A 3210 self compiled literature review for Masters Dissertation. Focuses on important aspects of Nation Branding strategy for Indian Tourism Industry with relevant talks about what and how changes can affect the country as a whole!

1. Research Question: Nation Branding in BRIC countries: Role and Impact of creating a ‘Tourism Nation
Brand’ in a BRIC country - India. A study of the gaps, inadequacies and vulnerabilities in creating
‘Brand India’ as a tourist destination choice with the help of a comparative study on UK tourists’
consumer market in China and India.
Ch.1 Nation branding
1.1 Scope, Relevance and Evolution of Nation Branding for countries today
Ever nation projects an image of itself to the outside world. This image can be simple or complex
depending on the attitudes of people and their perceptions (Simonin, 2008). David Gertner suggest
that a country’s image results from its geography, history, art and music, citizens and othrer
features. All these features particularly play an important role in creating a brand name or some
form of brand image of the country in the market place. A brand represents a unique combination
of characteristics and added values, both functional and non-functional, which have taken on a
relevant meaning that is inextricably linked to the brand, awareness of which might be conscious or
intuitive (Macrae, Parkinson and Sheerman, 1995). Nation Branding (NB); embodies multiple
disciplines in branding strategies for a country/nation. Nation Branding is to create a country brand
to gain prominence and competitive advantage to enhance the country’s reputation in international
market (Dinnie, 2003). Rapidly growing literature on NB today by NB experts; Simon Anholt and
Kieth Dinnie have brought into light the importance of creating a nation brand and its relevance and
evolution over the period of time for countries. Post World War II it has been observed that
countries making rigorous efforts in creating brand value to: achieve higher recognition value
globally, attract tourists, foreign investment, help achieve currency stability, increase imports and
exports and so on. An example in consideration is South Africa. The International Marketing Council
of South Africa (IMC) in the year 2000 identified that it was absolutely necessary for South Africa to
create a positive and compelling brand image in the global market place (Dinnie, 2003). It made
conscious efforts in enhancing and creating value for three most important economic sectors of a
country; Trade, Tourism and Investment. The Brand South Africa has identified four pillars according
to president Jacob Zuma and brand chairperson of Africa, Ms. Anitha Soni that distinguish the
unique characteristics of the South African brand – these are ubuntu, diversity, sustainability,
possibility and creativity. A country with a clear, credible and positive view of what it is, what it
represents and where it is going to, can successfully compete on the global stage; the mantra that
IMC of South Africa has been using to create Brand South Africa.
NB process involves long term commitment and building right solutions to reach the country’s
developmental goals with the help of NB. The value a nation brand strategy can deliver today for a
nation and its significance to emerging economies such as the BRIC nations is the case in
consideration.

2. 1.2 Why countries engage / should engage in Nation Branding?
Increasing global competition requires countries to constantly create competitive advantages to
maintain country image. In order to position the country in terms of its investment potential, credit
worthiness, export opportunities, tourism potential and international relations the Government
needs to engage in opportunities that can create that kind of potential for the country and commit
to branding efforts for the country. The achievement of such goals requires countries to adopt
conscious branding if they are to compete effectively on the global stage and this can be achieved
by engaging in the NB process for over a period of time with commitment and trust. David Aaker
(2011) suggests that brand influence on a person is reflected in everyday life by the choices the
person makes to buy a car, a phone, or any other hi-end luxury items. His research shows that out
of 300 respondents that he surveyed at least 86% reflected the unwillingness to buy a product of
the brand that did not hold the top 10 or top 20 slots in the media. This study reflects on how
emotional attachments can be used to measure the brand value among consumers. U.S today is the
most influential brand in terms of its socio-economic development, tourism potential, luxury
market, and foreign investments and so on. Consumers are emotionally attached with American
products like cars, clothes, cities (in terms of tourism) and education. The inability of countries to
create brands that can attract this kind of market attention is because countries have not been
successful enough in recognizing the potential of creating value for them in terms of brand.
NB can also help erase misconceptions about a country and allow the country to reposition itself
more favourably (Anholt and Dinnie, 2008). Creating meaningful differentiation for a country lies in
the country unleashing its potential in embracing branding technique for competitive advantages.
An example in this regard would be a country that has been successful in creating a ‘destination
brand’ for itself in terms of tourism potential. For instance, World Travel Market’s survey for 2011
shows that China among the BRIC countries was a very popular destination chosen by international
travellers for holidaying. 1,029 senior executives of businesses in the world's tourism industry
surveyed also recognized China as the most important country for their businesses, with the
country’s natural beauty, growing economy and the availability of direct flights being key reasons.
World Travel & Tourism Council figures show that China is the world's largest market for outbound
tourists, spending around $55 billion in 2010. China also received 56 million international tourists in
2010, generating $46 billion of revenue. What highlights the major reasons for China becoming such
a popular destination in just past one decade? The answer lies in the Government’s effort to create
‘Brand China’ as an obvious tourism choice for travellers.
Countries geographically diverse and with considerable amount of potential to culturally exploit
themselves like Spain, Britain, Korea, and the BRICs today have identified the worthiness of
developing nation branding strategies for socio-economic development.

