Suzanne Rowse Director suzanne@bbsw.uk Tel: 01892 724926

1. Suzanne RowseDirectorsuzanne@bbsw.org.ukTel: 01892 724926 www.bbsw.org.uk www.bbsconnected.com

2. This presentation is a small sample of the market intelligence that will be available to schools on our new web service: British Boarding Schools Connected, which will be available in October 2014. Country reports written specifically for boarding schools by experienced school marketers will be available, plus a database of 400+ approved agents with detailed company and staff profiles, exclusive training videos and much more. In fact, everything you need for successful international recruitment even on a limited budget. To find out more and to watch our fun video go to: www.bbsconnected.com

3. The latest news and development on international boarding markets May 2014 Sources: Educational agents ISC Annual Census 2014

4. ? How you can use this information at school?

5. International StrategyWhere is your school now?Where do you want it do go? What do you want to achieve?

6. SWOT Analysis Today’s presentation

7. Key Points from the ISC Census, April 2014 • 1,257 member schools completed the report • Data which is valuable: • TOTAL number of non-British pupils with parents living overseas • Number of NEW non-British pupils with parents living overseas • Comparative data (like-for-like) using those schools which were members in both 2013 and 2014 (1,209 schools)

8. Key Points from the ISC Census, April 2014 • Significant change this year: ISC asked schools: • New question: How many non-British pupils with parents living in the UK? • Previously only asked: How many non-British pupils with parents living overseas? • Calls into question the way data has been recorded in the past.

9. Key Points from the ISC Census, April 2014 • In the comparative data of non-British pupils with parents living overseas, many markets appear to have dropped. But in part due to the change of questions. • Example of USA - Total number of non-British pupils with parents overseas decreased by 53.7% from 557 to 258. We now also know that 1,943 pupils are recorded with parents living in the UK. • Therefore, difficult to use comparative data this year.

10. Key Points from the ISC Census, April 2014 • Another change – tables show data according to pupils’ age and gender rather than just school membership of the various ISC associations (HMC/GSA/IAPS etc). • This is more informative

11. 511,928 Pupils at 1,257 ISC member schools

12. 68,453 Pupils board (full/weekly/flexi) 485 schools have boarders

14. Figures vary depending on age e.g. more flexi boarding at Prep level and more full boarding at Sixth Form level

15. 1.0% increase In boarding numbers in comparative data Last year there was a 1.4% fall

16. 24,391 Non-British pupils with parents living overseas 11,329 Non-British pupils with parents living in the UK Tend to be different nationalities than those with parents living overseas

17. 39 Overseas campuses of ISC schoolsUp 29 since last year (but may not have been previously recorded)

18. 3.9% The increase in fees since last year Lowest rise for almost 20 years

19. £9,596 Average boarding fees But regional variations apply

20. 33.4% % of pupils who receive assistance with fees. More than £660 million annually. Focused on bursaries, not scholarships.

21. Media Speculation suggests that schools are attracting or maintaining British boarders by reducing fees

22. 21,587 vs 9,044 Number of girl boarders in co-ed schools vs. girl boarders in girls’ schools

23. 30,081vs7,741 Number of boy boarders in co-ed schools vs. boy boarders in boys’ schools

24. % of non-British pupils by year groups

25. 91.3% of non-British pupils with parents living overseas who are boarders. It suggests the remainder are home stay or live with relatives.

26. 8.3% Increase in the number of NEW British pupils with parents living overseas (EXPATS). Up from 1,364 in 2013 to 1,477 in comparative data (113 pupils).

27. 8.6% Increase in the number of NEW British pupils with parents serving in HM Forces. Up from 870 in 2013 to 945 in comparative data (75 pupils). The total numbers are down by 342 suggesting a larger number of leavers.

