Where is the UK ELT Market Headed? · Where is the UK ELT Market Headed? Patrik Pavlacic, Head of...
Transcript of Where is the UK ELT Market Headed? · Where is the UK ELT Market Headed? Patrik Pavlacic, Head of...
W h e r e i s t h e U K E L T M a r k e t H e a d e d ?
Patrik Pavlacic, Head of Research, BONARD
ABOUT BONARD
BONARD (formerly StudentMarketing) is a market intelligence and strategic development firm. We leverage our global knowledge and connections to help our clients grow in the vibrant international
education market.
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BONARD is a United Nations World Tourism Organization Affiliate Member.
OUR ENGAGEMENT WITH THE UK ELT SECTOR 3
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UK’S GLOBAL POSITION
GLOBAL ELT: OVERALL MARKET SIZE 5
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STUDENT NUMBERS STUDENT WEEKS
580,598
1,378,345
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
2011 2012 2013 2014 2015 2016 2017 2018
UK TOTAL
2,333,544
10,496,109
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
2011 2012 2013 2014 2015 2016 2017 2018
UK TOTAL
Source: BONARD, 2019; based on data from national associations, stats offices and global ELT supply.
GLOBAL ELT: STUDENT NUMBERS 6
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0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
USA UK AUSTRALIA CANADA IRELAND NEW ZEALAND MALTA SOUTH AFRICA
2014 2015 2016 2017 201842%
Source: BONARD, 2019; based on data from national associations, stats offices and global ELT supply.
GLOBAL ELT: STUDENT WEEKS 7
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0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
USA UK AUSTRALIA CANADA IRELAND NEW ZEALAND MALTA SOUTH AFRICA
2014 2015 2016 2017 2018
22%
Source: BONARD, 2019; based on data from national associations, stats offices and global ELT supply.
GLOBAL ELT: TOP SOURCE MARKETS (SWS) 8
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0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
China
Brazil
Japan
Saudi A
rabia
South
KoreaIta
ly
ColombiaSp
ain
Thaila
nd
Turke
y
Taiwan
Vietnam
France
Mexico
Switze
rland
2014 2015 2016 2017 2018
Source: BONARD, 2019
GLOBAL ELT: UK’S SHARE IN TOP 20 MARKETS (SWS) 9
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64%
50% 10
%
50%
13%
13%
15%
7%
28%
44%
50%
51%
8% 2
%
20%
41%
8%
13%1%
41%
Source: BONARD, 2019
Top 1-10 source markets
Top 11-20 source markets
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SPOTLIGHT ON THE UK
UK ELT: TOP SOURCE MARKETS (OVERALL) 11
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Source: English UK, 2019
EU
EU
EU
EU
EU
EU
STUDENT WEEKS
UK ELT: TOP EU SOURCE MARKETS (STATE SECTOR) 12
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0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
POLA
NDSP
AIN
ROMANIA
ITALY
BULG
ARIA
UNITED KIN
GDOM
FRANCE
GERMANY
CZECH RE
PUBL
IC
LATV
IA
PORTU
GAL
HUNGARY
LITHUANIA
GREEC
E
NETHER
LANDS
2017 2018Source market
Share (weeks,
2018)
y-o-y change
(%)Poland 6.1% 13.2%Spain 2.4% -2.7%Romania 2.0% 236.2%Italy 1.9% 20.2%Bulgaria 1.0% 24.8%United Kingdom 0.9% -8.9%France 0.7% -4.8%Germany 0.6% 10.3%Czech Republic 0.3% 10.7%Latvia 0.3% -22.6%Portugal 0.2% -48.0%Hungary 0.2% -41.8%Lithuania 0.2% 4.7%Greece 0.2% -13.0%Netherlands 0.2% -2.4%
Source: English UK, 2019
UK ELT: TOP EU SOURCE MARKETS (PRIVATE SECTOR) 13
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STUDENT WEEKS
0
50,000
100,000
150,000
200,000
250,000
300,000
ITALYSP
AIN
FRANCE
GERMANY
POLA
ND
UNITED KIN
GDOM
AUSTRIA
BELG
IUM
CZECH RE
PUBL
IC
PORTU
GAL
NETHER
LANDS
SWED
EN
HUNGARY
BULG
ARIA
ROMANIA
2017 2018Source market
Share (weeks,
2018)
y-o-y change
(%)Italy 16.2% -5.1%Spain 7.2% -1.8%France 5.6% -0.2%Germany 3.8% -0.5%Poland 0.8% -5.2%United Kingdom 0.8% 128.9%Austria 0.7% -5.3%Belgium 0.6% -7.5%Czech Republic 0.6% 12.4%Portugal 0.5% -7.9%Netherlands 0.5% -16.9%Sweden 0.4% -18.5%Hungary 0.2% 10.2%Bulgaria 0.2% -14.8%Romania 0.2% -14.4%
Source: English UK, 2019
UK ELT: REGIONAL OVERVIEW (SWS) 14
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Source: English UK, 2019
UK ELT: REGIONAL OVERVIEW 15
