Bloom consulting country brand ranking tourism 2012
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The document introduces the Bloom Consulting Country Brand Ranking, which ranks countries based on the effectiveness of their country brand strategies and the subsequent impact on GDP. It considers both economic indicators and the strategies' accuracy and market acceptance. For the first time, it incorporates online search demand to measure how well countries match what tourists search for. The ranking methodology uses four variables: historical economic performance, economic growth, the Bloom Consulting Country Brand Strategy rating which evaluates brand tags and online search demand, and the overall economic impact. It then provides the world tourism edition ranking for 2012 and the CBS rating for each country.
Bloom consulting country brand ranking tourism 2012
- 1. Development of Countries Human Asset Management Business Strategy Bloom Consulting Country Brand Ranking © Tourism Edition 2012 Bloom Consulting © Since 2003
- 2. Country Brand Development of Countries Human Asset Management Ranking © Business Strategy Tourism Edition 2012 Bloom Consulting Country Brand Ranking © An Introduction The Bloom Consulting Country Brand Ranking © is the only country or nation brand ranking which classifies countries by the effectiveness of their country brand strategies and its subsequent impact on the country’s GDP. In order to do so, Bloom Consulting has taken into account variables that define the economic performance of the countries as well as variables that characterize the strategies’ accuracy and market acceptance. Bloom Consulting has used hard facts, such as economic indicators and an analysis of the offi- cial country brand strategies as well as soft data indicators, thereby measuring the economic impact of each country’s tourism brand strategy. Furthermore, this marks the first time that Online Search Demand (OSD) has been incorporated into a ranking of this type. The 2012 Bloom Consulting Country Brand Ranking © Tourism accounts for the most compre- hensive, objective research done in the field so far. In accordance with the Bloom Consulting 3T Approach © (see page 3), Bloom Consulting creates separate Rankings for Trade and Tourism. It includes 161 countries and all economic data comes from recognized sources such as the World Bank, United Nations, and the World Tourism Organization. Bloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 01
- 3. Country Brand Development of Countries Human Asset Management Ranking © Business Strategy Tourism Edition 2012 An introductory note from the CEO Welcome For the second consecutive year, I am proud to present to you with the Bloom Consulting Country Brand Ranking! Over the last nine years, I have had the privilege of working with Bloom Consulting in country branding strategies all over the world. From my experience, the most striking fact I found so far is that most countries, regardless of their economic development, geographic location or even size, have very similar issues when developing their own country brand strategy. These issues are very much related with internal concerns, such as accountability or stakeholder management, and also the tangible measurement of brand strategy investments. Our objective when launching this ranking was precisely to tackle this issue: how much more revenue can a country brand attract to its own national economy? Let me just say how excited I am with the new feature in our algorithm - Online Search Demand (OSD). For the first time in any country or nation brand ranking, we analyze how well positioned countries are in the biggest search engines and how searched they are by tourists in general. To conclude, I encourage you to use this ranking internally and use it as an asset and a tool to demonstrate the importance your country brand has on your economy. Although we would have liked to go deeper and give a detailed description on each country’s performance, it’s impossible to do so in this overview. However if you are interested to find out more information on your country, please do not hesitate to contact us. I would be happy to send you all the infor- mation you require. Welcome to the Bloom Consulting Country Brand Ranking © 2012. We hope you appreciate the great results and findings as much as we did! José Filipe Torres - CEO Bloom Consulting Bloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 02
