Bloom Consulting Country Brand Ranking Tourism 2011

Development of Countries
Human Asset Management
Business Strategy

Bloom Consulting Country Brand Ranking ©
2011 TOURISM - TOP 25 Performers Edition

Bloom Consulting © 2003 - 2011 contact@bloom-consulting.com / +34 91 308 0286 (CET) Page 01

2011
TOURISM
Development of Countries TOP 25
Human Asset Management Performers
Business Strategy Edition


Bloom Consulting, has created this World Ranking in order to answer the fundamental
issue at the heart of every country, corporation and soul: how does one become attractive?
Luckily, the rationale behind such a question for a nation is quite simple.
A country wishes to draw the interest of people in order to create wealth.
In other words, the purpose of country branding is to bring economic growth.

Bloom Consulting © 2003 - 2011 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 01

2011
TOURISM


As a result of every country branding individual strategy, international tourism receipts
in 2009 accumulated for $950 billion worldwide.

From 2005-2009, international tourism revenues worldwide experienced a 4.6% annual
growth rate.

The African and Asian countries have grown significantly, at an annual rate of 7.5% and
6.9% respectively, followed by Oceania and North America whose respective growth
rates stood at 5.9% and 4.1%. Latin America and Europe have grown the least during the
same time span at annual rates of 3.9% and 3.6% respectively. This is a remarkable figure
for Europe due to the size and maturity of its market, however the country branding
effect, has contributed largelly for this result.

In absolute terms, Europe has been able to generate the highest revenues from interna-
tional tourism, followed by Asia and North America. The US has generated the highest
amount of international tourism revenue for a single country, about 3.4 times the size of
African stock. Despite its size, the US has managed to experience a significant growth
during recent years.


2011
TOURISM

Introductory Note
A word from our CEO

It is essential for countries to realize that the image a nation projects has a significant impact on
the economy as a whole. The country brand strategy you convey will undoubtedly affect the
way your country is perceived. The current global financial crisis has proved this. For instance,
we can now see how credit rating agencies are highly influencing external perceptions about
countries and more importantly the strong impact they have on a country’s economic perfor-
mance. The interesting fact is that how these ratings are calculated are not in the public domain,
but rather the speculative effect they have is; it has proven country branding is more than a
capricious political idea, but rather a definite national necessity countries now need to face and
manage as a priority. Countries can no longer afford to allow third parties to play with their
national asset – their brand.

Traditional country branding studies and rankings have used public opinion and stereotypes in
order to draw conclusions. Bloom Consulting has created the first country ranking which cap-
tures the links between the image a country projects and the effect this has on the country’s
success. We have merged macro and micro country facts and statistics, and correlated them with
the communication strategies conveyed by every country in the world. This has enabled us to
reach deeply meaningful conclusions that mathematically prove that positioning your country in
a specific way will have a direct impact on your GDP. Such consequential conclusions are what
other studies in the past have lacked.

This report will help you understand the delicacies of country branding. It will let you compre-
hend the current situation worldwide, and which communication strategies should be empha-
sized or ignored. It will unearth the regional complexities in this global competition, by unleash-
ing the truth behind how a country is perceived and the way it can differentiate itself in the
international arena.

We sincerely believe that this report will expand your knowledge on how to brand your country,
and will contribute to guiding your country down the path to success.

José Filipe Torres - CEO of Bloom Consulting


2011
TOURISM

Country Branding Current Challenges
Bloom Consulting “3T” Approach ©

The main objectives for creating a country brand strategy rely on three main areas:
T1- Attraction of Trade
T2- Attraction of Tourism
T3- Attraction of Talent

The traditional approach to face these challenges is to create, or simply improve, perceptions
of the country both domestically and internationally.
Most of these initiatives are developed under one umbrella strategy.
This means countries try to create one single strategy for 3 different objectives.

However, the ideology and objective behind each one is simply different and ultimately will not
work; the 3 objectives are completely antagonistic. As an illustrative example, one cannot com-
municate leisure and entertainment to investors at the same time as communicating a qualified
and hardworking workforce to potential tourists. They automatically repel each other, therefore
destroying their core objective. Most of the time, what countries try to do is reach a compromise
to better understand the objective of the overall country brand strategy.

T2

T1 T3

Fig. 1 - Bloom Consulting's ‘3T’ Approach ©
Bloom Consulting’s country branding methodology separates these objectives, trade, tourism
and talent and treats them individually, not as an umbrella strategy. Thus, we are able to derive
growth projections and calculations in order to better understand the objective of the overall
strategy (see Fig. 1).


