Category: Education

In the first months of 2024, immigration policy changes in Australia, Canada, and the UK have been a major focus of attention in our industry as they affect so many students and educators. But policy disruptions are not the only development influencing students’ decision-making about study abroad this year. Another issue is that the UK pound sterling and the US dollar have strengthened in recent months against many emerging market currencies. This means it has become more expensive for students from some of the countries sending the most students abroad to study in the UK and US.

UK pound sterling performing better than most currencies

According to the British Council’s “5 Trends to Watch in 2024” report:

“In 2023, the pound sterling appreciated in nominal terms against the local currencies in 11 of the 12 largest student markets for UK education outside of East Asia; meanwhile, in East Asia, the pound strengthened by at least 4 per cent in each of the 12 largest student markets. Altogether, these 24 markets accounted for more than 87 per cent of all UK study visas issued in the first three quarters of 2023.”

The pound strengthened by 10% or more in the following markets last year, including Nigeria, Turkey, Pakistan, and Ghana, some of the UK’s most important sources of non-EU students.

• Nigeria: 112%
• Turkey: 67%
• Pakistan: 31%
• Ghana: 25%
• Japan: 15%
• Bangladesh: 13%
• Malaysia: 11%

The British Council points out that it is difficult to ascertain how much demand from a single market could falter due to a currency devaluation, but that if study in the UK becomes more expensive for students in many countries, a negative impact is likely:

“The importance of exchange rates in any single market is often overstated, but the combined effect of a weakening of the currencies across nearly every one of the UK’s top student markets could be profound. The pound is also likely to remain strong in 2024, putting the cost of UK education out of reach for a significant share of international students.”

Indeed, the pound is outperforming 92% of world currencies this year based on a stronger than expected economy. The bright news is that inflation is decelerating, making it less expensive for current international students to afford costs of living while in the UK.

The US dollar strengthens once again

Bloomberg reports that “the resurgent US dollar cut a swath through global emerging-market currencies [in April 2024] with the Indonesian rupiah, Indian rupee and the South Korean won among the hardest hit.” This April, says Bloomberg:

• The Indian rupee hit a record low;
• Malaysia’s ringgit has fallen to nearly its lowest level since 1998;
• The Taiwanese dollar sunk lower than it has since 2016;
• The Philippine peso stood at only 57 per dollar;
• Bank Indonesia had to step in to support the rupiah after the currency weakened past 16,000 per dollar for the first time in four years;
• South Korea’s won slid to the “closely watched level” of 1,400 per dollar.

Other currencies such as the South African rand, Polish zloty, Israeli shekel are also struggling against the dollar this year.

How are students affected?

When their home country’s currency declines against that of their host country, current students find it more expensive to pay tuition fees and living costs. The effect on students with ample financial resources is relatively mild, but for those already living on a tight budget, the impact can be serious enough that students have to think twice about how much to buy in grocery stores, whether they need to take on paid work (or more of it), or even if they will be able to complete their studies if the currency imbalance doesn’t lessen soon enough.

For prospective students and their families, the sticker shock comes when – during research about study abroad in the UK or US – they convert tuition and other fees from the UK pound/US dollar into their own currency. Some families can tolerate the more expensive costs of studying while their currency is weak, but others may choose to defer studies in the UK/US or decide to study in a different destination.

The most disruptive possibility is that students’ currency weakens at the same time as inflation is high and/or when their economy is in crisis. For example, as of February 2024:

• Families in Nigeria are dealing both with a weak currency and the highest inflation rate since 1996 (31.7%).
• In Egypt, steep increases in food prices (51%), transport (17.6%), and housing (10%) are impacting household spending.
• In Iran, the inflation rate is coming down slowly but was still at 35.8% in February.
• Zimbabwe’s inflation rate surged to 47.6% in February, propelled by the Zimbabwean dollar’s decline against the US dollar.
• Turkey’s inflation rate increased to 67%.

In terms of when educators in the UK and US might notice any negative effect from their strong currency relative to those in other economies, the answer is that changes in student demand might be noticed over the course of years, rather than weeks or months. Speaking with Times Higher Education, Jazreel Goh, Malaysia director at the British Council said:

“All other things being equal, a weakening currency will depress demand for overseas study, as it makes the cost of going abroad higher. The effect normally plays out over multiple years, as students and parents at different stages in the decision process tend to react differently to changes in the exchange rate.”