3. Ch.2 Nation Branding in BRICS - Case of India
2.1 Relevance of Nation Branding concept for India
Every country is engaged in the brand preference battle today (Aaker, 2010). Generating brand
value that meets consumers’ expectations and attitudes in established product category or sub
category is the goal of many organizations competing on a global platform in this 21st century. The
same theory holds true for creating a nation brand for emerging economies like the BRICS.
Together, the five original BRICS (Brazil, Russia, India, China and now South Africa) comprise more
than 2.8 billion people or 40% of the world’s population, cover more than a quarter of the world’s
land area over three continents, and account for more than 25% of global GDP. According to a study
by Brand Finance in 2010 the BRICS collective nation brand values expand by over $1.432 trillion.
Strong economic performance and growing brand equity in the emerging markets has fuelled this
growth in brand value. Strong growth of BRICS illustrates the need for a potential nation-branding
strategy and the significance it holds for the nation’s future progress in the era of globalization.
With the example of South Africa’s attempt to create relevant nation brand mentioned above we
understand the various endeavours the emerging economies are engaging in today to create
significant country brands that would reflect a positive image of the country.
As the world looks forward to new ideas to drive the globalised economy, India seems to be an
inspiring story. Being the seventh largest country in the world and a rich history that caters to the
likes of every industry today; business, tourism, medical, luxury, heritage and so on India has
tremendous
potential to create a
valuable global brand
and identity among
one of the influential
nation brand sin the
world today. India
was the 2011’s
second fastest
growing brand, with
31.6% growth
according to Brand
Finance report of
2011. India’s Brand
strength is now
higher than China’s,
partially a result of
substantially higher

4. brand equity from an affirmative reputation abroad. In recent years India has shown its potential in
a number of sectors from business to technology to innovation to tourism. It has been constantly
regarded as a country with continual move-up in the value chain. India’s brand is rapidly increasing
in value as the self-proclaimed “world’s fastest growing democracy” establishes its place among the
world’s top tier economies. With such diverse sectors of growth India reflects the essential aspects
for being the next generation tourism destination choice for international travellers today.
Considering various aspects and facts encountered in lieu of the country in consideration; India I
would now like to draw this argument towards impact and role of creating ‘Destination Brand
India’. In a survey conducted by the World Travel Market (WTM) in 2010 on BRICS as a choice for
holiday country, Brazil ranked the most popular choice among the international tourists. But India
wasn’t far behind. The graph above based on the research done by Statista 2012 shows the order of
preference based on financial conditions of the survey respondents. It clearly illustrates the interest
in BRICS by international holiday takers if there were no financial constraints.
With such growing interest among the tourists over the world NB does seem like a relevant strategy
for India and the Indian Government has been quiet meticulously working on making sure that it
uses all channels of marketing and branding to pass this message across the world.
2.2 India’s current progress in creating ‘Brand India’ and an overview on tourism market in India
and China
Terrorism, economic recession and political instability have come to dominate the discussion of
current international affairs (Baral, Baral and Morgan, 2004). Impact on tourism demand due to
these issues has led to increasing amount of crisis management in tourism (Frisby, 2002). India
faces huge threats in form of terrorism activities
and corruption in its system.
India China
After the independence since
(2011) (2011)
1947 Indian Government has
Brand Value($ Brand Value($ Billions): been putting in relentless
Billions): $1,266 $3,001 effort in creating a positive
Change in Brand Change in Brand Value: image of India which can
Value: +31.6% +40.4%
make the country relevant and
Brand in Equity Brand in Equity Rating: competitive in this uncertain
Rating: AA- A
environment.
Rank in the League Rank in the League
Table: 9th Table: 4th
Source: Brand Finance 2010-2011
India ranked 9th in 2010 as well as 2011 in the League table based on the report provided by Brand
Finance for 2011 on Top 10 winner countries. Clearly there is something that India is doing right to

