Tourism Branding - A Report

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Tourism Sector Review

&Tourism Branding

Final Report


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The present day tourism, if we take in India with the billion people,

with the vast civilization heritage of the country, from the Himalayas to

Kanyakumari, J&K, Central India, North Eastern states, Bihar, Western States,

the large coastal line, Andaman Nicobar and Lakshadweep Islands have a lot to attract the tourists. It has sea coast in three sides, it has islands, it has snow

covered hill region, it has desert and it has thick forest regions. All of them are of

natural evolution. Many centuries old monuments, temples, churches and mosques

are spread throughout the country. You will find in many parts of the country all

three situated adjacent to each other. It is a treat to watch such type of unity.

India has one of the Seven Wonders of the World Taj Mahal. Any tourist can see the continuity of the only enriched civilization of billion people of the largest

democracy with multiple religions, multiple languages and multiple cultures.

Extracts from the Address of

President of India at the Inauguration of the

5th Global Travel & Tourism Summit

in New Delhi on 8 th April 2005


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Tourism Branding Preface

PrefaceTourism Branding is about using strategic marketing to promote a countrys image

and attractiveness for tourism. Marketing a country is not entirely new; in fact,numerous countries have traditionally promoted their image for tourism. However, the

current process of globalization has underlined the need for countries to brand

themselves and in an integrated manner.

As we reach the year 2006, three things are clear:

i) Tourism Branding is no longer a choice but a necessity;

ii) it is no longer conceived as a function to be performed individually by the

state, associations or individual private companies, but as an integrative

and concerted effort by all interested stakeholders;

iii) if done effectively, state branding can provide soft power.

Every Country needs to take a critical look at itself and ask: Why should tourists

come here, rather than go to other countries for tourism?

We live in a world where countries are trying to become the same in terms of

infrastructure and quality of life. However, national objectives, including a promotion

of trade, investment and travel/tourism, are best achieved through differentiation.


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Tourism Branding Introduction

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Chapter 1

IntroductionIndia is probably the only country that offers various categories of tourism. These

include history tourism, adventure tourism, medical tourism (ayurveda and other

forms of Indian medications), spiritual tourism, beach tourism (India has the longest

coastline in the East) etc.

The year 2004-05 saw tourism emerging as one of the major sectors for growth of

Indian economy, the foreign exchange earnings increased from Rs. 16,429 crore to

Rs. 21,828 crore up to December. Similarly in the last year, tourism industry

registered a growth rate of 17.3% in foreign tourist arrivals, which has been the

highest in last 10 years. Foreign exchange earnings grew at an even higher rate

30.2%.

Interesting feature of this growth is that it has come even as global tourism has

dropped, due to the September 11 terrorist attacks in the United States, the outbreak of

Severe Acute Respiratory Syndrome in East Asia, and the Iraq war. Even thedisastrous tsunami didn't affect India's tourism industry, as tourist arrivals in India

rose 23.5 percent in Dec 2004 and tourist arrivals crossed 3 million mark for the first

time in 2004. The disaster was expected to have a negative impact on India's tourism

in terms of large-scale cancellations of tourists to India but nothing of that sort was

seen.

Snapshot of 2004:

Foreign Tourist Arrivals to India 3.37 Million Earnings from Tourism US $4810 Million Domestic Tourist Visits 367 Million Indians Going Abroad 6.2 Million Share of Tourism in GDP 4.9% Share of India in World Arrivals 0.44%


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Tourism Branding Introduction

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How Tourism can contribute to Economic Conservation

Foreign exchange earnings Contribution to government revenues Employment generation Stimulation of infrastructure investment Contribution to local economies

Basic Concepts in Branding: Brand, STP

The American Marketing Association defines a brand as a name, term, sign, symbol,or design, or a combination of them intended to identify the goods and services of one

seller or group of sellers and to differentiate them from those of the competition. It

follows that just as a brand name may be the only common element linking otherwise

unrelated products together, a country name is a symbol that joins together a broader

range of products and services.

According to Kotler , brands pu rpose is two- fold: i) they serve as a major tool to

create product differentiation ii) they represent a promise of value.

From a consumers viewpoint, a brand is above all a shortcut to a purchasing decision. The

essence of the brand is a single simple value, easily understood and valued by customers.

