Friday 17 July 2009

Melbourne college forced to close

300 international student - mostly from India and Nepal - are in limbo after the Melbourne International College was shut down by state authorities. See the full story here

This is a very bad look for the Australian education market, especially as it is still in damage control over ongoing violent attacks on Indian and other students.

Monday 8 June 2009

Australia: student attacks threaten market

Australia has a very big problem on its hands.

The international education market is Australia's third biggest industry behind iron ore and coal, worth in excess of A$15 billion each year. The market may be at risk due to what seems to be a worsening pattern of violent attacks against international students, particularly in Melbourne.

For the past several weeks Australian media has been reporting on attacks against Indian students. The story has been picked up by media across the world, including in India, China and Indonesia where concern seems to be rising about the safety of the young people that travel from those countries to study in Australia.

Anger is rising in the ranks of international students in Australia who feel that governments at the State and Federal level are not doing enough to address the problem. There have been several large public protests by international students in both Melbourne and Sydney. (see video)

It seems that Australian governments are now starting to react with various taskforces aimed at addressing the problem. Whatever they plan to do they better do it quickly or risk watching a large chunk of Australia's international education market share get snaffled by competitors like the US, UK and Canada who do not currently have the same issues (or at least not that we have know of). There are signs that the recent trouble has already had an impact on future enrolments in Australia

Those who would like to know more about this issue might be interested in this opinion piece which takes a step back from the current instances of violence against international students in Australia and views the problem in the context of a broader systemic failure.

Wednesday 27 May 2009

International Students: US institution websites

One thing I do a lot of these days is scrutinize the websites of educational institutions across the globe. My focus is on the websites of institutions that enrol international students.

In my web travels I think I may have identified an interesting pattern.

It seems to me that the websites of the majority of institutions in both Australia and the UK have a separate section, usually with a clear link on the home page, dedicated specifically to prospective international students. On the other hand very few US institutions seem to take the same approach. If there is information specifically for international students it is generally not very easy to find from the home page.

Admittedly I have not crunched any numbers on this so it is very much a gut feel based on the many sites I have visited.

Am I right about this, or have I got it totally wrong?

Sunday 19 April 2009

Canada has no idea in India

If a recent story in the Toronto Star is anything to go by Canada needs to take a long hard look at itself when it comes to recruiting Indian students to study in Canada.

Last year just 6,937 Indian students chose to pursue further study in Canada. Just under 97,000 chose Australia.

The reason for this disparity is simple - Australia recognises the value of education as a valuable export industry in its own right, and Canada apparently does not.

Ok so you can't believe everything you read in the press, but if the Star article is even half right, Canada's efforts to market the country's educational institutions fall somewhere between non-existent and "we're thinking about it...it's definitely on our to do list".

The article highlights the contrasting approaches of Australia and Canada when it comes to education marketing in India - the former well funded and professional, and the latter woefully under funded and half hearted.

The Australia/Canada link is interesting. The economies of the two countries are quite similar, with both traditionally reliant on raw materials and agriculture as the mainstays of their export industries. It is interesting then that the approaches to international education are so different. International education is now the third largest export industry in Australia (behind iron ore and coal) and is worth over $14bn. That's a lot of dough, especially in the midst of a global financial crisis. It would rank nowhere near as high on Canada's list of exports.

The Toronto Star article focuses on universities and largely ignores the vocational education and training (VET) sector. Australia's success in attracting VET students makes the situation look even worse for Canada. In Australia in the 12 months to December 2008 the VET sector ranked first by volume of commencements and second by volume of enrolments. VET was the fastest growing sector in both enrolments (46.4%) and commencements (46.1%). For both measures, this was the highest rate of growth in any sector. 82.9% of VET enrolments came from Asia and this region experienced growth of 51.5%. The three largest markets in this sector by volume of enrolments were India (52,381), China (25,431) and Nepal (12,813).