But other experts are predicting a more immediate effect. Haike Manning, executive director for Southeast Asia at Acumen said the trend could lead to alternative destinations becoming more popular: “For students ‘on the margins’ in terms of finances, this may lead to increased preference for some destinations over others, rather than deterring from studying abroad.”

Victor Emanuel, Indonesia country head at education consultancy AECC, said he expects some Indonesian families will change their minds about study abroad in 2024: “To those students eyeing Western countries, we anticipate a slight decrease in programme commencements and an increase in deferment rates [of 5 to 7 per cent], especially among self-funded students for the remainder intake in 2024.”

For more additional background, please see:

Canadian Immigration Minister Marc Miller announced this week that the temporary COVID-era policy allowing international students to work an unlimited number of hours off campus during their studies will end as of 30 April 2024. This means that the standing policy limiting students to 20 hours of off-campus work during studies is once again in effect.

However, the Canadian government also announced that beginning in September 2024, that limit on off-campus work hours will be increased to 24 hours per week. Until that time, students are permitted to work for no more than 20 hours per week while classes are in session.

The government had been debating whether it would extend the temporary provision enacted during the COVID-19 pandemic of students being able to work up to 40 hours per week, or to set a cap of 30 hours, but decided in the end that a weekly limit of 24 hours will:

• Allow students to work the equivalent of three eight-hour shifts per week;
• Dissuade visa applications from students whose main purpose of coming to Canada is to work;
• Not create undue distraction for students from their studies.

Students will continue to be able to work as many hours as they like during breaks and summer holidays.

Announcing the forthcoming 24-hour weekly limit, Minister Miller said:

“Looking at best practices and policies in other like-minded countries, most of them limit the number of working hours for international students. Canada’s rules need to be aligned or we will find our programs attracting more and more applicants whose primary intent is to work and not studying …. We know from studies as well that when you start working in and around 30-hour levels, there is a material impact on the quality of your studies.”

The new rules will be a major change for most international students in Canada. CBC News reports that the IRCC has determined that 80% of international students are now working more than 20 hours a week.

The Canadian government has published “Quick Facts” related to the announcement. These include:

• “Recent studies conducted in the US and Canada have shown that there is a considerable decline in academic performance for students working more than 28 hours per week, and that working more than 24 hours per week increases the chances that a student will drop out of their program.

• Most countries that welcome international students set limits on the number of hours they may work while they study. Australia recently changed its policy to allow a student to work 48 hours every 2 weeks. In the US, students must meet additional criteria before being permitted to work off campus at all.”

In general, international students coming to Canada must now have more existing funds than in the past. Each student applying for a visa must have CDN$20,635 (US$14,930) plus the first year of tuition and additional proof of being able to cover other costs. The requirement increases with every additional family member the student brings with them.

For additional background, please see:

For the first time in IDP Education’s Emerging Futures research, the US has emerged as the top-choice destination for surveyed international students, just ahead of Australia and the UK – and significantly ahead of Canada.

The Emerging Futures research programme was launched in March 2022 and now comprises five rounds of surveying of international students around the world. The latest survey went out in March 2024 to more than 11,500 prospective, applied (i.e., those who have submitted their study application), and current students from 117 countries.

The findings from the March 2024 wave suggest that more restrictive rules for international students now in effect in Australia, Canada, and the UK are weakening the competitive position of these destinations relative to the US. The IDP research found that many (54%) prospective and applied students are aware of the new policies in place in these countries and that a significant proportion (41%) of prospective students are reconsidering their study abroad plans as a result. More than a third of students (39%) said government policy updates have a high/very high impact on study abroad decisions.

While the US has always had strict immigration settings for international students and while it rejected a record high number of student visa applications in 2023, its policies have not been a focus of media attention to the degree that policies in the other three of the “Big Four” destinations have been over the past few months. Its competitive advantages (especially quality of education) and disadvantages (especially perceived safety) have remained constant, unlike those of its top competitors.