Segmentation and targeting entail identifying your markets and within them your potential

clients for each branding dimension. Positioning is about emphasizing those traits of your

country that are more appealing to each specific country and audience. All three phases

require an ongoing understanding of how your country is perceived across space and overtime. This in turn makes it possible to adjust the message to different countries over time.


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Tourism Branding Tourism Branding

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Chapter 2

Tourism BrandingPromoting tourism products successfully requires a context that allows the audience

to appreciate what the country has to offer to visitors. That context is the overall

image, or brand, of the country.

If, for example, the country is widely viewed as a modern, secure, clean and efficient

state, the chances of getting tourists to visit attractive destinations are good. Whats

more, if a nation is known for its unique features, whether they be cultural, artistic,

natural or man-made, positive curiosity will provide a context that encourages tourists

to discover first-hand something new or at least interesting.

With most destinations boasting superb hotels, services and facilities, claiming a

unique culture and heritage and the friendliest people, and also competing on price,

the need to create a unique identity to find a niche and differentiate yourself from

the rest of competitors is more critical than ever. Furthermore, with 15 countries

accounting for nearly 70% of the market share of international tourist arrivals,branding becomes essential for the other countries.

Tourism Branding is a strategic process to establish a roadmap that outlines the

essence of a truly distinctive experience from the visitors point of view.

Branding Benefits

Clearly defined points of differentiation with competition A promise that frames the experience to facilitate visitor choice Increased revenues Development of new partnerships More engaged support


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Tourism Branding the World Over:

Following are some examples of Tourism Branding done by countries:

Taglines such as Spain -Everything under the S un, Costa Rica -No Artificial

Ingredients, Hong Kong -Asias World City, Peru -Land of the Incas , India-

Eternally Yours, Amazing Thailand or Malaysia -Truly Asia are most often used

for tourism purposes and are meant to be catchy, arouse interest and convey the

essence of the country brand.

South Africa

Purpose: To reposition South Africa in as a country alive and with possibility and

overcome the negative image left by the Apartheid era and inherited problems, mostly

AIDS.


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Institutions: Ministry of Foreign Affairs; International Marketing Council (IMC), a

publicprivate partnership developed in 2000 at the initiative of President Thabo

Mbeki to create a positive and united image for South Africa.

Instruments:

- Communications Resource Center (international

monitoring on news about South Africa

- Web Portal www.safrica.info

- Marketing of South Africa internationally at trade fairs,

exhibitions, international events, and through media

products.

- Effective international media briefings, press conferences, media briefings, feature

articles, photo opportunities.

Scotland

The campaign Scotland the Brand established in 1994 as a joint venture of industry

and government for the promotion of Scottish trade, tourism and culture is a goodexample of integrated state branding at work and good coordination between the

public and private sector.

The aim of using a national logo on exported products was to encourage cohesion in

image and marketing to deliver greater commercial value and contribute to raising

Scotlands profile and status in the global marketplace.

Spain

Most experts agree that post-Franco Spain is one of the most successful examples of

national branding, especially as a tourist destination. As the nation took off

economically and democracy strengthened, Spain was able to convey this image of

change on the international scene. Key to this success was a tourism marketing

campaign launched in 1982 on the occasion of the World Soccer Cup held in Spain.


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The campaign used Joan Miros s un design to symbolize the modernization of Spain.

This logo has since become Spains tourism logo.

Costa Rica

Brand Creation: Even though Costa Rica started to develop as an ecotourism

destination in the mid- eighties, the brand Costa Rica, No Artificial Ingredients was

first used in 1996 in a promotional campaign by the Costa Rican Tourism Board

(ICT) in the U.S and has ever since become the

countrys official tourism brand. In terms of graphics,

the logo may feature different colors with different

animals.

Positioning: The brand leverages the rich biodiversity of Costa Rica, as well as its

image as a sustainable tourism destination fostered by President Figueres during his

term in office (1994-1998). An important element which contributes to this

positioning is the Certificate of Sustainable Tourism (CST) developed by ICT.

Despite the success of the brand, the current tourism authorities would like to go

beyond an ecotourism positioning and adopt more of a sustainable tourism image,which in their view would make it possible to combine different destinations within

the country (sun and beach, nature, adventure).


