How Elevating Perceptions Drives Economic Success

Place marketers often talk about the power of perception and place brands. But just HOW important are these factors when it comes to the economy? A recent study shows that perception and place brands may be the most critical factors in attracting visitors, investors and talent.  

For the first time ever, Bloom Consulting and City Nation Place studied the impact of Nation Brands and City Brands on local and global economies.

The research shows that perceptions (Nation or Place Brand) account for about a quarter of the total transaction value for tourism, FDI inflows and talent attraction. That translates to $250 out of every $1,000. 

Measuring the Power of Perception

The Impact of Nation and Place Brands on the Local and Global Economy analyzed data from 55 countries and 63 cities that included international tourism receipts, FDI inflows and talent migration population. The data revealed that perceptions play an incredibly powerful role in attracting talent, driving 26% of migration for a country and 22% for a city.  

The study found that even a slight improvement in perception can generate significant economic gains. For example, on a global average, if a country or city improves its perception by 0.1, it would hypothetically represent an increase in tourism receipts by 12%, a rise of $1.24 billion. This means that investing in a specialized branding strategy can directly contribute to boosting the economy.  

How Places Can Actively Shape Their Brand 

In today’s competitive landscape, a strong place brand isn’t just an asset — it’s a necessity for economic success. So, what should places do, knowing there is an undeniable link between perception and economic success? Investing in an effective brand management strategy is the first step. 

Consider a multi-faceted marketing approach that elevates perceptions and ultimately builds a positive reputation for your destination among visitors, investors and talent. Look to data-driven strategies to refine your key messaging and deploy a targeted storytelling campaign that speaks directly to your target audiences.  

From DCI’s most recent Winning Strategies in Destination Marketing report, we know a well-designed website serves as a digital front door, offering a compelling narrative that highlights a place’s unique strengths. Strategic storytelling—through blogs, case studies, and destination marketing campaigns—helps shape the way audiences perceive a location, while an active social media presence fosters engagement and reinforces key messages. Public relations efforts, including securing media coverage and thought leadership opportunities, further amplify a place’s reputation on a national and global scale. 

Turning Perception into Economic Growth 

Real-world examples of brands managing perception can be seen in DCI’s work with the U.S. Virgin Islands (USVI) and Invest Puerto Rico. After Hurricane Maria devastated Puerto Rico in 2017, the island’s business reputation was severely damaged. DCI stepped in with an integrated marketing strategy to rehabilitate Puerto Rico’s image as a prime business destination. Through programmatic advertising, public relations outreach and targeted messaging, DCI successfully repositioned Puerto Rico as a leader in reshoring and logistics, earning more than 617 million impressions and significantly increasing web traffic.  

Similarly, DCI’s efforts with the USVI focused on promoting the islands as a premier travel destination. By leveraging strategic storytelling and media relations, DCI helped the USVI secure positive press coverage and enhance its brand perception, ultimately driving tourism and economic growth.  

With decades of experience in place marketing, DCI has honed its craft in helping cities, regions and countries take control of their brand perception. DCI ensures that a place’s brand is seen, heard and valued. If you have questions about brand management or want to work with DCI to help manage your destination’s perception, contact Vice President of Brand Management, Rachel Deloffre at Rachel.Deloffre@aboutdci.com.