IIE release next iteration of Open Doors data

It’s International Education Week in the United States and that has prompted the Institute of International Education (“IIE”), America’s premier professional association for international education research, to release the next iteration of the Open Doors report. For those in the know, the Open Doors report is a vital tool for measuring the flow of students around the world. While heavily US focused it’s nonetheless an excellent tool for examining student flows – even from Australia.

I’ve picked out some quotations from the press release of interest.

IIE has also highlighted how the US administration view international education as a vehicle in which to solve future problems:

“International education is crucial to building relationships between people and communities in the United States and around the world. It is through these relationships that together we can solve global challenges like climate change, the spread of pandemic disease, and combating violent extremism,” said Evan M. Ryan, Assistant Secretary of State for Educational and Cultural Affairs.

Things are interesting from a data point of view as well:

The number of international students enrolled in U.S. higher education increased by eight percent to 886,052 students in 2013/14, with 66,408 more students than last year enrolled in colleges and universities across the United States. This marks the eighth consecutive year that Open Doors reported expansion in the total number of international students in U.S. higher education. There are now 72 percent more international students studying at U.S. colleges and universities than were reported in Open Doors 2000, and the rate of increase has risen steadily for the past four years.

It seems that Australia isn’t as golden as once was in attracting US study abroad students

There were declines in the number of American students going to China, Australia, Argentina, India, Mexico, Ecuador, Israel, Chile, and New Zealand.

Australian international education market performs well in ICEF agent barometer

The ever comprehensive ICEF Monitor has published some early results from their eight annual agent barometer survey (co published with iGraduate).

Given the lifting on the ban on foreign agents in US institutions, it is perhaps not unexpected that agents would be referring more students to US institutions – the barometer reports that 80% of agents expect to send more students to the US.

Australia places highly in the metric, with around about 68% of agents stating they’ll be sending students down under. Promisingly for Australia, only 27% of agents reported issues with students getting visas – down from 43% the year before, whereas over half of agents thought Canada was the most difficult.

The report specifically highlights Australia, stating:

Perhaps not coincidentally, at the end of 2013 the Australian government began easing visa rules for the non-university sector and generally reassuring the international higher education sector that it would receive more attention and support from the government.

With visa approvals being a strong indicator of future enrolments, such an indicator is good for the Australian international student market.

Value and costs in International Higher Education: In the wake of the G8

The Group of Eight (“G8”), known to those in Australia as a group of leading research institutions, has published a neat summary document of research into the motivations of international students to study overseas, with a particular focus on Australia. It’s not a study in itself, instead gathers together data and research from bodies such as Australia Education International (“AEI”), Hobsons, World Education Services (“WES”), I-Graduate and a number of others. The summary document roughly covers the last two to three years.

The makeup and methodologies of the surveys contained within the summary document varies. Some consider smaller export market samples, while others are wide ranging and very comprehensive (for instance, The British Council in their 2010 study on student decision marking surveyed over 100,000 students from 200 countries).

Taking the G8s analysis on face value, it does seem true that for the vast majority of international students that research and teaching quality is the trump card for those looking for an international experience. Many of the studies consider fees and costs of living and this metric consistently come in second to research and teaching quality. It’s clear that a quality education will always be worth the cost.

Quality is a no doubt an important factor in attracting international students, but considering the relative high cost in tuition in Australia, will quality always trump cost? It’s clear that Australia has becoming an expensive place for foreign students. Recently, HSBC has claimed that Australia is now the most expensive place for internationals to study.

However, they concede that cost of living expenses make up the bulk of this claim – something that may be hard for Australian tertiary education providers to avoid. Worryingly though, competitors, such as the US, Canada and the UK are cheaper places to live and study, and considered equal and higher in terms of quality. Clearly, that’s an ongoing risk, particularly if Australian universities want to attract high-quality students.

Considering that that exchange rate pressures and a high Australian dollar over the past few years have meant that Australia has become an expensive place for internationals, signs that the dollar might be normalising and settling at what many consider a true reflection of its value relative to the USD will be welcomed. Yes, quality is perhaps the most important for students, but it’s clear that cost is still vitally important in the decision making process of prospective international students!

International education: A quick skim through Building Australia’s Comparative Advantage.

While those working in the industry might feel it’s taken for granted given that economic headlines tend to focus on mining and agriculture, Australia’s international education export market is continuing to boom, remaining competitive globally, and often the envy of many other developed nations around the globe.

