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.

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.

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.

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.

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.

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.