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EDUCATION & TRAINING Industry in Australia::

The Education division has experienced some changes over the past five years. Enrolment in private schools outpaced government schools for much of the period and strong performances by English schools (otherwise known as English Intensive Language Intensive Courses for Overseas Students, or ELICOS) and tutoring businesses have supported expansion of the Language and Other Education industry. Tutoring businesses have offered new services to expand their market base, as have universities. Online education is a major development for the Education division, and technology is permeating all areas of education.

 

Australia is well regarded for providing high-quality international education, attracting thousands of students from around the world, being able to develop a large-scale, extremely competitive education industry. Over the past decades, Australia has emerged as one of the top five providers of international education services, after the US, the UK, Germany and France. Each year the country attracts more than 450,000 students from about 200 countries. Education is Australia’s second largest services export sector, behind tourism, and became the third largest export overall, contributing $17.2 billion in export income to the economy in 2008-09, an increase of 23.2 percent from the previous financial year.

The training industry in Australia is also robust and, at present, stands at an estimated A$1.7 billion, of which one-third is devoted to behavioral and soft skills training. A significant proportion – 600 million – is dedicated entirely to IT training.

 

TRENDS

 

Growth of Online Education: Online Education has advanced significantly over the past five years. Supporting this growth is the uptake of broadband Internet services, technological developments, growing acceptance of education delivered via the Internet, and a new approach to distance education.

 

Rapid Growth of Branch Campuses: A rapidly growing number of universities across the world are establishing branch campuses in other countries. In fact, the number has almost doubled to 162 in the past three years alone and has jumped eight-fold since 2002. Although the US continues to dominate with its offshore campuses scattered around the globe, more countries have become involved as hosts and providers. The US is followed by Australia with 14 campuses, 9% of the total number.

 

Australia’s International Student Market Will Continue to be dominated by a Small Number of Markets: Four markets will represent 61% of all international student enrollments in Australian higher education by 2025.

KEY FORECASTS

 

The Australian university system has the appetite and capacity to provide 268,156 international student places on campus in Australia by 2025. Demand will exceed supply in 2020, and by 2025 there will be a shortfall of 22,692 international places on projected demand of 290.848.

 

Some of the biggest market opportunities for the export of Australian training services will be in underserved markets of English-speaking nations-- primarily India, Pakistan and Sri Lanka.

 

INDUSTRY DEVELOPMENTS

 

Recent developments in the international education industry are notable in three respects. First, international student mobility has more than doubled in the last two decades or so. Second, program mobility encompassing distance education has also led to new forms of cross-border education. Third, institution mobility through such commercial deals as franchises and twinning arrangements are becoming an increasingly important feature of cross-border education, although on a limited scale. Such developments are leading to the emergence of a new market place for the international education industry.

 

MARKET SIZE

 

Education is Australia’s second largest services export sector, behind tourism, and became the third largest export overall, contributing $17.2 billion in export income to the economy in 2008-09, an increase of 23.2 percent from the previous financial year.

 

Key industry figures for the overall Education market in Australia (2009):

 

Key Industry Figures 

2009

Industry Revenue

78,680.6 $ million

Revenue Growth

3.5%

Industry Gross Product

50,580.4 $ million

Number of Establishments

30,591 Units

Number of Enterprises

27,622 Units

Employment

804,547.9 People

Exports

7,602.9 $ million

Imports

--

Total Wages

43,785.3 $ million

                                   

Key industry figures for the Online Education market in Australia (2009):

 

Key Industry Figures 

2009

Industry Revenue

2,848.4 $ million

Revenue Growth

38%

Industry Gross Product

1,390 $ million

Number of Establishments

764 Units

Number of Enterprises

764 Units

Employment

13,445 People

Exports

--

Imports

--

Total Wages

962.8 $ million

 

KEY PLAYERS in online education


Open Universities Australia

Kaplan Professional

Cengage

SEEK Learning

Other Universities and institutions in Australia.

 

GROWTH FIGURES AND FDI FIGURES

 

Global demand for international higher education will grow from 2.173 million in 2005 to 3.720 million in 2025. This is a growth of 71% over 20 years or compound growth of 2.7% per year. Demand for Australian international higher education will grow from 163,345 in 2005 to 290,848 in 2025.

 

Online Education is estimated to grow by 25.1% per annum over the past five years from $1.15 billion in 2004-05 to $3.54 billion in 2009-10.