Canada should lift its game in India for its own sake. Until it does Australia will continue to reap the benefits.

Tuesday 14 April 2009

Australia: College fraud crisis?

We have been following the story of alleged illegal activity by education and training providers in Australia.

International students are at the centre of the controversy. Sometimes they are victims - charged exorbitant fees by institutions for subject results, or for failing to submit assignments. In other instances it is alleged that students are complicit in the wrong doing, paying dishonest operators to obtain fraudulent visa credentials.

There are differing views on the extent of the problem in Australia, but it appears that pressure is mounting on the Australian Government to take decisive action on the matter - see full story

The Government seems to be trying to play down the issue. That is all very well, and it may be that the problem is not as significant as the media reports make out. Even so, if momentum in the media continues to build on this issue so will the public perception that there is a problem. Negative perceptions of the integrity of the Australian education system is something that the Government definitely does not want, especially considering that the provision of education to overseas students is the country's third largest export industry.

Australia is not alone with this problem. Coincidentally a story in the Times Online today outlines similar visa fraud problems in the UK and notes that "bogus colleges set up to help foreign workers to enter Britain illegally have long been considered the biggest loophole in British immigration controls" - see full story

It is vitally important that Governments get this kind of activity under control, both to protect international students, and to safeguard their country's international reputation as a high quality education market.

Wednesday 8 April 2009

Investigation targets 20 Melbourne colleges

A concerning story in The Age (the leading daily newspaper in Melbourne) about an investigation by the Department of Immigration and Citizenship into 20 Melbourne colleges for suspected visa frauds - full story

This has been an ongoing problem in Australia and also in the UK where visa rules for international students were tightened last year to limit the opportunity for fraud.

We'll keep a watch on this story to see how it unfolds.

Friday 27 March 2009

You Tube EDU launches

You Tube has just launched You Tube EDU which is their way of collecting and making it easier for You Tube users to access educational content on the site.

For more info check out the TechCrunch story.

Institutions have to apply to You Tube to get their channels listed on You Tube EDU. At this stage they are only accepting "qualifying two- and four-year degree granting public and private colleges and universities" (see sign up page)

The launch of You Tube EDU is an important development for any institution which already has, or is considering implementing, an internet video marketing strategy.

Tuesday 24 March 2009

Singapore rising

The number of international students in Singapore has risen 50% in the last five years. In 2008 there were 97,000 international students in Singapore, up from 86,000 in 2007.

This strong growth is a further indicator that emerging international education markets like Singapore and Malaysia continue to make significant gains in grabbing a piece of the international student pie.

These emerging markets may also benefit from the global financial crisis, with students in Asia and India looking for more affordable education options.

It will be interesting to see if the strong growth trend continues.

Sunday 22 February 2009

Canada to up international student numbers

On Friday the Canadian Immigration Minister Jason Kenney got the international education community interested when he announced that Canada will substantially increase the number of international students that it allows into the country each year.

It seems that Canada has been eyeing off the Australian model and is looking to copy it. Australia admits large numbers of international students who then earn points which assist them to obtain permanent residence when they complete their studies. Minister Kenney noted that the new Canadian approach will involve a much larger number of international students who will have the option to put themselves on a "much faster pathway" to immigration.

Monday 19 January 2009

Financial Crisis cuts international student numbers

Within one day of each other Australian and Canadian newspapers have run stories on the drop in international student numbers caused by the global financial crisis.

On 19 January The Australian reported that most Australian institutions are seeing an increase in student deferrals and are anticipating a drop off in international students numbers. The national peak body for English language colleges, English Australia, confirmed a decline in enrollments from Asian markets, with Japanese and Korean markets leading the fall.

On 20 January the Vancouver Sun reported a 5-7% drop in international student enrollments in B.C schools, with Korea leading the decline.

Like most industries, international education is in uncharted waters when it comes to the impact of the financial crisis. The prospect for long term market growth remain strong, but the short term effects of the current crisis will probably only become apparent over the course of 2009.

