GAELA / FELCA meeting – 4 September 2009

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Surveys sent to associations on 1 July Associations asked to send to their members Response deadline of 24 July

◦ GAELA responses – 271◦ FELCA responses – 101

Individual reports circulated to each association for their own reference & analysis

Broad analysis undertaken based on location of college/agent

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language college responses

3

0 10 20 30 40 50 60 70

Australia

Canada

International

Ireland

Malta

NZ

SA

UK

USA

4

Over the first 6 months of 2009, has the number of international students commencing a language course with your institution grown or declined?

5

9%

28%

24%

28%

11%

grown a lot

grown

remained stable

declined

declined a lot

0% 5% 10% 15% 20% 25% 30%

6

0% 20% 40% 60% 80% 100%

TOTALIreland

MaltaInternationalSouth Africa

USACanada

UKNew Zealand

Australia

grown remained stable declined

7

The most common response by country:◦ grown a lot

none◦ grown

Australia, New Zealand, UK, Canada (=) ◦ remained stable

International, South Africa, Canada (=) ◦ declined

Ireland, USA◦ declined a lot

Malta

8

Do you feel positive or negative regarding the prospects for the language travel industry over the next 6 months?

9

0% 5% 10% 15% 20% 25% 30% 35%

very positive

positive

neutral

negative

very negative

10

0% 20% 40% 60% 80% 100%

TOTALIreland

MaltaInternational

CanadaUSA

UKNew Zealand

AustraliaSouth Africa

positive neutral negative

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The most common response by country:◦ very positive

none◦ positive

Australia, New Zealand, South Africa, USA◦ neutral

UK, International◦ negative

Canada, Ireland, Malta◦ very negative

none

12

Some of the reasons:◦ positive

GFC driving increased demand, currency exchange rates good, forward enrolments strong, specific institution strategies

◦ negative GFC, currency exchange rates bad, swine flu, increased

competition, negative media, visa issues, fewer employment opportunities for students

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What were your top 3 source countries over the first 6 months of 2009?

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most references in top 3

1 South Korea 143

2 Saudi Arabia 95

3 China 80

4 Japan 66

5 Brazil 54

6 Spain 50

7 Germany 38

8 Italy 35

9 Switzerland 32

10 France 26

15

What were your top 3 source countries over the first 6 months of 2009?

Australia = Korea (47) China (34) Saudi Arabia (17)New Zealand = Korea (22) Saudi Arabia (17) Japan (15)Canada = Korea (24) Saudi Arabia (18) China (15)USA = Saudi Arabia (33) Korea (30) China (22)UK = Spain (8) Saudi Arabia (7) Germany (7)Ireland = Spain (29) Brazil (18) Italy (16)Malta = Germany (9) France (5) Italy (5)South Africa = Brazil (7) Angola (4) Korea (4)

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Which three source countries grew the most over the first 6 months of 2009?

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most references in top 3

1 Saudi Arabia 86

2 China 67

3 Brazil 45

4 South Korea 34

5 Vietnam 33

6 Spain 29

7 Thailand 29

8 Japan 28

9 Italy 24

10 Switzerland 24

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Which three source countries grew the most over the first 6 months of 2009?

Australia = China (30) Vietnam (25) Saudi Arabia (19)New Zealand = Saudi Arabia (17) Thailand (8) China (7) Canada = Saudi Arabia (24) Brazil (8) Korea (7)USA = China (21) Saudi Arabia (17) Taiwan (10)UK = Saudi Arabia (6) Italy (5) France (4)Ireland = Spain (12) Italy (9) France (7)Malta = Italy (4) France (3) Spain (2)South Africa = Brazil (4) Saudi Arabia (3) Angola (2)

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Which three source countries declined the most over the first 6 months of 2009?

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most references in top 3

1 Japan 115

2 South Korea 113

3 Taiwan 48

4 China 30

5 Germany 30

6 Brazil 28

7 Italy 26

8 France 25

9 Spain 25

10 Mexico 21

21

# of colleges experiencing

decline

# of colleges experiencing

growth

Japan 115 28

South Korea 113 34

China 30 67

Brazil 28 45

Italy 26 24

Spain 25 29

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Which three source countries declined the most over the first 6 months of 2009?

