Monday 29 December 2008

Taiwan - a new player in the international education market

On Saturday I wrote about the growth of new international education export markets, including Japan, Malaysia and India.

I have just come across an interesting article about Taiwan's intention to admit Chinese students to its universities starting in 2009.

According to the article, the government of Taiwan is taking things slowly as it deals with significant domestic concern over the move.

Saturday 27 December 2008

Emerging Markets: international competition hots up

The most popular study abroad destinations are US, UK, Australia, Germany and Canada. Those markets currently have the lion's share of the estimated global market of around 2 million students who choose to study abroad each year.

However competition looks set to increase with several emerging markets actively seeking to expand their market share.

Foreign students in Japan now stand at about 124,000, a significant increase on previous years. The main source markets are China, South Korea, Taiwan and Vietnam.

Malaysia currently hosts approximately 63,000 foreign students and expects that number to grow to 80,000 by 2010. The main source markets are Indonesia, China and Iran.

There are about 50,000 foreign students studying in India

The international education market is predicted to grow to 3.7 million students per year by 2025. As the market grows so too it seems will the competition between the countries vying for the attention of international students.

Friday 19 December 2008

Social networking - the dangers

Last week I blogged about using Twitter as a marketing tool for educational institutions. Having talked up the positives I thought I should complete the picture by discussing the risks involved in using social networking tools as part of your marketing strategy.

As discussed briefly last week, Twitter is just one of a fairly new batch of social networking web sites. Put simply these are web sites that enable people to join and connect easily with others. Unless you have been living on another planet you will have heard of some of the big players in this area, including MySpace, Facebook and Twitter.

Many businesses, including educational institutions, are now using these social networking tools as part of their marketing strategy. It can work very well if done properly.

One of the emerging risks in this area is a form of web based identity theft. There are increasing instances of educational institutions having their brand used on social networking sites without permission. Corporate branding is used to establish official looking user groups and sub communities, often with a commercial gain in mind.

A recent post on squaredpeg.com provides alarming details of highly organised misuse of college/univeristy intellectual property (i.e logos) to establish "Class of 2013" groups on Facebook. It makes for interesting reading and tracks the unfolding discovery of the extent of the scheme. Many of the groups alrady had hundreds of unsuspecting students as members. Presumably many of them thought that they had joined an "official group" started and/ir moderated by the institution in question. At last count over 200 colleges in the US had been affected.

This type of behvaiour is akin to identiy theft. And the real concern for institutions is the loss of control of their corporate identity and the very high reputational risk that comes from having that identity hijacked by an outsider.

I guess the moral of this story is that institutions need to be aware of how their brand is being used in cyberspace. Even if you don't use social networking tools as part of your marketing strategy it is very important to have a sense of the presence your school has on the web. The cost of doing nothing could be very high.

Saturday 13 December 2008

Twitter for marketing

Some of you reading the title of this post may be wondering what we are on about.

Twitter is one of the multitude of social networking sites that have become so popular in recent years. It basically enables users to provide updates on what they are doing in 140 characters or less.

Importantly it is popular - very popular.

So what? Well, Twitter offers a lot of opportunities for institutions who want to attract and enrol international students. With a bit of imagination you can build a network your institution and course offerings.

Best of all it should not take too much time. A few well planned minutes during the week could yield great results.

There are already lots of educational institutions using Twitter as a marketing tool. You can get a sense of how they are using it by visiting the Twitter brand index and clicking through the Twitter profile of the institutions listed.

Ok, so how could you use it? There is a great blog post on this over at .edu guru which I highly recommend that you read. A couple of the ideas suggested there are:

- special offers only available on Twitter
- a campus tip of the day

News and updates are obvious candidates for inclusion, but it is important not to be too dry. Twitter works best when you engage with your audience.

If you want to give Twitter a go it is simply a matter of going to the Twitter home page and signing up for an account. It is free.

