I'm an Aussie myself, so I'm not Australia-bashing or anything, but you should try living in Fiji for two years. At least (but not limited to) 3 holidays a month...
I think he should simply cause "panic", and cause your villagers/citizens to just run around pointlessly, therefore disrupting the economy substantially.
Hey, even if it wasn't FREE(!) it would be a hit. Except if they were one of the bigger commercial design groups (like Blizzard, for example). Then it would suck...
Can you give us any rough idea of how big each territory would be? Don't know how you'd measure that, though... Also, will it be possible to create "mapshots" (screenshots of the entire map) in-game?