Australia = Japan (38) Korea (27) Taiwan (17)New Zealand = Japan (13) Korea (9) Taiwan (8)Canada = Japan (22) Korea (17) Mexico (14)USA = Korea (25) Japan (21) Taiwan (17)UK = Korea (5) Germany (4) Japan (4)Ireland = Korea (22) Italy (12) Spain (12)Malta = Germany (5) Italy (5) Korea (4)South Africa = Germany (6) Korea (3) Switzerland (3)

23

What are the top 2 challenges currently confronting your institution?

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great diversity in the responses countries/colleges experiencing declining

numbers focused on the causes for the decline as the challenges they need to overcome

countries/colleges experiencing increasing numbers focused on the implications of the growth for their operations as their challenges

many comments also related to the challenge of reducing their vulnerability by diversifying their markets in response to specific declines in traditional markets like Japan & Korea.

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countries/colleges experiencing declining numbers focused on the causes for the decline as the challenges they need to overcome◦ GFC◦ visa regime creating barriers◦ swine flu◦ lack of diversity / dependence on certain markets

that are now in decline◦ currency fluctuations◦ negativity / lack of confidence in the market◦ lack of / incompetent government marketing support

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countries/colleges experiencing declining numbers also listed some of the implications of declining numbers as the challenges they need to overcome◦ coping with decreasing budgets◦ maintaining quality◦ cashflow issues◦ maintaining staff confidence / morale

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countries/colleges experiencing increasing numbers focused on the implications of the growth for their operations◦ lack of space /need to expand physical premises◦ sourcing good teachers and other staff◦ sourcing quality homestay families and other

accommodation options◦ maintaining quality◦ overdependence on certain markets

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other challenges◦ increased costs – government levies, wages, compliance

etc.◦ discounting by competitors / requests for discounts from

agents◦ “visa factories” - unregulated, cheap competition◦ identifying creative marketing strategies (including the

internet)◦ increased activity from competitor countries and competitor

colleges◦ responding to negative image/reputation promoted by the

media◦ increased demands relating to regulation/compliance◦ coping with new client groups

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What can your Association do to support you in the current environment?

30

Marketing

Advocacy

Information / communication

Quality

PR

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Marketing◦ marketing support and information re student

numbers, trends & opportunities;◦ raising and maintaining the profile of member

colleges as “the quality option”;◦ encouraging agents and students to choose

association member colleges;◦ developing & maintaining a quality brand for the

association & its members;◦ facilitate the development of business relationships

with agents.

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Advocacy◦ lobbying to achieve a supportive/effective visa

regime; ◦ lobbying on other issues related to our

competitiveness eg. work rights for students;◦ lobbying for consistent standards across all colleges

- compulsory accreditation;◦ lobbying to minimise compliance costs;◦ working with government to create a strong country

brand.

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Information / communication◦ keep us informed of developments that could impact

on our business;◦ facilitate networking with colleagues to share

solutions to issues;◦ collect and share data to allow us to benchmark our

performance;◦ ensure you keep in touch with what your members

want/need.

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Quality◦ maintain and promote quality standards;◦ facilitate the sharing of best practice;◦ provide professional development.

PR◦ promote the importance and quality of the language

travel industry domestically;◦ present a positive image of the language travel

industry.

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agent responses

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0 5 10 15 20 25

Brazil

France

Italy

Japan

Korea

Mauritius

Russia

Spain

Thailand

Turkey

Vietnam

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Over the first 6 months of 2009, has the number of international students you have sent overseas for a language course grown or declined?

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0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

grown a lot

grown

remained stable

declined

declined a lot

39

0% 20% 40% 60% 80% 100%

TOTAL

Mauritius - ALICE

Japan - JAOS

Brazil - BELTA

Korea - KOSA

Russia - RAIE

Vietnam - VIECA

Thailand - TIECA

Spain - ASEPROCE

Turkey - TEAG

France - UNOSEL

Italy - IALCA

grown remained stable declined

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The most common response by country:◦ grown a lot

none◦ grown

Italy, France (=), Turkey (=) ◦ remained stable

Spain, Thailand, Vietnam, Turkey (=)◦ declined

Brazil, Japan, Russia, Korea, France (=), Turkey (=)◦ declined a lot

Mauritius

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Do you feel positive or negative regarding the prospects for the language travel industry over the next 6 months?