 

Stock of Foreign Direct Investment in Australia by Industry

 

Industry  

$ million

% share of total

Agriculture, forestry and fishing

700

0.2

Mining  

99,659

25.4

Manufacturing

73,848

18.8

Electricity, gas and water

16,105

4.1

Construction

13,037

3.3

Wholesale and retail trade

57,093

14.5

Accommodation, cafes and restaurants  

914

0.2

Transport and communication

25,929

6.6

Finance and insurance

53,143

13.5

Property and business services

33,830

8.6

Other services  

6,105

1.6

Unallocated  

12,500

3.2

Total  

392,862

100

 

INVESTMENT OPPORTUNITIES

 

International Education

Distance, online learning, educational software

Commercial partnerships – twinning arrangements, content licensing, franchising, research collaborations, offshore campus setup etc.

 

Increased spending on training, a strong rupee, extraordinary growth and emerging skills shortage in the Indian economy is providing a number of opportunities for Australian training companies in India and similarly other BRICS countries like China. There are opportunities in the soft skills area across all industries, but in particular there are skills shortages in: Financial services (Banking and finance, Insurance, Wealth management), Retail, Biotechnology, Education, Healthcare and Pharma, Chemicals (Plastics, Glass, Paper and textiles) and Infrastructure (Environment, Oil and gas, Engineering, Renewable energy, Mining).

 

RESOURCES: INDUSTRY GROUPS AND ORGANIZATIONS


Australian Human Resources Institute – http://www.ahri.com.au

Australian Institute for Training and Development http://www.aitd.com.au

The International Education Association of Australia (IEAA) –http://www.ieaa.org.au

Department of Education and Training

 

Current Investment Opportunities in Australia:

 

For current investment opportunities in Australia, please click here :   http://investinaustralia.com/current-opportunities

 

 

 

 

REFERENCES

  1. Editors, “Education in Australia”, IbisWorld, Oct. 2010, http://www.ibisworld.com.au/industry/default.aspx?indid=590.
  2. Polat, Cemen, “Recognition of Turkish Schools in Australia”, 2010, Today’s Zaman, http://www.todayszaman.com/tz-web/news-219685-advancing-in-education-in-an-advanced-democracy-success-and-recognition-of-turkish-schools-in-australia-by-cemen-polat.html.
  3. Unknown, “Corporate training to India”, Australian Government, 2009, http://www.austrade.gov.au/Corporate-training-to-India/default.aspx.
  4. Editors, “Online Education in Australia”, IbisWorld, 2010, http://www.ibisworld.com.au/industry/default.aspx?indid=1907.
  5. Unknown, “Corporate training to India”, Australian Government, 2009, http://www.austrade.gov.au/Corporate-training-to-India/default.aspx.
  6. Unknown, “Global Student Mobility: An Australian Perspective Five Years On”, IDP Research, Oct. 2007, http://www.idp.com/pdf/GSM_Brochure_Oct07.pdf.
  7. Unknown, “Global Student Mobility: An Australian Perspective Five Years On”, IDP Research, Oct. 2007, http://www.idp.com/pdf/GSM_Brochure_Oct07.pdf.
  8. Unknown, “Opportunities in Corporate Training – South Asia”, Australian Government, 2009, http://www.austrade.gov.au/ArticleDocuments/1418/South-Asia-Training-2009-Austrade-Presentation.pdf.aspx.
  9. Naidoo, Vikash, “International education: A tertiary-level industry update”, Jounral of Research in International Education, December 2006, http://jri.sagepub.com/content/5/3/323.full.pdf+html.
  10. Polat, Cemen, “Recognition of Turkish Schools in Australia”, 2010, Today’s Zaman, http://www.todayszaman.com/tz-web/news-219685-advancing-in-education-in-an-advanced-democracy-success-and-recognition-of-turkish-schools-in-australia-by-cemen-polat.html.
  11. Editors, “Education in Australia”, IbisWorld, 2010, http://www.ibisworld.com.au/industry/default.aspx?indid=590.
  12. Editors, “Online Education in Australia”, IbisWorld, 2010, http://www.ibisworld.com.au/industry/default.aspx?indid=1907.
  13. Unknown, “Global Student Mobility: An Australian Perspective Five Years On”, IDP Research, Oct. 2007, http://www.idp.com/pdf/GSM_Brochure_Oct07.pdf.
  14. Maslen, Jeff, “GLOBAL: Huge expansion in overseas campues”, Nov. 2009, http://www.universityworldnews.com/article.php?story=20091120103411843&mode=print.