If you’re asked about valuable ‘brands’ you’ll probably immediately go to Nike, Coke, Bunnings, or Telstra. But the most valuable brands to you, as a tourism business, are primarily you, and your business, and the brands that influence consumer’s attitudes, interaction, and access to your business.
My next couple of blogs will focus on these three perspectives on brands. I’ll start at the macro level because there are some interesting dynamics in tourism and to tourism brands right now that are monumental and worth contemplating for the insights they present for your own small tourism business.
Firstly, let’s consider destinations.
A destination ‘brand’ that will influence your tourism business could be your immediate local area, your region, State or even at a national level – Australia. Rather than dive into a quagmire of local jealousies, I’ll use a distant destination brand to illustrate my argument, the USA.
The United States has long held a reputation as a premier global travel destination, offering everything from iconic landmarks like the Grand Canyon and Statue of Liberty to vibrant cultural experiences in second tier destinations like New York, LA, and New Orleans.
However, in less three months, the brand image of the USA, as a destination, has collapsed and is falling further off a cliff.
It’s two main inbound markets have crumbled. Since just February, travellers to the US from Canada are down 20%, and from across Europe down circa15%-30%. This has happened in just 8 weeks! Incredibly, the fear is that these numbers could double in the next six months.
Just like during the heights of COVID, the devastating impact of such a rapid deterioration in the US’s brand perception is, not only are travellers not making forward bookings, but they are also cancelling existing bookings in droves. And worse for the US, they’re choosing to holiday in competitor countries. And remember, this is coming into what was the USA’s peak season! This will be catastrophic for the US tourism industry and US economy in the short and at least medium term.
Imagine what this means to every small tourism operator in America! Through no fault of theirs, or their local area, or their region, or their State, the revenue and profitability of their business has simply evaporated. It’s the equivalent of COVID all over again. But the long-term ramifications are worse!
How has this demolition of the USA’s destination brand happened so quickly? Because of poor Government decision-making, atrocious ‘customer service’ at the entry points to the US and worst practice communications.
As we have all experienced, visa and entry restrictions in the US. In my view they have always been complex and not the most welcoming coupled with, unpredictable approval outcomes. That is not a good mix. In the last couple of months, this has been dialled up to 11 and communicated with a bellicose megaphone!
Add to this social media spread anecdotes of withdrawal of visas, heavy airport security, confiscation and scrutiny of personal mobile phones on entry and unwarranted detention and turn backs of innocent travellers at US airports have frightened and deterred international tourists, especially from Canada, European and emerging markets and created a terrible “first impression” literally scaring travellers away.
International media coverage of mass shootings and general gun violence in the U.S. has painted a troubling picture abroad. This has been a hallmark of the US for decades but with recent news reports and images of people being arrested on the streets by hooded ICE agents, tourists are increasingly concerned about their personal safety, especially in cities popular with tourists. While the reality may in fact be more nuanced, perception plays a major role in travel decisions, and the U.S. brand is being seriously impacted. Closer to home, consider the destination brand damage suffered by Alice Springs two years ago due to the media reports of local security and violence issues.
In the US, images of hyper-partisan political protests and attacks on Teslas, racial tensions, and social division have also raised concerns about stability. For many potential visitors, these issues paint the U.S. as a less welcoming, less harmonious, and more anxious place, affecting travellers’ intent even if their desired destination is far removed from areas of unrest. There is already enough anxiety when travelling. When there are other options, these negatives will weigh on the destination decision.
Other increasingly important criteria of a destination’s brand image are environmental, health and infrastructure performance. Here I’ll use Bali as an example.
Bali has special status as a destination for Australians. However, anyone who has been to Bali has seen in recent years, cracks have begun to show, that its brand is eroding, primarily from ‘over-tourism.’
Bali’s ocean and beaches are inundated with rubbish. It is struggling to cope with climate-related threats including tropical and mosquito borne diseases like Dengue fever, local food and water issues have seen ‘Bali Belly’ re-emerging as a Bali travel risk. No one wants to spend precious holiday time confined to a bathroom!
Over-development and poor planning are seeing iconic Balinese locations excavated for roads or swamped by new resorts and tourist accommodation. And underfunded or overwhelmed infrastructure means that just getting around Bali is a stressful and time-consuming nightmare.
For many holiday makers and ‘eco-friendly’ travellers, Bali’s image as a tropical paradise is eroding, especially among younger, sustainability-conscious travellers.
While the potential of these issues as risks to Bali’s iconic destination brand have been long recognised, I fear the brand is under serious competitive threat, particularly from SE Asia destinations like Vietnam and South Pacific destinations.
My point in discussing the current circumstances in the USA and Bali is to explain how strongly positive perceptions of destination brands, built up over decades, can erode very quickly, and will take a long time to revitalise. And that has a massive impact that on local small tourism businesses.
Look for my next blog where I will address hyper local destinations and your own tourism business’s brand.