And yesterday, Catherine Livingstone, the President of the Business Council of Australia (“BCA”), acknowledged international education’s continued importance to the mix and vitality of the Australian economy when the BCA published their report into the future challenges facing Australia’s economic competitiveness in a report entitled Building Australia’s Comparative Advantage.

While the focus of the BCA report is across the breadth of the economy, international education features prominently, with the authors arguing that that international education in Australia is performing well, but there are a number of potential threats on the horizon that might undermine future growth and performance.

The publication is actually in response to another recent report published by consulting company McKinsey Australia Compete to Prosper: Improving Australia’s Global Competitiveness who were commissioned by the BCA to examine Australia’s current and future economic performance in global markets. The essential conclusion of both reports was aptly summed up by the Business Council of Australia:

The results indicate that, across a range of measures, most industry sectors are not competitive when compared to the US and that the trend in our relative competitive position has remained the same over the last decade.” (BCA 2014: 4)

So with the above in mind, I thought I’d take a quick read through both reports to see what they had to say specifically about international education. The results shouldn’t surprise anyone who has worked in international education in Australia for any length of time.

BCA: Building Australia’s Comparative Advantages

The BCA report goes on to highlight a number of positives regarding Australia’s international education industry:

  • The report forecasts that international education exports could grow to $26 billion by 2020 if the sector can achieve the same market share it did in 2009 (BCA 2014: 17).
  • Along with agriculture, mining, tourism, international education is one competitive market that Australia is competing extremely well in at a global level (BCA 2014: 25)
  • Australia performs very well in attracting skilled migrants and our international education industry is a key driver of this performance (BCA 2014: 25).

However, the report indicates a number of threats that may threaten our ability to compete in global education markets:

  • Australia’s performance is declining in core education measures such as maths, reading and scientific literacy over the past decade leading to a decline in international ranking for our education system (BCA 2014: 25).
  • In terms of issues in the Australian education system, the BCA note the weakness of our VET sector for supplying the future skills to maintain or grow our economy (BCA 2014: 12).
  • Australia is lagging behind other developed countries when it comes to research, ranked at 15 by the World Economic Forum Competitiveness Index, compared to 3rd for the US and 5th for the UK (BCA 2014: 27). This could be an future issue for attracting international students, as academic research has a direct impact on attracting international students, a point directly made in the McKinsey competitiveness report (McKinsey 2014: 32).Furthermore, there a number of recommendations in the report around structural reform of education, including linking research funding to industry collaboration instead of just incentivising having work published in highly ranked journals (BCA 2014: 52).

The BCA report concludes by stating that in order to continue to build Australia’s strength as a global exporter of international education services, Australia should look to implement to recommendations of the International Education Advisory Council which were published back in February 2013 in the Australia – Educating Globally report.

If you recall that report, you’ll recall that the report’s recommendations included specific ministerial level advisory groups on international education within government, as well as new approaches to tackle issues like affordable accommodation and a more diverse international student population.

McKinsey Australia: Compete to Prosper: Improving Australia’s global competitiveness

Turning to the report compiled by McKinsey Australia, the authors note that international education in Australia will face some key tests in the future as competition for a large future surplus of international mobile students becomes more and more fierce, particularly now since Australia is becoming a more expensive study destination – McKinsey Australia stating that Australia is now 8 percent more expensive than the US and 60 percent more expensive that Singapore (Lydon et al, 2014: 33).

McKinsey highlights an oversupply of 1.9 million student places worldwide in 2020 and notes the potential impact of MOOCs in attracting students to elite universities worldwide. The report makes two forecasts about the future of international education in Australia:

  • That government will have to create a more integrated strategy between education and immigration and deliver a more robust student experience (Lydon et al, 2014: 33).
  • Universities will have to rely on innovation and different modes of delivering content in order to avoid over capacity issues in the future (Lydon et al, 2014: 33).

Conclusions

Essentially both reports paint a good news story about the current state of Australia’s international education industry, but also suggest that in order to maintain our globally competitive export industry, the Australian government along with education providers must continue to support measures that attract international students. It would seem that taking our current position for granted may result in poor future performance and a loss of global market position.

References

Business Council of Australia. (2014). Building Australia’s Comparative Advantages (pp. 59).

Lydon, J., Dyer, D., & Bradley, C. (2014). Compete to Prosper: Improving Australia’s global competitiveness (pp. 67).

Links