Comparative Costs of Higher Education Courses Update 2004

Transcription

1 Comparative Costs of Higher Education Courses Update 2004 Main English Speaking Destination Countries and Emerging Asian Study Destination Countries Marcelo Follari Project Manager, Market and Business Analysis P: (02) E:

2 About this presentation Objectives Background Cost of living Tuition Fees and total cost of studying Are we at risk? Implications

3 Project Definition How competitive is Australia in international student tuition fees and living costs compared to: MESDCs = US, UK, Canada, New Zealand Emerging Asian Study Destinations: Hong Kong, China, Singapore, Malaysia Ireland Investigate the broader implications in a competitive context

4 3/4/ the value of the Australian Dollar reached its lowest point of US$ /2/04 - the value of the Australian Dollar reached its highest point of $US0.7972

5 2 In fact the currencies of all of the major destination countries have increased their value against the US Dollar British Pounds Canadian Dollars Australian Dollars New Zealand Dollars 0 Ja n- 01 Ma r- 01 Ma y- 01 J ul- 01 Se p- 01 No v- 01 Ja n- 02 Ma r- 02 Ma y- 02 J ul- 02 Se p- 02 No v- 02 Ja n- 03 Ma r- 03 Ma y- 03 J ul- 03 Se p- 03 No v- 03 Ja n- 04 Ma r- 04 Ma y- 04 J ul- 04

6 Global Student Mobility 2025: Impact of perceptions of Affordability... South East Asia South Asia Central Asia East Asia Affordability % change in the perceptions of affordability can lead to an improve (or decline) of X in market share in these regions.

7 The development of international education hubs in Asia is opening a new era for Australia s international education industry

8 Methodology

9 The Comparative Costs Formula TUITION FEES + HEALTH COVER + TEXTBOOKS / OTHER MATERIALS + ADDITIONAL INSTITUTION FEES + COST OF LIVING x LENGTH OF THE COURSE = TOTAL COST OF STUDYING AND LIVING

10 Cost of Living Clothing and footwear Housing, water, electricity and gas Household equipment and maintenance Health Transport Communication Recreation and Culture Food and non-alcoholic beverages Alcoholic beverages and tobacco Miscellaneous Research conducted by the Centre for International Economics based on OECD and other sources

11 Basis for Comparison in US Dollars Currency conversion vs. US Dollar 1/06/2001 1/06/2004 % Change 1 Aus $ = % 1 NZ $ = % 1 Canadian $ = % 1 Sterling Pound = % 1 Euro (Ireland) 1.22 Singapore Dollar = 0.59 Hong Kong Dollar = 0.13 Chinese Yuan = 0.13

12 Sample of Institutions Australia New Zealand Canada United Kingdom United States Singapore Hong Kong China Ireland All 39 universities All 8 universities 12 universities with the largest enrolments of international students 20 universities with the largest enrolments of international students 20 universities with the largest enrolments of international students (6 private and 14 public) 4 universities (3 local and 1 offshore campus = MBA INSEAD) 7 universities offering relevant programs 20 universities with the largest enrolments of international students (excluding Taiwan, Macao and Hong Kong) 7 universities

13 Courses Bachelor of Business Master of Business Administration (Full Time MBA) Bachelor of Engineering (Civil) Master of Engineering (Civil) Bachelor of Information Technology Master of Information Technology Rationale: The most demanded fields of study / Fields of study with higher future demand 584 courses surveyed

14 Cost of Living Main English Speaking Destination Countries and Emerging Asian Study Destination Countries

15 Cost of Living 2004 THAI CHINA (LOW) INDIA IRELAND UNITED KINGDOM AUSTRALIA UNITED STATES CANADA NEW ZEALAND HONG KONG SINGAPORE CHINA (HIGH) MALAYSIA 3,785 2,918 2,063 1,545 6,410 5,219 11,152 9,519 8,989 8,925 8,686 7,081 US Dollars 14, ,000 10,000 15,000 20,000

