Development of Countries Human Asset Management Business Strategy
Bloom Consulting
Country Brand Ranking © Tourism Edition
Bloom Consulting © Since 2003
2012
Country Brand Ranking ©
Development of Countries Human Asset Management 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 official 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 comprehensive, 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.
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Page 01
Country Brand Ranking ©
Development of Countries Human Asset Management 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 information 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
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Page 02
Country Brand Ranking ©
Development of Countries Human Asset Management 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 T1
T2
GDP Impact
Bloom Consulting’s 3T Approach ©
T3
T2
T1
GDP Impact
T3
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
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Page 03
Country Brand Ranking ©
Development of Countries Human Asset Management 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
CBS Rating©
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Economic Growth
Historical Economic Performance
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Country Brand Ranking ©
Development of Countries Human Asset Management 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, therefore 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.
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Country Brand Ranking ©
Development of Countries Human Asset Management 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 AA A BBB BB B CCC CC C D
Very Strong Strong Slightly Strong Very Good Good Slightly Good Slightly Weak Weak Very Weak Poor
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Country Brand Ranking ©
Development of Countries Human Asset Management Business Strategy
Tourism Edition
2012
Bloom Consulting Country Brand Ranking © 2012 TOURISM EDITION - WORLD Ranking
Rank
CBS Rating ©
1.
United States of America
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
AA
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
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Page 07
Country Brand Ranking ©
Development of Countries Human Asset Management Business Strategy
Tourism Edition
Rank
2012
CBS Rating ©
11.
Austria
AA
12.
Italy
BB
13.
Hong Kong
A
14.
Malaysia
A
15.
Netherlands
BBB
16.
Mexico
AAA
17.
Switzerland
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
29.
United Arab Emirates
30.
Sweden
BB
31.
Egypt
BB
32.
Ireland
A
33.
South Africa
34.
Poland
35.
Hungary
Bloom Consulting © Since 2003
A
BB AAA
BBB BB AAA
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Page 08
Country Brand Ranking ©
Development of Countries Human Asset Management Business Strategy
Tourism Edition
Rank
2012
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
48.
Slovakia
AAA
49.
Dominican Republic
BBB
50.
Ukraine
51.
Israel
CCC
52.
Peru
A
53.
Bulgaria
BB
54.
Chile
A
55.
Malta
AAA
56.
Estonia
AAA
57.
Cyprus
A
58.
Luxembourg
59.
Romania
60.
Jordan
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B
B
CCC A CCC
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Page 09
Country Brand Ranking ©
Development of Countries Human Asset Management Business Strategy
Tourism Edition
Rank
2012
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
71.
Iran
72.
Costa Rica
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
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BB B BB
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Page 10
Country Brand Ranking ©
Development of Countries Human Asset Management Business Strategy
Tourism Edition
Rank
2012
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
97.
Fiji
98.
Botswana
AAA
99.
Belarus
BBB
100.
Namibia
AA
101.
Armenia
AAA
102.
Montenegro
CCC
103.
Nigeria
CCC
104.
Honduras
105.
Trinidad and Tobago
B
106.
Zimbabwe
B
107.
Kuwait
108.
Mongolia
AA
109.
Seychelles
A
110.
Saint Lucia
A
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B BB
BB
CCC
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Country Brand Ranking ©
Development of Countries Human Asset Management Business Strategy
Tourism Edition
Rank
2012
CBS Rating ©
111.
Kyrgyzstan
CCC
112.
Azerbaijan
CC
113.
Senegal
114.
Belize
BBB
115.
Macedonia
BBB
116.
Yemen
C
117.
Angola
C
118.
Rwanda
BB
119.
Antigua and Barbuda
120.
Madagascar
CCC
121.
Algeria
CCC
122.
Republic of Moldova
123.
Lao’s People Democratic Republic
124.
Brunei Darussalam
B
125.
Saint Kits and Nevis
AA
126.
Zambia
127.
Mozambique
128.
Bolivia
129.
Nicaragua
130.
Grenada
131.
Cape Verde
C
132.
Sudan
B
133.
Samoa
B
134.
Guyana
BBB
135.
Cameroon
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C
B
B CC
BBB B CCC CC BBB
CC
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Country Brand Ranking ©
Development of Countries Human Asset Management Business Strategy
Tourism Edition
Rank
2012
CBS Rating ©
136.
Paraguay
137.
Solomon Islands
138.
Dominica
BB
139.
Myanmar
B
140.
Togo
141.
Suriname
142.
Burkina Faso
CCC
143.
Lesotho
BBB
144.
Bhutan
B
145.
Gambia
B
146.
Côte d’Ivoire
D
147.
Saint Vincent and the Grenadines
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
157.
Tonga
158.
Kiribati
159.
Papua New Guinea
160.
Burundi
161.
Marshall Islands
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D BBB
CCC B
CC
CCC D BBB B CC D
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Country Brand Ranking ©
Development of Countries Human Asset Management 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.
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Country Brand Ranking ©
Development of Countries Human Asset Management 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 respective 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, Tanzania and Ethiopia as countries to watch. This indicates both shifting tourist interests and the general economic potential for the continent.
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Country Brand Ranking ©
Development of Countries Human Asset Management 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/
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Country Brand Ranking ©
Development of Countries Human Asset Management 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.
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Country Brand Ranking ©
Development of Countries Human Asset Management 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 conferences 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
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