Canada’s brand has been the most shaken by new policies

Canada has dropped from first (tied with Australia) to fourth place as a preferred study destination in tandem with its two-year cap on issuing new study permits and more restrictive rules affecting international students. Along with the cap, the Canadian government has removed work rights for the partners of international students unless they are accompanying graduate-level students – a move that echoes a similar shift in the UK this year.

As the following chart illustrates, Canada’s position has fallen off by six percentage points since August 2023 (and by eight points compared with earlier surveys). By contrast, the US has gained five points since last year.

Simon Emmett, IDP Connect Chief Executive Officer, says:

“The growth in the US and emerging markets demonstrates that students remain committed to bringing their global study dreams to life but are sensitive to policy changes. The results are a reminder that governments in the UK, Australia and Canada need to provide clarity on international student policies in order to maintain the competitive advantage they have in this global industry.”

In 2024, the UK government stopped allowing family dependants to accompany international students (other than those accompanying research-oriented postgraduate students), and it is also currently reviewing the Graduate Route post-study work scheme (“to reduce opportunities for abuse”). Despite these developments, the UK retained its position as the second most preferred destination after the US in this wave of the Emerging Futures research. UK business schools, however, are reporting weaker non-EU enrolments this year, particularly at the postgraduate level.

Australia is in third place, descending from its previous number one spot (tied with Canada) and losing two percentage points since August 2023. Its reputation among international students is in some jeopardy as visa rejections have risen dramatically amidst tighter immigration settings (including a rigorous new “Genuine Student Test”).

US is benefitting from students rethinking previously preferred destinations

The US education brand is stable in contrast to so much upheaval and confusion around immigration settings in Australia, Canada, and the UK. Those competitor countries had prioritised a welcoming policy stance towards international students in 2023, and then quite abruptly reversed direction as migration levels climbed, supply of affordable housing declined, and media outlets seized on stories of students, agents, or institutions taking advantage of the immigration system. The US has thus not had to introduce a new source of competitive advantage to gain share of prospective student interest – it has only had to maintain the policies it already has in place.

Among students who are reconsidering where they will study, the US is claiming the most share (20%), but New Zealand, Ireland, and Germany are also attracting positive attention, as shown in the chart below.

Opportunities to work/immigrate significantly impact choice of destination

IDP asked students about what influences them when choosing a programme of study. The greatest influence was looking for programmes aligned with “subject of interest,” but a large proportion (43% average across all countries) of students said they would choose a programme based on “earning potential after graduation” – rising to more than half of students in the major markets of China (55%) and the Philippines (57%).

In addition, IDP researchers point out that students (especially Bangladeshis and Filipinos) are highly influenced by whether there is demand for jobs in a destination country – much more so than by skills shortages in their own country.  They note:

“This indicates students are looking at what opportunities are available after graduation even before they have started their international study programme. This links back to the important need to provide clarity on international student policies, such as post-study work, in order to maintain the competitive advantage they have in this global industry.”

Bangladeshi and Filipino students’ higher than average interest in jobs in a destination country also suggests that Bangladesh and the Philippines are markets in which demand is particularly linked to immigration-related policies affecting the ability of international students to work during/after their study programme.

Students will go where they are welcome and able to pursue career goals

The IDP research underlines that most international students are well aware of what a destination does and does not offer them. They pay close attention to visa regulations and any policy changes that affect their ability to work and or emigrate to a host country. Study abroad is a massive investment, and naturally students will do all they can to make sure it pays off.

IDP researchers note that Australia, Canada, and the UK all lost ground in the most recent survey in terms of perceived quality of education. This is a significant finding given that all three countries now also have a weaker competitive offer in other areas such as dependants’ right to work (Canada and the UK) and ease of getting a visa (Australia and Canada).

The IDP research report concludes:

“International students are chasing lifechanging goals. They will adjust their destinations if they feel they will be more welcomed and receive a higher quality of education in another destination.”

For additional background, please see:

The latest call for expanded purpose-built student accommodation (PBSA) in the UK comes from the property consultancy Savills, which recently conducted an analysis of the 20 largest student cities across the country to better understand current supply-demand gaps.

All told, those cities contain 1.3 million full-time students but only half a million PBSA beds. “The balance between supply and demand in student markets is measured by the student to bed ratio – that is the number of students competing for each available bed offered by universities or private providers,” writes UK Residential Research Analyst Corranne Wheeler. “A high student to bed ratio generally indicates a lack of supply…the ratio of full-time students to beds is 2.7 across these 20 markets.”