Oh, and if you want to link up when you get there, here's our profile

Thursday 11 December 2008

Australia: Cookery and Hairdressing courses to get the chop

It is widely expected that the Australian Government will soon remove hairdressing and cookery courses from the list of employment skills in short supply in Australia.

If it happens, vocational colleges specialising in hair dresssing and cookery courses are likley to feel the pinch.

Currently international students who complete courses in hairdressing and cookery are entitled to extra migration points for applications for permanent residency in Australia because the two trades are on the Migration Occupations in Demand List

If the two occupations are removed they become less attractive options for international students and colleges that offer the courses are likely to see a significant drop in enrolments. Some industry observers are predicting business closures and job losses.

The Australian Council for Private Education and Training, has reportedly lobbied the Australian Government on this issue, and has called for appropriate transitional arrangements for students and colleges. The current economic environment is ACPET's favour. The Government is unlikely to want to make decisions which result in job losses - at least not for the moment.

Students and academics oppose Big Brother

The BBC today reported that academics and foreign students have together presented a petition containing 4,500 signatures to Downing Street in opposition to new laws that will require universities to monitor the attendance of foreign students at tutorials. See full story

According to the BBC many academics have complained they are being asked to "spy" on students in a quasi immigration officer role.

It is understandable that there is concern about these new measures, but the content of the laws is hardly surprising. The current student visa system appears to be very open to abuse and it was really only a matter of time before the UK Government responded with stronger regulation. As a matter of interest the BBC also reported today on an extensive student visa scam that had been operating quite openly for some time - see full story.)

The UK Government is not breaking new ground here. Australia has had laws regulating the provision of education to international students in place for several years. A National Code of Practice introduced in 2007 places strict quality controls on institutions.

Certainly there is a compliance burden and cost to be met by UK institutions, but they are also benefiting handsomely from the international students that they enrol.

Regulation like this is not all down side for educational institutions. A robust regulatory regime which improves the quality of the provision of education to international students can do a lot to improve the perception and reputation of a given market. The US, UK, and Australia remain the key competitors for international students, but many more players are gaining ground. In this internationally competitive market laws which improve the international education services that the UK provides may deliver long terms gains that outweigh the short term pain that they inflict.

Saturday 29 November 2008

Dodgy agents sacked

Melbourne based vocational education provider, Cambridge College recently sacked four education agents due to unethical practices or poor service levels.

Melbourne's Age newspaper reported that one of the agents was Mauritius based GRS. See full story

The story identifies the broader problem of dishonest or unethical agents whose main focus is placement numbers rather than the provision of good advice and service to their clients.

This story highlights the importance of ensuring that you are dealing with an honest and competent agents. This goes for both students and institutions.


Students need to ensure that they are working with a good education agent to ensure that they get the very best advice possible. After all, deciding to study abroad is a big decision.

For institutions the reputational cost of having your name associates with a dodgy agent could be very high. In a very competitive international recruitment market. This is a risk not worth taking.

How do you know if you are dealing with a good agent?

There several things you can do:

  1. Ask if the agent is registered as an education agent in the country in which they are operating. If they are, ask for their registration number and check it with the relevant authorities.
  2. Do a Google search on the agent's name and business name to see if anything concerning comes up.
  3. Ask the agent for references and check them. You might be able to save time if the agent is listed on my edagent and has had their references independently checked.
  4. Ask the agent for a list of the institutions they act for. If necessary ask for proof in the form of letters of authority. Students - at the very least you should ensure that the agent is authorised to act for the institution/s you want to attend.
  5. Be clear up front about the fees that the agent charges. If the agent is going to charge you a fee, ask what it is for and shop around.
Whether you are a student looking for advice, or an institution looking to establish relationships with agents, following these steps will help you ensure that you are working with a reputable agent.

Thursday 6 November 2008

Currency volatility - implications?

The global financial crisis has brought with it significant volatility in the foreign exchange markets.