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Region Student weeks(% share)
Student numbers(% share)
Student weeks(% share)
Student numbers(% share)
Central England 1% 1% 5% 4%
Eastern England 8% 9% 7% 8%
London 24% 21% 27% 32%
Northern England 9% 8% 19% 13%
Northern Ireland 1% 1% 0% 0%
Scotland 12% 7% 6% 3%
South & South Eastern England 27% 34% 20% 25%
South West England & The Channel Islands 16% 18% 14% 14%
Wales 1% 1% 2% 1%
TOTAL 100% 100% 100% 100%
EU Non-EU
Source: English UK, 2019
UK ELT: JUNIOR TO ADULT RATIO (SNS) 16
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63%
37%
35%
61%
64%
68%
61%
47%
74%
37%
63%
65%
39%
36%
32%
39%
53%
26%
0% 20% 40% 60% 80% 100%
WALES
SOUTH WEST ENGLAND & THE CHANNEL ISLANDS
SOUTH & SOUTH EASTERN ENGLAND
SCOTLAND
NORTHERN IRELAND
NORTHERN ENGLAND
LONDON
EASTERN ENGLAND
CENTRAL ENGLAND
ADULTS JUNIORS
Source: English UK, 2019
UK ELT: CHAINS & INDEPENDENTS (PRIVATE SECTOR) 17
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0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
Student numbers Student weeks
2017 2018
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
Student numbers Student weeks
2017 2018
CHAINS INDEPENDENTS
Source: English UK, 2019
UK ELT: CHAINS & INDEPENDENTS (PRIVATE SECTOR, SNS) 18
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010,00020,00030,00040,00050,00060,00070,00080,00090,000
100,000
Easte
rn En
gland
Lond
on
Northern
Englan
d
Scotla
nd
South
& South
Easte
rn En
gland
South
West E
ngland
2017 2018
010,00020,00030,00040,00050,00060,00070,00080,00090,000
100,000
Easte
rn En
gland
Lond
on
Northern
Englan
d
Scotla
nd
South
& South
Easte
rn En
gland
South
West E
ngland
Wales
2017 2018
CHAINS INDEPENDENTS
Source: English UK, 2019
INDUSTRY SENTIMENT 20
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Q: How could English UK help your agency with regard to the nearing Brexit?
Source: BONARD agency survey, 2019; n=194 agents
UK ELT SUPPLY 21
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Source: BONARD, 2019
OVERSU
PPLY
? CONSOLIDATION
• Number of transactions up from 2017.• Closures and exit strategies.
AVERAGE CENTRE SIZE*
PRIVATE SECTOR:Student numbers: 1,341Student weeks: 4,421
STATE SECTOR:Student numbers: 587Student weeks: 5,189
* English UK membership only.
UK’S NEW INTL ED STRATEGY 22
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TARGETS
At its heart is an ambition to increase the value of education exports to £35 billion per year, and to students hosted in the UK to 600,000 per year, both by 2030.
PRIORITY MARKETS
China and Hong Kong; the Middle East and North Africa; Latin America; and the ASEAN group of nations.
BUDGETS AVAILABLE
The strategy encourages education bids to the GREAT Challenge Fund for 2019. This £5 million fund supports export activity for the sector across the globe.
SUMMARY 23
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The ELT market in the UK continues to benefit from the longstanding tradition of being the primary destination to study the English language at high-quality educational institutions. Overall, the UK is still the most popular destination, with a global market share of 42% in terms of student numbers.
The UK ELT sector is still dependent on a declining Western Europe as its main source region (in terms of student numbers. In addition, while EU countries account for 57% of all students, they represent 37% of all student weeks.
In recent years, UK ELT centres have attracted more juniors, helping the market to sustain growth. Juniors make up 54% of ELT students in English UK private sector centres and 13% in state sector centres.
The current political and economic situation and uncertainty surrounding Brexit in the UK is keeping the currency exchange rates low, helping maintain interest among prospective students.
The UK government has also implemented new policies to ensure steady influx of international students, who are offered a two-year work visa after graduating from a British university.
Moreover, the new international education strategy aims to increase the value of education exports to £35 billion per year, and that of higher education students hosted in the UK to 600,000 per year by 2030.