THE REGIONAL BRAND AS A SUBJECT OF VALUATION

Abstract

Against a backdrop of intensifying competition between regions for investment, labour and tourism resources, the role of a region’s brand is growing. At the same time, managing a region’s brand requires not only a qualitative assessment of its recognition or loyalty, but also the ability to compare branding investments with the resulting economic impact. Such a comparison is impossible without expressing the brand itself in monetary terms. This gives rise to the need to justify the possibility of treating a regional brand as an object subject to valuation. The aim of the study is to justify the possibility of classifying a regional brand as an object of valuation and to determine the applicability of classical approaches to valuation. The research methodology is based on the concept of the region as a quasi-corporation, proposed by A.G. Granberg, an analysis of the regional brand’s compliance with the criteria for an asset and an intangible asset, as well as the identification of the characteristics of a territorial brand as an object of valuation. The results of the study showed that the regional brand generally meets the key criteria for an asset and an intangible asset, despite limitations regarding control and identifiability. The study also identified the distinctive features of a regional brand that fundamentally distinguish it from a commercial company brand. Based on these features, it is argued that the cost approach has limited applicability, the comparative approach in its standard form is inapplicable, and the income approach is the fundamental method for valuing a regional brand. Thus, based on the findings of this study, it can be concluded that there is a theoretical basis for valuing a region’s brand, which provides a foundation for the subsequent development of practical valuation methods and the use of brand value as a tool for managing regional development.