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TOURISM

The Research
Understanding the research methodology

One of the key differences in the
Bloom Consulting Country Brand Ranking©
and Bloom Consulting Country Brand Rating©
is the use of facts and official data as opposed
to surveys and interviews. It combines hard data,
such as economic indicators and country characteristics,
along with communication strategies, giving birth to the
Bloom Consulting Algorithm.
A consistent use of official and recognized sources

More than one source of information has been used throughout this project to elaborate the
global ranking. The United Nations (UN) provided a comprehensive list of 193 countries*,
which enabled us to avoid any bias in selecting and identifying specific territories.

The economic variables selected to measure the performance of the countries were taken from
the World Bank (WB). This ranking uses 2009 data, the latest data available from all sources.

The communication strategies used by countries to attract tourism were taken from
the Tourism Board Organizations (TBOs) of the respective countries associated with
the World Tourism Organisation.
When these TBOs were not accessible through the Word Tourism Organisation,
information was gathered from embassies .

It can therefore be confirmed, that through the consistent use of official internationally
recognized sources, the data used is current and accurate.
*Hong Kong has been added to the list as Bloom Consulting considered the specific nature of the territory and the importance of its
economic variables. Treating them separately allows us to analyze the real potential of both Hong-Kong and China respectively.


2011
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The Research
Understanding the research methodology

A revised and validated use of data

With these sources at our disposal, we collected the country brand strategy information
of each country in order to understand how the country brand wishes to be perceived.

Naturally, the quality of the data used throughout this project is crucial. For this reason,
the research methodology includes a two-step approach to checking the information.
Only confirmed and official data through the World Bank, World Tourism Organization,
and the United Nations has been used. Moreover, all TBOs have been contacted by email
and telephone in order to verify the veracity of our information.

Our methodology assumes that the communication strategies used by TBOs are accurate.
We do not question their authenticity as this is not the purpose of the study, we are only inter-
ested in the impact they have on a countries’ economy. Even though some countries may choose
to promote aspects that differ slightly from reality, this behavior is rare and eventually would
have a negative impact on their tourism and their country branding.

This study examines 157 countries; it was not possible to include all 193 countries supplied by
the UN. If a country did not promote any significant messages or if economic data was not
accessible, then they were eliminated from the study.

An explanatory and comprehensive clustering of communication strategies

All country branding strategies are heavily reliant on the chosen communication strategies
as they have a huge impact on the country's performance. Overall, more than 3,000 messages
have been collected from official sources, and implemented as a basis of information
throughout this report.


2011
TOURISM

The Ranking

With the help of powerful multivariate statistical analysis tools, we successfully identified
correlations between a country’s level of success in tourism and the perception that
the country projects through its communication strategy. Case-differential tables, as well as
matrices, were used to better comprehend the most significant relationships found, leading
to the Bloom Consulting Algorithm.

Hence, we present a ranking which positions
a country brand according to its economic performance
based on previous economic history and
the Bloom Consulting Algorithm;
a process which as yet, has never been done before.
It is safe to say that our research has indicated that countries lack differentiation when it comes
to attracting potential tourists. It is also proven that the most popular communication strategies
are not the most effective. Tourists are looking beyond the traditional reasons to visit a country
and are more inclined to try new experiences. This provides a great opportunity for countries to
differentiate themselves.


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TOURISM

The Ranking - TOP 25

Bloom Consulting Country Brand Ranking Top 25 Countries 2011 – Tourism

1. USA 14. Mexico

2. Spain 15. Netherlands

3. France 16. Belgium

4. Germany 17. Malaysia

5. UK 18. Egypt

6. China 19. Greece

7. Italy 20. India

8. Australia 21. Portugal

9. Austria 22. Sweden

10. Thailand 23. Canada

11. Hong Kong 24. Russian Federation

12. Turkey 25 Japan

13. Switzerland

The list of top country branding performers includes countries from all over the world. The US
ranks first worldwide while European and Asian countries dominate the top 25. All other conti-
nents are only represented by Australia, Egypt, and Mexico.


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TOURISM

The Rating
Bloom Consulting Country Brand Rating ©

A country branding rating factor is derived from the
Bloom Consulting Algorithm which is designed
to recalculate the rating factor depending on the eco-
nomic performance and the communication strategy
chosen by each country.

Therefore, we can conclude that the Bloom Consulting
Algorithm cannot be manipulated by any single action.
Bloom Consulting has created the Bloom Consulting Country Brand Rating © in order to
evaluate the effectiveness of a country‘s chosen communication strategy.