5. achieve this kind of brand recognition being an emerging economy. But at the same time among the
BRICS, China has had much better ratings and has ranked 3rd in 2011 in the League table. A
comparison on both India and China’s ratings is given below. Even after being more diverse as
compared to China, Brand India does show some vulnerabilities and gaps that prevent it from being
the first preference as a ‘Tourist Destination’ among the international travellers.
Today a huge number of campaigns have been implemented by the Government and private
authorities in public diplomacy as a part of branding campaigns for India. In an interview I
conducted with the Director of Indian Institute of Tourism and Travel Management (India); Mrs.
Manjula Chaudary before beginning my thesis documentation I was told about the various
initiatives a number of private organizations have started to create more Tourism value for the
country. The India – Future of Change (http://www.indiafutureofchange.com/index.htm) initiative
started to highlight India’s future plans in sectors like education, travel, business, technology, social
sector, environment and governance. Its introductory message on the website reads as below:
INDIA Future of Change is a five-year initiative
that promises to take India to the world,
and get students and professionals across geographies
to compete, collaborate and co-create
a better future for all of us...
It is supported by the Public Diplomacy Division for External Affairs, Govt of India. This initiative
aims at building a platform for all public and private partners and stakeholders of Brand India to
unite and build gaps and bridges with the rest of the world. Many new dimensions since this
initiative have been added as a part of creating ‘Destination Brand India’ as well for the country.
Tourism was being given due recognition in the State Tourism Plans and State Govts. also started to
form Tourism corporations and more fund were allotted to tourism since the five year plan of 1971-
1976 (Source: Tourism Ministry of India website).
Incredible India! Campaign was conceptualized in 2002 by V Sunil (while he was Creative Director,
O&M Delhi), and Amitabh Kant, Joint Secretary, Ministry of Tourism. The primary objective of this
branding exercise was to create a distinctive identity for the country
(http://www.incredibleindia.org/). This campaign has generated an interest in India and helped in
changing the perception. Since the launch of this campaign India has attracted 5.58 million foreign
nationals in 2010 compared to 2.38 million in the year 2001 (Tourism Ministry of India, 2010).
Tourism Minister Kumari Selja added that the Incredible India! Film was shown on all major
European channels and had captured world’s eye in generating a positive and exciting image of
India as a choice for travel. It won the prestigious Grand Prix award and was highly appreciated in
countries like Romania, Berlin, Poland and France. But there is a trade-off when comparisons are
made between India and China on their tourism markets.

6. China is emerging in its value for outbound tourism in the world. An estimate of 100 million tourists
by 2020 has been predicted by WTO to visit China for tourism and travel purpose. China received 56
million international tourists in 2010, generating $46 billion of revenue for the country.
Source: Research In China (In
2006, the revenue of China's
inbound tourism achieved
USD33.95 billion, with a year-
on-year growth of 15.9%. The
revenue from domestic
tourism came to RMB 623
billion, seeing an increase of
17.9% year-on-year)
Chinese Vice-Premier,
Wang Qishan, mentioned
in an open letter in the
summit of
UNWTO/WTTC Global
Leaders for Tourism
Campaign held in Sep
2011 that Chinese Govt has doubled its effort in tourism and travel industry of China. According to
Mr. Qishan China’s tourism industry plays an important role in the country’s economic development
and links the country to the world on the cultural front. Moving forward from the general tourism
scenario for both these Asian giants I would now want to talk about the UK tourist’s interest in India
and China.
2.3 UK Tourists Consumer Market in India and China
The foreign tourist arrival growth in India is little less than 11% per annum (2010) & United Kingdom
(UK) is the second largest contributor after United States of America, to the entire Foreign Tourist
Arrival (FTA) in India (ACNeilson, 2011 for Ministry of Tourism of India). A study on UK tourist’s
market in India conducted by ACNeilson ORG-MARG in 2011 depicted the behaviour of UK
consumers visiting India for various travel purposes. According to this report level of awareness of
India as a destination choice among UK consumers was very higher than expected. Various reasons
can be linked to this; historical relationship between the two countries, natural beauty of its
beaches and forests, wildlife, likes of UK consumers for Indian cuisine and so on. Consumers were
typically interested in visiting or had visited cities of Bombay, Delhi, Bangalore, Kerala, Goa and
Kashmir. The preference of these cities shows the interested and attitudes of UK consumers while
deciding a trip abroad which is adventure, relaxation, business and spirituality. India offers a blend
of all them along with some brilliant landscapes and natural beauty found in the country. There has