The highest student-to-bed ratio is found in Glasgow (3.8), but four others have ratios above 3.0, including London And Bristol. In fact, only three cities in the Savills sample had ratios under 2.0. Against those benchmarks, Ms Wheeler suggests that a market norm, or target ratio, is 1.5. “At this level, students will have more available supply whilst not oversaturating the PBSA market; there will always be students who prefer [shared rentals] or living at home with family,” she adds.

That suggests in turn that, at current enrolment levels, the 20 cities in the sample will need another 234,000 PBSA beds in order to approach that target ratio. London alone needs 100,000 of those beds.

The following chart illustrates the gap, by city, between current student-to-bed ratios and the projected ratio for each once PBSA beds currently in development become available. For purposes of the Savills analysis, the “short term pipeline” includes PBSA developments already underway or with construction approval as of February 2024.

For additional background, please see:

QS has conducted one of the most extensive surveys ever of the motivations and preferences of international students interested in advanced business studies (Graduate Management Education, or GME). More than 11,000 students representing 160 nationalities responded to the QS International Student Survey 2023, contributing to a total three-year survey sample of 28,000 responses. QS subsequently published the report entitled “Business school applicant trends and motivations in 2024.”

Most students were from Asia-Pacific (48%) or Middle East/Africa (44%), with the remainder in Europe, Latin America, and North America. The largest proportion had 1-3 years of work experience (32%), while 19% had 4-6 years of work experience. Another 23% had no work experience when applying to a graduate business school programme.

Destination and study preferences

The top preference of respondents was to study in the UK (29%), followed by the US (16%), Canada (14%), and Australia (12%). In terms of competitive advantage, Canada’s brand is tied to its post-study work permit (PGWP) and the UK remains renowned for quality of education. Canada and Australia are seen as more affordable than the UK and US.

As in previous years, the largest share of prospective students were interested in MBA studies, but other specialisations also claimed a significant amount of interest, as shown in the following chart.

Key trends

When analysing the vast amount of data collected by the survey (and previous surveys), QS pulled out several trends that are relevant to all GME business schools recruiting international students, wherever they are in the world. These include:

Openness to blended learning: On-campus learning is the preference of most applicants, but interest in a mix of in-person and online learning (blended/hybrid learning) rose to more than a quarter of applicants (8.5% “very interested” and an 18.6% “more interested than disinterested) in 2023. At the same time, demand for online delivery and MOOCs has declined significantly since 2021. Only 4.4% of applicants were seriously considering online-only study last year, compared to 18.2% in 2021. Similarly, only 5.3% were very interested in MOOCs in 2023 compared to 19.6% in 2021.

Interest in interdisciplinary programmes: Demand is spiking for business programmes that include a focus in other fields, reflecting the niche and increasingly specialised needs of global employers.

Sustainability matters: Finance remains the top choice for study focus, but business programmes with a sustainability orientation are growing in popularity. An institution’s commitment to sustainable values (including the UN’s Sustainable Development Goals, or SDGs) is now a top three factor affecting students’ choice of institution. Applicants are increasingly considering careers “in organisations with a clearer societal impact” and the UN and UNICEF join Amazon, Google, and Apple in top 20 graduate career choices.

Working while studying: GME applicants – like international students in general – want to work while studying, preferably in areas related to their academic focus.

Worries about feeling unwelcome: In 2021, 25% of respondents said they were anxious about being made to feel unwelcome in a host country. This rose to 31% in 2023.

Concerns about costs of studying/living: QS notes, “High costs and limited scholarships are major deterrents for prospective students, highlighting the need for more financial support and accessible education options.” More than three-quarters (67%) of specialised master’s candidates said financial constraints were their main barrier, followed by 40% citing the need to have work experience to be eligible for admission. Financial constraints were also the main barrier for MBA candidates (73%), followed by economic/job market worries (59%).

Relatedly, more than half of respondents (51%) in 2023 said the availability of scholarships influences their choice of destination and institution, in line with findings from the previous two surveys.