16 Cost of Living 2004 Ratios vs. US UK Australia Canada NZ United States = 100

17 Cost of Studying Main English Speaking Destination Countries and Emerging Asian Study Destination Countries

18 Bachelor of Business Median Fee China $2,701 HK $5,401 Singapore $11,397 New Zealand $10,079 Australia $10,031 Canada $9,920 UK $14,759 Ireland $13,493 US Public $18,705 US Private $29,988 Length Total Cost $31,731 $38,192 $54,938 $59,331 $60,464 $71,039 $77,890 $98,404 $119,882 $167, China HK Singapore New Zealand Australia Canada UK Ireland US Public US Private Tuition Fee Total Cost

19 Bachelor of Engineering China HK Singapore Canada New Zealand Australia UK US Public Ireland US Private Median Fee $2,972 $5,401 $12,575 $9,543 $12,678 $12,639 $19,339 $18,705 $18,456 $29,988 Length Total Cost $32,812 $38,202 $77,962 $81,037 $88,699 $90,019 $91,670 $119,882 $132,440 $167, China HK Singapore Canada New Zealand Tuition Fee Australia UK US Public Ireland US Private Total Cost

20 Bachelor of IT China HK Canada Australia New Zealand Singapore UK US Public Ireland Median Fee $2,984 $5,401 $9,396 $10,611 $11,410 $12,575 $19,251 $16,250 $18,060 Length Total Cost $32,836 $38,198 $59,909 $61,818 $62,745 $77,962 $91,208 $110,292 $130, China HK Canada Australia New Zealand Singapore UK US Public Ireland Tuition Fee Total Cost

21 Full Time MBA China Singapore HK New Zealand Australia Canada UK Ireland US Public US Private Median Fee $5,738 $13,547 $19,632 $20,126 $19,346 $19,821 $31,718 $28,665 $44,019 $70,004 Length Total Cost $16,901 $22,599 $30,506 $32,268 $33,856 $39,844 $42,870 $43,287 $69,085 $92, China Singapore HK New Zealand Australia Canada UK Ireland US Public US Private Tuition Fee Total Cost

22 Full Time MBA 01 vs. 04 MBA Australia New Zealand UK Canada US Public US Private New Zealand UK Canada US Public US Private

23 Master of Engineering New Zealand China UK Canada US Private Australia Ireland US Public Median Fee $14,222 $3,502 $20,167 $9,543 $28,512 $12,897 $11,210 $20,890 Length Total Cost $23,884 $24,167 $31,319 $40,215 $41,771 $46,013 $58,195 $64, New Zealand China UK Canada US Private Australia Ireland US Public Tuition Fee Total Cost

24 Master of Engineering 01 vs. 04 M Eng Australia New Zealand UK Canada US Public US Private New Zealand UK Canada US Public US Private

25 Master of IT China US Public UK Canada Ireland Australia New Zealand Median Fee $3,556 $18,588 $19,984 $7,069 $3,659 $12,553 $13,470 Length Total Cost $24,242 $30,052 $31,136 $35,364 $36,563 $45,296 $46, China US Public UK Canada Ireland Australia New Zealand Tuition Fee Total Cost

26 MA IT 01 vs. 04 M IT Australia New Zealand UK Canada US Public US Private NA NA New Zealand UK Canada US Public US Private

27 KEY FINDINGS BACHELORS DEGREE: AUSTRALIA IS COMPETITIVE IN PRICE AGAINST UNITED STATES, UNITED KINGDOM (EXCEPT ENGINEERING) AND IRELAND VERY SIMILAR TOTAL COSTS THAN CANADA AND NEW ZEALAND) AUSTRALIA IS NOT COMPETITIVE IN PRICE AGAINST EMERGING ASIAN STUDY DESTINATIONS MASTER DEGREES: AUSTRALIAN MBAs ARE PRICE COMPETITIVE LENGTH OF OTHER PG COURSES IN AUSTRALIA, MAKES AUSTRALIA LESS COMPETITIVE! AUSTRALIA IS NOT COMPETITIVE IN PRICE AGAINST EMERGING ASIAN STUDY DESTINATIONS