The relationship between communication strategies and economic wealth varies substantially
between geographic locations and economic development stages. Therefore, these factors, along
with the number of countries within each sector and the repetition rate of each message within
each communication strategy, were taken into account. This ensured that we could derive an
accurate and just algorithm in order to designate each country with a rating factor, a country
coefficient detailing the effectiveness of its communication strategy.


2011
TOURISM

The Rating

The Bloom Consulting Country Brand Rating © scale has classified the rating factors into
7 categories according to the effectiveness of a country’s communication strategy.

Bloom Consulting Country Brand Rating © Categories Rating

Major positive impact Triple Green

Moderate positive impact Double Green

Minor positive impact Single Green

No impact White

Minor negative impact Single Red

Moderate negative impact Double Red

Major negative impact Triple Red


2011
TOURISM

The Rating – TOP 25

This rating reflects the effectiveness of the top 25 performers chosen communication strategies.

Bloom Consulting Country Brand Rating © Top 25 Countries 2011 - Tourism Rating

China Australia Austria Egypt

USA Spain France Germany UK Italy Thailand Hong Kong Switzerland Mexico Belgium India Portugal Sweden

Turkey Malaysia Greece

Netherlands Russian Federation Japan

Canada

The top 5 country branding performers have all achieved positive rating factors; however so
have other countries located further down the ranking. Countries such as China, Australia, Aus-
tria, and Egypt all have a major positive rating factor due to the use of the most effective com-
munication strategy.
On the other hand, the Netherlands, Russia, and Japan all received a neutral rating, while
Canada scored the lowest and the only negative rating factor despite making it into the top 25
global ranking. This is because, even though they attract a lot of renenue through tourists, they
could be using a more effective communication strategy and attract even more.


2011
TOURISM

The Country Branding Strategy
How the world is differentiating itself

50% of all countries tend to use the same type
of communication strategy regardless of geographic
location. The majority choose to communicate messages
related to cultural tourism, and leisure and entertainment.

The extent to which countries make use of messages, which messages they communicate,
and the number of messages they use among other key facts, varies greatly from region to
region. Most countries use different strategies when branding themselves.

Country branding differentiation can be achieved through the various messages a country
decides to communicate, all with the same intent, attracting tourists. In particular, the level of
differentiation varies from country to country. There are countries that have a high or low differ-
entiation rate based on the communication strategy they use, which allows us to see how many
other countries use the same communication strategy.

The most popular communication strategies worldwide are also the most popular communica-
tion strategies within every region with the exception of Oceania. Oceania’s most popular mes-
sages also include water sports and fishing. All of the messages in Table 1 have been used in the
communication strategy of more than 40% of countries worldwide.

Table1. Most popular messages used in a country‘s communication strategy - World
1. Cultural Tourism 77%
2. Leisure and Entertainment 69%
3. Natual Features 53%
4. Beautiful Destination 46%
5. Sports Activities 43%


2011
TOURISM

The Country Branding Strategy
How the world is differentiating itself

In fact, using popular messages does not guarantee a positive impact on the country branding
strategy; actually, it’s the opposite. With the exception of cultural tourism, the most valuable
messages according to the Bloom Consulting Algorithm © factor are not the most popular.

Table2. Most valuable messages used in a country‘s communication strategy - World
1. Gastronomy
2. Relaxed Environment
3. Urban and Rural Tourism
4. Adventure Tourism
5. Cultural Tourism

Communication strategies related to gastronomy are the most valued in the international arena.
Other valued messages help to communicate such aspects of a country as relaxed environment
and urban and rural tourism. Out of the top 5 most valuable messages, only cultural tourism is
on the list of the most frequently repeated messages worldwide.

The communication strategies mentioned above are the ones that work best in the global arena.
However, we know that a regional approach is needed and that the most valuable messages in
each communication strategy vary from continent to continent. In Asia, Africa, and Oceania the
messages communicated follow the same trend. However, in Latin America and Europe they use
messages related to leisure and entertainment while in North America they use messages associ-
ated with winter sports.


2011
TOURISM
Development of Countries WORLD
Business Strategy Ranking

2011 TOURISM - WORLD Ranking

As opposed to surveys and qualitative interviews, this country brand ranking combines
the countries economic performance with the respective country branding strategies;
a process which as yet, has never been done before. Such combination of variables has
given birth to the Bloom Consulting Algorithm - which sets the world Ranking
World Rank Rate

1. United States of America

2. Spain

3. France

4. Germany

5. United Kingdom

6. China

7. Italy

8. Australia

9. Austria

10. Thailand


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World Rank Rate
11. Hong Kong

