Education and Tourism -
Twins or distant cousins, what is the
relationship?
Dr Perry Hobson
Director THE-ICE
AIEC, Melbourne
October 11th, 2007
Funded by Australian Government through the Department of Education, Science and Training
When is a tourist an
education tourist?
• If they enrol in a full-time course in Sydney?
• Learn English for a few weeks in Byron Bay?
• Listen to lectures given on a cruise ship?
Funded by Australian Government through the Department of Education, Science and Training
Australian International Education Conference 2007
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Overlapping interests
Tourism Education
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Typically this is how the tourism
industry sees tourists
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Australian International Education Conference 2007
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This is typically NOT how
the industry sees tourists
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Promoting Australian
Education/Study Tourism
- There is a clear division on marketing
responsibilities in Australia and even a
interdepartmental MoU
- Tourism Australia (TA) markets ‘tourism’ - it comes
under the Minister for Small Business and
Tourism, which comes under Department of
Industry, Science and Resources
- Australian Education International (AEI) markets
‘intl’ education’ - it comes under the Department of
Education Science and Training (DEST)
- But is this realistic division given the realities of
the marketplace? by Australian Government through the Department of Education, Science and Training
Funded
Australian International Education Conference 2007
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Export value of Australian
education
Nudging $10 Billion annually following ABS revisions
Source ABS 5368.0 International Trade in Goods and Services
Funded by Australian Government through the Department of Education, Science and Training
Exporting education
Coal
25 Iron ore
Tourism
20
Transport
15 Education
$ billions Gold
10
Crude Oil
5 Alumina
Aluminium
0 Beef
Australia's top exports 2005/2006
Natural Gas
Source: The Australian Financial Review
Funded by Australian Government through the Department of Education, Science and Training
Australian International Education Conference 2007
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Education a leading net
exporter for Australia
15
10
5
$ Billion 0
-5
-10
-15
Education Tourism
Exports Imports Net Exports
Education services has a major positive impact on Australia’s balance of
payment position
Source: ABS 5368.0 International Trade in Goods and Services
Funded by Australian Government through the Department of Education, Science and Training
Funded by Australian Government through the Department of Education, Science and Training
Australian International Education Conference 2007
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Singapore Education
A multi-government agency
1. Singapore Tourism Board (STB)
- Promote and market Singapore Education overseas
2. Singapore Economic Development Board
(EDB)
- Attract internationally renowned ed. Institutions
3. International Enterprise Singapore (IE)
- Aid quality schools in Singapore
4. Spring Singapore
- Administer quality accreditation
5. Ministry of Education Singapore (MOE)
- Oversee the public school system in Singapore
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Singapore Education
Information Centre
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Australian International Education Conference 2007
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International Study Tourists
Students to Australia
• International students account for approx:
6.1% of international visitors
29% of total visitor nights
and 28% of expenditure ($3bn*)
• Tourism Australia’s primary target of high-
yield ‘Experience Seekers’, who “long for
self-discovery and education when travelling”
*Source: Tourism Research Australia IV 2005
Funded by Australian Government through the Department of Education, Science and Training
Visitors to Australia by main
purpose of visit
2% 3% Holiday
6%
Visiting friends and
relatives
16%
Business
53% Education
Employment
20% Other
Base: All visitors aged 15 years and over.
Source: Tourism Research Australia, International Visitor Survey, June 2006
Funded by Australian Government through the Department of Education, Science and Training
Australian International Education Conference 2007
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Education Top 10 source
countries - Growth of China
Education - Top 10 Countries
100,000
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
2002 2003 2004 2005 2006
Brazil USA Indonesia Japan Thailand Malaysia Hong Kong S Korea India China
Funded by Australian Government through the Department of Education, Science and Training
Industry is seeing the
connection
“And also there is an
increasing number of
Chinese students
that are coming to
schools and
universities,”
Source: THE AUSTRALIAN
Friday January 6 2006
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Australian International Education Conference 2007
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Overlap of both key inbound
markets to Australia
Top 10 Tourism sources Top 10 Education sources
• New Zealand • China
• UK • India
• Japan • Korea
• USA • Hong Kong
• Singapore • Malaysia
• Korea • Thailand
• China • Japan
• Germany • Indonesia
• Malaysia • USA
• Hong Kong • Brazil
Funded by Australian Government through the Department of Education, Science and Training
TTF Education Tourism Forum
March 5th, 2007
INVITED
SPEAKERS
Hon Fran Bailey
(Minister for
Tourism)
Fiona Buffinton
(AEI)
Paul Fairweather
(TRA)
Tony Pollock
(IDP) Funded by Australian Government through the Department of Education, Science and Training
Australian International Education Conference 2007
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Servicing our Future
• A Parliamentary
Inquiry into the
service export
sector has been
conducted.
