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The Emerging Trend of Educational Tourism: Why Canada Can’t Ignore the 270 Million Student Market

Posted by Vanessa Vachet | 11.17.16

 

Chinese and Japanese International Students, like those who attended the University of the Fraser Valley Summer Programs, are studying abroad in ever increasing numbers!

Chinese and Japanese International Students, like those who attended the University of the Fraser Valley Summer Programs, are studying abroad in ever increasing numbers!

 

If you’ve ever walked in Gastown on a summer’s day, or visited Stanley Park, you would not be surprised to see large swaths of Asian tourists descending from buses, or busily snapping pictures to show to their families back home. It’s no great surprise that a large percentage of our inbound international travellers come from the Asia-Pacific region. They come for our beautiful landscapes, our cultural attractions and yes, a lot of retail shopping. However, there is one other reason they come to visit and often stay for longer: It’s called Educational Tourism…it’s an emerging trend in global travel…and possibly Canada’s next big income generator.

 

According to the China Tourism Research Institute, in 2015, China saw 120 Million of its people travel abroad. They spent big: $104.5 Billion US dollars, which represented an increase of 16.7% over 2014. The main driver was when China introduced more lenient travel visa policies. Countries such as Japan followed suit.

 

Increased international in-bound flights, especially direct flights from places like China, have Canada poised to be one of the hottest travel destinations, particularly when it comes to overseas Asian travellers. In fact, in 2015 alone, Destination Canada reported a 113% increase in tourism from the Asia-Pacific region over previous years.

 

International travel is on the rise! In the fourth quarter of 2015, travel agencies organized 13.8 Million visitors to foreign countries, an increase of 29.19% over the same period in 2014

 

 

But here’s a fact you may not know, even those of you in the tourism industry. The China Tourism Research Institute has revealed that the largest growth of outbound Chinese travellers came from those between 25 and 34 years of age. This is a younger median age than previously seen.

 

The Number of Young Millennial Travellers is on the rise, especially among Chinese Youth!

The Number of Young Millennial Travellers is on the rise, especially among Chinese Youth!

 

In fact, GenZ and Millennial travellers account for 23% of international arrivals each year – more than 270 Million in 2015 alone!

A popular misconception is that they travel on the cheap. But a 2015 report by the World Youth Student and Educational Travel Confederation (WYSE), a global not-for-profit organisation dedicated to promoting and developing opportunities for this demographic, reveals that students are not a budget market – Youth travel generated approx. $283 Billion USD in international tourism receipts and students stay longer and spend more than other tourists.

 

So what do youth travellers seek when roaming the globe?

 

Not just the usual attractions that draw overseas visitors to places like Canada, such as the natural surroundings, the cultural venues, shopping excursions, or visiting family and friends who immigrated. As Millennials become a dominant travel group, they are open to new types of tourism.

They look to expand their horizons in new and personalised ways. One way of doing that is through educational tourism.

It’s not just driven by international students who seek high-quality post-secondary education, though according to Statistics Canada, that trend is alive and well. See the graph below.

 

In Canada, the Number of International Study Permits has Increased Steadily in Recent Years, particularly among Chinese demos

In Canada, the Number of International Study Permits has Increased Steadily in Recent Years, particularly among Chinese and South Asian Demos, Source: Statistics Canada, 2012 report

 

This largely upward trend in numbers shows there’s a developing interest in studying at Canada’s universities and colleges, particularly for families from China.

 

This trend is even reflected at younger ages. Young people are encouraged by their families to stay in Canada for the entirety of their primary and secondary school years. Even QEQ President, Alisa Choi Darcy, found this to be true in her own life. She has personally helped young extended family members who went to study in Canada without their parents. It’s a rising trend among young, middle-class mobile students, especially those from the Asia-Pacific region.

 

One reason for this trend is to improve proficiency in English, so that students become fluent enough to gain entrance into Canadian or U.S. universities. The other reason may be Canada’s study permit guidelines. Children of minor age (which in Canada is usually under the age of 18) are often allowed to study in Canada without obtaining a study permit (See restrictions here).  

 

For very young travellers, trips to Canada are no longer considered ‘just a vacation’.

Modern, high-achieving families, particularly those from the Asia-Pacific countries, want to enrich their children’s travel experience by adding an educational element which will benefit their kids.

 

The Economic Power of Educational Tourism

 

According to a recent UNESCO report, the number of students studying abroad at post-secondary institutions has doubled over the past 12 years, to around 4 Million.

Chinese Students are Among the Most Mobile Student Populations, such as these Students, who have Come to Malaysia on a Study Program

Chinese Students are the Most Mobile Student Populations, such as these Students, who have Come to Malaysia on a Study Program

 

Central Asia is home to the most mobile student population, and over recent years, the numbers have more than doubled: From 67,300 students in 2003, to 165,542 students in 2013 – with an outbound mobility ratio that doubled from 3.5% to 7.6%.

 

As you can see, China boasts the Most Internationally Mobile Student Population

As you can see, China boasts the Most Internationally Mobile Student Population

 

The competition to court these international students is fierce. They represent major dollars in educational spending and other spending in local economies and industries, such as food, entertainment, transportation and accommodations. Other countries have already recognised the economic potential of this kind of tourism and are doing their best to market and appeal to these mobile students. Traditional destination countries, such as the United States and the United Kingdom, remain strong contenders for students who seek a high-quality education.