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Tourism Branding Tourism Branding in India

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Chapter 3

Tourism Branding by India

Recently, Indian government adopted a multi-pronged approach for promotion of

tourism, which includes new mechanism for speedy implementation of tourism

projects, development of integrated tourism circuits and rural destinations, special

capacity building in the unorganized hospitality sector and new marketing strategy.

Incredible India: A nation wide campaign, for creating awareness about the effects of

tourism and preservation of our rich heritage & culture, cleanliness and warm

hospitality through a process of training and orientation was launched during 2004-05.

The aim was to rebuild that sense of responsibility towards tourists among Indians

and re-enforces the confidence of foreign tourist towards India as a preferred holiday

destination. More than 6500 taxi drivers, restaurant owners and guides trained under

the program.


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Government also took several other initiatives to promote Indian tourism industry and

increased the plan allocation for tourism i.e. from Rs. 325 crore in 2003-04 to Rs. 500

crore in 2004-05. Road shows in key source markets of Europe, Incredible India

campaign on prominent TV channels and in magazines across the world were among

the few steps taken to advertise Indian tourism. In addition a task force was set up to

promote India as prominent health tourism destination.

According to WTTC exclusive TSA Research:

India is one of the fastest growing tourism economies in the world today. It is

estimated to grow at 8.8 percent over the next 10 years.

By 2014, the travel and tourism economy is expected to generate $90.4 billionof total demand and nearly 28 million jobs.

The year 2004 has been a highly successful year for India tourism. The foreign tourist

arrival crossed the 3 million figure with arrivals estimated at 3.37 million. The foreign

exchange earnings also recorded an unprecedented growth of about 38% with receipts

at US$ 4810 million. The growth of about 24% in foreign tourist arrivals during 2004

was achieved over and above a growth of about 14% witnessed in the year 2003. This

was achieved despite the fact that the world over, there was a decline of about 1.5% in

tourist arrivals in 2003, and only a growth of 10.7% in 2004. This has been possible

mainly due to the attempts made by Government to:

Improve tourist infrastructure at important destinations/ circuits; Focus attention on growth of hotel infrastructure, particularly budget hotels;

Enhance the connectivity through augmentation of air seat capacity andimproving road infrastructure to major tourist attractions;

Directly approach consumers through electronic & print media through

Incredible India campaign;

Have greater focus in the emerging markets, particularly in the region of

china, north east Asia and south east Asia;

Use internet and web connectivity;

Launch road shows in big source markets of Europe.


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To sell India as a desired destination to the upscale American traveler, not simply as

an attractive vacation, but as an exercise in spiritual regeneration

One ad reads, Òne billion people. One thousand languages. And a surprising

number of places to seek inner peace.' The visual is of a boat with flowers on

Dal Lake.

Another ad, with a visual of a field behind the Taj Mahal reads - `Many

travelers to India claim to experience reincarnation. They come back as human

beings'.

The third ad, with elephants wading in a river at sunset reads - Ònly one

country can change the way you see the whole world.' The sign off - Èternally

Yours' communicates the idea that India stays with the traveler forever.

Awards and Recognition

The IndiaTourism also continued to receive international acclaim when it won the

Gold Award of the PATA in the travel advertisement print category and marketing

award in 2004.

The Ministry of Tourism also won the 2005 PATA Grand Award in the Heritage

category, for its Ajanta Ellora Conservation & Tourism Development Project and

the PATA Gold Award in the Print Media category for its Incredible - Taj.

Payment in Installments for Traveling

The SOTC Ad, given below, is truly the sign of the maturing tourism sector in India.

Holiday Abroad in Easy Monthly installments. Your dream holiday abroad will not

be a dream any longer. SOTC in association with Kotak Mahindra bank brings you

under one roof the convenience and comfort of taking a SOTC Holiday today and

paying for it in easy monthly installments. Yes you can Holiday Abroad Now and

Pay later. You have the ease of paying through Installments over 12 to 36 months.

These measures will only result in the much needed boost for the tourism sector.


