DESTINATION BRAND BUILDING FOR EMERGING NATIONS: THE CASE OF TIMOR-LESTE by Sara Lorraine Currie Bachelor of Arts (Media & Communications) & Bachelor of Commerce The University of Melbourne Faculty of Arts, Health & Design School of Social Science Swinburne University of Technology This thesis is submitted in fulfillment of the requirements of the degree of Doctor of Philosophy. 2016 Abstract This thesis examines how destination branding techniques can be applied to the half-island nation of Timor-Leste. Its contribution is four-fold. First, the thesis contributes to a better understanding of the Timor-Leste tourism product and current image in the marketplace. Second, it develops a three-stage destination brand-building model applicable to Timor-Leste, and other emerging or post-conflict nations wishing to develop or refresh their brand image. Third, the thesis contributes an empirically researched destination brand for Timor-Leste, positioned against the country’s unique strengths and targeted to its preferred market. Finally, through the application of destination branding techniques to the case of Timor-Leste, this thesis critically evaluates the concept of destination brand development, suggesting refinements to improve its effectiveness in overcoming a negative image and growing tourism. Since independence in 2002, tourism has been promoted in Timor-Leste as a means to create jobs, build businesses, improve regional economic imbalances and diversify the oil-dependent economy. Timor-Leste is a strong candidate for niche tourism, blessed with unique natural, cultural and historic assets. However, progress to date has been slow. Annual tourism numbers remain low and accurate data is hard to source and in many cases contradictory. The nation still works without an official plan for tourism development, while poor infrastructure, inflated prices and limited accommodation choice further impede growth. Due to its tumultuous history, Timor-Leste also struggles with negative international perceptions. While tourism prospers across the Asia-Pacific and contributes to the economic development of many neighbours, Timor-Leste continues to be perceived as war-torn and dangerous, overpriced and hard to reach, or simply ‘unknown’. Communicating the positive and unique elements of the country is a necessity if Timor-Leste is to market and grow its tourism product. To develop a theoretical framework for branding Timor-Leste, this thesis critically analyses existing brand building models, combining the strengths of each with an understanding of Timor-Leste’s current situation as a small and developing island state, post-conflict nation and newly independent country. The result is a new, three-stage model proposed specifically for the branding of Timor-Leste and other emerging nations. Two stages of qualitative research inform this thesis. First, semi-structured interviews and focus groups were undertaken to elicit the views of 56 of Timor-Leste’s leading tourism stakeholders. Purposive sampling ensured the representation of stakeholders from all tourism sectors and geographically across Timor-Leste. The second stage of research was conducted with a ! ""! consumer audience in Australia through an online, qualitative survey, quota sampled to ensure equal representation across three age groups. The survey enabled an assessment of the effectiveness of the proposed destination brand for Timor-Leste, and more broadly, the effectiveness of branding in post-conflict and emerging nations. This thesis finds that destination branding can have a significant and positive effect on the negative image of Timor-Leste, and develop new and favourable associations in the target audience. The research findings therefore suggest that the brand building model developed in this thesis could be applied to other emerging and post-conflict nations. It is argued that branding is a powerful marketing tool capable of managing a destination’s image, and growing international tourism. ! """! Acknowledgements This journey began as a Masters by Research project, which I anticipated I would finish in a little over one year. Instead, it has taken nearly four years, become a PhD, a consultancy and ensured my continued involvement in Timor-Leste for over five years. It has become a different journey to the one I expected, but the challenge and personal growth have formed perhaps the largest part of the reward. First and foremost, I thank my ‘support crew’, those who believed in my ability to complete this project, no matter how time consuming or difficult it felt. Particular thanks go to my Mum, for the continued conversations, moral support and for being a constant source of strength and encouragement. To Charlie, who supported me throughout my time in Timor and who found nearly as much pride and passion in the work as I did. To Pauly, for the enthusiastic encouragement and for being the first to actually read this thesis! To