28. Number of NEW non-British pupils whose parents live overseas

29. TOTAL number of Non-British pupils whose parents live overseas

30. Countries in ISC groups are listed. Those in purple are where we see most agent activity at the British Boarding Schools Workshop: Remainder of Europe EEA: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, Gibraltar, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Monaco, Netherlands, Norway, Poland, Portugal, Romania, San Marino, Slovakia, Slovenia, Sweden, Switzerland. Remainder of Europe Non-EEA:Albania, Andorra, Armenia, Azerbaijan, Belarus, Bosnia & Herzegovina, Croatia, Faroe Islands, Georgia, Macedonia, Moldova, Montenegro, Serbia, Turkey, Ukraine.

31. Remainder of Far East:Bhutan, British Indian Ocean Territory, Brunei, Burma, Cambodia, Indonesia, North Korea, Laos, Macau, Maldives, Nepal, Palau, Philippines, Singapore, Timor-Leste, Vietnam Note: Although part of North America, Mexico is listed in the ISC’s Central & South America category.

32. News and views on international markets Political situation in Ukraine • Kiev is bankrupt. Ukraine in recession. • IMF loan of £10 billion – tax hikes, 50% increase in gas prices. • Banks frozen. ATM machines are empty. • Agents and summer providers are noticing bookings are down for summer programmes. • BUT positive feeling about boarding applications for September. • However, some schools reporting that applicants from Ukraine have withdrawn. • Importance of close, trustworthy agent partnerships.

33. Lisa Palmer, Etherton Education “Bookings for summer courses are down slightly at the moment. Agents are frustrated and concerned about visas. They can’t get appointments for visas until late May/early June.”

34. Irina Mikhailova, UK Education Advisor, Business Link, Ukraine “We have not seen a dramatic change so far, the numbers are the same as last year. We are getting the enquiries, we even think those people who can afford it will hurry up with their decision now. As per the accounts and money - the situation is difficult. The most alarming thing about it I think, which is coming, is the bank statements required by UKBA for Tier 4 visas. Especially when it comes to the money in the account for 28 days. People don't trust banks at the moment. The elections are coming, things will definitely change in June. But I can assure you - those who had the money for their children's education abroad still have the money.”

35. News and views on international markets Affordability • Schools are pricing British boarders out of the market – speculation that more bursaries being given to attract/maintain. • This affects the balance of British vs International boarders. • Strength of £ making fees more expensive. • Devaluation of currency in Russia, Ukraine, Kazakhstan and other countries.

36. News and views on international marketing Visas • Change in provider to Teleperformance. • VFS centres closed but agents not informed of new offices eg in Moscow. • Transition not smooth – negative feeling towards UKVI • Agents are frustrated and concerned about visas. • Delays and can’t get appointments for a few weeks.

37. News and views on international marketing Other Points • Some agents are diversifying into different countries so not reliant on one area – increased competition. • More agents serving UK expats but the parents don’t want agents to get paid commission by the school – the parents would rather pay the agent fees and know the advice is unbiased. • Concern about admissions procedures not picking up on behavioural issues/SEN. Pupils moving schools. Schools should ask the agent: has this child been to any other schools in the UK prior to applying to our school?

38. News and views on international marketing Increased awareness & media coverage of internationalisation of boarding schools • ‘The Spectator’ article. • Boarding schools have “changed beyond recognition” having opened doors to overseas pupils. • “Too many schools are irretrievably plugged into a dependence on the international gravy train of the global elite”

39. Markets: China • World’s fastest growing economy • Replacing HK as the largest market of new pupils joining ISC schools • Likely to overtake HK in next 1-2 years as largest market of total number of pupils as HK flattens out • 2nd tier of cities opening up • Parents want agents to offer 5-6 schools – affecting school conversion ratios • Concerns about agent activities

40. Markets: Hong Kong • Cathay Pacific starting direct flights between Manchester and HK from 8th December. Good news for schools in the north. • Long term trend is flat – according to British Council HK • Shortfalls in both desired secondary options and undergraduate places • Not time to be complacent - more schools recruiting there than ever • Personal visits are fruitful • One agent commented that it is not necessarily the top schools that offer the best service and some of the more middle ranking schools are very good at looking after international students. So it is reassuring as long as your school delivers.