We've been watching this volatility with interests, with a particular eye on the interplay between the currencies of key source markets, particularly China and India, and those of the key providers of education to international students, namely the US, UK and Australia.

Perhaps the most striking characteristic of the recently currency market activity has been the rapid decline in the value of the Australian dollar against other leading currencies. The recent fall was so swift and steep that London's Financial times dubbed the Aussie Dollar the "whipping boy" of the foreign exchange markets.

Importantly the Australian dollar has fallen markedly against both the Chinese Yuan and Indian Rupee.

The fall is great news for Australian education providers seeking to recruit international students because Australia once again becomes a great choice for cash strapped parents looking to get value for money when sending their kids overseas to study.

UK institutions may also get some benefit from a strong Yuan that has made good gains against the pound.

US institutions may not be so well placed. Both the Rupee and the Yuan have depreciated significantly against the US dollar which makes as US education an increasingly expensive option.

Australian and UK institutions should think about capitalising on the the current exchange rate situation by actively marketing the value-for-money benefits of their courses to students in their key offshore markets.

Sunday 28 September 2008

US institutions turning to agents?

A recent article in the Times Higher Education predicts that US institutions will increasingly begin to use recruitment agencies in coming years.

In the past US institutions have generally made less use of agents than their counterparts in key competitor markets, including the UK and Australia. Part of the explanation is that the practice of using agents is widely viewed as unethical in America.

Predictions of increasing use of agents will be music to the ears of agents in key offshore markets. Institutions in the UK, Australia and elsewhere who are already using agents will need to consider the implications of more competition for the attention of their education agents.

Saturday 27 September 2008

Education Agents - your reputation in their hands

Most institutions seeking to recruit international students look to education agents to assist them.

The strategy can work very well, particularly when institutions are able to build strong relationships with professional agents.

But there are significant risks too. Reputational risk, and what we'll call "turn over risk" are probably the two biggest concerns.

It only takes one bad agent acting unethically or dishonestly to seriously damage an institution's reputation. A serious incident in a key offshore market could have a very serious impact on future student enrolments.

Turn over risk is the risk that a student recruited to your institution by false or misleading claims will find that the reality is much different from the marketing spin the agent gave them. They may choose to go elsewhere.

In a highly competitive market, institutions must be proactive in managing their agent relationships. The common approach of requesting references at the outset of the relationship is insufficient on its own. Institutions should implement a system of regular agent review in order to protect their reputation in their key foreign markets.

The other important point to note is that for Australian institutions agent monitoring is a legal requirement under Standard 4 of the National Code.

A 2007 paper by Ms Virginia Pattingale of Flinders University explains the risks involved in the relationship with education agents and relates some real life incidents involving rogue agents. It is worth reading if you use agents to recruit students.

Thursday 11 September 2008

ESOS compliance - don't get caught out

Between 2001 and 2007 the Department of Education, Science and Training conducted 405 compliance monitoring visits and issued 252 notices. See full report.

The breaches that were of most concern to DEST were:

  • Misleading information provided on duration or cost of courses, or nature of facilities.
  • Provider unable to deliver course or pay refunds to students.
  • Delays in processing requests for refund of fees, and/or not informing students of their entitlements.
  • Advertising courses not registered on CRICOS.

Most common breaches found by DEST:

  • Delay or failure to report students whose attendance or academic progress is unsatisfactory.

Failure to meet your ESOS obligations is likley to cost you significant time and money. Don't get caught out. Use ecomply to meet your compliance obligations.

Sunday 7 September 2008

Weaker Aussie dollar good for business

Just a few months ago many market pundits were predicting that the Australian dollar would reach parity with the US dollar in the very near future. That was until the Aussie currency fell off the proverbial cliff against the green back in July. On 5 September the Australian dollar hit US81.5 cents, its lowest level in a year. This represents a slide of over 17% from its July peak of US98.4 cents.

The steady rise of the Aussie dollar prior to July had many in the Australian international education sector very concerned. A key attraction for international students considering Australia as a study option has traditionally been its lower cost when compared to the US and the UK. This selling point is obviously diminished by a strong Aussie dollar.