my Dad, for the support, coffee chats and debriefs, and to my grandmas, who have been so proud and excited about my undertaking this journey and have cheered my achievements every step of the way. To my family and friends in Australia and abroad – Lisa, Suzanne, Heena, Zalie, Steph, Jules, Laura, Pablo, Blake, Kirsten, Lucas, Diana and Tony – thank you for constantly listening and encouraging me across these many years. It is easy to become frustrated working on a project as involved as this one and throughout the challenging times I have realised just how lucky I am to have such true and unwavering friendships. Importantly, thank you to my supervisors for guiding this work and providing such useful advice throughout the process. To Michael - I would never have thought a fortuitous meeting at Hotel Esplanada would lead to such a productive working relationship and a wonderful friendship. Thank you for your great guidance throughout this project. To Ann, thank you for your constant patience, your astute advice and valuable feedback. Thank you also to the academics at Swinburne and Victoria Universities who attended my panel sessions and provided timely advice. Thank you also to my friends Joseph Cheer and Sara Niner at Monash University for providing academic opportunities and wonderful support and feedback. To Sarah and Hannah, my PhD ‘buddies’, thank you for being such amazing companions and weathering this adventure alongside me. Your advice has been invaluable and I’m not sure how I would have coped without our constant debriefs over wine. ! "#! To those in Timor-Leste: what a journey! Acknowledgment must firstly go to the team at the Ministry of Tourism, most particularly Aquilinio Santos Caiero, Jose Quintas and the Minister of Tourism, Francisco Kalbuadi Lay. This project was born in 2011 when we realised the need for Timor-Leste to develop its first official destination brand and it has been my honour and pleasure to work with the Ministry to see it through to completion. It is my great hope that this work contributes to the Ministry’s quest to develop a marketing strategy for Timor-Leste that will assist us in promoting this beautiful and peaceful destination internationally. A big thank you to The Asia Foundation, most particularly Gobie Rajalingam, for realising the value of this research in 2015 and employing me as a consultant to deliver the proposed brand strategy. The Foundation’s support and belief in this work has allowed the brand to become a reality, one that I hope can make a positive difference to tourism in Timor-Leste. To the tourism stakeholders of Timor-Leste whom I had the pleasure to interview throughout this process - thank you for your incredible contribution to this work and for sharing your knowledge and passion for this country. This thesis has been possible through your insights and your openness to collaborate. It is testament to the close-knit tourism environment of Timor-Leste that while most of these relationships began from a work perspective, it has been wonderful also getting to know each of you as a friend. In particular, I must mention Ashley Rees who was the first person in Timor-Leste to ‘teach me the ropes’ and who has supported my work ever since. And also Sean Borrell, who offered me my first opportunity as a photographer to the President. It was at this moment that my involvement in Timor-Leste really began. Thank you to the wonderful organisations I have worked with across my time in Timor- Leste. Firstly at the Office of the President where we enjoyed an amazing two years running the Tour de Timor and Dili Marathon. Thank you to former President HE Jose Ramos Horta for being a constant supporter of my work - you can no longer joke that this PhD seems ‘endless’! To the team at Victoria University - it was a privilege to run two conferences for you in Dili, which allowed me to further invest in the academic community. To the wonderful team at the Balibo House Trust - with whom I worked on the launch of the Australia Flag House in 2013 - thank you for the opportunity to be part of the organisation and I am now honoured to be a member of your Board. Finally, to my colleagues at all organisations and the Timorese I have had the pleasure of meeting along this journey. I have lost count of the number of times I have been thanked ! #! for doing this work and for continuing to come back to your country. It is this incredible gratitude and support that has driven me to continue this project. I have loved working so closely with so many gifted and passionate people and it has been one of the greatest privileges to learn, so intimately, about such a young, vibrant and dynamic nation. Thank you for sharing your nation with me. This thesis is dedicated to you. ! #"! DECLARATION STATEMENT I declare that this thesis contains no material that has been accepted for the award of any other degree or diploma in any university or other institution.