 

According to UNESCO, in 2013, only 6 destination countries hosted nearly one-half of the total mobile student population:

  • The United States (hosting 19% of global internationally mobile students)
  • United Kingdom (10%)
  • Australia (6%)
  • France (6%)
  • Germany (5%)
  • Russian Federation (3%)

 

However, some of the top five and especially the UK, saw their share of international enrolment decline, from 56% in 2000 to 50% in 2013.

The Competition for a Piece of the Global Educational Revenue is Steep. To Get the Attention of Overseas Students, Canadian Schools will have to Start Marketing to Younger and Younger Ages

The Competition for Global Educational Revenue is Steep! To Get the Attention of Overseas Students, Canadian Schools will have to Start Marketing to Younger and Younger Ages

 

Not to mention that new destination countries and regional hubs are always coming to the fore, such as the Arab states, Singapore and New Zealand; all competing for a share of the academic revenue.

 

If Canada wishes to remain competitive in this travel category, it will have to address two key areas:

 

1)      We will have to look at increasing our number of post-secondary international students. According to UNESCO, Canada ranks only #8 in accepting foreign students, after the USA, UK, France and Australia, among others. Canadian academic institutions may have to consider increasing their global presence through better international marketing and branding. A few more dollars spent in these areas could mean a much bigger share of the mobile student population.

 

2)       We will also have to look at a new variety of educational tourism that goes beyond obtaining a degree.

 

The youth of today, which includes the super-connected Gen Z and tech-savvy Millennials, are more informed and more mobile than any other generations. They seek adventure, and at the same time, personal development. They understand that as a result of globalisation, businesses are searching for employees with more than just a diploma. They also want international experience.

 

Young Graduates of Today are Aware that they Need More than a Diploma. They Need International Experience and that leads to Educational Travel

Young Graduates of Today are Aware that they Need More than a Diploma. They Need International Experience and that leads to Educational Travel

 

To remain a competitive employee in the global workplace often means international business skills are required and maybe other languages. Experience working in cross-cultural, overseas environments and multicultural teams is also highly valued. That’s why young people are increasingly more mobile when it comes to their education. They are aware that they may need to supplement their learning with programs that are not always offered by their local schools and institutions.

 

Perhaps that’s why there is a marked increase in educational and experiential-based travel.In the 90’s, it represented 15% of the global travel market. In the last decade, it increased to 20% and it’s expected to reach 25% in the near future.

 

With a rapidly rising global middle class – projected to grow from around 2 Billion to 3.2 Billion by 2020 and 4.9 Billion by 2030– more disposable income means an increasing number of families can afford to send their children overseas. And they are. Because, an education abroad has become not only a means to gain a scholastic competitive edge, it’s also become a symbol of status.

 

Yet, the thing that is interesting to note, is that these forms of educational travel can also set the pace for a student’s academic career and can even determine how much they will travel in future.

 

Often, Travel Preferences and Future Travel Spending  are Highly Influenced by Young People's Early Travel Experiences

Often, Travel Preferences and Future Travel Spending are Highly Influenced by Young People’s Early Travel Experiences

 

A report by the International Student Travel Confederation and the Association of Tourism and Leisure Education, identified the fact that young travellers often form their future purchasing and travel patterns based on their youth travel experiences

 

Their estimated life-long travel budget is usually set between $40,000 – $120,000 USD, per traveller. If you multiply that by the 4 Million students currently studying abroad…Well, it doesn’t take a mathematician to figure out that that means big bucks for the countries that manage to attract the lion’s share of those young, mobile travellers.

 

Not to mention that the youth, student and educational travel market is set to reach 300 million arrivals by 2020 and will represent $320 Billion USD in market value.

That’s why Canadian schools and the Canadian tourism industry needs to take notice of this trend!

When youth travellers stay longer, travel more widely, and spend more with local retailers than the average tourist, they represent a significant business opportunity and how can we afford not to prepare for this market?

 

If you’re excited by this emerging trend and you want to know more about how your tourism or educational organisation can attract youth and educational travellers, contact QEQ to learn more.

We have years of cross-cultural knowledge and marketing experience, a diverse staff and the expert advice you need when courting international markets.

                                                                                                                                                                     

Sources:

Images courtesy of Flickr via University of the Fraser Valley, Robert Scoble, shankar s., Dominic Rivard, lian xiaoxiao, Montgomery County Planning Commission

International Study Permits Granted By Canada: Statistics Canada, 2012 report

China Travel Guide, 2015 Tourism Statisticshttps://www.travelchinaguide.com/tourism/2015statistics/outbound.htm

Destination Canada, Aug 2016 Tourism Snapshothttps://www.destinationcanada.com/sites/default/files/2016-11/TourismSnapshot-Aug2016_EN.pdf

Asia Pacific Journal of Research, Nov 2014 edition: Educational Tourism: Analysing the Global Trends:http://apjor.com/downloads/0112201422.pdf

The Student Travel Market: http://www.student-market.com/student-travel

Destination Canada, 2016 Tourism Highlightshttp://en.destinationcanada.com/sites/default/files/content/1_nti_highlights_q1_2016_final.pdf

Global News report, Tourism Numbers Spike First Half of 2016http://globalnews.ca/news/2895775/b-c-tourism-numbers-spike-in-first-half-of-2016/