- 4. Country Brand Development of Countries Human Asset Management Ranking © Business Strategy Tourism Edition 2012 Introduction to Country Branding The 3T approach © In creating a country brand strategy we focus on three main areas: attraction of trade, tourism and talent. The traditional approach when facing the challenge of attracting trade, tourism and talent is to create, or simply improve, perceptions under one umbrella strategy. Ultimately this will fail, as we see over and over again around the world. It is impossible to communicate entertainment to investors and simultaneously communicate a qualified and hardworking workforce to potential tourists. They messages repel each other, destroying the core objective. Most of the time agencies attempt a compromise in order to better create an overall strategy. As a result, they weaken their brand, as each factor is not branded up to its potential. In order to solve the problem of having a single multi-dimensional strategy, Bloom Consulting has developed a 3T approach to country branding that separates each T. T1. Attraction of Trade T2. Attraction of Tourism T3. Attraction of Talent Traditional “Umbrella” Strategy Bloom Consulting’s 3T Approach © T1 T2 T3 T2 GDP GDP T1 T3 Impact Impact This way, we’re able to calculate growth projections and calculations individually, in order to better define the objectives of an overall strategy. Bloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 03
- 5. Country Brand Development of Countries Human Asset Management Ranking © Business Strategy Tourism Edition 2012 Understanding the Methodology The Ranking Variables The Bloom Consulting Algorithm, was developed to create and calculate the ranking, taking into account both hard and soft data and includes groundbreaking processes to show the relationship between a country’s economic performance and the projections of the country’s brand strategy. The ranking is derived from four variables that take into account both hard and soft data. The ranking does not use any survey or interview based data, meaning that it provides the most objective, accurate results possible. Bloom Consulting Country Brand Ranking Algorithm variables Historical Bloom Consulting CBS Economic Rating© Growth Economic Country Brand Performance Ranking © Bloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 04
- 6. Country Brand Development of Countries Human Asset Management Ranking © Business Strategy Tourism Edition 2012 Understanding the Methodology The Ranking Variables in more detail Historical Economic Performance Strategies and economic returns do not have an immediate cause and effect relationship, there- fore Bloom Consulting looks at the country’s long term (five years)* historical economic performance in international tourism receipts. This way, the Ranking reflects more consistent trends rather than the volatile changes that might occur in the recovering economic climate. Economic Growth The growth in international tourism receipts of each country is also an important indicator when measuring the country’s economic performance, therefore Bloom Consulting computes the compound annual growth rate for the economic tourism performance. This way, it is possible to garner how much the industry grew or decreased and the impact it had on the revenue. Again, data spanning five years was used to reflect consistent trends rather than brief volatile changes. Bloom Consulting Country Brand Strategy (CBS) Rating © Bloom Consulting also rates the impact of each country’s branding strategy. The CBS Rating © takes into account the uniqueness of each country’s current brand strategy (Brand Tags) and the accuracy of the Online Search Demand. A brand strategy that is more unique and more aligned with tourist searches will receive a better Rating. * UNWTO covering the years 2006-2010. Bloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 05
