Oliver Batten
Lead – Destination Strategy & Impact
Here’s what your Mayor/ Councillors/ Directors/ Bosses need to know!
Understanding the correlation between perception (i.e., a Place Brand) and the reputation of a place on its economic performance is an eye-opening concept.
Looking back through some of the presentations delivered at City Nation Place Global 2023, one presentation in particular has left me gobsmacked.
Jose Torres, CEO & Global Director for Nation and Place Branding at Bloom Consulting, explains how managing perception can significantly impact a destination’s economic and social success in his presentation titled ‘Understanding the correlation between perception and reputation of place and economic performance’.
It’s a must watch… but I have tried to capture the key messages below.
Jose Torres presenting at City Nation Place Global 2023
Perception as the Cornerstone of Willingness
Perception is a powerful driver of human decisions. According to Torres, perception influences 86% of the willingness to visit, invest, or live in a place. Breaking this down further:
- Tourism: 80.5% impact on the willingness to visit.
- Investment: 81.5% impact on the willingness to invest.
- Talent: 85.5% impact on the willingness to live.
The equation is simple: positive perception equals higher willingness. If a place does not cultivate a positive image, it’s unlikely to attract visitors, investors, or new residents.
The Numbers Behind Perception
The relationship between perception and economic performance is quantifiable. Torres highlights that, on average, perception accounts for 26% of tourism receipts, foreign direct investment (FDI) inflows, and talent attraction. Specifically:
- 23.5% average impact on tourism receipts.
- 30.5% average impact on FDI inflow.
- 24% average impact on migration population.
Imagine this: if a city generates $100 million in revenue from tourism, $24 million of that stems from its perception. Even a slight improvement in perception – as small as a 0.1% increase – can yield tremendous growth. For example:
- A 0.1% improvement in perception equals 17.5% of a country or city’s international tourism receipts, approximately $1.24 billion USD for countries and $0.97 billion USD for cities.
- A 0.1% improvement in perception equals 15% of a country or city’s FDI inflows, approximately $1.95 billion USD for countries and $0.95 billion USD for cities.
- The same 0.1% improvement translates to 21% of a country or city’s international migration population (expats), adding 340,000 expats for countries and 100,000 expats for cities.
Why Perception Management Is Non-Negotiable
Managing perception isn’t just a marketing exercise; it’s an essential economic strategy. Without proactive efforts to shape a place’s brand, cities and destinations risk negligence. For stakeholders such as mayors, councillors, and directors, the question isn’t whether perception matters but how much it contributes to the local economy.
This conversation extends to tourism managers, economic development teams, and marketing professionals. Everyone involved in shaping a place’s image has the power to influence outcomes – and the stakes are high.
Capturing the Spirit of a Place and the Consumer
The essence of successful place branding lies in authenticity. By capturing the true essence and spirit of a place, as well as the essence of the consumer it seeks to attract, leaders can forge deeper connections and draw the right visitors, investors, and relocaters. A strong place brand isn’t about superficial campaigns; it’s about creating an authentic connection that resonates emotionally with people, aligns with their values, and inspires them to choose your destination.
A Game-changer for Stakeholders
Perception is the invisible hand shaping a destination’s economic trajectory. It’s the thread that ties tourism receipts, FDI inflows, and talent attraction together. For stakeholders – whether in government, the private sector, or the press – understanding and investing in place branding is nothing short of transformative.
The takeaway? If you’re not managing perception as a city or destination, you’re leaving immense value on the table. With the right approach, you can unlock the true potential of your place’s brand and create lasting economic impact.
Partnering with DMS for Place Branding with Impact
Port Macquarie-Hastings Place Brand
Destination Marketing Store (DMS) works closely with cities, regions, businesses and destinations to craft authentic, impactful branding strategies that lead the pack. From shaping perception to driving economic performance, we ensures your place brand becomes a powerful tool for attracting visitors, investors, and relocators.
