Brand Finance data, based on research of over 170,000 respondents across 100 countries, indicates that nations with a reputation for being a desirable travel destination are also perceived as good places to invest, study, work, and purchase products.

Tourism as a Catalyst for Positive Perceptions

The UK exemplifies tourism's critical role in shaping international perceptions, leveraging its rich heritage, cultural assets, and global events such as royal coronations and international sporting tournaments. VisitBritain's targeted marketing campaigns have successfully elevated perceptions of the UK as culturally vibrant and historically rich, directly enhancing its broader international appeal. Similarly, New Zealand skilfully capitalises on its pristine natural landscapes, indigenous culture, and reputation for adventure tourism, shaping global perceptions of openness, innovation, and environmental leadership. Other nations, such as Singapore with its focus on cleanliness and efficiency, and Iceland with its unique natural wonders, have also successfully used tourism to enhance their soft power.

In the Middle East, nations such as Saudi Arabia and the United Arab Emirates have strategically harnessed tourism as a powerful diplomatic tool to transform global narratives. Their aggressive investments in tourism infrastructure, including ultra-modern cities, luxury resorts, and cultural landmarks such as Saudi Arabia's Diriyah Gate and the UAE's Louvre Abu Dhabi, reflect deliberate efforts to project modernisation, cultural openness, and economic diversification.

The Brand Finance Global Soft Power Index 2025 data reveals that perceiving a nation as a ‘great place to visit’ strongly correlates with broader national reputation and economic attractiveness measures. With correlations of 92 per cent for overall reputation, 93 per cent for recommending the country’s products and services, and similarly high scores for studying (91 per cent), working (93 per cent), and investing (92 per cent), tourism acts decisively as a gateway to broader national engagement.

The Dual Impact of Tourism Experiences

Positive tourism experiences significantly bolster a nation’s Soft Power by amplifying favourable impressions across various sectors, however, negative experiences have a disproportionately detrimental effect, severely undermining international perceptions. Poor visitor experiences can swiftly degrade a nation's reputation, negatively affecting tourism revenue and wider economic interests. These can be macro issues and personal micro issues: improving local sanitation, improving food safety, and reducing personal crimes can significantly improve these factors. A place that people enjoy visiting is also likely to be a place where people enjoy working and investing.

A striking example of the negative impact can be seen in nations experiencing political instability or security issues. For instance, Egypt's tourism sector suffered substantially in the wake of political upheaval, significantly diminishing its global attractiveness and causing prolonged economic repercussions. This highlights the potential risks of over-reliance on tourism for soft power enhancement. Conversely, countries that have prioritised visitor safety, such as Japan, have consistently seen tourism-related perceptions enhance their broader economic attractiveness and consumer confidence internationally. Similarly, reductions in El Salvadoran crime risks have been a huge factor in El Salvador’s substantially improving Soft Power ranking.

The Brand Finance Global Soft Power Index 2025 data reveals that perceiving a nation as a ‘great place to visit’ strongly correlates with broader national reputation and economic attractiveness measures

Integrated National Branding Strategies

Despite tourism's evident influence, many governments still operate within isolated policy silos, neglecting opportunities for cohesive and effective brand management. A fully integrated national branding strategy—coordinating tourism, investment, education, and international trade—could significantly enhance national attractiveness and strengthen global positioning. This strategy involves aligning all aspects of a nation's image and reputation, from its tourism campaigns to its investment opportunities, to create a consistent and compelling narrative that resonates with international audiences.

Japan provides an exemplary case study of integrated branding. Its consistent portrayal of technological innovation, cultural richness, and meticulous attention to quality resonates across all economic sectors, from electronics to tourism. Japan effectively reinforces consumer confidence and investment appeal by aligning tourism experiences with broader narratives of innovation and reliability.

The Caribbean Model: Collaborative Opportunities

Collaborative tourism strategies present promising opportunities for smaller nations with unique attractions but limited individual marketing budgets. The success of the Caribbean islands in employing regional campaigns and multi-island cruise itineraries to collectively amplify their global visibility is a testament to the potential of such initiatives. They not only enhance tourist visitation but also foster regional diplomatic relations, cultural exchanges, and economic integration, significantly boosting overall regional Soft Power.