Accommodation issues: Students are increasingly worried that they will not be able to secure about quality, affordable housing. More than half (51%) said the challenge of finding accommodation was a real issue in 2023, compared with 45% in 2021. QS says this suggests “the need for business schools to increase the financial and practical support they provide.”

The rise of AI and data analytics: These specialisations emerged as the top electives for prospective students, followed closely by entrepreneurial studies. Relatedly, applicants are now prioritising skills acquisition just ahead of networking and leadership development when thinking about how a business school will prepare them for their career goals.

Recommendations

QS makes several recommendations based on the survey data, including:

• “Align your programmes to meet Generation Z’s preferences for practical skills and the ability to work while studying. Offer courses that directly translate to real-world applications and job market needs.

• Integrate sustainability and social responsibility into the core curriculum. Prepare students to tackle environmental challenges and ethical business practices.

• Electives: Introduce and expand elective courses in AI and data analytics. Ensure students are equipped with cutting-edge technological skills and knowledge that are increasingly demanded in the business world.

• Broaden career services to support diverse aspirations, including roles in tech, non-profits, and global organisations. Help students align their career paths with their personal values and societal impact goals.

• Develop more scholarship programmes and financial aid options to make business education more accessible.

• Actively work on creating a diverse and inclusive environment within the school. This involves enrolling a diverse student body and also addressing these themes in the curriculum and school culture.”

For additional background please see:

“The year ahead will likely be a transitional one, marking both the end of the post-COVID era and the beginning of what is to come afterwards. Expect turbulence ahead.”

That cautionary note opens an interesting new analysis from British Council. It describes an end to the post-pandemic surge in international mobility and projects a slowing of growth in 2024, adding that, “Growth in new enrolments of international students will slow across major host destination markets in 2024, as the effects of the V-shaped recovery from the pandemic fade. In all four major host markets – Australia, Canada, the UK and US – the number of international student enrolments has already surpassed pre-pandemic levels. This means new enrolments will likely increase more slowly in 2024 (and beyond) as these markets revert to the steady…long-term growth rates that preceded the pandemic.”

The paper, “5 Trends to Watch in 2024”, relies in part on recent data on visa issuances for some of the world’s leading study destinations. It notes that, “Growth in issuance of UK study visas essentially ground to a halt by the third quarter of 2023 and will likely go into reverse in 2024 given rising domestic pressures to restrict migration.”

This contrasts with the situation in the United States, where visa issuances reached a new high point last year for the period 2016–2023. The authors expect that the US will gain a greater share of the international student market this year, in part because, “The US will present a more welcoming face to international students than the UK, Australia or Canada, where student migration flows will come under greater scrutiny from policymakers in 2024.”

In general, the report projects a renewed area of increased recruitment activity and competitiveness for US educators, dampened only by the looming US presidential election in November 2024.

Overall, the “turbulence” noted above is expected to result in a decline in international student numbers this year for the first time since the start of the pandemic, and particularly so for destinations such as Australia, Canada, and the UK where more restrictive migration policies are now taking hold. The British Council analysis, however, frames this as a “natural correction” that will effectively put destinations on a more sustainable, long-term growth trajectory.

“Fewer inbound international students means [higher education institutions] can invest more time and energy in ensuring that they recruit the best international students possible,” concludes the paper. “HEIs will also need to focus less on the number of students and more on ensuring that they provide students with the most attractive post-graduate employment opportunities possible.”

The longer-term outlook offered is of a shift in focus from quantitative metrics for student recruitment to “quality-based” indicators. The complete insights report is available for download from the British Council.

For additional background, please see:

FAST FACTS
 
Capital: Manila
                                                                                                       
Population: 118.8 million
 
Youth population: 19% between 15–24; 30% <14 years old
 
Median age: 25
 
GDP: US$471.5 billion (2024)
 
Currency: Philippine peso (PHP)
 
Language: Filipino and English
 
Main language of instruction: English at all levels
 
English proficiency: “High” (#20 of 113 countries ranked on the EF English Proficiency Index, #2 of 23 Asian countries)
 
Religion: Predominantly Christian with a small Muslim minority
 
Geography: The Philippines is composed of more than 7,000 islands in Southeast Asia. Two islands – Luzon and Mindanao – account for two-thirds of the total land area
 
Key student cities: Quezon, Makati, Manila, Pasig, Cebu, Mandaue, Taguig, Davao City, Caloocan, Zamboanga City (according to ChinaAdmissions.com [ ).
 