- 7. Country Brand Development of Countries Human Asset Management Ranking © Business Strategy Tourism Edition 2012 Measuring Country Brand Strategy Accuracy The CBS Rating © CBS Rating © is calculated using brand strategy economic performance analysis and analysis of Online Search Demand. The country brand strategy is measured through brand tags, the key words that reflect the brand strategy of each country. For the first time in any country or nation brand ranking, Bloom’s Online Search Demand (OSD) is able to show if a country supplies what tourists are seeking, and how well the country is matching this demand. Brand tags function as the ‘supply’ side of the tourist-destination equation. Thousands of brand tags were collected from each country’s official tourism agency and then classified into 38 different clusters that relate to adventure sports and activities, natural features, beaches, local culture and traditions, or gastronomy. Each cluster is assigned an economic value in order to rate the relative returns gained from each brand tag. Domestic and international tourist searches for the brand tags and related words were then analyzed, country by country, in the most used search engines, to show the country’s accuracy match and quantify Online Search Demand. By considering the OSD, Bloom Consulting is able to show if a country offers what tourists are seeking, and how well the country is matching this demand. This identifies the gap between supply and demand. The more accurate a country is, the better the CBS Rating ©. Just as international rating agencies rank countries’ credit risk, Bloom Consulting uses the CBS Rating © Classification System Score Description AAA Very Strong AA Strong A Slightly Strong BBB Very Good BB Good B Slightly Good CCC Slightly Weak CC Weak C Very Weak D Poor Bloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 06
- 8. Country Brand Development of Countries Human Asset Management Ranking © Business Strategy Tourism Edition 2012 Bloom Consulting Country Brand Ranking © 2012 TOURISM EDITION - WORLD Ranking Rank CBS Rating © 1. United States of America AA 2. Spain AAA 3. France AA 4. China A 5. Turkey AAA 6. Thailand AAA 7. Germany BBB 8. Macao AAA 9. United Kingdom BBB 10. Australia BBB Due to the historical brand equity and the fact that both have strong country brand strategies China, Hong Kong and Macao have been considered as separate countries in this ranking. Bloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 07
- 9. Country Brand Development of Countries Human Asset Management Ranking © Business Strategy Tourism Edition 2012 Rank CBS Rating © 11. Austria AA 12. Italy BB 13. Hong Kong A 14. Malaysia A 15. Netherlands BBB 16. Mexico AAA 17. Switzerland A 18. Canada BBB 19. Croatia AAA 20. Russian Federation A 21. Portugal A 22. Singapore A 23. India A 24. Greece BBB 25. Republic of Korea BBB 26. Belgium A 27. Morocco AAA 28. Japan BB 29. United Arab Emirates AAA 30. Sweden BB 31. Egypt BB 32. Ireland A 33. South Africa BBB 34. Poland BB 35. Hungary AAA Bloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 08
- 10. Country Brand Development of Countries Human Asset Management Ranking © Business Strategy Tourism Edition 2012 Rank CBS Rating © 36. Czech Republic A 37. Indonesia B 38. Saudi Arabia CCC 39. Finland AAA 40. Argentina AA 41. Lebanon CCC 42. Denmark A 43. Norway AA 44. New Zealand A 45. Philippines AAA 46. Slovenia AAA 47. Brazil B 48. Slovakia AAA 49. Dominican Republic BBB 50. Ukraine B 51. Israel CCC 52. Peru A 53. Bulgaria BB 54. Chile A 55. Malta AAA 56. Estonia AAA 57. Cyprus A 58. Luxembourg CCC 59. Romania A 60. Jordan CCC Bloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 09
- 11. Country Brand Development of Countries Human Asset Management Ranking © Business Strategy Tourism Edition 2012 Rank CBS Rating © 61. Kenya AAA 62. Lithuania AAA 63. Guatemala A 64. United Republic of Tanzania A 65. Ethiopia A 66. Viet Nam CC 67. Uruguay BBB 68. Mauritius A 69. Colombia B 70. Albania BB 71. Iran B 72. Costa Rica BB 73. Tunisia CCC 74. Panama CCC 75. Cambodia BBB 76. Sri Lanka AAA 77. Serbia A 78. Bahrain B 79. Bahamas B 80. Barbados BB 81. Maldives AAA 82. Cuba CC 83. Ecuador AA 84. Jamaica CCC 85. Kazakhstan CCC Bloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 10
- 12. Country Brand Development of Countries Human Asset Management Ranking © Business Strategy Tourism Edition 2012 Rank CBS Rating © 86. Iceland AAA 87. Latvia BB 88. Oman C 89. Pakistan CC 90. Venezuela BB 91. Bosnia and Herzegovina BB 92. Uganda A 93. Georgia A 94. Nepal AAA 95. Ghana CCC 96. El Salvador B 97. Fiji BB 98. Botswana AAA 99. Belarus BBB 100. Namibia AA 101. Armenia AAA 102. Montenegro CCC 103. Nigeria CCC 104. Honduras BB 105. Trinidad and Tobago B 106. Zimbabwe B 107. Kuwait CCC 108. Mongolia AA 109. Seychelles A 110. Saint Lucia A Bloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 11