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Infrastructure

"Various initiatives are underway in the tourism sector to provide visitors to

Incredible India' with a world-class experience that differentiates itself as a

spiritually enhancing, culturally enriching, physically invigorating and mentally

rejuvenating experience," Renuka Chowdhury said. In this regard efforts were being

made to improve accessibility and infrastructure, provide trained human resources and

diversify tourism products.

The minister said infrastructural facilities in the country were being augmented in a

well-planned manner, in partnership with states and private sector. "A number of

tourism circuits criss-crossing the country are being taken up for immediate

development. These include the Buddhist Circuit, Himalayan Circuit, Central Circuit,

Western Circuit, Southern Circuit and eco-tourism circuit in the North East of India.

"New Buddhist circuits have also been identified for development in Uttar Pradesh

with Financial assistance from Japanese Bank for international cooperation," she said.

In addition 12 airports are being developed as model airports within the next five

years. "The plan is to make these airports cater to 40 million international and 65

million domestic travelers by 2010," she said. Medical Tourism, a new productlaunched recently is being promoted in key markets, Chowdhury said. "India not only

has a rich heritage in the areas of traditional and natural medicine, but has also made

tremendous advancements in the field of modern medicine and health care techniques,

with state of the art infrastructure and technology available in the country." The recent

introduction of the medical visa would help in the growth of medical tourism. Under

this visa a patient along with an attendant can come to India.


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Tourism Branding The Way Ahead

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Chapter 4

The Way Ahead By 2020, Tourism in India could contribute Rs 8,50,000 crores to the GDP.

(Source- WTTC).

In other words, every man, woman and child could become richer by Rs 7,000. India

has yet to realize its full potential from tourism. The Travel and Tourism industry

holds tremendous potential for India's economy. It can provide impetus to other

industries, create millions of new jobs and generate enough wealth to help pay off the

international debt. That is why we have included Tourism amongst the Core Sectors

of the Indian Economy.

The Federation of Indian Chambers of Commerce and Industry has said that to create

synergy there is a need to set up an inter-ministerial forum on the pattern of export

promotion councils where the Union and State government departments concerning

tourism, infrastructure and transport should be involved. Decisions taken by such a

forum should be binding on every department of the Government, it said. It envisagedthat efforts have to be initiated to actively involve State governments in tourism

promotion. The Government suggested to the States to produce master plans for

tourism development in the respective States.

Despite all the constraints of infrastructure and high taxation structure, tourism is the

largest net foreign exchange earner with the smallest import component of six to

seven percent when compared to other industries. Analysts, highlighting the need to

have a renewed thrust in developing tourism in India, say that for every Rs. 10 lakh

invested in hotels and restaurants India can create as many as 89 jobs compared to

similar investments in agriculture which are able to create only 44.7 jobs or 13 jobs in

the manufacturing sector.


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Tourism Branding Recommendations & Suggestions

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Chapter 5

Recommendations & SuggestionsThe following are the recommendations and suggestions that were the outcome of this

project research:

Have a single National body governing the overall branding and promotion of

tourism in India. As of now, most states have their own promotions, which

may not have the impact that a national campaign can have.

Have a long term goal, but focus on short term results

Dont fall into the diversity trap. Most countries will love to promote their

country as we have it all, from the seas to the mountains. This gives a fuzzy

image of the country to the tourists and may not be able to attract their

attention.

Failing to base the brand on its strongest and most distinctive benefits could

dilute the message and present a weak and irrelevant proposition

Frequently advertise to get the attention of travelers.

Dont try to be something that youre not. A brand must always be truthful,

realistic, and deliverable. Otherwise it will be based on hype and have a very

short life. It may also fail to get the local traction that is needed to launch

and deliver the brand.


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Tourism Branding Conclusion

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Chapter 6

ConclusionEffective state branding is a source of competitive advantage, especially for

developing countries. In these nations, the private sector must abandon its belief that

state branding is the sole responsibility of the government. By engaging in

partnerships with the government, the private sector can make a significant

contribution to the countrys perceived competitiveness and thus trigger the process of

image change.

The tourism industry has increased remarkably in the last decades and has become

one of the major sources of income in many countries. In many tourist sites the

rewarding phase of development is characterized by a long and intense growth of

infrastructures, superstructures and facilities.