41. Markets: Hong Kong • Around 50% of students in UK schools thought to be partially funded by Civil Service Overseas Education Allowance - £7,437 • Civil servants who joined before August 1996 are eligible • Estimated there is a 5 year window before it is no longer relevant • BC Research suggests an on-going concern about the quality of HK education – resulting in students going to the UK earlier either at start of secondary education or at 16+. • Key messages should be academic quality and progression to good universities • Use alumni stories

42. Markets: Germany • Affordability – parents notice the rising fees each year. One parent commented that in 5 or 10 years time, parents won’t be able to afford it. • Agents report that fees are queried much more and occasional assistance with fees are requested more recently. • Hence shorter stays are more likely.

43. Markets: Germany • Major concern from one agent is that schools are invoicing families too late. • They reported that schools are sending out invoices to parents 2 weeks before the September term or even weeks into the term. • Yet families have been told they have to pay prior to the pupil joining. • Often on vacation in August before students start school in September. • Knock on effect is that agents are not getting commission in a timely fashion and having to chase. It is not good for the reputation of our sector. • The agent reported they had good clear procedures with schools in Switzerland, other parts of Europe and Canada. • Please can schools invoice at the end of each term for the next term.

44. Markets: Russia • Has been fastest growing market for schools • Growth doubled between 2012 and 2013 by 462 pupils • Parents value prestige, pathway to university and proximity to Russia • Moscow slowing down and other cities opening up • Need to understand the differences between families in different regions • Fragmented market – many agents placing small numbers • Pupils coming younger • Lack of supervision in schools can lead to problems

45. Marina Yeletskaya IQ Consultancy, St Petersburg “We have a good number of pupils joining British boarding schools in September and the number is up on last year. The parents are worried about the current situation in terms of obtaining a visa.”

46. Markets: Spain • Several key agents report an increase in enquiries and placements for UK independent boarding • Economic crisis is not helping BUT parents see one year placement as a good investment and better than several summer programmes • Main factor is learning English, not pathway to university. English is a ‘must have’ for their professional future. • Target are students at private and bilingual schools in big cities. • Academic year fits well - validation (convalidación) of the studies abroad is automatic up to Year 10 included. • Parents looking for schools with full boarders and not too many Spanish. • Some interest in A levels and IB.

47. Markets: Nigeria • BBC Economic Team identified as one of the MINT countries: (Mexico/Indonesia/Nigeria/Turkey) – “emerging economic giants” • Population 180 million - expected to grow to 440 million by 2050 due to improved health and maternity care. • Infrastructure still problematic to development (eg rebooting electricity) • Recent kidnapping of 200+ girls. “Boko Haram has admitted capturing the girls, saying they should not have been in school and should get married instead.” • Boko Haram, whose name means "Western education is forbidden" in the Hausa language, began its insurgency in Borno state in 2009. Attacks on Christians. • Recommendations between parents are vital. Agents not always route to market.

48. Markets: Nigeria • More Heads on the circuit in Nigeria • More coming at Prep level to get into good schools • Watch out for political unrest with elections next year. • Difficulties in following people up after the first contact. • A local and knowledgeable contact is needed. • Don’t just go on your own. Some people going there naively and treading on a lot of toes. • Expensive to visit and very expensive to book venues for presentations and to get visas.

49. Funke Mayaki Education Consultant, Nigeria • Growth will slow for these reasons: • The value of the Nigerian Naira vs the UK pound – it seems less expensive to study elsewhere • The perception that UK immigration policies are unfriendly • Aggressive marketing by US and Canadian boarding schools – often offering higher commission and other incentives to agents.

50. Other Markets Vietnam • More agent interest in BBSW. • One of SE Asia’s fastest-growing economies. • Aiming to become a developed nation by 2020. • However - scholarships expected. Thailand • Pippa Watt at Mentor agency reports that the market is still very buoyant with new enquiries almost right through the year. Parents are looking ahead and making plans for the future – many families didn’t do this before.