42

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%

very positive

positive

neutral

negative

very negative

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0% 20% 40% 60% 80% 100%

TOTAL

Japan - JAOS

Korea - KOSA

Mauritius - ALICE

Turkey - TEAG

Spain - ASEPROCE

Thailand - TIECA

France - UNOSEL

Italy - IALCA

Russia - RAIE

Vietnam - VIECA

Brazil - BELTA

positive neutral negative

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The most common response by country:◦ very positive

none◦ positive

Brazil, Russia, France (=), Italy (=), Mauritius (=), Thailand (=), Vietnam (=)

◦ neutral Japan, Spain, Turkey, Italy (=), Mauritius (=), Thailand

(=), Vietnam (=)◦ negative

Korea, France (=), Mauritius (=)◦ very negative

none

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What were your top 3 destination countries over the first 6 months of 2009?

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most references in top 3

1 UK 73

2 USA 66

3 Canada 39

4 Australia 34

5 Ireland 31

47

What were your top 3 destination countries over the first 6 months of 2009?

Spain = UK (23) Ireland (16) USA (14)Thailand = Australia (17) UK (16) USA (14)Brazil = Canada (13) USA (8) UK (7)Japan = USA (10) Canada (6) Australia (5)

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Which countries are seeing increasing demand from students over the first 6 months of 2009?

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most references in top 3

1 UK 47

2 USA 30

3 Canada 21

4 Australia 18

5 New Zealand 7

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Which countries are seeing increasing demand from students over the first 6 months of 2009?

Spain = UK (18) USA (8) Canada (4)Thailand = UK (11) Australia (7) USA (4)Brazil = Canada (8) UK (4) Australia (4)Japan = USA (5) UK (3) Canada (2)

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Which countries are seeing decreasing demand from students over the first 6 months of 2009?

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most references in top 3

1 Ireland 25

2 USA 20

3 Australia 16

4 UK 13

5 New Zealand 8

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# of agents experiencing

decreased demand

# of agents experiencing

increased demand

Ireland 25 3

USA 20 30

Australia 16 18

UK 13 47

New Zealand 8 7

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Which countries are seeing decreasing demand from students over the first 6 months of 2009?

Spain = Ireland (15) Malta (5) USA (4)Thailand = USA (6) Australia (5) NZ (5)Brazil = Ireland (4) UK (4) USA (3)Japan = Australia (5) NZ (3) UK (2)

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What are the top 2 challenges currently confronting your organisation?

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Business Levels◦ maintaining business levels/flow of students

[issues associated with GFC, swine flu, increased competition, currency exchange rates, visas]

Financial ◦ financial issues/cashflow/running efficient

operations/controlling costs (as a result of above) Operational

◦ coping with changes to visa requirements◦ finding good staff

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Strategic Planning / Marketing◦ diversifying services to provide other sources of

revenue/offering more destinations;◦ adjusting marketing strategy & services to match

changes in demand;◦ finding new partner colleges;◦ differentiating ourselves from other, low quality

agencies that discount;◦ establishing a strong internet presence;◦ marketing on a reduced budget/high promotional

costs;◦ sourcing good quality accommodation for

students/providing quality services.58

What can your Association do to support you in the current environment?

59

Promotion

Information / communication

Professionalism

Advocacy

60

Promotion◦ indirect - promoting study abroad more generally

amongst the general public/general PR & key messages in the media;

◦ direct – promoting my agency to potential students/ coordinated marketing strategies/advertising;

◦ promote the use of agents that are members of the association/promote the professionalism of agents;

◦ support with holding student fairs/coordination of such events to minimise costs;

◦ organising workshops/facilitating links with colleges◦ facilitating fam trips.

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Information / communication◦ keep us updated on global developments that have an

impact on our business;◦ work closely with embassies, consulates and visa

offices so that we can get the most updated information;

◦ communicate news/information about our country to colleges/stakeholders.

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Professionalism◦ professional development/training;◦ establish standards for members and monitor and

promote them;◦ networking opportunities with colleagues;◦ have a strong relationship with other associations to

learn from each other and share experiences.

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Advocacy◦ improve the empowerment of the industry/raise the

professional profile of the industry with government;◦ cooperate with college associations to influence

policies eg. visa policy;◦ work to influence the policy of airlines;◦ cooperate with college associations to promote the use

of agents;◦ lobby government to provide funding support for study

abroad.

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useful information / data obtained◦ for each association specific to their membership◦ for FELCA and GAELA◦ for the industry more broadly

do we want to do this kind of survey again?

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