India is now chalking up one of its strongest growth charts in a long time. As the

Indian economy continues to open up in an effort to integrate with the world

economy, benefits of doing business with and in India are increasing. With the results,hundreds of thousands of jobs are moving to the Indian shores from the West. This

brings in its wake transit travelers, business travelers, business meets and holiday

seekers.

According to the WTO, 698 million people traveled to a foreign country in 2000,

spending more US$ 478 billion. International tourism receipts combined with

passenger transport currently total more than US$ 575 billion - making tourism the

world's number one export earner, ahead of automotive products, chemicals,

petroleum and food.

But India had a measly share of 0.38% of total tourist arrivals worldwide!

Thats what is required to be changed. And thats where Tourism Branding can help

in the growth of the sector and sustenance of the same.


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Tourism Branding Caselets

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Caselets

Case 1: SINGAPORE

The Singapore Tourist Promotion Board was first established in 1964 with the

mandate to promote Singapore as a tourist destination. The thinking of the

government then was that an organisation was needed to coordinate the efforts of

hotels, airlines and travel agents in promoting the overall image of the destination

The Singapore Tourism Board (STB) is an economic development agency for one of

Singapore's key service sectors - tourism. The mission of the Board was to develop

and champion tourism, so as to build the sector into a key driver of economic growth

for Singapore.

These initiatives will be reinforced by STB's international operations which cover the

key markets in Asia, Oceania, Europe and Americas, with expanded resources to

capitalise on growth markets like China and India.

In September 2005, Singapore welcomed 703,901 visitors, registering a 6.9%

growth over the same period a year ago. Visitor days were estimated to reach

2,352,432, an increase of 10.9% in comparison to September 2004.

In September 2005, Singapore hotels recorded S$103 million in room revenue,

an increase of 20.6% over September 2004.

The Average Room Rate (ARR) in September 2005 was estimated at S$139,

an increase of 14.3% over September 2004. The Average Occupancy Rate

(AOR) for hotels was estimated to have reached 85% in September 2005, a 3

percentage points increase over September 2004.

With increasing competition from its neighboring countries, STB's goal now is to

create exciting and innovative experiences for our visitors, in close partnership with

the trade industry, thus etching forever in visitors' minds an image of Singapore as a

unique and compelling destination. But the contribution of the private entities has

been criticized by many analysts as being lesser than the benefits they are gaining out

of the initiatives taken by STB raising issues of public-private partnership role in

tourism development.


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Tourism Branding Caselets

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Case 2: Re-positioning Hong Kong

Statistics may suggest that Hong Kong was the most popular tourist city destination in

Asia in 2002, with over 16 million visitors or 20.7 per cent increase over 2001.

However, actions are needed to strengthen branding and partnership in order to realize

its full potential as a tourist destination, urged industry experts from Hong Kong.

Selina Chow, Chairman of the Hong Kong Tourism Board, reiterated the

Government's commitment to developing the tourist industry. Faced with the "double

whammy" of the Gulf War and outbreak of the atypical pneumonia at the moment,

"We will keep our heads down and build for the future", she said. "But we are already

planning for a comeback (when the current problems are resolved)."

Two of the issues that the Tourism Board plans to tackle are: eliminate tourist rip-offs

and ensure the balance of supply and demand of tourist-related services.

In its "2020 Vision" report, The World Tourism Organization has forecast

international arrivals to reach over 1.56 billion. Some industry experts also expect

tourism to peak by 2005, when Disneyland officially opens and the benefit of other

Government initiatives realized. Hong Kong is in the mature stage of the tourism area

life cycle, noted Dr. Judy Siguaw of Cornell University's School of Hotel

Administration. This means that market segments previously attracted to Hong Kong

may no longer be attracted. Hong Kong needs, therefore, to find ways of "extending

the brand".

How should Hong Kong position itself to capitalize on this tourist boom? Proposed

strategies include continued positioning as Gateway to Asia; collaboration with

neighboring tourism destinations; promoting safety and security and creatingpromotional strategy for targeting third-world travelers.

How far this strategy is feasible, how HKTB will realize these plans is yet to be seen.


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Tourism Branding Annexure

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Annexure


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Tourism Branding Annexure

Tourism Branding - A Report

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