Friday 16 January 2009

The Economist: UK international education market

Just came across this interesting article in the Economist which provides a snap shot of the UK international education market.

It picks up the theme of increasing global competition in the international education market which I've looked at in earlier posts. The article discusses how universities in the UK are increasingly turning to the private sector to help them recruit international students.

Increasing global competition is a challenge for all institutions, but it is not all doom and gloom. As competition increases so will demand. IDP predicts that global demand for international higher education will grow from 2.173 million in 2005 to 3.720 million in 2025. This is growth of 71% over 20 years, or compound growth of 2.7% per year.

So the pie will get bigger, but there are more competitors who want a slice.



Tuesday 13 January 2009

US thawing on education agents?

A recent article in Inside Higher Ed discussed the debate in the US around the use of education agents and noted the work of the American International Recruitment Council in implementing a certification process for agents who wish to work with its members.

An education agent advises students on study options that are the best fit for them and usually helps the student to gain entry to the educational institution of their choice. Agents operating in offshore markets will often also work as quasi immigration and travel agents, assisting students with visas and other pre-departure arrangements. In some countries 60-80% of students who seek to study abroad are assisted by education agents (NAFSA).

Agents typically get paid a commission by an educational institution when a student is placed successfully. Commission arrangements vary widely but can be in the order of 10-20% of the first year tuition fee.

Educational Institutions in Australia and the UK have been using education agents for years to recruit international students. Even the largest and most reputable Australian universities make extensive use of agents, and their web sites will generally point prospective students to agents in their home country. (See for example University of Sydney)

US universities have largely shunned the practice for two main reasons - a belief that it is prohibited by US law (it's not), and a concern that agents motivated by commission do not act in the best interest of students. The second argument is curious because as the AIRC points out in a recent paper on the issue educational institutions already make extensive use of agents in other fields:
  • Headhunters assist with staff recruitment
  • Stock brokers manage university endowments
  • Real estate agents assist with sale and purchase of property holdings, and
  • Insurance brokers assist university risk managers
The widespread reluctance to use offshore agents appears to be having an adverse impact on the competitiveness of the US in the international recruitment market. International student enrollments in the US remain largely stagnant, while other markets surge ahead. For example, over the period from 1994 to 2006, enrollments in the US grew 24% from 452,635 to 564,766, while enrollments in Australian institutions grew 364% from 35,290 to 163,930. While the difference is not all down to the use of agents they are a large part of the explanation. An excellent paper by Mitch Leventhal provides more detailed analysis.

The American International Recruitment Council is trying to promote the use of agents by US institutions by establishing best practice standards and a certification process for agents. The proposed six step certification process is as follows:
  1. Apply for Certification (pay application fee)
  2. IntegraScreen Due Diligence Report (included in application fee)
  3. Undertake prescribed AIRC-developed professional development (paid by applicant)
  4. Perform a self-study
  5. Undergo an external site visit (paid by applicant)
  6. Certification Board Review (if approved, payment of membership fee)
Approved agents will also have to apply for re-certification after three years.

The proposed certification process is much more rigorous than the processes currently employed in Australia and the UK. It may mean that only larger, well resourced agents will be able to go through the process, which is probably the outcome the AIRC is aiming for. It is probably also necessary to overcome the widespread concern over use of agents in the US.

Competition for international students continues to increase, both amongst the established players like the UK, Australia and Canada and emerging markets like, Malaysia and Singapore. The US will always attract a large number of international students, but if it wants to increase its market share institutions will have to embrace the use of offshore education agents. The AIRC is leading the horse to water. Time will tell if it can also make it drink.

Tuesday 6 January 2009

Black List Update: Hong Yun International

We've just added Hong Yun International to the education agent black list.

Click here for more info.

If you know of any other candidates for the list - be they agents or institutions - please help us out by completing our anonymous whistleblower form