28 Conclusion: Are We At Risk?

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30 EMERGING ASIAN STUDY DESTINATIONS QUALITY OF EDUCATION = WORLD CLASS INSTITUTIONS EMPLOYMENT PROSPECTS GOOD PRICING = COMPETITIVE TOTAL COSTS ASIA = ENGINE OF WORLD S ECONOMY

31 Hong Kong Students Look To Chinese Varsities For young achievers in Hong Kong, the dream universities are still Harvard, Stanford, Oxford and Cambridge But some students are now setting their sights closer to home, considering elite mainland universities that might better prepare them for careers related to China's booming economy Qinghua and Beida may not offer the global recognition of Harvard or MIT. But they carry instant cachet with Chinese employers, and multinationals hiring for local positions are impressed with their graduates. The schools also teach in Chinese, not English - the international language of business The Chinese universities are seeing more interest from young Hong Kongers. The number of students who signed up for the Chinese university entrance exam jumped from 58 in 1990 to 464 this year. Tuition fees on the mainland are low. Beida charges about 10,000 Yuan (S$2,100) a year - a bargain for wealthy Hong Kongers, who might spend more than 10 times as much on a US university Source: Strait Times (30 July 2004)

32 China expecting record number of foreign students in 2004 China is expecting a record number of students to enrol in its universities this year as foreigners seek to cash in on the country's booming economy by becoming proficient in Mandarin Of the anticipated 86,000 foreign students, an overwhelming number will come from Asian countries with close economic, trade and cultural ties with Beijing The major influx of students is largely pushed by China's phenomenal growth, but also reflects the nation's place as a cultural and historic center of Asia The government hopes to have 120,000 foreign students in China by the time Beijing hosts the 2008 Olympics 60,000 of the total number of foreign students come from Asian countries Some 7,000 students come from the United States and more than 6,000 from Europe. Source: Channel News Asia (30 September 2004)

33 MAIN ENGLISH SPEAKING DESTINATIONS PATHWAYS INTO MASTERS PROGRAMS LENGTH OF PG COURSES IN AUS EMERGING ASIAN STUDY DESTINATIONS QUALITY OF EDUCATION = WORLD CLASS INSTITUTIONS EMPLOYMENT PROSPECTS GOOD PRICING = COMPETITIVE TOTAL COSTS ASIA = ENGINE OF WORLD S ECONOMY

34 IMPLICATION: AFFORDABILITY Important condition but not the only one Flexible in delivery is needed - particularly PG courses Focus on affordability in a context of a balanced marketing mix

35 IMPLICATION: QUALITY Perceptions of Australia s quality have improved Need to deliver on the promise of quality Emerging hubs will work towards good quality at an affordable price

36 IMPLICATION: QUALITY International Universities in Singapore In addition to local universities, world-class international universities have increased the level and scope of tertiary education in Singapore. Leading international universities include: Georgia Institute of Technology - The Logistics Institute, Asia Pacific Johns Hopkins University - Johns Hopkins Singapore Massachusetts Institute of Technology (MIT) - Singapore MIT Alliance Shanghai Jiao Tong University Stanford University - Singapore Stanford Partnership Wharton School of the University of Pennsylvania - Wharton SMU Research Centre Technische Universiteit Eindhoven - Design Technology Institute Technische Universitat Munchen - German Institute of Science and Technology

37 IMPLICATION: EMPLOYMENT PROSPECTS

38 IMPLICATION: EMPLOYMENT PROSPECTS Perceptions of employment prospects for Australian graduates have improved over time How employable are our own graduates? Do they get the best paid jobs? Are recruiters headhunting Aus graduates? Starting salaries for UG and PG graduates? What are the employers views? Ensure employability at local and international level

39 What can you do about it? UNDERSTAND YOUR MARKET UNDERSTAND YOUR COMPETITION UNDERSTAND YOUR POTENTIAL CUSTOMERS UNDERSTAND KEY DRIVERS UNDERSTAND YOUR MARKETING MIX (PRICE, PRODUCT, PLACEMENT, PROMOTION)

40 in summary it is not just about cost!

41 Thank You