7. been a constant increase in the number of abroad visits by UK travellers and holiday takers from
1998 to 2006. Between 2007 - 2009 saw a decline of 15% due to recession hit economy.
Motivations behind visiting abroad countries vary tremendously among different people but one of
the common reasons was; ‘preferred destination’. And according to a survey in 2010 among the UK
consumers most popular destination emerged to be New York followed by Paris and China.
As mentioned earlier China topped among the BRICS as the popular destination among UK travelers
in 2010. Out of the 1,006 UK holidaymakers surveyed, 46 percent are interested in visiting China
and a further 8 percent have already done so (English News, 2011). Chinese Govt has been able to
maintain a constant growth rate of 7% annually in the tourism industry of China with further
potential. Nearly 10 million people are directly employed in tourism industry in China. Tourism has
become a key industry which has a close bearing on the livelihood of hundreds of millions of people
and Chinese Govt’s attempt in maintaining these figures by attracting more foreign tourists has
been successful so far. The country has been able to brand its image and identity as a very obvious
choice in the UK tourist’s consumer market. Much of the effort in bringing China to this stage today
goes in its constant attempts for creating ‘Brand China’ over the years.
Ch.3 Ethical and Pragmatic issues (Gaps and Vulnerabilities with reference to current
scenario and approach of Government) in creating Tourism value for India
Going further after analysis on relevance and significance of NB for BRICS and our country in
consideration specifically, India there is a need to highlight the gaps and vulnerabilities India is
facing today in implementing and successfully having built ‘Brand India’.
But still we need to do more by emphasizing quality accommodation and promote specific products in
India like Goa, Kerala, Karnataka, which can boast of Quality hotels, premium properties and Quality
service. But Quality comes on payment of price and not the perception alone.
Indian government must seriously look upon the quality control of tourism services,
infrastructural development for tourism related activities and marketing of Indian Tourism
services at a global standard, which will help in wealth generation and poverty alleviation at
large in monument rich regions.

8. According to Ministry of Tourism, the Foreign Exchange Earnings in India has grown from US
$2889 to $14193 million in this 1997 to 2010 period. Government can tap the huge expenditures
on outbound tourists which is increasing at a very fast rate.
For the purpose of crafting a communication campaign, a nation identity should
stress a reality that resonates with people, both within and outside the country.
Facts to know! (Source: Indian Tour Operators Promotion Council)
Tourist’s inflow from Britain:
Every year about 3000,000 tourists from Britain visit India for both business as well as
leisure. Statistics as from 2000 to 2010
Tourists to India spend more:
India is the fastest growing Asia -Pacific market for the International tourist spending.
According to the World Travel and Tourism Council, the Indian tourism demand will
grow at an annual 8.8 % over the next ten years.
Earnings on Tourism:
In 2005 India earned US $ 6.9 billion from inbound foreign tourists, which is more than
twice the US $3.1 billion earned during the year 2002.
Leading Tourist destination:
with nearly 140 three and two star hotels, Kerala has turned into a major hot spot for
foreign tourists.
Source: Research In China
(In 2006, the revenue of
China's inbound tourism
achieved USD33.95 billion,
with a year-on-year
growth of 15.9%. The
revenue from domestic
tourism came to RMB 623
billion, seeing an increase
of 17.9% year-on-year)

9. References and Bibliography