• The report was
released in May,
2007
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Recommendation 14
The report made a very clear recommendation:
• The committee recommends that the
government through Tourism Australia and
Australian Education International, engages
in a coordinated effort to promote, target
growth in and understand the importance of,
the interplay between international education
and tourism
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Australian International Education Conference 2007
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Study Tourism Report
• Tourism Research
Australia released
its Study Tourism
Report in Sept
2007
• Segmented into
- Formal Study
- Informal Study Funded by Australian Government through the Department of Education, Science and Training
The Study Tourism Market
Base: All March and December quarter 2006 international visitors aged 15 years and over.
Source: Tourism Research Australia International Visitor Survey, Education Supplementary, March and December Quarters
2006. Funded by Australian Government through the Department of Education, Science and Training
Australian International Education Conference 2007
www.idp.com/aiec 11
Study Tourists - main purpose for
visiting Australia
March & December Quarters 2006
Formal Study
visitors Holiday 52%
75%
VFR 7%
Business 27%
Informal
Study Employment 11%
Visitors Other 3%
25%
Base: All March and December quarter 2006 international visitors aged 15 years and over.
Source: Tourism Research Australia International Visitor Survey, Education Supplementary, March and December Quarters
2006.
Funded by Australian Government through the Department of Education, Science and Training
Study tourist average expenditure
March & December Quarters 2006
Average Study Average International
Tourist Visitor
Trip Expenditure % Trip %
Share Expenditure Share
Spend in Australia $12,878 89 $2,838 59
Prepaid or airfares $1,577 11 $1,995 41
Total Expenditure $14,455 $4,833
Base: All March and December quarter 2006 international visitors aged 15 years and over.
Source: Tourism Research Australia International Visitor Survey, Education Supplementary, March and December
Quarters 2006.
Funded by Australian Government through the Department of Education, Science and Training
Australian International Education Conference 2007
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Formal and informal study tourist
average expenditure
Formal Study Tourist Informal Study Tourist
Trip Expenditure % Share Trip Expenditure % Share
Spend in Australia $15,200 91 $6,100 78
Prepaid or airfares $1,500 9 $1,700 22
Total Expenditure $16,700 $7,800
Base: All March and December quarter 2006 international visitors aged 15 years and over.
Source: Tourism Research Australia International Visitor Survey, Education Supplementary, March and December Quarters
2006.
Funded by Australian Government through the Department of Education, Science and Training
VFR flow-on impacts of the study
tourism market
Based on the data it can be estimated that:
• For every 3 formal study visitors to Australia one
family member visits
• For every 4.5 formal study visitors one friend will visit
• For every 12.5 informal study visitors to Australia one
family member visits, and
• For every 10 informal visitors one friend will visit
• Projected across the 2006 calendar year, this
equates to approximately A$286 million
Funded by Australian Government through the Department of Education, Science and Training
Australian International Education Conference 2007
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Flow-on impacts of the study
tourism market
March and December quarters 2006
Formal Study Informal study All Study
Tourists Tourists Tourists
Study visitors 156,000 52,000 208,000
No. of family visitors per study visitor 0.3 0.1 0.3
No. of study visitors who have friends visit 0.2 0.1 0.2
Estimated no. of family visitors 50,000 4,000 54,000
Estimated no. of friend visitors 35,000 5,000 40,000
Estimated no. of family and friend visitors 85,000 9,000 94,000
Average VFR spend per visitor $1,686 $1,686 $1,686
Total friend and family spend (SM) $143 $15 $158
Base: All march and December quarter 2006 international visitors aged 15 years and over
Source: Tourism Research Australia International Visitor Survey. Education Supplementary, march and December Quarters 2006.
Funded by Australian Government through the Department of Education, Science and Training
Formal and informal study tourists
by main region source markets
March & December Quarters 2006
Formal Study Tourists Informal Study Tourists
Base: All March and December quarter 2006 international visitors aged 15 years and over
Source: Tourism Research Australia International Visitor Survey, Education Supplementary, March and December Quarters
2006
Funded by Australian Government through the Department of Education, Science and Training
Australian International Education Conference 2007
www.idp.com/aiec 14
So - education or
tourism?
Funded by Australian Government through the Department of Education, Science and Training
Conclusions
• Education/Study Tourism is clearly more
important to Australia than is commonly
recognised by the tourism industry
• We need to better understand the education/
study tourism markets
• Need for a better understanding about the
overlapping commonalities and marketing
synergies
• Finally, a need to think about how are we
positioned to deal with future challenges
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Australian International Education Conference 2007
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