So the rapid weakening of the local currency against the US dollar is great news for Australian education providers. Once again Australia can market itself as offering the very high quality education at a lower cost than its key international competitors - the US, UK and Canada.

Devaluation of the Australian dollar against the green back is not the end of the story either. Importantly, the Aussie dollar has also weakened significantly against the majority of the currencies of the top 10 source markets for international students coming to Australia, including, China, India, Korea, Thailand, Malaysia, Hong Kong, Japan, and Brazil.

Education providers should be jumping for joy. It will be interesting to see what impact these currency moves will have on international enrolments in Australia in the coming months.

Sunday 31 August 2008

Student visas: changes to assessment levels

The Australian Department of Immigration and Citizenship has advised that changes to assessment levels for Australian student visas will take effect from 1 September 2008.

Education agents will need to be aware of the changes when advising students about Australian student visas.

Click here for detailed information on the changes.

Saturday 16 August 2008

Facing closure - Sydney International College of Business

Melbourne's leading daily newspaper, The Age, recently reported that VET provider the Sydney International College of Business may be forced to close due to an adverse finding by the NSW Vocational Education Training Accreditation Board.

The Board found that the college's overcrowded kitchens did not contain adequate ventilation and breached council health and safety regulations.

The story also notes that one of the college's directors, Mr Lobo was expelled by the sector's peak body, the Australian Council for Private Education and Training, after listing tertiary qualifications he did not have. He had claimed to have a PhD from a university whose postal address corresponded with a laundromat in London.

See the full article

Saturday 9 August 2008

International students spark Adelaide building boom

In the past 5 years the number of international students studying in Adelaide has doubled to 23,000.

The influx has led Adelaide City Council to give the green light to eight new student housing developments.

About 1000 new apartments have been built in the last couple of years. Adelaide's mayor says that about 2,500 more will be built over the next few years.

With international student flows into Australia continuing to rise steadily it is likely that Adelaide's builders will be busy for some time to come.

Sunday 3 August 2008

Chinese students: success begins at home

A recent story in the Higher Education section of The Australian provides a very interesting insight into the study habit of children from Chinese, Anglo and Pacific Islands backgrounds.

The story cites a recent study by the Univeristy of Western Sydney and the NSW Education Department found that study habits learned by Chinese students in the home encourages a more disciplined approach to study which can yield better results in future years.

The study found that 56per cent of the Chinese students spent more than one hour a night on their homework, compared with 24per cent of Anglo children and 35per cent of Pacific Islander students.

The research found that it is important that children are taught the basic physical habits of study like sitting at a desk, focusing on the task at ahand and even holding a pencil in the correct way.

Tuesday 22 July 2008

SMH: University ghettos a problem.

A front page story in in the Sydney Morning Herald today (23.7.2008) describes a growing problem within Australian universities - a divide between international and local students.

Differences in culture, language, religion and lifestyle are cited as the key elements in the disconnect.

SMH quotes Professor Simon Marginson from the Centre for Higher Education at the University of Melbourne who expressed concern that international students who were attracted to study in Australia partly on the promise of the opportunity to experience Australian culture and "mix with the locals" could become very resentful that the reality of their study experience is much different.

Clearly this is an issue that all institutions offering courses to international students need to address. The international study market is very competitive and there are plenty of other options for students who fear marginalisation if they choose to study in Australia.

VET providers also need to be aware of this issue. In most cases they will not have the resources to match the international student liaison and integration programs run by the big universities. However in many cases the student community at a VET provider will be small enough for staff to be more aware of the interaction between local and international students and to implement targeted responses if things appear to be going off the rails.

In summary it is an issue that providers should watch carefully. No institution can afford to get a reputation as a place where there is a lack of harmony between local and international students.

