24. 24. 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...)
  25. 25. 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.
  26. 26. 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
  27. 27. 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
  28. 28. 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.
  29. 29. 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.
  30. 30. 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
  31. 31. 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
  32. 32. 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.
  33. 33. 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

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