- 13. Country Brand Development of Countries Human Asset Management Ranking © Business Strategy Tourism Edition 2012 Rank CBS Rating © 111. Kyrgyzstan CCC 112. Azerbaijan CC 113. Senegal C 114. Belize BBB 115. Macedonia BBB 116. Yemen C 117. Angola C 118. Rwanda BB 119. Antigua and Barbuda B 120. Madagascar CCC 121. Algeria CCC 122. Republic of Moldova B 123. Lao’s People Democratic Republic CC 124. Brunei Darussalam B 125. Saint Kits and Nevis AA 126. Zambia BBB 127. Mozambique B 128. Bolivia CCC 129. Nicaragua CC 130. Grenada BBB 131. Cape Verde C 132. Sudan B 133. Samoa B 134. Guyana BBB 135. Cameroon CC Bloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 12
- 14. Country Brand Development of Countries Human Asset Management Ranking © Business Strategy Tourism Edition 2012 Rank CBS Rating © 136. Paraguay D 137. Solomon Islands BBB 138. Dominica BB 139. Myanmar B 140. Togo CCC 141. Suriname B 142. Burkina Faso CCC 143. Lesotho BBB 144. Bhutan B 145. Gambia B 146. Côte d’Ivoire D 147. Saint Vincent and the Grenadines CC 148. Bangladesh C 149. Timor-Leste B 150. Sierra Leone B 151. Comoros CCC 152. Tajikistan CCC 153. Swaziland CC 154. Federated States of Micronesia D 155. São Tomé and Principe A 156. Djibouti CCC 157. Tonga D 158. Kiribati BBB 159. Papua New Guinea B 160. Burundi CC 161. Marshall Islands D Bloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 13
- 15. Country Brand Development of Countries Human Asset Management Ranking © Business Strategy Tourism Edition 2012 Bloom Consulting Country Brand Ranking © Comments The United States continued its number one reign in the 2012 Bloom Consulting Country Brand Ranking © Tourism. The AA Rating indicates that the US’ tourism brand is very accurate when considering tourism demand, and has a strong positive impact on its tourism industry. Although the US saw a decline in tourism receipts from the previous year, the strong overall performance and excellent CBS Rating © ensured their continued supremacy. The remaining top countries include other strong economic performers such as several powerhouse European countries, the upcoming BRIC countries and Asian economic hubs. Asia in particular performed extremely well in the 2012 Ranking. Eight Asian countries finished in the top 25, with China as number four. Aided by both strong tourism receipts and CBS Ratings ©, Thailand (6) and Malaysia (14) significantly improved from last year. For the first time, Macao was evaluated as an individual country and finished with a bang at number eight. A notable absence was Japan. With a BB rating that could not counteract the residual effects of the tsunami, Japan suffered a three spot drop to number twenty-eight. Bloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 14
- 16. Country Brand Development of Countries Human Asset Management Ranking © Business Strategy Tourism Edition 2012 Bloom Consulting Country Brand Ranking © Comments, Continued Though European countries, especially Germany, the UK and Italy, have slipped in the Ranking since last year, twelve European countries remained in the top 25. The continued prominence despite decreased tourism receipts indicates that strong CBS © Ratings can help weather the lingering economic stress in Europe. Interestingly, Africa had some surprising developments, especially in light of the recent political developments. Although none finished in the top 25, the top 50 was filled with noticeable improvements from last year. Morocco (27) and United Arab Emirates (29) led the way with a respec- tive 3 and amazing 16 jump up in the ranking powered by AAA ratings. Decreased tourism opportunities were visible in several performances. Egypt (31) noticeably suffered from the downturn in the industry, while Saudi Arabia also dropped. Notably, the study established several African countries making slow but steady improvements, with Kenya, Tanza- nia and Ethiopia as countries to watch. This indicates both shifting tourist interests and the general economic potential for the continent. Bloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 15
