Country’s Reputation Essay Example

its tourism industry.

According to Trad (2010) on CNN, if a country is experiencing protests or riots against its government, this implies that the people in that country are unhappy. As a result, tourists may choose to visit another country for their vacations. This is because they associate such events with complications in transportation services, unstable political conditions, and unsafe living conditions, making the overall destination unsafe.

The Reputation Institute states that a country's reputation is primarily determined by the friendliness of its locals and the overall safety of the destination. An evident illustration of this is seen in Egypt, where the 2011 revolution significantly impacted its reputation as a favored tourist spot. Consequently, in the first quarter of 2011, Egypt experienced a decline in tourism with a decrease of 45.7% in visitor numbers compared to the previous year (LeFigaro.com, 2011).

According to Naude and Kruggel (2007), a country's reputation in the international market directly impacts its foreign direct investments. Political stability indirectly signifies economic stability, making a country appealing to business investors. Using Egypt as an example, during the 2011 revolution and political unrest, Egypt experienced a 124% decrease in foreign direct investments in the first quarter compared to the last quarter of 2010 (AhramOnline, 2011). Pharoah (2004, p.6) argues that countries are recognizing the significance of reputation due to its financial consequences. The Reputation Institute discovered that a 10% increase in a country's reputation results in an 11% rise in tourism receipts and a 2% increase in FDI. Hence, effectively managing reputation is crucial for generating value for a country.Pharoah suggests that governments can function as coordinators between various organizations representing their country, whether formal or

informal (p.6). Anholt (2007, p.27) and Trad, cited by Lewis (2011, p.23), emphasize that many countries lack a unified approach when it comes to managing their reputation across different sectors like business, tourism, industry,and politics.Governments now serve as brand managers for their respective countries (Pharoah, 2004,p.6). The text proposes that nations should possess a strong comprehension of their national identityAfter setting these principles, individuals can then harmonize their actions, investments, policies, and communications in order to construct and uphold a robust and unified reputation.

South Africa created Brand South Africa in 2002 to establish a positive, efficient, and powerful brand image for the country. This initiative aimed to address confusion and uncertainty caused by multiple sources sending conflicting messages to the outside world (Anholt, 2007, p. 26). Brand South Africa collaborates with government departments, the 2010 LOC (for World Cup 2010), and SA Tourism.

South Africa aims to unify their approach towards the rest of the world through various marketing techniques such as an international campaign through broadcast, print and online media, investment missions, study exchange, work experiences, and more (BrandSouthAfrica.com). Additionally, Brand South Africa also focuses on building national pride and patriotism among the domestic population because the perception of reputation by both overseas and domestic individuals is important (Reputation Institute, 2011). This strategy seems to be effective as South Africa has seen an increase of 2.1 points in the Country RepTrack compared to the previous year (Reputation Institute, 2011). Canada provides a good example of how to maintain a positive reputation. According to the Reputation Institute (webseminar, 2011), Canada's reputation is driven by factors such as being welcoming and friendly, being a safe place to

visit, and responsible participation in the global community. In 2011, Canada was recognized as the winner in terms of reputation and was the runner-up in 2010. Overall, Canada excels in all three aspects related to reputation management.

According to Bernstein (2010), crisis management involves actions aimed at intervening or lessening the impact of a negative event or damaging information. It also includes effective communication to convey a clear message. As noted by Trad, cited in Lewis (2011, p. 23), it is crucial for a country to proactively explain what is happening during a crisis situation. Ireland's efforts to rebuild its reputation among investors after the financial crisis serve as an example. Irish Prime Minister Enda Kenny, as cited in IrishTimes.com (2011), announced a recovery program on St. Patrick's Day that served as a "unique global platform." Similarly, the UK launched a worldwide marketing campaign following the riots in London during the summer of 2011 (Lewis, 2011, p. 23). In contrast, Denmark responded slowly to the offense caused to Muslims by a Danish newspaper. According to Trad, cited in Lewis (2011, p. 23), this delayed reaction resulted in a decline in Danish business and damaged the country's reputation. A nation's reputation has significant implications for individuals and businesses alike and can potentially impact tourism and commerce.

Reputation is crucial for a country as it directly affects its financial standing. Therefore, effective reputation management is necessary. To achieve a strong and positive reputation, a country must employ public relations to create value or maintain its existing positive image. It is vital for all stakeholders to play their part in order to ensure coherence of messages and avoid confusion. During

a crisis, reputation management becomes crisis management. A country facing a crisis must respond promptly and stay united.

References:

• Anholt S. , (2011) “Competitive Identity - The New Brand Management For Nations, Cities and Regions”. Palgrave McMillan.
• Bernstein, J. (2010) “What is Crisis Management? ”, Free Management Library [weblog]. Available from: http://managementhelp.org/crisismanagement (Accessed 11 October 2011).
• BrandSouthAfrica.com (2002), website available http://www.imc.org.za/home.html (accessed 08 October 2011).
• CNN International (2010), [TV Programme], 1 November.

The text below includes references to various online sources discussing the decline in direct investments in Egypt, the decrease in tourism, and the importance of reputation management. The text also includes a reference to a research study on the determinants of foreign direct investment in Africa. The text also includes a link to the Reputation Institute's website.

"Direct Investments in Egypt slumps in first quarter 2011" (Ahram Online, 2011) reports on the decline in direct investments in Egypt. The article can be accessed from http://english.ahram.org.eg/NewsContent/3/12/17525/Business/Economy/Directinvestment-in-Egypt-slumps-in-first-quarter.aspx (Accessed 12 October 2011).

"Egypt/Tourism, baisse de 35,4% au T2" (Le Figaro, 2011) discusses the 35.4% decrease in tourism in Egypt during the second quarter. The article can be found at http://www.lefigaro.fr/flash-eco/2011/09/12/9700220110912FILWWW00467-egyptetourisme-baisse-de-354-au-t2.hp.

"Perceptions can mean everything.Management Analysis: Reputation Management" (Lewis, 2011) emphasizes the importance of reputation management. The article was published by Times Newspaper Ltd., on 31 August, and can be found on pages 16-24.

"Fewer visits to focus on 'Rebuilding Reputation'" (Minihan, 2011) discusses the decline in visitor numbers and the need to rebuild Egypt's reputation. The article is available from http://www.irishtimes.com/newspaper/ireland/2011/0311/1224291885021.html (Accessed 12 October 2011).

"Investigating geography and institutions as determinants of foreign direct investment in Africa using panel data" (Naude & Krugell, 2007) is a research study on the determinants of foreign direct investment in Africa.

The study was published in Applied Economics, vol.9(10), pages 1223-1233.

"Building and Managing Reputation for countries" (Pharoah, 2004) explores the importance of building and managing a country's reputation. The article can be accessed from http://atc.netcomsus.com/common/file.php/pg/localhost72/atc/binaries/96/atc_summer 2004_edition.pdf (accessed 11 October 2011).

The Reputation Institute's website can be found at http://www.reputationinstitute.The online video "Webinar: Country RepTrack 2011" by Trad, N. (2011) can be accessed at http://www.reputationinstitute.com/country-reptrak. This source was accessed on 12 October 2011.