Wednesday 16 July 2008

Destination Australia: push/pull factors for Thai students

Spark Education recently came across some very interesting research by Nattavud Pimpa of the Monash Centre for Research in International Education on the reasons why Thai students choose to study in Australia. The full paper is definitely worth a read for those who work with Thai students.

The study looks at the influence that family, peers and agents have on Thai students' decisions on international education.

In summary it finds that the decision to study abroad will usually be a multi-stage process which is influenced by a range of players, including family, peers and education agents.

Friday 11 July 2008

Nepali students: Is Australia's gain Nepal's loss?

A recent article on ekantipur.com looks at the growing wave of Nepali students heading overseas to further their education. The most popular destination is Australia with the US in second place. Australian Government statistics tell the same story. Australian Education International statistics show that the number of Nepali students enrolling in Australian institutions between May 2007 and May 2008 was 11,437. This represents a staggering 147.1% growth in the same 12 month period in 2006-07 and puts Nepal at number 7 on the list of countries contributing to international student enrolments in Australia.

The article mentions the familiar push and pull factors underpinning this movement. The perception amongst Nepali students and their families is that education and employment opportinities overseas are better than those at home.

This is all great news for the markets that benefit from it, including Australia and the US, but what are the implications for Nepal? The obvious problem is that students that travel to other countries seeking better opportunities are very likely to stay there. Nepal is losing it best and brightest and the 'brain drain' has an obvious economic down side.

However it is not all doom and gloom for Nepal. The article suggests that Nepal's Government should make a concerted effort to attract expats back to it shores, including by providing opportunities for talented individuals to return and make a contribution to building the country. This is to be strongly supported.

The other thing that Nepal may take at least a small measure of comfort from is that, despite the accepted wisdom, there is research to suggest that the 'brain drain' is not always detrimental to a developing economy.

The bottom line is that Nepal needs to find a way to adapt to the growing exodus of its young people because there is no sign of the trend slowing any time soon.

Monday 7 July 2008

RBA: Education export growth will slow

We are used to the Reserve Bank of Australia delivering bad news on interest rates. However recently the RBA also provided an insight into Australia's export of education services.

In a June 2008 Bulletin the Reserve Bank of Australia gave an overview of the current state of the market and offered some predictions.

The key points of interest were:

  • 97 per cent of the $12.6 billion of education services exported in 2007 was delivered onshore through foreign students studying in Australia.
  • In 2007, tuition fees accounted for 39 per cent of overseas student expenditure in Australia, with the balance representing spending by foreign students on goods and services, such as food, accommodation, transport and entertainment.
  • Since 1982, education services exports have grown at an average annual rate of 14 per cent per annum in volume terms, compared with growth of around 6 per cent both in total services and in total exports over this period.
  • Australia’s education exports remain highly dependent on Asia, with nearly 80 per cent of Australia’s overseas students coming from Asia.
  • Growth in education exports has remained very strong so far this decade, with annual growth averaging 13 per cent over the decade to date. However, a number of factors suggest growth may slow in the period ahead. These include greater competition from within the Asian region, the shift to offshore provision of education services by Australian universities, the higher Australian dollar, and limits on the capacity of Australia’s higher education sector to accommodate further growth in overseas students. However Education exports are expected to outpace aggregate export growth such that their share in Australia’s exports is likely to continue to increase over coming years.
To read the full RBA Bulletin click here.

Wednesday 2 July 2008

Global slow down: Implications for international student recruitment

International education is now Australia's third largest export industry. In 2006-07 the export market was worth a whopping $11.7 billion.

In an intensely competitive international market Australia is more than holding its own. We have the highest proportion of foreign students in our higher education system than any other country – at 19.3 per cent according to the OECD. The OECD average is just 7.2 per cent. Australia is now the world's fifth largest provider of education to international students.

The market for international education has been growing at a staggering rate. In a speech to the AEI industry forum in April 2008 the Minister for Education, the Hon Julia Gillard MP,observed that the world foreign student market was 600,000 people in 1975. By 2000 it was 1.8 million. And in 2005 it had reached 2.7 million – a 50 per cent increase in just half a decade.