- 17. Country Brand Development of Countries Human Asset Management Ranking © Business Strategy Tourism Edition 2012 Classification, References and Sources Additional information about the study Bloom Consulting divided the world into eleven geographic sectors and the four economic development stages in order to maintain the singularity of the region and compare countries in a regional context. Bloom Consulting Geographic Regions 1. Central and Southern Asia 2. Europe 3. Northern Africa 4. Oceania 5. Central and Middle Africa 6. Central America and Caribbean 7. South America 8. Middle East 9. Western and Southern Africa 10. Northern America 11. Eastern and South-Eastern Asia The four World Bank Income levels 12. Low Income 13. Lower Middle Income 14. Upper Middle Income 15. High Income (Includes both OECD and non-OECD) Further sources for countries income level classifications and geographic regions: The World Bank http://www.worldbank.org/ The World Tourism Organization http://www2.unwto.org/en The United Nations http://www.un.org/en/ Bloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 16
- 18. Country Brand Development of Countries Human Asset Management Ranking © Business Strategy Tourism Edition 2012 Bloom Consulting Country Brand Ranking© FAQs 1) Who is this Ranking meant for? Bloom Consulting Country Brand Ranking © is for anyone interested in place branding from every perspective, whether you’re in government, academia, industry, finance, or just find it interesting. 2) Why did Bloom Consulting create a Ranking? Bloom Consulting created the Ranking to evaluate the impact of a country’s brand strategy in economic terms and, above all, to answer the ever relevant question of how countries can become more attractive. 3) How does Bloom Consulting’s Ranking differ from other rankings? Bloom Consulting’s Ranking uses variables and methodology to generate a ranking far ahead of the field in terms of objectivity and innovation. Not only does Bloom Consulting base its research on objective hard and soft facts, rather than using survey based data like other rankings, it is also the first ranking to take tourist demand into account. 4) What is new in the 2012 edition of the Ranking? The 2012 edition of the Ranking features the inclusion of Tourist Online Search Demand (OSD) in the Bloom Algorithm. By analysing consumer behaviour and the effectiveness of country brand strategies, the newest Ranking raises the bar by giving a pioneering view of the global tourism industry from a supply and demand angle. 5) How can a state have a poor CBS Rating ©, but do well in the Ranking? If a country has a negative CBS Rating ©, its brand strategy is not actively reflecting what the country has to offer (in the eyes of tourist-demand). Even though its economic performance might still be strong, the tourism strategy is not taking advantage of the country’s unique selling propositions. Bloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 17
- 19. Country Brand Development of Countries Human Asset Management Ranking © Business Strategy Tourism Edition 2012 Bloom Consulting About 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. Both The Economist and Forbes have interviewed Mr Torres, where he was identified as one of the top 3 country branding experts in the world. Currently Bloom Consulting has offices in São Paulo, Mumbai, Lisbon, Madrid (headquarters) and Los Angeles, as well as research centres in Tokyo and London. Bloom Consulting works 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 center and the southwest regions of Portugal. Bloom Consulting has developed the 3T approach © that separates Trade, Tourism, and Talent strategies into three different Country Branding Strategies. One fundamental point of all of Bloom Consulting’s projects is the CAMPRO methodology ©. This methodology is a combination of academic and professional knowledge under Bloom Consulting’s management and control, key to obtaining the most accurate recommendations and insights for all clients. Moreover Bloom Consulting has published the: Bloom Consulting US State Brand Ranking © 2012 and is currently developing the: Bloom Consulting India State Brand Ranking © 2013 Additional Information While this report provides a general overview, the information presented here is but a glimpse of the findings we have at your disposal. Please do not hesitate to contact us if you would like a personalized and detailed version of the Bloom Consulting Country Branding Ranking © Report for your country, region or city. For more information, please visit: www.bloom-consulting.com/en/country-brands-ranking Bloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 18