Pyeongchang Games: South Korea's billboard to the world

THE Winter Olympics started last Friday with a grand opening ceremony in Pyeongchang. At a time of geopolitical turbulence in the peninsula, the Games offer an opportunity for South Korea to present a positive image to the world enabling a brand makeover for the country.

A key goal will be to present a vision to the world of a modern, vibrant, stable democracy that is a prime destination for future investment and tourism. And with billions watching, the nation can capitalise on a first class opportunity to showcase its credentials after a troubled 2017 which saw tensions rise - sometimes dramatically - with the North.

While the nuclear standoff on the peninsula remains, the Olympics have already brought about a highly unexpected geopolitical dividend. That is, at least temporarily, relations between North and South have improved and - remarkably - the two sides have entered a number of joint teams at the Games.

Two major questions arise. First, can a country's reputation be enhanced in the same way as a corporate (or other organisation) might do? And, second, can this have a significant, sustainable national economic impact?

On the first issue, competition for the attention of stakeholders like investors and tourists is intensifying, and national reputation can therefore be a prized asset or a big liability, with a direct effect on future political, economic, and social fortunes. Boosting country reputation is therefore an ever common ambition in what is an overcrowded global information marketplace and a number of countries have successfully used the Olympics to present themselves positively to the world, including Spain, post-Barcelona 1992 Olympics, and Australia, post-Sydney 2000.

Yet, the fact is many nations fail to fully capitalise, reputationally or economically, on hosting the Olympics and other major sporting events like the soccer World Cup. One only has to recall legacy images of abandoned and underused stadia built for the Athens 2004 games, whose inflated costs added to Greece's unsustainable public sector debt, to appreciate that countries do not always get this right.

Moreover, on the economic front, numerous studies have indicated that "legacy-driven" Olympics growth is often over-hyped. In 2012, for instance, Citibank, found that in nine of the last 10 Summer games, GDP tended to rise in host nations in the run-up to the event, but then receded in the two quarters afterwards.

To maximise prospects of Korea benefiting, reputationally, it must pursue a concerted reputation and economic strategy that aligns all key national stakeholders (across the public, private and third sectors) around a single, coherent vision for its country brand. This exercise should not just be the preserve of tourism agencies, let alone government, but must involve the private and third sectors, too.

A good example here is the "New Zealand Way" which helped transform global perceptions of the country in the 1980s and 1990s. New Zealand had a difficult economic climate during much of the 1970s and 1980s, partly caused by the country's loss of preferred trading status with the United Kingdom and the Commonwealth - then among its major export markets.

The initiative helped transform perceptions of the country by building it as a destination brand for outdoor sports and tourism, in part, by leveraging the hosting of events like the 1987 Rugby World Cup and the 1990 Commonwealth Games.

The untapped potential of the country's natural environment was recognised and subsequently also showcased in films like the Lord of the Rings blockbuster trilogy.

BUILDING ON A BOOM

Thus, it is no coincidence that New Zealand's tourism sector has enjoyed a long boom. For instance, visitor numbers from the United Kingdom increased by around 60 per cent between 2001 and 2006 alone.

Building on the growing international appreciation of the country's unspoiled natural environment, and in the face of its trade setbacks, New Zealand recognised that a strong country reputation for quality agriculture and produce would help it better compete in global markets. The subsequent success of the country's agriculture sector, which has also became more competitive and efficient, is symbolised by the fact that it now accounts for around one third of global dairy exports - that is twice Saudi Arabia's share of world oil exports.

The New Zealand example underlines how even a relatively simple, unified country brand vision can be powerful. To be sure, the country is not unique in having beautiful scenery, but it has managed to capture the world's imagination with its consistent branding that put outdoor pursuits and natural values firmly at its core - epitomised, for instance, by the "New Zealand 100% Pure" slogan.

This is a lesson South Korea would do well to learn as it seeks to capitalise on the Olympics. In the midst of the hurly burly of the next few weeks, the long-term opportunities of the event should not be sidelined. As with New Zealand, a key part of this work must connect Pyeongchang's hosting of the Winter Olympics to a wider story that showcases South Korea's strengths so as to increase favourable international perceptions of it - politically, economically and socially.

Taken overall, the medium and long-term economic impact of previous Olympics has frequently been overstated for host nations. However, after a difficult 2017, South Korea now has a key opportunity to use the world's largest sport event for a positive brand makeover that could produce a lasting reputation legacy for itself.

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