Australia has ridden the wave. AEI data shows strong growth in in student commencements in most sectors in the period 2004-2007. Growth in the VET and ELICOS sectors has been particularly strong.

This strong growth has largely been fuelled by fed by rapid rises in economic growth and prosperity in our region.

What then are the implications for Australia's international education market of current global slow down? Will the strong growth continue unabated, will the trend level out, or will we see a substantial decline in international student numbers?

These questions do not lend themselves to a simple answer, and it is probably a case of "time will tell."

There are a number of competing factors at play. On the one hand sharp falls in world stock markets, and rising costs of living will make it much harder for many parents in key markets like China, India and South Korea to fund overseas study for their children. On the other hand research almost universally shows that parents in those key markets are generally prepared to do everything possible and are willing to make significant financial sacrifices to ensure that their children have the opportunity to gain a high quality education overseas.

The AEI figures for May 2008 paint a mixed picture. In summarising the data the AEI noted that "overall growth of full-fee international students in Australia remains strong. Markets such as India, China and Nepal have recorded strong growth in enrolments; however there wave been declines from major markets such as Japan, Hong Kong and Taiwan." The continued strong growth is encouraging and suggests a degree of resilience in the market, but are the declines the sign of the first cracks starting to appear in the trend?

We probably won't know the answer for a few months yet, and the outcome will depend largely on which way the global economy turns.





Tuesday 1 July 2008

Why Chinese students choose Australia

In an article published in September 2007, Ms Molly Yang of the Faculty of Business and Informatics at Central Queensland University provided an insight into the reasons why Chinese students choose to study in Australia.

Ms Yang interviewed 30 students currently studying in Australia. The sample group was small but the study nevertheless provides an interesting insight into the motivations of Chinese students.

In summary, the study found that the most important factors attracting Chinese students to study in Australia were:

  1. Future migration opportunities after graduation
  2. Australia’s high quality of education, and
  3. Competitive lower tuition fees and cost of living.
For further information view the full article.

Friday 20 June 2008

Win - Win: International Students in regional Australia

Lismore is a town of about 44,000 people situated in northern New South Wales - see map.

It is home to one of the campuses of the Southern Cross University (SCU). 654 students from 57 countries are presently enrolled in degree courses at SCU. The number of students studying at SCU's three campuses in Lismore, Coffs Harbour and the Gold Coast has been growing steadily in recent years. In the last 12 months numbers have jumped by a further 13%.


Many international students seek study opportunities outside Australia's major cities in order to enjoy the experience of rural Australia. Their presence in towns like Lismore delivers huge benefits to the local economy. SCU estimates that international students at its Lismore campus contribute A$20 million annually.

Interestingly SCU has identified and capitalised on a niche market by recruiting Canadian students to undertake teacher training courses, including a Bachelor of Teaching. The SCU course meets a supply shortage in Canada where teacher training places are limited. There are now approximately 60 Canadian students studying teaching at SCU.

Saturday 7 June 2008

International students buck negative tourism trend

An article in the Sydney Morning Herald on 7 June 2008 paints a gloomy picture of the trends in tourist visits to Australia. In the year to the end of March 2008 80,000 fewer arrivals specified that the purpose of their visit was for a holiday, compared to the same period last year. The downward trend is not surprising given current pressures in the global economy, including the credit crunch and a very strong Australian dollar.

The good news for CRICOS providers and others involved in international student recruitment is that the upward trend in the arrival of international students remains strong. The number of inbound students grew by 10% in the period.

According to the DIAC 2006-07 Annual Report the total number of student visa grants in 2005-06 was 190 674. In 2006-07 it was 228 592, constituting a very substantial increase of 19.89%. It will be interesting to see if the strength of that trend has been maintained over the 2007-08 financial year. We'll follow up and report back on this issue as soon as the DIAC 2007-08 Annual report is released.