This approach has been notably successful, with multi-island itineraries attracting diverse international travellers and creating economies of scale that individual countries could not achieve alone. Through coordinated branding efforts, these nations highlight shared heritage, cultural diversity, and unique natural environments, strengthening both their tourism industries and their diplomatic leverage globally.

To maximise returns from tourism-driven Soft Power, governments must implement comprehensive, joined-up policy frameworks and commit significant financial investments. This involves creating robust national infrastructures, such as national airlines, airports, efficient transport networks, and high-quality visitor facilities. China's explicit policy of leveraging tourism to boost Soft Power across multiple sectors illustrates this integrated approach. Its massive investment in infrastructure, such as expansive airport upgrades, the development of new transportation networks, and the launch of global marketing campaigns, underscores the importance of a unified, strategic approach. Such investment is essential not only to attract visitors but also to reinforce global perceptions of innovation, economic strength, and cultural influence.

Insights from Global Soft Power Trends

Recent trends highlighted by the Global Soft Power Index underscore a widening gap in Soft Power potential, with stronger nations rapidly enhancing their international standing while weaker nations risk being left behind. The rise of tourism from the seventeenth determinant of national reputation in 2020 to the second most influential factor in 2025—surpassed only by economic stability—demonstrates its escalating strategic importance.

This is likely to be partially a change that has arisen in the wake of the COVID-19 pandemic, but Brand Finance’s research for the 2020 Global Soft Power Index was conducted in late 2019, prior to widespread disruption in tourism. Thus, this is likely to be more than just a post-pandemic reaction and a long-term trend.

This divergence underscores the necessity for countries to invest strategically in tourism-driven Soft Power. Nations adeptly leveraging tourism, such as Switzerland and Canada, have significantly strengthened their global appeal through consistent quality, safety, and sustainability, enhancing not just tourism but broader economic and diplomatic relationships. An important part of strategic investment and management is making strategy decisions based upon credible external data: good performance measurement is central to good performance management.

Through coordinated branding efforts, these nations highlight shared heritage, cultural diversity, and unique natural environments, strengthening both their tourism industries and their diplomatic leverage globally.

Strategic Imperatives for the Future

The significant elevation of tourism as a strategic factor demands that nations adopt proactive, coordinated approaches to national branding, visitor experience management, and policy integration. Safety standards, infrastructure development, sustainable practices, and comprehensive visitor engagement must be prioritised to sustain long-term global appeal. The time for action is now.

Governments must also recognise tourism's amplified effect on other sectors, integrating tourism strategies into wider economic development and diplomatic efforts. The proactive management of visitor experiences, from entry to departure, can substantially enhance perceptions, strengthen international goodwill, and foster lasting diplomatic ties.

Tourism is now undeniably a critical lever in national Soft Power strategies, shaping perceptions with profound implications for economic outcomes and international influence. Countries adopting a holistic and integrated approach to tourism and national branding will be strategically positioned to maximise both their economic prosperity and global diplomatic influence.

China offers a compelling example of explicitly using tourism to propel all aspects of its Soft Power strategy. With a massive domestic tourism market, China has set ambitious goals to expand the number of international visitors who come to China each year. This strategic approach aims to deeply immerse visitors in Chinese culture, cuisine, heritage, business innovation, and technological advancements, systematically enhancing global familiarity and shaping international perceptions of China’s Soft Power across all sectors. The data-driven insights provided by Brand Finance's Global Soft Power Index clearly indicate that tourism is no longer merely about attracting visitors—it's a core strategic asset influencing global perceptions, economic prosperity, and diplomatic relations.

ABOUT THE AUTHOR:

David is the founder and CEO of Brand Finance Plc – the world’s leading independent brand valuation consultancy. David established Brand Finance in 1996, which uses rigorous modern accounting tools to measure Soft Power and advise global leaders on strategic decision-making. As host of the annual Global Soft Power Summit, he’s discussed measuring and managing Soft Power with global leaders including as John Kerry, Boris Johnson, Hillary Clinton, Sanna Marin and Ban Ki-moon. The Global Soft Power Index 2025 and video, photos, and other highlights from the 2025 Summit can be found at https://brandirectory.com/softpower