12. Turkey

13. Switzerland

14. Mexico

15. Netherlands

16. Belgium

17. Malaysia

18. Egypt

19. Greece

20. India

21. Portugal

22. Sweden

23. Canada

24. Russian Federation

25. Japan

26. Republic of Korea

27. South Africa

28. Poland

29. Croatia

30. Morocco

31. Singapore

32. Indonesia

33. Ireland

34. Czech Republic

35. Tunisia


2011
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World Rank Rate
36. Saudi Arabia

37. Philippines

38. Hungary

39. Norway

40. Lebanon

41. Brazil

42. Viet Nam
43. New Zealand

44. Denmark

45. United Arab Emirates

46. Israel

47. Luxembourg

48. Argentina

49. Finland

50. Bulgaria

51. Cyprus

52. Jordan

53. Dominican Republic
54. Syrian Arab Republic

55. Slovenia
56. Cuba

57. Slovakia

58. Chile

59. Bahamas

60. Costa Rica


2011
TOURISM

World Rank Rate
61. Jamaica

62. Peru

63. Colombia
64. Romania

65. Bahrain

66. Kenya

67. Panama

68. Iran

69. Mauritius

70. Estonia

71. Albania

72. Cambodia
73. Malta

74. Barbados

75. Kazakhstan

76. United Republic of Tanzania

77. Lithuania

78. Ghana

79. Pakistan

80. Ethiopia

81. El Salvador

82. Guatemala

83. Sri Lanka

84. Latvia

85. Oman


2011
TOURISM

World Rank Rate
86. Uruguay

87. Bosnia and Herzegovina

88. Serbia

89. Iceland

90. Nigeria

91. Uganda

92. Madagascar

93. Honduras

94. Botswana

95. Georgia

96. Ecuador

97. Namibia

98. Maldives

99. Trinidad and Tobago

100. Belarus

101. Montenegro

102. Senegal

103. Yemen

104. Fiji

105. Qatar

106. Kyrgyzstan

107. Seychelles

108. Antigua and Barbuda

109. Armenia

110. Saint Lucia


2011
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World Rank Rate
111. Azerbaijan

112. Belize

113. Nicaragua

114. Angola

115. Mongolia

116. Nepal
117. Algeria

118. Cameroon

119. Sudan

120. Zimbabwe

121. Brunei Darussalam

122. Macedonia

123. Mozambique
124. Benin

125. Paraguay

126. Rwanda

127. Saint Kits and Nevis

128. Zambia

129. Bangladesh

130. Saint Vincent and the Grenadines

131. Grenada

132. Suriname

133. Gambia

134. Dominica

135. Swaziland


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TOURISM

World Rank Rate
136. Vanuatu

137. Burkina Faso

138. Niger

139. Uzbekistan

140. Samoa

141. Bhutan
142. Guyana

143. Sierra Leon

144. Malawi

145. Togo
146. Lesotho

147. Palau

148. Solomon Islands

149. Tajikistan

150. Tonga

151. Comoros

152. São Tomé and Principe

153. Federated States of Micronesia

154. Marshall Islands

155. Papua New Guinea

156. Guinea

157. Burundi


2011
TOURISM

About
Bloom Consulting

Bloom Consulting is a strategy consulting firm specialized in country branding.
José Filipe Torres founded Bloom Consulting in 2003 and is a regular spokesperson at confer-
ences and universities worldwide. He has been interviewed by both The Economist and Forbes,
where he was identified as one of the top 3 country branding experts in the world.

At the moment Bloom Consulting have offices in Bulgaria, Brazil, Italy, India, Portugal and
Spain (headquarters), as well as research centers in Tokyo and London. Bloom Consulting work
closely with presidents, monarchs, ministers and institutions in order to define their strategy,
establish their vision, and implement it. Bloom’s clients include the Bulgarian, Latvian, Polish,
Portuguese and Spanish governments, and also regions such as Madrid, Castilla y Leon in Spain,
and Alqueva and the southwest regions of Portugal.

Bloom Consulting has developed a 3T approach © to separate Trade, Tourism, and Talent
strategies. One fundamental point for the success of all of Bloom Consulting’s country brand-
ing projects, is the CAMPRO methodology ©. This methodology is a combination of academic
and professional knowledge under Bloom Consulting’s management and control, key to obtain-
ing the most accurate recommendations and insights for all clients.

More information

While this report provides a general global overview, the information presented here is anything
but a glimpse of the findings we have at our disposal. Please do not hesitate to contact us if you
would like a catered and detailed version of the Bloom Consulting Country Brand Ranking ©
report for your country or region.

For more information, please visit:

www.bloom-consulting.com/country_branding_ranking
www.bloom-consulting.com/country_branding_rating

or send an email to countrybranding@bloom-consulting.com


Bloom Consulting Country Brand Ranking Tourism 2011

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