Outbound students: At least 80,000, given 2023/24 data from Canada and Australia alone
 
Top fields of study for Vietnamese looking at study abroad: Business, health services, hospitality, tourism, engineering, IT-related courses

The Philippines has become a top market for many international educators and is sending out more than double the number of students it did a decade ago. Just looking at the growth trajectory of Filipino students in Canada and Australia provides ample evidence of why so many educators are intensifying their recruiting in this Southeast Asian market:

• Australia: 31,760 in 2024, up from 8,492 in 2019 (+274%)
• Canada: 48,870, up from 7,730 in 2019 (+567%)

IDP Country Director Jojo Habana says that other popular destinations for Filipino students are United Kingdom, New Zealand, and Ireland – but even combined, the number of Filipinos in these countries is much smaller than the number in either Canada or Australia. There are under 4,000 Filipino students in the US, and under 4,000 in New Zealand and Ireland.

What has drawn so many Filipino students to Australia and Canada?

The Philippines is what is often termed as a “migratory” market – i.e., the largest segment of students are interested in emigrating and creating new lives with their families in host countries. Filipinos, like Indonesians, consider family connections incredibly important when assessing study abroad options. IDP Education Philippines sales and operations head Maria Cecilia Mundo has noted:

“We know that all students who study internationally, it’s all about helping their families, helping their economy, increase their means of living, support their siblings and relatives.”

There are several important implications of this migratory drive and associated priority of bringing family members:

(1) Despite the relatively low median age in the Philippines (25 years of age, the lowest in Asia outside of Pakistan), the average age of prospective Filipino students is relatively high. For example, ApplyBoard reports that “the average age of Filipino students applying to study in Canada on [its] platform was 31 in 2022.” At this age, many Filipinos are parents – and thus naturally interested in bringing their family with them when they study.

(2) Adult Filipino students’ interest in bringing their family abroad is reflected in ApplyBoard’s report that in 2022, there was a 126% increase in secondary (school) approvals and a 120% increase in primary (school) approvals for Filipino students coming to Canada. As shown in the chart below, the K-12 sector has experienced the most growth from incoming Filipinos, followed by the college sector. This is largely a function of adult Filipino students coming to Canada for college studies and bringing their children to study in Canadian K-12 schools. 

(3) Mature Filipino students often have tertiary qualifications from Filipino universities, which is driving interest in postgraduate programmes. ChinaAdmissions.com notes that the surge in Filipino students abroad is largely accounted for by those in postgraduate programmes. In the US, there only slightly fewer Filipino graduate students than undergraduate students.

Room for more competition

For the past few years, the overwhelming preference of Filipino students considering study abroad has been to study in Canada or Australia. The US International Trade Administration notes that “U.S. schools should be prepared to invest considerable time and financial resources into the Philippine market as competition is fierce.” However, recent policy changes in Australia and Canada – as well as the UK – will almost provide more room for institutions from other countries to compete for Filipino students.

Specifically:

Canada: In 2024, the spouses of international students who are in undergraduate or college programmes are no longer eligible for open work permits. Only those in master’s or doctoral programmes, or in professional programmes such as medicine and law, are eligible for open work permits. Given the tendency of Filipino students to bring their family with them, this will have a significant effect on demand from the Philippines for Canadian undergraduate and college programmes.

In addition, Canada has raised the level of available funds required for each study permit applicant to CDN$20,635 (US$15,040) – plus the first year of tuition and additional proof of being able to cover other costs. The requirement increases with every additional family member the student brings with them:

Number of applicants (including the student) in CDN dollars

1: $20,635
2: $25,690
3: $31,583
4: $38,346
5: $43,392
6: $43,051
7: $54,611

Given that the average income in the Philippines is under CDN$14,000 (US$10,000), the new funds requirement will be steep for many prospective international students – especially if accompanying spouses can’t get a work permit.

Australia: In Australia, the new “Genuine Student Test” – and an alleged degree of subjectivity being applied by immigration officials to visa applications – is resulting in skyrocketing visa rejection rates, especially for Southeast Asian applications. In addition, Australia has raised its available funds threshold to AUD$24,505 (US$15,690) per student. If that student applies to bring their partner, it is an additional AUD$8,574 and per child, it is an additional AUD$3,670. The alternative is being able to show annual income of AUD$62,222 per student or AUD$72,592 for families. The spouses of international students are only able to work part-time.

United Kingdom: In 2024, the majority of international students are no longer permitted to bring family members with them while they study. The exception is those pursuing research postgraduate degrees. In addition, the funds threshold for those wanting to work in the UK on a Skilled Worker visa has been raised to £38,700. Those applying for a family visa will now need a salary level of £38,700.
 
Clearly, many institutions in Canada, Australia, and the UK could find it more difficult to recruit Filipino students – especially those at the undergraduate level – under current government policies. Scholarships and/or other student supports will be an important lever for those institutions able to offer them in this market.

Important facts to know about the Filipino market

(1) Cost of living concerns on the rise: Despite strong demand for study abroad, an IDP Emerging Futures survey in 2023 found that 68% of Filipino respondents said they were reconsidering their plan to study abroad, citing increased cost of living. The Philippines has been one of the fastest-growing Asian economies in recent years, but in 2023, rising inflation and interest rate hikes put downward pressure on household spending. The economy expanded by 5.6% in 2023, short of a government target of 6-7%. Still, as shown in the chart below, the Philippines economy remains been a rising star in Asia.

(2) Social media strategies are key to reaching students in this market: Filipinos are among the most active nationalities in the world on social media, spending an average of 10 hours a day, seven days a week on various platforms. The top platforms (in terms of active monthly users) are Facebook (95%), Facebook Messenger (92%), TikTok (80%), and Instagram (75%). ChinaAdmissions.com also notes that “LinkedIn’s usage (has also been growing among newly graduated students and young professionals.”

(3) English-taught programmes are preferred: The Philippines’ official languages are English and Filipino, but the language of instruction at all levels of study is English. This makes Filipino students particularly well suited for direct entry into university programmes.
 
(4) The ability to work is highly important: A 2023 IDP survey found that 87% of Filipino respondents said they hoped to fund their study abroad experiences at least partly through part-time work. Most intended to apply for a post study work visa after completing their studies.

(5) International schools: There are many good international schools in the Philippines, especially in Manila, Cebu, and Davao. They tend to follow a US curriculum model and many offer the IB and Advanced Placement programmes. Typical tuition is US$13,000–$20,000 per year. The US Trade Administration identifies these schools as some of the best in Manila: Brent International School, British School of Manila, Chinese International School Manila, Domuschola International School, International School of Manila, The King’s School Manila, Multiple Intelligence International School, Reedley International School, Korean International School Philippines, The Beacon School, Faith Academy, Australian International School, and Southville International School and Colleges. 

(6) Solid higher education institutions: At the tertiary level, most institutions (90%) are private but public institutions enrol about a third of all students. Public higher education is free. The higher education supervisory body, the Commission on Higher Education (CHED), provides a list of all tertiary-level, degree-granting institutions in both the private and public sectors. Five Filipino universities are ranked in QS’s World University Rankings, and all have improved their rankings:

These universities also have important subject strengths. For example:

• Ateneo de Manila University, University of the Philippines Manila, and De la Salle University are in QS’s Top 500 for Arts & Humanities (2024).
• University of the Philippines Manila is in the 501-550 ranking for Engineering & Technology and 401-450 for Life Sciences & Medicine.
• Ateneo de Manila University, University of the Philippines Manila, and De la Salle University are in the top 500 for Social Sciences & Management.

(7) Scholarships: We expect to see more scholarships offered to Filipino students this year as the competition intensifies in this market and as government policy changes affect both Filipinos’ ability to fund their studies and their demand for different destinations.

(8) Family ties mean a lot: There are large Filipino diasporas in several countries including Canada and Australia, and this represents a competitive advantage. Filipino students consider the presence of family of friends in their decision-making, and they often receive financial support from them while studying. Institutions should also take care to tailor some of their communications and outreach to Filipino parents. Profiling successful Filipino alumni and allowing prospective students to chat with current Filipino students are excellent strategies, as is a dedicated website page for Filipino students, as per the example below from Nottingham Trent University.

For additional information, please see: