INTERNATIONAL EDUCATION VISITATION— TOURISM OPPORTUNITIES

INTERNATIONAL EDUCATION VISITATION— TOURISM OPPORTUNITIES

Michael Davidson, Hugh Wilkins, Brian King, Perry Hobson, Stephen Craig-Smith and Sarah Gardiner

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

Disclaimer The technical reports present data and its analysis, meta-studies and conceptual studies, and are considered to be of value to industry, government or other researchers. Unlike the Sustainable Tourism Cooperative Research Centre’s (STCRC’s) Monograph series, these reports have not been subjected to an external peer review process.

As such, the scientific accuracy and merit of the research reported here is the responsibility of the authors, who should be contacted for clarification of any content. Author contact details are at the back of this report. The views and opinions of the authors expressed in the reports or by the authors if you contact them do not necessarily state or reflect those of the STCRC. While all reasonable efforts have been made to gather the most current and appropriate information, the STCRC does not give any warranty as to the correctness, completeness or suitability of the information, and disclaims all responsibility for and shall in no event be liable for any errors or for any loss or damage that might be suffered as a consequence of any person acting or refraining from acting or otherwise relying on this information.

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STCRC Tech Report Feedback National Library of Australia Cataloguing-in-Publication Entry Title:

International education visitation—tourism opportunities/Davidson. M ...[et al.].

ISBNs: 9781921658396 (pbk.) 9781921658884 (pdf.).

Subjects: Tourism——Social aspects——Australia Students, Foreign——Australia——Family relationships.

Other Authors/Contributors: Wilkins, H., King, B., Hobson, P. Craig-Smith, S. and Gardiner, S. Dewey Number: 338.479194

Copyright © CRC for Sustainable Tourism Pty Ltd 2010 All rights reserved. Apart from fair dealing for the purposes of study, research, criticism or review as permitted under the Copyright Act, no part of this book may be reproduced by any process without written permission from the publisher. Any enquiries should be directed to: General Manager, Communications and Industry Extension or Publishing Manager, info@crctourism.com.au First published in Australia in 2010 by CRC for Sustainable Tourism Pty Ltd Edited by Kelly Philip Printed in Australia (Gold Coast, Queensland)

Acknowledgements The Sustainable Tourism Cooperative Research Centre, established and supported under the Australian Government’s Cooperative Research Centres Program, funded this research.

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INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

CONTENTS

SUMMARY ....................................................................................................................................................... VII OBJECTIVES OF STUDY ...................................................................................................................................... VII METHODOLOGY ................................................................................................................................................ VII KEY FINDINGS .................................................................................................................................................. VII CONCLUSIONS AND FUTURE ACTIONS ............................................................................................................... IX CHAPTER 1 .......................................................................................................................................................... 1 INTRODUCTION................................................................................................................................................. 1 CHAPTER 2 .......................................................................................................................................................... 2 INTERNATIONAL STUDENTS—A YOUTHFUL TOURISM MARKET ................................................... 2 CHAPTER 3 .......................................................................................................................................................... 6 PROFILE OF THE INTERNATIONAL EDUCATION MARKET................................................................ 6 CURRENT ISSUES IN THE AUSTRALIAN EDUCATION SECTOR ............................................................................... 9 CHAPTER 4 ........................................................................................................................................................ 11 DEFINING AND TRACKING INTERNATIONAL STUDENTS ................................................................. 11 INTERNATIONAL STUDENT ENROLMENTS IN AUSTRALIA .................................................................................. 11 Australian visas issued to international students ........................................................................................ 11 Working holiday and work and holiday visas.............................................................................................. 12 CHAPTER 5 ........................................................................................................................................................ 14 INDUSTRY CONSULTATION ........................................................................................................................ 14 CHAPTER 6 ........................................................................................................................................................ 16 FOCUS GROUPS ............................................................................................................................................... 16 METHOD ........................................................................................................................................................... 16 RESULTS ........................................................................................................................................................... 17 Travel Behaviour ......................................................................................................................................... 17 Barriers to travel ......................................................................................................................................... 18 DISCUSSION ...................................................................................................................................................... 18 CHAPTER 7 ........................................................................................................................................................ 19 NATIONAL SURVEY OF INTERNATIONAL STUDENTS ........................................................................ 19 RESULTS ........................................................................................................................................................... 19 The Respondents.......................................................................................................................................... 19 Travel behaviour ......................................................................................................................................... 21 Activities ...................................................................................................................................................... 25 Accommodation ........................................................................................................................................... 27 Visiting friends and relatives....................................................................................................................... 29 Interest, benefits and barriers to travelling in Australia ............................................................................. 32 Funding and time for studying, living and travelling in Australia .............................................................. 33 COUNTRY PROFILES .......................................................................................................................................... 34 China (n= 1,414)......................................................................................................................................... 34 India (n= 404) ............................................................................................................................................. 38 Korea (n= 194)............................................................................................................................................ 41 Europe (n= 361).......................................................................................................................................... 45 North America (n= 366).............................................................................................................................. 48

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INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES CHAPTER 8 ........................................................................................................................................................ 52 DISCUSSION AND IMPLICATIONS.............................................................................................................. 52 FURTHER RESEARCH ......................................................................................................................................... 53 APPENDIX A—STUDENT VISA DEFINITIONS.......................................................................................... 54 APPENDIX B—INTERNATIONAL STUDENT TRAVEL SURVEY.......................................................... 55 APPENDIX C—NATIONALITY OF SURVEY RESPONDENTS ............................................................... 75 APPENDIX D—INTERNATIONAL STUDENT EXPENDITURES ............................................................ 77 DATA CLEANING ............................................................................................................................................... 77 APPENDIX E—COMPARISON OF INTERNATIONAL STUDENT TRAVEL BEHAVIOUR BY NATIONALITY .................................................................................................................................................. 79 REFERENCES.................................................................................................................................................... 84 AUTHORS....................................................................................................................................................... 86

List of Figures Figure 1: Export income from education Services 2004–05 to 2008–09 _______________________________ 7 Figure 2: Education services exports by country 2008–09__________________________________________ 8 Figure 3: Number of working holiday visas granted _____________________________________________ 13 Figure 4: Length of visit on most recent trip ___________________________________________________ 22 Figure 5: Mode of transport used on most recent trip ____________________________________________ 22 Figure 6: Travel party on most recent trip _____________________________________________________ 23 Figure 7: Expenditures on most recent trip ____________________________________________________ 23 Figure 8: Plans for upcoming vacation period (i.e. Summer 2009/10) _______________________________ 24 Figure 9: Comparison of plans for upcoming vacation period (i.e. Summer 2009/10), by program type _____ 24 Figure 10: Activities of popularity within and outside the place of study______________________________ 26 Figure 11: Shops in Australia are open when I want to visit them ___________________________________ 26 Figure 12: Leisure companions _____________________________________________________________ 27 Figure 13: Preferred type of accommodation___________________________________________________ 27 Figure 14: Safety perceptions of general and backpacker accommodation ____________________________ 28 Figure 15: Cleanliness perceptions of general and backpacker accommodation________________________ 28 Figure 16: Number of friends who intend to visit ________________________________________________ 29 Figure 17: Number of family who intend to visit Australia_________________________________________ 30 Figure 18: Number of friends and family who have visited Australia ________________________________ 30 Figure 19: Number of friends and family who have visited Australia ________________________________ 31 Figure 20: Visiting friends and relatives in Australia by length of stay _______________________________ 31 Figure 21: Where visiting friends and relatives stayed____________________________________________ 32 Figure 22: Sources of funding for program fees, living expenses and travel and recreation _______________ 33 Figure 23: Chinese student travel companions__________________________________________________ 35 Figure 24: Chinese student accommodation preferences __________________________________________ 35 Figure 25: Chinese student length of visit on most recent trip ______________________________________ 36 Figure 26: Chinese student mode of transport used on most recent trip ______________________________ 36 Figure 27: Chinese student travel party on most recent trip _______________________________________ 36 Figure 28: Chinese student expenditure on most recent trip _______________________________________ 37 Figure 29: Chinese student plans for upcoming vacation period (i.e. Summer 2009/10)__________________ 37 Figure 30: Where VFRs of Chinese student stayed while in Australia ________________________________ 37 Figure 31: Length of stay in Australia for Chinese student VFRs ___________________________________ 37 Figure 32: Indian student travel companions __________________________________________________ 38 Figure 33: Indian student accommodation preference ____________________________________________ 39 Figure 34: Indian student length of visit on most recent trip _______________________________________ 39 Figure 35: Indian student mode of transport on most recent trip ____________________________________ 39 Figure 36: Indian student travel party on most recent trip_________________________________________ 40 Figure 37: Indian student expenditures on most recent trip ________________________________________ 40 Figure 38: Indian student plans during upcoming vacation period (i.e. Summer 2009/10) ________________ 40 Figure 39: Where VFRs of Indian student stayed while in Australia _________________________________ 40 Figure 40: Length of stay in Australia for Indian student VFRs_____________________________________ 41 iv

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES Figure 41: Korean student travel companions __________________________________________________ Figure 42: Korean student accommodation preferences __________________________________________ Figure 43: Korean student length of visit on most recent trip ______________________________________ Figure 44: Korean student mode of transport on most recent trip ___________________________________ Figure 45: Korean student travel party on most recent trip ________________________________________ Figure 46: Korean student expenditures on most recent trip _______________________________________ Figure 47: Korean student plans for upcoming vacation period (i.e. Summer 2009/10) __________________ Figure 48: Where Korean student VFR stayed while in Australia ___________________________________ Figure 49: Length of stay in Australia for Korean student VFRs ____________________________________ Figure 50: European student travel companions ________________________________________________ Figure 51: European student accommodation preferences ________________________________________ Figure 52: European student length of visit on most recent trip_____________________________________ Figure 53: European student mode of transport on most recent trip _________________________________ Figure 54: European student travel party on most recent trip ______________________________________ Figure 55: European student expenditures on most recent trip _____________________________________ Figure 56: European student plans for upcoming vacation period (i.e. Summer 2009/10) ________________ Figure 57: Where European student VFRs stayed while in Australia_________________________________ Figure 58: Length of stay in australia for European student VFRs __________________________________ Figure 59: North American student travel companions ___________________________________________ Figure 60: North American student accommodation preferences ___________________________________ Figure 61: North American student length of visit on most recent trip _______________________________ Figure 62: North American student mode of transport on most recent trip ____________________________ Figure 63: North American student travel party on most recent trip _________________________________ Figure 64: North American student expenditures on most recent trip ________________________________ Figure 65: North American students plans for upcoming vacation period (i.e. Summer 2009/10) __________ Figure 66: Where North American student VFRs stayed while in Australia ___________________________ Figure 67: Length of stay in Australia for North American student VFRs _____________________________ Figure 68: Travel companions by nationality___________________________________________________ Figure 69: Accommodation preferences by nationality ___________________________________________ Figure 70: Length of visit on most recent trip by nationality _______________________________________ Figure 71: Mode of transport on most recent trip by nationality ____________________________________ Figure 72: Travel party on most recent trip by nationality_________________________________________ Figure 73: Expenditures on most recent trip by nationality ________________________________________ Figure 74: Plans for upcoming vacation period (i.e. Summer 2009/10) by nationality ___________________ Figure 75: VFRs stayed while in Australia by nationality _________________________________________ Figure 76: Length of stay in Australia for VFRs by nationality _____________________________________

42 42 43 43 43 44 44 44 44 45 46 46 46 47 47 47 47 48 49 49 49 50 50 50 51 51 51 79 79 80 80 81 81 82 82 83

List of Tables Table 1: International student traveller expenditures 2007–08 ______________________________________ 7 Table 2: International student numbers and market share by country ________________________________ 8 Table 3: International student numbers by sector_________________________________________________ 9 Table 4: Main courses of study for student visas ________________________________________________ 12 Table 5: Focus group description ____________________________________________________________ 16 Table 6: Respondent profile ________________________________________________________________ 20 Table 7: Respondent nationality* ____________________________________________________________ 21 Table 8: Leisure activities undertaken by international student respondents___________________________ 25 Table 9: Barriers to student travel ___________________________________________________________ 32 Table 10: Annualised expenditure by program duration __________________________________________ 33 Table 11: Percentage of recreation and personal time spent on each activity __________________________ 34 Table 12: Expenditure ranges included _______________________________________________________ 77 Table 13: Expenditure figures by program duration _____________________________________________ 77 Table 14: Annualised expenditure by program duration __________________________________________ 78

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INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

Abstract There are almost half a million international students studying in Australia. The size of this market, and its growth and resilience over the past decade, represents a potential opportunity for Australia’s tourism industry.

Friends and relatives who travel to Australia to visit the students are also a key driver of inbound tourism to Australia. The role that tourism and travel plays in the international student’s Australian experience, and the tourism significance of the associated visiting friends and relatives market, is however little understood. This report presents the first comprehensive tourism study of international students and their visiting friends and relatives. It involved focus groups and a large national survey of international students studying at higher education, vocational education and training and English language institutions in Australia. The findings provide important insights for Australia’s tourism leaders seeking to take full advantage of this market and develop innovative approaches to maximise its potential.

Acknowledgements Sustainable Tourism Cooperative Research Centre, established and supported under the Australian Government’s Cooperative Research Centres Program, funded this research.

The research team would like to acknowledge the valuable input and support of the Industry Reference Group for this project: Mr. Daniel Gschwind (Queensland Tourism Industry Council); Dr, Tracey Gilmore (Department of Employment, Economic Development and Innovation, Queensland Government); Mr. Euan Robertson (Tourism & Transport Forum); Mr. Steve Nerlich (Department of Education, Employment and Workplace Relations, Commonwealth of Australia); Ms. Jennifer Woodbridge (Australian Tourism Export Council); and Professor Trevor Grigg (University of Queensland). They would also like to thank Universities Australia, ACPET, English Australia and THE-ICE for assisting us by promoting this study to their members as well as the education institutions that hosted the focus groups and distributed the invitation to participate in the national survey to their students. Thanks also to Dr. Mitchell Ross and Mr. John King for their time and assistance with this study.

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INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

SUMMARY Objectives of Study The objective of this project was to conduct the first large scale tourism study of international students. It sought to profile the tourism behaviour of international students studying in Australia, and their visiting friends and relatives (VFRs), to inform tourism leaders on the product and service gaps and opportunities associated with this market.

Methodology The study’s scope and methodology, including the focus groups and survey design, were undertaken in consultation with the project’s industry reference group. This group represented key senior managers from the tourism and international education industries in Australia. In addition, all researcher team members have in depth experience across the various sectors of these industries. A broader pool of tourism and education stakeholders was also interviewed for this study to identify key issues across these industries. Existing research in this area was also reviewed to inform the research process. The study focussed on students currently studying in Australia in higher education, vocational education and training and English language institutions as these programs represent the largest number of international student enrolments in Australia. There were two phases of primary data collection and analysis. The first phase involved eight focus groups that were undertaken in August and September 2009 at the following locations: Sydney and the Blue Mountains (New South Wales), Melbourne (Victoria), Perth (Western Australia) and Brisbane and Toowoomba (Queensland). The focus group data were analysed to identify key issues and inform the second phase of the study, which was a large scale national survey of international students studying in Australia. This national survey of international student travel behaviour was undertaken in October and November 2009. Institutions volunteered to invite their international students to participate in the study via email with a web link to the survey. Students then completed the survey online. An incentive prize draws of Coles-Myer shopping vouchers were offered to encourage participation. There were 5,991 surveys completed. The survey data were analysed using SPSS software.

Key Findings Some of the key findings from this study relating to all international students include: •

Most international students travel while studying in Australia (84.9 percent) and over half intended to travel in Australia during their next extended break (being the summer holidays of 2009/10).

•

Most of the trips international student’s take are relatively short, either day-trips (24 percent) or one to three days (38.2 percent).

•

Sightseeing was a very popular activity for international students both in the city or town where they study and when they travelled. Shopping for pleasure was the most popular activity in the city or town where they study. When travelling away, the most popular activity was visiting natural attractions.

•

Car (34.7 percent) and plane (26.4 percent) are the main forms of transport used by international students when travelling.

•

International students spent, on average, less than $1,000 (84 percent) per trip.

•

Most international students travel in groups, with their friends (62.4 percent), family (14.7 percent) or their partner (14.5 percent). Only 8.4 percent travel by themselves.

•

Hotels/motels (43.3 percent) and apartments (23.3 percent) are the preferred types of accommodation for international students. Backpacker hostels were also popular, with 22 percent preferring this type of accommodation, however this was mainly confined to the non-Asian students.

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INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES •

International students generate a large VFRs market. On average, over 70 percent expected at least two or more friends and two or more family members to visit them in Australia and over half indicated that they have already had a friends and/or family visit them while studying in Australia.

•

Most of the international students’ VFRs stay in Australia one to two weeks (40.3 percent). However, only 36.3 percent are likely to stay in commercial accommodation. The majority stay with the international student (47.1 percent) or friends and relatives (13.8 percent).

•

Many international student’s felt that there was strongly possibility that their parents would travel to Australia to attend their graduation, particularly among Asian students. Approximately 80 percent of Chinese, Indian and Korean students indicated that their parents would maybe or definitely attend their graduation.

•

Despite recent negative publicity about student safety, this was the lowest of the seven barriers to travel measured in this study. The greatest barriers to travel are concerns about money and study commitments.

•

Based on the estimates provided by the participants in this study, international students spend, on average, $42,531 per annum while studying in Australia. Their family contribute most of the money for program fees, living expenses and travel and recreation activities, however income from working is also important to fund travel and recreation activities. For further details refer to Chapter 7 and Appendix D.

•

On average, international students estimated they worked 6.4 hours per week. Using an estimated average hourly rate of $17.64 (based on the casual award rates in retail and hospitality) and assuming 48 working weeks per year, their income from working was estimated at $5,419 per year. Working income therefore contributed an estimated 12.7 percent to their total annual expenditure. The balance of average annual expenditure of $37,112 is assumed to be funded principally from savings and from family sources, and therefore viewed as export dollars.

•

Over 80 percent of international students were considering applying for permanent residency in Australia.

A summary of the nationality profiles is provided below. It highlights that there are key differences between the travel behaviour of each nationality and the associated VFRs markets. Key findings include:

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•

Chinese students tend to travel with their friends and are much more likely to travel with friends who are also Chinese students as opposed to other nationalities. They mostly stay in hotels/motels or apartments and take day-trips or short breaks of one to three nights. This is reflected in their modes of transport which are primarily car and bus. Their VFRs are more likely to stay in hotel/motel (37.8 percent compared to 27 percent for all international students) and less likely to stay with the student (36.5 percent compared to 47.1 percent for all international students) and most VFRs stay one to two weeks in Australia. Approximately 60 percent of Chinese students plan to travel in Australia for their next vacation.

•

Indian students are more likely to travel with friends and relatives who are not students compared to all international students. They also tend to travel with other international students, both from India and other nationalities. They prefer to stay at hotels/motels, but apartments and backpacker accommodation was equally preferred. Their trip length was similar to Chinese students with most taking day-trips or short breaks of one to three nights. The major mode of transport was by car. Indian student VFRs tend to stay longer than international students generally, with 67.5 percent staying for two weeks to over one month. Most (64.1 percent) Indian students plan to travel in Australia for their next vacation.

•

Korean students tend to travel with their friends and family. They are more likely to travel with international students from other nationalities compared to all international students. Like the Indian students, they also tend to travel with other international students, both from Korea and other countries.

They are also more likely to stay in hotels/motels and apartments compared to all international students.

They predominantly travel by plane and take trips of less than one week. Most friends and relatives visiting Korean students stay in Australia for one to two weeks and stay with the student. Over half (52.9 percent) of the Korean students plan to travel in Australia for their next vacation.

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES •

European students tend to travel with friends or their partner. They are much less likely to travel with students from their nationality compared to all international students and tend to travel with international students from other nationalities or other friends and relatives who are not students.

Backpackers are the preferred type of accommodation and car and plane are the major transport modes.

European students tend to take shorter breaks of less than one week, but are less likely to take day-trips compared to all international students. Their VFRs tend to stay with the student, but they also tend to have a longer length of stay in Australia compared to all international students, with 70.6 percent of their VFRs staying more than two weeks in Australia. Most (61.2 percent) European students plan to travel in Australian for their next vacation.

•

North American students are more likely to travel with Australian students (27 percent) than all international students (7 percent). They also tend to travel with other students from North America (27.6 percent) and other countries (22.1 percent) as well as other friends and relatives who are not students (23 percent). Their accommodation preference is fairly balanced between hotels and backpackers. They mainly take short breaks of one to three nights (47.1 percent) and four to six nights (27 percent). Car and plane predominate as the mode of transport. VFRs mostly stay with the student and tend to stay for two to four weeks. Only 44.8 percent of North American students are likely to travel in Australia during their next vacation with 49.7 percent intending to return home and 39.9 percent intending to travel to other countries.

Conclusions and Future Actions It is apparent that the international student market represents a significant opportunity for the Australian tourism industry. There appear to be two sub-markets associated with international students: • international students themselves; and; • their VFRs. Each of these markets present potential benefits for Australia’s tourism industry. The findings from this study suggest that international students are opportunistic travelers, who tend towards day-trips and short breaks undertaken within friendship groups. Based on the estimates provided by the participants in this study, the VFRs market associated with international students constitutes a significantly higher proportion of international leisure visitor arrivals to Australia than was previously thought. Attending graduations appears to be an important motivation to travel to Australia for the parents of international students. These findings suggest that there are opportunities for tourism product and destination management and marketing organisations to tailor their products and develop packages to better service these markets as well as implement marketing campaigns to ignite interest in travel among international students such actions should increase the number of trips taken by the student during their stay in Australia and to motivate their VFRs to visit them during and following their study in Australia.

While this project has been the largest and most comprehensive study of international student travel behavior to date, there is still significant research required to better understand the relationship between the tourism and international education sectors. In particular, further research into international students studying in the nonuniversity sector, including (but not limited to) those students on pathway programs to university, would be beneficial to gain a more comprehensive view of the tourism opportunities and the relationship between length of stay in Australia and travel behaviour. Likewise, assessment of the economic contribution of international students and a more detailed breakdown of expenditure relating to study, work and travel would provide strong evidence-based assessment of the value of this market to both the tourism and international education industries.

Given the size of the overall student population in Australia, it may also be useful to compare international and domestic student markets to search for potential synergies and tourism opportunities.

In order to advance these prospects, further dialogue between leaders in the tourism and international education industries is required. It is clear that tourism and travel plays a role in the international student’s experience of studying in Australia and both sectors could therefore benefit by working more closely together to better facilitate positive outcomes for international students whilst also advancing the economic stimulus this market provides to the Australian economy.

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INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

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INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES Chapter 1

INTRODUCTION Australia has successfully gained a positioning as a well regarded destination offering quality education and training. There were almost half a million international students in Australia on student visas in 2009, increasing 13.3 percent on 2008 figures, and 17.2 percent between 2007 and 2008 (Australian Education International [AEI] 2010). Education has been one of the relatively few service industries which have remained strong through periods of social and political uncertainty (Weaver 2004) and through economic downturns (Archer & Brett 2009; Richards & Wilson 2004). International education now contributes about $17.2 billion in export income annually and has emerged as Australia’s largest service-based export industry (AEI 2009a). It accounts for approximately 122,000 full-time equivalent (FTE) jobs, with 33,000 of these in the education sector itself and a further 89,000 in related sectors (Access Economics 2009). Most universities and many other educational providers around Australia now have well-established marketing strategies to recruit international students into full-fee paying programs (Mazzarol, Soutar & Seng 2003).

Whilst education is the primary reason cited by international students for studying in Australia, students may also be motivated by the various travel activities that they undertake prior to, during and on completion of their studies (Weaver 2004). The growth and resilience of this travel market over the past decade, suggests that it offers potential opportunities for Australia’s tourism industry. However the role of travel and tourism within the experiences of international students in Australia is not well understood. Collaborations with education providers offer tourism related businesses the prospect of targeting international students and enhancing their motivations to travel during their enrolment (Michael, Armstrong & King 2004). There is also an apparent opportunity to recruit international students as advocates who will encourage others to travel to Australia. They could also become future repeat visitors for Australia following their return home (Weaver, 2004). Those who visit student friends and relatives (VFRs) in Australia are another travel marketing offering considerable potential. It has been estimated that the VFRs market associated with international students contributed $314.7 million to the Australian economy in 2007/08 (Access Economics 2009). On the basis of the foregoing section it is clear that international students and their VFRs are an actual and potentially significant travel from the perspective of Australia’s tourism industry. However to date little research has been undertaken into the travel and leisure behaviour of these consumers. On this basis it is clear that the tourism and leisure industries have not maximised the full market potential.

In July 2009 the Sustainable Tourism Cooperative Research Centre (STCRC) commissioned a team of researchers from Griffith University, Victoria University, Southern Cross University and The University of Queensland to undertake a study which would provide tourism and education stakeholders with a comprehensive picture of the tourism opportunities associated with the international student market in Australia. The project aimed to: • profile the current tourism product and service usage by international students studying in Australia; and • to identify the perceived product and services gaps and opportunities.

In order to achieve these aims a national survey of international students was conducted along with a series of focus groups. The present report presents the relevant research outcomes and provides insights into the capacity of Australia’s tourism industry to take full advantage of this source of business. The report: • reviews past research in youth and student travel behaviour (Chapter 2); •

profiles the international student market (Chapter 3);

•

explains how international students are defined and tracked in Australia, including an overview of visas used by international students (Chapter 4);

•

identifies key issues identified by key players in the tourism and education industries (Chapter 5);

•

presents the findings of the focus groups and a national survey of international students currently studying in Australia (Chapter 6);

•

provides recommendations to the tourism and education industries to enhance the international student travel experience in Australia and maximise the associated tourism opportunities (Chapter 7).

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INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

Chapter 2

INTERNATIONAL STUDENTS—A YOUTHFUL TOURISM MARKET In the face of intense competition, the tourism industry is increasingly seeking to reach new market segments with more targeted approaches to marketing and product development. The youth travel segment has attracted the attention of tourism operators internationally because of its substantial scale, growth and influence on the overall market (Reisinger 2002). Youth travellers now represent a significant portion of the international travel market. As cited in King and Richards (2003), World Tourism Organisation estimates that youth travel increased from 14.6 percent of all international tourism trips in 1980 to 20 percent in 2001. King and Richards (2003, p.1) suggest that this growth is not fuelled by demographic changes, as birth rates are falling throughout the developed world, instead it is driven by, ‘increased participation levels in tertiary education, labour mobility and overseas study programs, the emergence of backpacking as an element of global youth culture and changing concepts of youthfulness. The blurring of distinctions between work, study and travel are leading to a hybridisation of youth travel motives’.

In response to the growing demand amongst younger people for travel, a wide and growing variety of tailored youth travel experiences have become available, ranging from specialised youth focussed products (e.g. the tours offered by Contiki) and accommodation (e.g. youth hostels) to youth-based travel events (e.g. postgraduation events such as Schoolies in Australia 1 and Full Moon Parties in Thailand 2 ).

In the United States, the youth travel market has become increasingly important for many tourism destinations and businesses that rely on annual spring break travel undertaken by university students (Buttz, Salazar, Sapio & Thomas 1996; Hobson & Josiam 1992; Hobson & Josiam 1995) Youth-focussed travel organisations, conferences and exhibitions have also proliferated. One of the major annual youth travel industry events is the World Youth and Student Travel Conference (2010). This Conference brings together 450 of the youth travel and education industries most influential organisations and buyers, sellers, service providers and tourism organisations from over 85 countries. Youth travel constitutes an important segment of the Australian tourism industry with approximately one-third of all international visitors aged 15–29 years. In 2009, this market represented approximately 1.6 million of five million international visitors to Australia (based on data from Tourism Australia’s International Visitor Survey for the year ending September 2009).

Taking an extended overseas trip has become a rite of passage for many young people around the world, particularly in western countries. The concept of a ‘gap year’ between school and university or university and work has also become commonplace. Such periods signify an opportunity for fun and independence prior to the responsibilities of adulthood (O’Reilly 2006). Amongst younger travellers’ independent travel is commonly perceived as an education experience that aids self-development, with the skills acquired over the course of travelling being perceived as relevant to future employment prospects (Pearce & Foster 2007). Within the literature, discussions of youth travel have focussed primarily on backpacking. Backpacker travel may be thought of as spontaneous, where travellers ‘go with the flow’ and undertake ‘little or no advance planning, allowing word of mouth and serendipity to influence the itinerary’ (O’Reilly 2006, p.1001).

1

For further information: www.schoolies.org.au

2

For further information: www.fullmoonparty-thailand.com

2

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES During the 1970s, such travellers were characterised as ‘hippies’ and ‘drifters’, though by the later 1990s, the term ‘backpacker’ had moved from the margins into the mainstream. An identifiable backpacker travel industry has evolved in Australia and other destinations around the world with the emergence of backpacker specific products, services and distribution agents (Pearce, Murphy & Brymer 2009).

As the backpacking experience has become increasingly common backpacking has become progressively less independent, more planned and organised and akin to mainstream travel (O’Reilly 2006). Internationally many governments including Australia’s, have encouraged young people to undertake extended stays with specific work and holiday visa arrangements allowing for short-term work as a component of the travel experience. Tourism Australia has also implemented specific youth-orientated marketing campaigns and marketing tools (including brochures and websites) to attract working holiday makers and backpackers to visit Australia. In November 2003, a national Backpacker Tourism Advisory Panel was established, supported by Australian Tourism Export Council (ATEC), to progress youth tourism policy and marketing initiatives.

Travel for educational purposes has emerged as an important part of the youth travel market. According to Tourism Australia’s (2009) International Visitor Survey, approximately eight percent of all international visitors cited ‘education’ as their main purpose of visit and education visitors accounted for a third of all international visitor nights. In 2007, Tourism Australia released a report on study related tourism. The report highlighted the value of the market to the Australian tourism industry and concluded that ‘study tourism visitors stayed in Australia 63.1 million nights and were worth around $5.3 billion to the tourism industry in 2006. Nearly $300 million can be added to this figure by taking into account the spending of family and friends that visited study tourists’ (Tourism Australia 2007, p.1). It also concluded that study tourists stay much longer in Australia than the average international visitor (151 nights versus 32 nights) and spend four times more ($12,878 versus $2,838). Tourism Australia includes ‘education’ as a main purpose of visit on its regular international visitor survey. This ensures ongoing monitoring of the market.

Some industry-based research has measured the dimensions and significance of international education visitation. However limited empirical research has been undertaken on the behavioural aspects of this market.

From an international perspective, several studies have investigated student travel in terms of destination image and preferences (Chen & Kersetetter 1999; Kim, Jogaratnam & Noh 2006), market segmentation (Kim & Jogaratnam 2003; Sung & Hsu 1996), travel motivation (Kim, Oh & Jogartnam 2006; Thrane 2008; Xu, Morgan & Song 2009), satisfaction and value perceptions (Babin & KuemLim 2001) and information searching (Park & Kim 2009). However, most of this research is based on students enrolled in US Universities (e.g. Chen & Kersetetter 1999; Field 1999; Kim, Oh & Jogaratnam 2006; Thrane 2008). Many of these studies have focussed exclusively on domestic students, and thus provide limited relevance to international student travel—domestic and international students have been shown to behave differently.

Field (1999) concluded that domestic and international students are different in terms of their travel intentions, approach to booking and activity preferences. Similarly, Kim and Jogaratnam (2003) compared the activity preferences of Asian and domestic students studying in the United States. They found that Asian students had a higher preference for city-based touring and sightseeing than their domestic counterparts. As highlighted by Xu, Morgan and Song. (2009) this may be attributable to cultural differences. The study compared the travel attitudes and behaviour of domestic university students studying in the United Kingdom and China. Whilst the two cohorts exhibited similar characteristics, they identified significantly different motivations, activities and attitudes. Differences were also evident between sources of funding for travel, planning horizons and choices of accommodation and transport. Compared with their Chinese counterparts UK students, sought travel experiences associated with having fun, doing things with friends and family, escaping from boredom and enjoying new challenges Chinese students attached greater importance to seeing famous sights and learning about other cultures and history. Given the clear differences between the travel behaviours of domestic and international students, it is timely seek further insights into the particular characteristics of the international student target market in Australia.

3

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES To date little research has been conducted into the travel behaviour of international students studying in Australia. Weaver (2004) investigated the travel experiences of international students attending large universities in the Brisbane-Gold Coast corridor during the period prior to 2000. The administration of the survey to respondents two years after their graduation allowed for a longer term view of international student travel behaviour. Weaver found that most (82 percent) took at least one overnight trip within Australia beyond the Brisbane-Gold Coast corridor during their studies; almost half (48 percent) took two or more trips; almost onethird (28 percent) took at least three trips; and one in ten (11 percent) took four trips. Sydney was the most popular destination, with 49 percent of all trips including Sydney as part of the itinerary. Melbourne (29 percent), Cairns (13 percent) and Canberra (13 percent) were the three next most popular destinations.

The duration of three in four trips was less than 13 days; 56 percent of trips were three—six days and 24 percent of trips were seven–13 days. The study highlighted the importance of group-based travel for this market with the average trip involving 4.4 persons. Air travel (37 percent) was the most frequently used mode of transport followed by rental car (18 percent), private vehicle (16 percent), public bus (13 percent), tour bus (11 percent) and rail (5 percent). Most respondents stayed at hotels/motels (69 percent), private homes (29 percent) and youth hostels (20 percent). Only nine percent of respondents stayed at bed and breakfast or guesthouse accommodation and five percent went camping.

It was found that over half (52 percent) of respondents returned to Australia following their studies and 78 percent of respondents hosted visitors from their home country while studying in Australia. Although this study provided initial insights into the travel behaviour of international students in Australia, the small sample size (n=139) did not permit analysis to differentiate relevant sub-segments (e.g. by country, age and gender). The sample was also limited to students from Hong Kong, India, Indonesia, Japan and Singapore, and was not representative of the broader international student population in Australia.

A similar study was also conducted with international students studying in Melbourne, Australia (Michael, Armstrong & King, 2004). This study also had a small sample size of 219 of mostly Asian international students (26.5 percent Malaysian, 14.2 percent Indonesian, 11.9 percent Singaporean, and 10 percent South Korean).

Consistent with Weaver’s findings (2004), the majority of students travelled during their course of study (64.4 percent). Most travelled to New South Wales (51.1 percent) followed by Victoria (50.2 percent), the Northern Territory (8.7 percent) and Western Australia (7.3 percent). The average expenditure incurred during the most recent trip was $392. Indicative that this average expenditure amount is consistent with the findings of other studies, Michael, Armstrong and King (2004) note Pope, Shanka and King’s study of Western Australian students which concluded that students spent an average of $323 per trip. Respondents in Michael, Armstrong and King’s (2004) study indicated that 55 percent had friends and relatives visit them from their home country during their period of study and 64 percent intended to holiday in Melbourne and Victoria on completion of their studies and after their return home. These figures are slightly lower than those reported by respondents in Weaver’s (2004) study. However the sampling time-lag in Weaver’s study may account for these differences.

Min-En (2006) undertook a further investigation of international students in Australia. This qualitative study investigated the motivations, image perceptions and travel patterns of international students studying in Australia, and their VFRs related behaviour. He conducted 23 focus groups with international students studying at Griffith University on Queensland’s Gold Coast. He found that the most important influences for studying in Australia were ‘quality of life’, safety and the relatively lower education costs than competing destinations such as the United States and the United Kingdom. Travel opportunities had little influence on their decision-making, though they did undertake some travel activities during their time in Australia, particularly during visits by friends and family from their home country. All focus group participants were visited by at least one person from their home country. The main considerations during family visits were length of stay and budget. The international student had a major influence on where their friends and family visited, with most visiting mainstream tourist attractions and places in close proximity to their home base on the Gold Coast. The visitors had a tendency to stay with the student in order to save money, and sought out cuisines resembling their home culture since they had a limited concept of ‘Australian cuisine’. Shopping and souvenirs were other important elements of the trip.

4

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES These studies provide some initial insights into the travel needs, preferences, motivations and activities of international students when studying aboard, however in order to maximise the tourism benefits of hosting these students, a better understanding of their travel behaviour is required. Building upon previous studies, the research project presented in this report is the first comprehensive study of international student travel behaviour.

The findings seek to inform tourism leaders so that they can develop innovative, targeted approaches to maximise the potential of this market.

5

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

Chapter 3

PROFILE OF THE INTERNATIONAL EDUCATION MARKET International education has become a globally significant industry with approximately two out of every ten students leaving their home countries to study (United Nations Educational, Scientific and Cultural Organization—UNESCO 2009). There are now over 2.8 million international students studying outside of their home country around the globe and this number continues to grow exponentially with a staggering 53 percent growth from 1999 to 2007 (increasing on average 5.5 percent annually). The growth of international education has mirrored the overall growth in the number of students pursuing tertiary education around the world. The number of tertiary enrolments grew from 28.6 million in 1970 to 152.5 million in 2007. During this period, the ratio of gross tertiary enrolments to population size has almost tripled from nine percent to 26 percent worldwide. However, outbound student mobility ratio has remained constant during this period at 1.9 percent in 1999 compared to 1.8 percent in 2007. Therefore, the number of students travelling aboard for education within the global population has kept pace with overall global tertiary enrolments.

The explosion in global demand for tertiary education has fuelled interest in studying aboard. The ‘Top 10’ countries contribute 37.5 percent of the total international student market. China is the largest source market for international students (421,100 in 2007). This is followed by India (153,300), Republic of Korea (105,300), Germany (77,500), Japan (54,500), France (54,000), the United States (50,300), Malaysia (46,500), Canada (43,900) and the Russian Federation (42,900) (UNESCO 2009). The internationalisation of education has accelerated in recent times as western education has become more popular, particularly among Asian students seeking educational experiences in English speaking destination countries (Baron, Baum & Conway 2009).

Consequently, international competition for profitable international students has intensified, and today, major players in this market compete for market share.

Traditionally, the United States has been the most popular international study destination; hosting one in four international students in 1999. However, as other countries, including Australia, became more active in this market, the United States market share eroded to approximately one in five by 2007. Based on 2007 figures, Australia has the fourth largest international student population (at 7.4 percent of the total market) behind the United States (21.4 percent), United Kingdom (12.6 percent), France (8.8 percent) and Canada (7.6 percent) (UNESCO 2009).

Australia has capitalised on this burgeoning international student market. International education now plays a significant role in the Australian economy. It is the third largest export earner for the country, only surpassed by coal and iron ore (Access Economics 2009). International education is the largest service-based export industry in Australia, ahead of travel services ($11.7 billion) and professional management and consulting services ($3.7 billion) (AEI 2009a). According to Access Economics (2009, p. i), Each international student (including their friend and family visitors) contributes an average of $28,921 in value added to the Australian economy and generates 0.29 in full-time equivalent (FTE) workers.

In total, international education creates over 126,000 full-time equivalent positions in Australia. Lawrence (2009) found in a survey of international university students studying in Victoria, the average weekly expenditure was $140 per week ($6,410 per year) for day-to-day living costs and $160 per week ($7,369 per year) for accommodation with a spend of approximately $4,350 per annum on ‘big ticket’ items, such as cars and computers. Therefore, the total annual living expenses were $17,879. Table 1 shows the breakdown of international student travel expenditure derived from Tourism Australia’s International Visitor Survey and estimated by Access Economics (2009) based on 2007/08 expenditure. It shows that international students spend the majority of their funds on education fees (46.7 percent) and food, drink and accommodation (31.8 percent).

Expenditure to undertake leisure activities in Australia (including entertainment, organised tours, domestic airfares, self-drive, rent-a-cars or other vehicles and horse racing or other gambling) is only four percent of total expenditure by international students.

6

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES Table 1: International student traveller expenditures 2007–08 Category Education fees Food, drink and accommodation Shopping for items for use in Australia Motor vehicles International airfare bought in Australia Other transport fares Shopping items to take home Phone, internet, fax and/or postage Entertainment Organised tours Other Petrol and oil for self-drive cars or other vehicles Domestic airfares Self-drive, rent-a-cars or other vehicles Horse racing or other gambling Total

$M 6,435.9 4,366.4 480.3 408.4 353.7 332.6 296.2 261.7 188.8 149.5 148.6 109.3

Percent 46.9 31.8 3.5 3.0 2.6 2.4 2.2 1.9 1.4 1.1 1.1 0.8

90.1 62.3 42.2 13,726.0

0.7 0.5 0.3 100.00

Source: Access Economics, 2009, p. 5.

As shown in Figure 1, this sector has shown significant growth over the past five years. Export income from international education has increased from $9.1 billion in 2004/05 to $17.2 billion in 2008/09. In 2008, education related exports were up 23.2 percent on the previous year, with most of this growth coming out of India (43 percent) and China (23.8 percent) (AEI 2009a). Demand for Australian qualifications remains high and the sector has shown resilience in the face of the global financial crisis. International student commencements grew 13.3 percent in between 2008 and 2009 (AEI 2010) and 17.6 percent between 2007 and 2008 (AEI 2009b).

International education leads the export earnings of all industries in Victoria and is the second largest export industry in New South Wales (Gillard 2009). In 2008/09, New South Wales has the largest share of international student expenditure in Australia receiving 38 percent of total export income for all onshore students, equating to $6.4 billion dollars. This is followed by Victoria ($5.4 billion) and Queensland ($2.4 billion) (AEI 2009a).

20 17.2

18 16 14

Billions (

14 11.4

12 10.1 10

9.1

8 6 4 2 0 2004/05

2005/06

2006/07

2007/08

2008/09

Year

Figure 1: Export income from education Services 2004–05 to 2008–09 Source: AEI, 2009a.

7

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES China is the largest source market for international students contributing 24 percent of student numbers in 2009 (AEI 2010) and 22 percent of export income in 2008/09 (AEI 2009a). India is the second largest international education market for Australia with students from India representing 18 percent of all international students in 2009 (AEI 2010) and 16 percent of export income from international education in 2008/09 (AEI 2009a). Korea, Malaysia and Thailand, Vietnam, Nepal, Brazil and the United States of America are also important source markets for the Australian international education sector, however each of these markets represent less than ten percent of all international students. Figure 2 and Table 2 show international student export earnings, numbers and market share by country in Australia.

Other education services and royalities 3%

China 22%

Other countries 30%

Brazil 2% Nepal 3% Indonesia 3% Hong Kong 3% Vietnam 3%

India 16% Republic of Korea 6% Thailand Malaysia 5% 4%

Figure 2: Education services exports by country 3 2008–09 Source: AEI, 2009a.

Table 2: International student numbers and market share by country Nationality

Student Numbers

Market Share (in 2009)

China India Republic of Korea Malaysia Thailand Vietnam Nepal Indonesia Brazil United States of America Other nationalities

118,301 89,457 27,866 21,390 18,195 17,586 17,526 14,398 12,565 10,567 143,714

24% 18% 6% 4% 4% 4% 4% 3% 3% 2% 28%

Total

491,565

100%

Source: AEI, 2010.

The three main international education sectors are: • Higher education; • Vocational Education and Training (VET), and; • English Language Intensive Courses for Overseas Students (ELICOS).

3

Includes international students on student visas only.

8

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES Refer to Appendix A for a definition of each of these sectors. In the past, higher education has led the growth in international student enrolments in Australia. However, as shown in Table 3, recently the VET sector has shown significant growth increasing 25.9 percent between 2008 and 2009 (AEI 2010) and 41.3 percent between 2007 and 2008 (AEI 2009b).

Table 3: International student numbers by sector Sector

International Student Numbers

by Sector

Annual Growth

by Sector

2007

2008

2009

2007 to 2008

2008 to 2009

Higher education VET ELICOS Schools Other

168,052 107,066 92,890 26.602 27,256

176,161 151,258 115,128 28,515 31,035

196,007 189,021 119,960 33,364 27,257

4.8% 41.3% 23.9% 7.2% 13.9%

12.2% 25.9% 4.2% -2.8% 7.1%

Total

370,238a

435,263 a

491,565 a

17.6%

13.3%

Source: AEI 2010 & 2009b. a

The total is less than the sum of its components as individual students can undertake study in more than one sector during the year.

Current Issues in the Australian Education Sector The growth in international student numbers has generally been viewed as advantageous to Australia and its education industry by enriching Australia’s education and deepening relations between Australia and other nations (Universities Australia, 2009), particularly our neighbours in Asia (Pricewaterhouse Coopers 2009).

However, the recent attacks and incidents involving Indian students reported in the media, questions about the standards of some education and training providers and uncertainty as a result of the global financial crisis have raised concerns within the Australian Government and the education industry about the future growth and sustainability of this sector.

In July 2009, the Australian Government announced that it would work with the state and territory governments to develop a national International Student Strategy to enhance the experience of international students in Australia (Australian Government, 2009a). In parallel with the development of this strategy, in August 2009, the Australian Government also appointed The Hon Bruce Baird, former Federal Member for Cook, to head up a review into the legislative framework that governs the provision of education and training services in Australia to international students studying in Australia on a student visa, known as the Education Services for Overseas Students (ESOS) Act 2000 (Australian Government 2009b).

As part of this review process, an issues paper was released in September 2009, an interim report was released in November 2009 and a final report released in 2010 (Australian Government 2009c & d; Australian Government 2010a). As a result of this process, the Australian Government is proposing a number of changes to improve the experience of international students.

9

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES A Joint Committee on International Education has been established by the federal, state and territory governments. This committee draws upon the deliberations of the Victorian and New South Wales taskforces, which were formed to enhance the education experience of international students in their respective states (Gillard 2009). While this review and these groups do not directly relate to legislation and issues affecting tourism businesses, they seek to address social inclusion and engagement to avoid isolation and loneliness sometimes experienced by international students. This in turn promotes inter-cultural harmony and engagement with the local communities. The role that tourism experiences, product and events could play in addressing this issue requires further consideration. The tourism industry should also be cognisant of negative media concerning international students given its potential impact of the destination image of Australia, and safety concerns potentially affecting the VFRs market associated with international students.

10

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

Chapter 4

DEFINING AND TRACKING INTERNATIONAL STUDENTS There is inconsistency in the definition of an ‘international student’ and how international student statistics are collected. UNESCO (2009,p. 36) defines internationally mobile students as: students [that] leave their country or territory of origin and move to another country or territory with the objective of studying

They define them according to three characteristics. First, they must not be a permanent resident of the host country in which they pursue their studies. Second, they must obtain the entry qualification to their current level of study in another country (e.g. they must not have completed their secondary education in the country where they study a tertiary level course). And third, they are not citizens of the host country in which they pursue their studies.

International Student Enrolments in Australia In Australia, AEI collects information on international students studying in Australia. According to the Australian Bureau of Statistics (2010), international student enrolments are defined as: Only enrolments that represent students who have actually started studying in Australia on a student visa are counted.

Country of birth is based on citizenship, rather than home residence.

AEI student enrolment data covers onshore international students studying on student visas only (visa subclasses 570 to 575). It does not include: • overseas students on Australian funded scholarships or sponsorships, or students undertaking study while holding tourist or other temporary entry visas (or their dependents) • New Zealand students (as they do not require a student visa to study in Australia).

Data do not represent the number of overseas students in Australia or the number of student visas issued.

Instead the data count actual course enrolments. A student attending two different courses in the same reference period (for example ELICOS and Bachelor Degree) will have both enrolments counted. Students will be counted as enrolled in Australia even if they have left Australia temporarily, for example, during end of year holidays.

Students are not recorded as enrolled in Australia if, for example, they are moving between institutions at the date of reporting and their new course details have yet to be entered by institutions.

Enrolment data is derived from the Commonwealth Provider Registration and International Student Management System (PRISMS) database. PRISMS data is being updated continuously, and Department of Education Employment and Workplace Relations (DEEWR) extracts these data monthly to produce monthly and yearly figures.

Australian visas issued to international students In Australia, international student statistics are also collected by the Department of Immigration and Citizenship.

There are three principal types of visas used by international students with the majority of international students entering on a student visa. However, depending on their length of stay and course of study, some students may also use working holiday visas and tourist visas. International students undertaking a short study course in Australia may use a tourist visa, however they are not permitted to work during their stay.

11

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES Student visas As shown in Table 4, there were over 320,000 student visas granted in 2008–09 across eight main courses of study (refer to Appendix A for a definition of each visa type). Student visa holders are required to meet course attendance requirements and are limited to 20 hours per week work (paid) in non-vacation periods. Student visa applicants must also show evidence that they have the funds to live and study in Australia. In 2010, student visa applicants require evidence of funds of $18,000 per year (plus additional funds for family members as applicable) as part of their visa application.

Table 4: Main courses of study for student visas 2007–08

2008–09

Percentage Change (%)

130,127

133,990

+3%

Vocational education and training

68,382

104,064

+34%

ELICOS

30,545

36,721

+17%

6.935

8,354

+17%

Primary or secondary school course

16,697

14,186

-18%

Non-award

20,698

18,972

-9%

4,521

4,081

-11%

278,184

320,368

+13%

Main course of study Higher education

Postgraduate research

AusAID and Defence Total Source: Australian Government (2009e).

Working holiday and work and holiday visas The working holiday visa is a 12 month visa that enables young people (under 30) from eligible countries to work, while holidaying in Australia. These visa holders can work with one employer for up to six months and study for up to four months. This program was established to ‘encourage cultural exchange and closer ties between arrangement countries by allowing young people to have an extended holiday supplemented by shortterm employment’ (Australian Government, 2010b). Over the past decade, the number of working holiday visas granted has grown considerably (refer to Figure 3). The Australian Government has fuelled this growth with the expansion of the program to include more eligible countries or regions and the introduction of the second year working holiday visa for those who complete a minimum of three months of specified work in eligible regional Australian areas during their first working holiday visa.

Recently, a similar yet separate visa class titled the work and holiday visa was also introduced with Chile, Indonesia, Malaysia, Thailand, Turkey and the United States. In 2008–09, it is estimated that the working holiday program contributed $2 billion in expenditure and created 10,000 jobs (Russack 2009). There were 187,696 working holiday applicants (Australian Government 2010b), and withstanding the global financial crisis, working holiday visa applications are expected to exceed 200,000 in 2009–10 (Russack 2009). According to the Australian Government (2010c), in 2008–09, the leading source of applications was from the United Kingdom (40,182) followed by Korea (39,505), Germany (20,319), Ireland (22,785) and Japan (9,324). The European focus of these applicants reflects the strong links between the working holiday program and backpacker travel as often these working holiday makers used temporary work to assist in funding their Australian holiday.

12

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES 200 180

Number of WHM visas ('000)

160 140 120 100 80 60 40 20 0 2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

Years

Figure 3: Number of working holiday visas granted Source: Australian Government (2009b&c).

13

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

Chapter 5

INDUSTRY CONSULTATION Key stakeholders in the education and tourism industries were involved in shaping the scope and execution of this study. An industry reference group was established in July 2009. Representatives from the public and private sectors of the tourism and education industries participated in this group. Industry reference group members included: •

Mr Daniel Gschwind, CEO, Queensland Tourism Industry Council (QTIC);

•

Dr Tracey Gilmore, Director, Gold Coast, Department of Employment, Economic Development and Innovation, Queensland Government;

•

Mr Euan Robertson, National Manager Research, Tourism & Transport Forum;

•

Mr Steve Nerlich, Director, International Research and Analysis Unit, International Strategy Branch, Australian Government Department of Education, Employment and Workplace Relations;

•

Ms Jennifer Woodbridge, Manager—Industry Development, Australian Tourism Export Council (ATEC); and

•

Professor Trevor Grigg, Deputy Chair of the STCRC and former Deputy Vice-Chancellor (International and Development), University of Queensland.

Research team members included: •

Professor Mike Davidson, Griffith University (Project Leader);

•

Associate Professor Hugh Wilkins, Griffith University;

•

Professor Brian King, Victoria University;

•

Associate Professor Perry Hobson, Southern Cross University;

•

Associate Professor Steve Craig-Smith, University of Queensland; and

•

Mrs Sarah Gardiner, Griffith University (Project Coordinator).

A teleconference with the industry reference group and research team members was held on 23 July 2009 to discuss: • key issues facing the international education sector (particularly relating to maximising tourism outcomes); • the project’s scope and methodology, and; • key contacts for the industry survey and international student survey.

Based on the comments from the industry reference at this meeting, the research team refined the scope of the project as it would investigate the travel behaviour of international students while they are staying in Australia, and not collect pre-arrival or post-departure data. It would also focus only on the higher education, vocational education and training and English language sectors and not include the school and study group sectors as they only represent a small portion of the market.

Consistent with the STCRC project brief, the industry reference group was principally interested in the study providing a better understanding of tourism products and services that were relevant to this market, the places they visited and their travel spending patterns. They suggested that nationality differences in travel behaviour should also be investigated. Gaining the better understanding of the visiting friends and relatives market was also identified as important to maximise the tourism benefits of this market.

14

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES Industry reference group members were also asked to provide industry contacts to the research team in order to conduct a broader survey of industry issues. Thirteen names were presented, of which eight participated in an email or telephone interview of senior tourism and education managers. Participants were asked to comment on: 1.

What are the key tourism opportunities in the international student market?

How could they be capitalised upon?

2.

What are the barriers to maximising the tourism potential of the international student market?

How could they be overcome?

3.

Are there any other issues that should be considered as part of this study?

Several interviewees highlighted that the international student market is not homogenous and anticipated that these groups would have different travel behaviour. They also thought that the travel needs and behaviour of international students would be very different to the backpacker market and that current youth and backpacker tourism product in Australia did not meet the needs of the international student market. They also felt that ‘education’ was the primary motivation of the student’s visit to Australia, therefore travel was not a high priority for them and the financial and time commitments of study may inhibit their opportunity to travel within Australia. It was recognised that work needs to be done on both the demand and supply sides of the tourism industry to better capture and service this market. The ‘educational’ role that travel could play in the international student’s overall experience should be emphasised. Lack of access to student concession tickets on public transport in New South Wales and Victoria was identified as an issue. Double counting and definition concerns (i.e. are they counted as tourists or students?) as well as using different sources of data in international student statistics were also identified as issues.

The findings from the industry interviews together with the comments from the industry reference group informed the development of the questions for the international student focus groups and survey. To ensure this project was informed on the latest industry developments, a representative from the research team also attended the Australian International Education Conference (October 13–16, 2009) and Adventure and Backpacker Industry Conference (November 5, 2009). Information from these events informed the development of the survey and the final report.

Once the survey was drafted, industry reference group members were invited to comment and amendments were made based upon their feedback. After the data collection phase they were given a copy of the preliminary results from the survey and invited to provide comments on the best ways to analyse the data to optimise its usefulness and uptake by industry. They were also invited to comment on the draft report. Collectively, these comments informed the analysis and presentation of this research.

15

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

Chapter 6

FOCUS GROUPS The first phase of the data collection for this project involved conducting focus groups with international students to identify the opportunities and constraints to undertaking travel and tourism activities while studying in Australia. This data was principally used to inform the second phase of the study, which was a national survey of international students currently studying in Australia. A total of nine focus groups were conducted as shown in Table 5. The locations and institutions were selected to ensure each sector and institution type (private vs. government) was represented and that there was geographical dispersion throughout Australia. The focus group data was collected from August to September 2009.

Table 5: Focus group description No.

Sector

Institution Type

Location

Institution

1

VET

private

Perth, Western Australia

Australian School of Tourism and Hotel Management

2

VET

government

Melbourne, Victoria

Victoria University TAFE

3

VET

private

Blue Mountains, New South Wales

Blue Mountains Hotel School

4

ELICOS

private

Sydney, New South Wales

EF International Language Schools

5

ELICOS

government

Melbourne, Victoria

Victoria University English Language Institute

6

University under-graduate

government

Brisbane, Queensland

University of Queensland

7

University under-graduate

government

Toowoomba, Queensland

University of Southern Queensland

8

University post-graduate

government

Brisbane, Queensland

University of Queensland

Method Focus group participants were required to be an international student that is currently temporarily living in Australia for the primary purpose of education and studying at a registered English language, vocational education and training or high education provider. Ethics clearance was obtained through Griffith University.

The focus groups were held in a classroom at the institution where the participant studied. Students were recruited to participate in the focus group through an invitation distributed by the international office at their institution or by their teachers. Each focus group was facilitated by a member of the research team or a professional facilitator.

16

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES The focus group commenced with the facilitator introducing themselves and explaining the nature of the research. An information sheet on the project was distributed and students were given an opportunity to read the information and ask questions. They then signed a consent form agreeing to voluntarily participate in the session.

Once this was completed, the facilitator commenced asking a series of questions and participants gave their answers and opinions. This was an informal, conversational discussion allowing the opportunity to probe answers for a deep understanding. The core questions were: 1.

Can you tell me about the travel and tourism activities you have done or plan to do during your time as a student in Australia?

•

Why did you choose these activities?

•

When do you plan to undertake these activities?

2.

Are there any travel and tourism activities you would like to do but cannot?

Why do you think you cannot undertake these?

3.

Do you plan to travel in Australia—

•

by yourself?

•

with fellow students?

•

with visiting family members?

Each focus group was approximately one hour in duration. Each session was recorded and then later transcribed. Students were given a movie voucher to thank them for their participation.

Results Travel Behaviour The focus group analysis revealed that many students travelled home during their extended holidays, usually during the summer break. Some students perceived travelling home is more important than travelling within Australia. In general, international students tended to take more day-trips and weekend holidays than extended travel. Some felt that the time required from extended travel was limited. For example, one student stated, ‘I also want to travel around Australia, but it would take a long time, and be expensive, as Australia is such a big country’. There was mixed views on backpacker accommodation with some students mentioning issues relating to poor standards and image of backpacker accommodation.

Group travel with other students is very popular as it is seen as safe and there is the opportunity to share costs. Travel with family is seen as difficult to manage due to language barriers and personal effort required to host the family. They tend to travel on weekends due to study commitment or post-graduation. Some students wanted to have a ‘final fling’ holiday after studying and thought that travelling with their family would cramp their style. Hiring a car and sharing accommodation with a group of friends is popular, possibly due to flexibility, cost and opportunity for home cooking. Sightseeing was mentioned frequently as the most important activity when visiting a new place. Most students tended to visit famous, tourist places and attractions on shortbreaks or a day-trip, such as Phillip Island and Puffing Billy in Victoria, and the Gold Coast in Queensland.

Shopping is a popular activity, but perceived the prices were cheaper in their home countries, and late night trading hours are problematic as the students study during the day so want access to shops and experiences at night. Compared to their home country, some students thought Australia was a little quiet and boring. When the leisure excursion was organised by education providers, students questioned whether the aim of the trip was a learning experience or fun. Compulsory participation was also generally viewed negatively. For example, one participant described it this way, ‘These trips were a learning experience with the school study. It would have been better if the trip was a fun trip rather than a learning experience’. International students relied strongly on recommendations via word-of-mouth. Post-trip, many students encouraged others to visit the same locations.

Interaction with local community was viewed as important. For example, a participant mentioned an aboriginal woman showing how to weave baskets at the museum as memorable. Some student sought experiences that are different from home, for example visiting wineries and trying different foods.

17

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

Barriers to travel Time was a major constraint to travel by international students. Many students mentioned that trying to balance study, work and social commitments was difficult. Distance was also an issue, with students recognising the time it took to travel between places. Travel was also constrained by study with many students having attendance requirements, and the time pressure of managing a full time coursework and homework. Weather influenced travel timing. Most students tried to avoid bad weather. For example, one student stated, ‘We will only travel and explore on good days’. Seasonality is also an issue as their extended holidays are typically in December when it’s perceived as not the best time to visit the northern tropical regions of Australia due to the weather.

They also had financial constraints due to the cost of study and travel, particularly if they used they low paying jobs to finance their trip. They faced a work or holiday dilemma, and therefore needed to balance the need to earn money or gain experience through working versus taking a holiday. The lack of student discount on transport (e.g. airlines, trains and trams), particularly inter-state, is an issue. Some students also mentioned that language barriers prohibited their travel in Australia.

Discussion Based on the focus group data analysis, three principal issues relating to international student travel in Australia were identified:

18

•

Timing of a holiday appears to be an important consideration for international students. Due to study commitments, it seems that international students tend to take short-break or day-trip excursions on weekends or more extended trips during vacation periods. During the summer vacation period, the decision to work or return home also competes with holidaying.

•

The activities undertaken by international students may differ from other youth travellers (most notably backpackers) with a greater preference towards sightseeing and shopping. Interestingly, attending events and festivals was not mentioned in any of the focus groups as a motivation to travel.

•

Group travel, with either friends or family, is an important aspect of this market and there are opportunities to tailor tourism experiences and marketing efforts to better accommodate this market.

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

Chapter 7

NATIONAL SURVEY OF INTERNATIONAL STUDENTS This study adopted a mixed method research approach, with data collected by both qualitative and quantitative date methods. As outlined in Chapter 6, eight focus groups were used to collect the qualitative data. The focus groups were recorded, transcribed and content analysed. The data from the focus groups, together with items generated from the literature and expert advice from members of the research team and the industry reference group, informed the development of items for inclusion in scales as part of a self-completion survey. A rigorous scale development process, as recommended by Churchill (1979), was adopted. The items derived from the qualitative research and the literatures were initially subject to expert opinion to establish validity. The scales were then subject to a pilot study with the data being subject to exploratory factor analysis to establish to ensure item purity. Items that were complex were amended to improve clarification.

Education institutions from the ELICOS and higher education sectors were invited to participate in the survey through an email distributed by English Australia and Universities Australia respectively. The International Centre of Excellence in Tourism and Hospitality Education also distributed an email to their members inviting them to participate in the survey. Australian Council for Private Education and Training included an article in their newsletter inviting VET institutions to participate. The research team also contacted institutions individually to encourage participation in the survey. Participating institutions were sent an email that they disseminated to international students inviting them to participate in the survey. In this email, international students were sent a web link to the survey so that they could complete it online.

This chapter outlines and discusses the findings from the survey. It also draws upon the findings from the focus group phase to highlight the international student’s viewpoints. The first part of this chapter discusses the aggregate results for all international students who participated in this study. The differences in travel behaviour between the nationalities of the students are shown in the second part of this chapter. It also outlines the visiting friends and relatives markets associated with each nationality. Specific nationality profiles are given for students from China, India, Korea, Europe and North America. These nationalities were selected based on their significance to the Australian international education sector and to highlight the cultural diversity across the international student population studying in Australia.

Results The Respondents There were 5,991 responses to the survey. Missing data were removed from the analysis. Table 6 summarises the demographic variables for this survey. The majority of the sample (95.8 percent) had a student visa. Over 80 percent were considering applying for permanent residency. Approximately half of the sample studied in New South Wales (52.9 per cent), followed by 33.2 percent in Queensland, 10.3 percent in Victoria and 3.6 percent of sample were from other states. The majority of the sample (or 74.3 percent) anticipated their length of study in Australia would be one to four years. Most of the sample was under 30 years of age, with 30 percent aged from 18 to 21 years, 41.4 percent aged 22 to 25 years and 17.8 percent aged 26 to 29 years. There was a fairly even distribution of males (45.3 percent) and females (54.7 percent) in the sample.

The sample was heavily skewed towards university students with 89.2 percent of respondents studying at a university. Only 2.9 percent of the sample studied at an ELICOS institution and 6.5 percent of the sample were studying at a VET institution (either public or private). In comparison, higher education is 44.4 percent of all international student enrolments in Australia and ELICOS enrolments are 11.5 percent and VET enrolments is 32.5 percent of this market. Approximately 40 percent of the sample studied under-graduate degrees and 40 percent of the sample studied post-graduate (including masters and research higher degrees). Only nine percent were studying English language and 10.5 percent were studying certificate, diplomas or associate degrees. The data was skewed towards higher education (university) students as more universities agreed to participate in the study than ELICOS and VET institutions. In addition, universities tended to have larger international student populations and a well established student email distribution systems. The diversity between institutions and the student profile in the non-university sector may also make this method of distribution more difficult. It should

19

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES also be noted that some the international students studying at a university at the time of completing the survey entered their current program via pathway programs from other non-university education sectors. The link between programs and the student’s study pathway was not captured as part of this study. Future studies should consider alternative sampling methods and incentives to increase participation in the non-university sector of international education providers and their students. Only 6.8 percent of the respondents (n= 353) were not studying their full program in Australia. These students are typically on student exchange or Study Abroad students. Of these respondents, 27.7 percent were from European countries and 27.1 percent were from North America.

Table 6: Respondent profile Demographics

No. of Respondents

Percent (%)

Institution type University VET ELICOS Other

4,612 334 150 72

89.2 6.5 2.9 1.4

Program of study English language Vocational education and training Higher education Other

464 547 4,137 20

9.0 10.5 80.0 0.5

State/Territory of Study New South Wales Queensland Victoria Western Australia Northern Territory Australian Capital Territory South Australia Tasmania

2,733 1,716 531 78 56 28 23 3

52.9 33.2 10.3 1.5 1.1 0.5 0.4 0.1

Anticipated length of study in Australia Less than 1 month 1–3 months 4–6 months 7–12 months 1–2 years 3–4 years More than 4 years

36 77 194 313 1,894 1,946 708

0.7 1.5 3.8 6.1 36.6 37.7 13.7

18–21 years 22–25 years 26–29 years Over 30 years

1,529 2,114 906 550

30.0 41.4 17.8 10.8

Male Female

2,335 2,819

45.3 54.7

Age

Gender

As shown in Table 7, students from China were the largest group (at 27.7 percent of the sample), followed by Malaysia (6.4 percent), Singapore (6.3 percent), Hong Kong (5.3 percent) and India (5 percent). Students from China represent 24.1 percent of all international students enrolled in Australia (AEI 2010); however the sample size for this study was slightly higher at 27.7 percent. In contrast, students from India had a slightly lower representation in this study. Students from India represent 18.2 percent of all international students enrolled in Australia (AEI 2010b); however the sample size for this study was only five percent. It should be noted that at 20

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES the time the survey went live, there was considerable negative media coverage about the treatment of Indian students in Australia and especially in Victoria. Overall, the large sample size for this study should accommodate nationality-based differences. In addition, the data were analysed in aggregate, as well as by country to identify differences between nationalities. A full list of respondents’ nationality is presented in Appendix C. Table 7: Respondent nationality* Nationality

No. of Respondents

Percent (%)

1,414

27.7

Malaysia

328

6.4

Singapore

319

6.3

Hong Kong

270

5.3

India

253

5.0

Indonesia

199

3.9

Vietnam

198

3.9

Canada

195

3.8

Republic of Korea

194

3.8

United States of America

171

3.4

Taiwan

122

2.4

Thailand

105

2.1

Saudi Arabia

93

1.8

Germany

88

1.7

Iran

72

1.4

United Kingdom

69

1.4

France

64

1.3

Japan

63

1.2

Nepal

61

1.2

Pakistan

61

1.2

China

*

Refer to Appendix C for a full list of nationalities

Travel behaviour One of the principal aims of this study was to gain a better understanding of the travel behaviour of international students studying in Australia. The survey revealed that 84.9 percent of respondents had travelled for pleasure away from the town or city where they studied. Of these respondents, 80.2 percent had visited a tourist destination in the state where they studied. A tourist destination was described as places like Rottnest Island, Barossa Valley, Blue Mountains, Uluru, Gold Coast, Cradle Mountain and Phillip Island. In the state or territory where they studied, other popular places to visit were the capital city (77.1 percent) and regional city (68.9 percent). Of all respondents, 61.2 percent had visited a capital city in another state and 63.9 percent had visited a tourist destination in another state. There is also potential for a repeat visitor market among international students, with 90.2 percent of respondents indicating they would maybe or definitely return to these places.

21

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES The travel destinations of international students studying in Queensland, New Wales and Victoria were compared to determine if there were any state-based differences among international students. The other states were not included in this analysis due to the small sample size. Students studying in Queensland were significantly more likely to have visited a regional city (p=0.002) or tourist destination (p=0.000) in the state where they studied than students from Victoria and New South Wales. This perhaps reflects the concentration and proximity of regional tourist destinations in South East Queensland, such as the Sunshine Coast and Gold Coast On their last pleasure trip away from the place where they studied, 38.2 percent of respondents stayed away for one to three nights, 22.8 percent of respondents stayed away for four to six nights and approximately one in four took a day-trip. Only 15 percent took a trip longer than six nights (refer to Figure 4). The mode of transport for this trip for most students was a car (34.7 percent) followed by a plane (26.4 percent), bus (12 percent), train (11.9 percent) and boat (5.8 percent) (refer to Figure 5). Most travelled with friends (62.4 percent), their family (14.7 percent) or their partner (14.5 percent). Only 8.4 percent travelled alone (refer to Figure 6). As shown in Figure 7, most respondents (84.2 percent) spent less than $1,000 on their last trip with 16.1 percent spending less than $100. Only 15.8 percent spent over $1,000.

More than 2 weeks 5.9% Day visit 24.0%

1-2 weeks 9.1%

4-6 nights 22.8%

1-3 nights 38.2%

Figure 4: Length of visit on most recent trip

Other Hitch hiking 5.1% 4.1% Boat 5.8% Car 34.7% Train 11.9%

Bus 12.0%

Plane 26.4%

Figure 5: Mode of transport used on most recent trip

22

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

By myself 8.4%

With my partner 14.5%

With family 14.7%

With friends 62.4%

Figure 6: Travel party on most recent trip

More than $1,000 16.0%

Less than $100 16.1%

$100-$300 23.1%

$501-$1,000 23.5%

$301-$500 21.3%

Figure 7: Expenditures on most recent trip In terms of future travel plans, interstate travel was highly desired with 88.9 percent intended to visit an interstate tourist destination and 83.6 percent intended to visit a capital city in another state/territory from where they studied. In the state/territory where they studied, 85.2 percent planned to visit a tourist destination, 71.2 percent planned to visit a regional city and 65.6 percent planned to visit the capital city.

Participants completed the survey in October or November 2009, so most students were approaching an extended vacation period over the summer. They were asked about what they intended to do during their next holiday break. Over half (51.7 percent) intended to travel in Australia and only 21.4 percent intended to travel to other countries. There was also a large proportion that intended to return to their home country (41.9 percent) and undertake paid work (43.1 percent). Only 5.9 percent intended to undertake unpaid work, such as volunteering or an internship (refer to Figure 8). Please note that these activities do not total to 100 percent as respondents could selected multiple items, e.g. travel in Australia and paid work.

23

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES 60

50

Intention (%)

40

30

20

10

0 Travel in Australia

Work (paid)

Return to their home country

Travel to other countries

Work (unpaid)

Activity

Figure 8: Plans for upcoming vacation period (i.e. Summer 2009/10) As show in Figure 9, the summer travel plan for international students varies depending on their program type. ELICOS students are more likely to travel in Australia, higher education students are more likely to return home and VET students are more likely to work in comparison to each other.

70%

63.4%

55.4% 52.4%

54.5%

60%

47.7%

46.1% 41.1%

50%

41.2% 32.1%

40%

24.9%

30%

17.9% 14.7%

20%

6.3%

6.5%

6.9%

10% 0% Travel in Australia

Travel to other countries

Higher Education

Return home

VET

Paid w ork

Unpaid w ork

ELICOS

Figure 9: Comparison of plans for upcoming vacation period (i.e. Summer 2009/10), by program type Some comments from the focus groups that describe the student’s views on studying, working, travelling and returning home: I have been sightseeing with the school around WA. I would love to go to Sydney as I have an uncle there, after I finish my studies for a rest.

I have been home once and plan to go back in November. I am working hard with study and also working in hospitality. I haven’t had time to travel.

Summer is a good time to make money and we can work lots of hours, which means we can earn a lot of money to pay for our tuition.

After finishing our studies we then will want to travel around Australia and see everything, but for the moment study comes first.

We are planning to go to Cairns or Port Douglas for our next holiday. I want to go in the Christmas break, that is the only time we can have a long holiday, but the weather and conditions in the sea are not good; we have to go when we have our holidays.

24

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

Activities Encouraging students to engage in tourism activities both within the city or town where they study and during their trips away is important to maximise consumption of tourist products, and in turn, their economic impact on the destinations where they live and visit. Students were asked for one or multiple responses to the activities.

Shopping for pleasure is the most popular activity in the town or city where they study (85.4 percent). This is followed by sightseeing (80.4 percent) and visiting natural attractions (78.9 percent), such as beaches or national parks. These three activities were also the most popular activities undertaken outside of the city or town where they study. Interestingly, visiting natural attractions (75.6 percent) is the most cited activity closely followed by sightseeing (73.3 percent). Table 8 and Figure 10 compare the popularity of these activities within and outside of the city or town of study. Shopping for pleasure was the third most frequently cited activity when away from the city or town where they study, with only approximately half (51.3 percent) of the respondents undertaking this activity when outside of the city or town where they study. Likewise, international students are less likely to participate in entertainment activities and events when away from their place of study. Given the importance of shopping as a leisure activity, we also asked respondents whether they thought ‘shops in Australia were opened when they wanted to visit them’. Over half of respondents (55 percent) disagreed or strongly disagreed with this statement (refer to Figure 11) indicating that shopping hours may need to be reviewed to satisfy the needs of the international student market.

Some comments from the focus groups that illustrate the types of activities international student’s undertaken in their leisure time: I have been to the Blue Mountains. I was it in a brochure. I decided to go before I arrived in Australia. I went there because it’s a famous place.

We use the public barbeques at the beach on the weekends. We go with our friends—this is our entertainment and to socialise with each other as well. Also, it doesn’t cost us any money.

I have been to the winery and Puffing Billy with my sister. The reason I decided to go was the tourist guide recommendations.

The museum has a lot of free activities. I learnt to sew while I was there. An aboriginal woman showed me how to weave baskets. I found it very interesting.

Table 8: Leisure activities undertaken by international student respondents Ranking of activities within the city or town of study

4 3

Respondents who undertook the activity

Ranking of activities outside of the city or town where they studied

Respondents who undertook the activity

1.

Shopping for pleasure

85.5%

1.

Visiting natural attractions

75.6%

2.

Sightseeing

80.4%

2.

Sightseeing

73.3%

3.

Visiting natural attractions 4

78.9%

3.

Shopping for pleasure

51.3%

4.

Entertainment activities 5

71.4%

4.

Entertainment activities

48.7%

5.

Attending events and festivals

67.1%

5.

Attending festivals and events

34.9%

For example visiting beaches and national parks.

For example visiting a theme park, casino, bar or nightclub.

25

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES 90 80

Participation (%)

70 Within the place of study

60 50

Outside the place of study

40 30 20 10 0 Shopping for pleasure

Sightseeing

Natural attractions

Entertainment

Events and festivals

Activity

Figure 10: Activities of popularity within and outside the place of study

Strongly agree 3.3% Agree 19.9%

Strongly disagree 20.2%

Neutral 21.8% Disagree 34.8%

Figure 11: Shops in Australia are open when I want to visit them

Respondents indicated that they are most likely to undertake travel and leisure activities with other international students (or 64.5 percent), particularly international students of the same nationality (41.9 percent).

Approximately, one fifth of international students undertake these activities with other friends who are not students or international students of other nationalities. There is a small group of students who typically undertake these activities by themselves (5.7 percent). Only seven percent of international students typically undertake these activities with Australian students (refer to Figure 12).

26

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

By myself 5.7%

Other 0.7%

Australian students 7.0% International students from my nationality 41.9%

Other friends or relatives who are not students 22.1%

International students from other nationalities 22.6%

Figure 12: Leisure companions

Accommodation The survey asked international students about their preferred accommodation type. It also asked them to rate general accommodation (e.g. hotels, motels and holiday apartments) and backpacker accommodation in terms of their safety, cleanliness, ease of booking, value for money and convenience as well as whether they understand the needs of international students. Key findings from this analysis reveal that the majority of respondents prefer to stay in hotels/motels (43.6 percent) followed by holiday apartments (23.5 percent) and backpacker hostels (22.2 percent). Camping was only preferred by 5.5 percent of respondents (refer to Figure 13). Approximately three in four respondents thought safety and cleanliness in general accommodation in Australia was good or very good. Approximately 64 percent of respondents perceived that general accommodation in Australia was good or very good in terms of being easy to book and convenient. One-third of respondents thought general accommodation in Australia was good or very good value for money and two-thirds thought it was neutral, poor or very poor value for money. The majority (68.1 percent) of respondents thought general accommodation in Australia was neutral, poor or very poor in terms of understanding the needs of international students.

Camping 5.5%

Other 5.8%

Backpacker hostel 22.0%

Hotel/Motel 43.4%

Holiday appartment 23.3%

Figure 13: Preferred type of accommodation

27

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES Comparison of general and backpacker accommodation The focus group analysis suggested that there were some negative perceptions and concerns about backpacker accommodation among international students. Based on this finding, the survey asked the respondents to rate general accommodation and backpacker accommodation separately. The key findings from that comparison revealed that approximately three in four of respondents thought safety (75.4 percent) and cleanliness (76.9 percent) in general accommodation in Australia was good or very good. In comparison, less than half of the respondents thought that backpacker accommodation safety (42.9 percent) and cleanliness (39.2 percent) was good or very good. Approximately one in five respondents perceived safety and cleanliness in backpacker accommodation as poor or very poor and approximately four in ten were neutral in their perception of safety and cleanliness in backpacker accommodation (refer to Figures 14 and 15). The perception of being easy to book, value for money and convenient was similar for both types of accommodation. ‘Understanding the needs of international students’ was perceived by the respondents as an issue for both accommodation types. An example from the focus groups that describes the expectations of international students in relation to accommodation: The accommodation in hotels is $150 a night. With a 20 hour [per week income from] working, [on that] budget, it’s not realistic for a week’s holiday. Backpacking is not for us as we have higher expectations.

There is a big accommodation gap—hotels and backpackers … Cheap for the backpackers and not very safe for us, then there are hotels which are very expensive which we can’t afford as students.

70 60 57.2

Percentage (%)

50 39.8 40 35.2 30 22.1

20

18.2 14

10

3.3

7.7

0.5

0

2

Very Poor

Poor

Netural

Good

Very Good

Rating Accomodation General

Backpacker Accommodation

Figure 14: Safety perceptions of general and backpacker accommodation

70

60

57.6

Percentage (%)

50 38.9

40

32.2

30

20 10

0

18

20.1

19.3

4

7 0.4

Very P oor

2.6 P oor

Net ural

Good

Very Good

Rat ing Accomodat ion General

Backpacker Accommodat ion

Figure 15: Cleanliness perceptions of general and backpacker accommodation

28

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

Visiting friends and relatives The majority of international students (or 93 percent) encourage their friends and family to visit Australia. The importance of story-telling about their Australian experience is highlighted in the fact that 68.2 percent of respondents felt that the stories they tell about Australia encourage their friends and family to visit. The majority of international students anticipate that at least one of their friends (83.4 percent) and family (85 percent) will visit Australia. Students most commonly indicated that they expect two friends and two family members to visit them. Interestingly, 12.2 percent thought that more than ten friends would visit them while studying in Australia and 6.4 percent thought that more than ten family members would visit them while studying in Australia (refer to Figures 16 and 17). Approximately 80 percent anticipated that their parents would, or may, visit Australia to attend their graduation (46.4 percent indicating yes and 34.3 percent indicating maybe).

Some comments from the focus groups relating to visiting friends and relatives were: My parents came to Australia. We went to Sydney for a month, then back here [Perth] for two weeks. Also my sister and my cousin have visited. I’m planning to go to Sydney again as I have family there.

They wanted to come, but I said, ‘no’. I do miss then, but if I want to see them I will go back home for a holiday. I would have to look after them if they came and I have to study and I have to work. I don’t have enough experience here to take care of them as they do not speak English, which would be a big problem. I would have to be 24 hours hands on looking after them.

They mainly come to see me [so] we don’t travel as I’m still studying. We mainly go out to dinner and have picnics. It is quite difficult to balance school, working, socialising and looking after family. Time wise—it is very difficult.

I want to go to the Gold Coast in December—my mum and girlfriend are coming across for a holiday. I love the beaches and the weather.

More than 10 friends 12.2%

5-10 friends 17.0%

None 16.6%

1 friend 10.6%

4 friends 8.7% 3 friends 13.7%

2 friends 21.3%

Figure 16: Number of friends who intend to visit

29

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

More than 10 family members 6.4% 5-10 family members 17.3%

None 15.0%

1 family member 8.4%

4 family members 12.5% 2 family members 24.5% 3 family members 15.9%

Figure 17: Number of family who intend to visit Australia Over half (57.5 percent) of the respondents indicated that they have already had friends and family from their home country visit them while studying in Australia. For approximately one in five respondents, one friend had visited them. Similarly, for one in five respondents approximately one family member had visited them. A visit from two family members was most commonly cited for both friends and family at 22.6 and 25 percent respectively. Only 4.5 percent of respondents had more than 10 friends visit them as yet and only 1.6 percent had more than 10 family members visit them as yet (refer to Figures 18 and 19). In comparison to other studies, these VFRs figures are considerably higher. Access Economics (2009) based their economic modelling on Tourism Research Australia estimates that for every two formal students, one friend or relative visited Australia during the students’ stay in Australia. Therefore, the size and contribution of the VFRs market associated with international students to inbound international leisure tourism may be significantly larger than previously thought.

More than 10 friends 4.5% 5-10 friends 8.1% 4 friends 5.9%

None 27.9%

3 friends 9.6%

2 friends 22.6%

1 friend 21.7%

Figure 18: Number of friends and family who have visited Australia

30

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

More than 10 5-10 family family members 1.6% members 9.5% 4 family members 7.8%

None 24.5%

3 family members 11.6%

1 family member 20.2% 2 family members 25.0%

Figure 19: Number of friends and family who have visited Australia The majority of friends and family visiting the international student stayed in Australia for one to two weeks (or 40.3 percent). As shown in Figure 24, 23.9 per cent stayed more than two weeks and 20.1 percent stayed more than one month. Only 15.6 percent stayed less than one week (refer to Figure 20). The majority of visiting friends and family stayed with the student (47.3 percent), in a hotel/motel (27 percent) or with friends and relatives (13.9 percent). Refer to Figure 21.

More than 1 month 20.1%

Less than 1 week 15.6%

2-4 weeks 23.9% 1-2 weeks 40.3%

Figure 20: Visiting friends and relatives in Australia by length of stay

31

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

Backpacker hostel Other 2.6% 2.8% Apartment 6.7% With friends and relatives 13.8%

With the international student 47.1%

Hotel/motel 27.0%

Figure 21: Where visiting friends and relatives stayed

Interest, benefits and barriers to travelling in Australia The results of this survey indicate that the majority of international students are interested in travelling in Australia. Only 5.4 percent were not interested in travelling in Australia. Almost three-quarters of respondents (73.3 per cent) felt that travelling in Australia helps them learn about the Australian ‘way of life’. The majority of respondents disagreed or strongly disagreed with the statements that ‘Australia is a boring tourist destination’ (73.8 percent) and ‘There is nothing to do in Australia’ (71.9 percent).

Table 10 shows the main barriers to international student travel are concerns about money followed by study commitments and time. Importantly, safety and security concerns were the lowest ranked of all the barriers surveyed. Almost half (or 47.3 percent) of respondents felt they did not have enough money to travel and 38 percent of respondents felt that they do not have enough time to travel. Approximately one-quarter of respondents (25.5 per cent) agreed or strongly agreed that ‘there are good student packages in Australia’. The other two-thirds (74.5 per cent) were neutral, disagreed or strongly disagreed with this statement. Approximately half of the respondents (49.2 percent) felt there were not ‘good international student travel discounts available throughout Australia’ and one-third (33.1 percent) were neutral on this topic. Only 17.6 percent of respondents agreed or strongly agreed that there were ‘good international student travel discounts available throughout Australia’.

Table 9: Barriers to student travel

32

1.

Concerns about money

2.

Study commitments

3.

Lack of time

4.

No student travel discounts

5.

Work commitments

6.

No student travel packages

7.

Safety and security concerns

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

Funding and time for studying, living and travelling in Australia Respondents were asked to estimate their overall expenditure to complete their program of study in Australia.

They were instructed that this is amount should include program fees and other charges, and living, recreational and tourism expenses. It should exclude return airfares to their home country. As shown in Table 11, based on the estimates provided by participants in this study, the weighted average annualised expenditure is $42,531 per student. Further details on the calculation of this figure are provided in Appendix D. On average, international students estimated they worked 6.4 hours per week. Using an estimated average hourly rate of $17.64 (based on the casual award rates in retail and hospitality) and assuming 48 working weeks per year, their income from working was estimated at $5,419 per year. Working income therefore contributed an estimated 12.7 percent to their total annual expenditure. The balance of average annual expenditure of $37,112 is assumed to be funded principally from savings and from family sources, and therefore viewed as export dollars.

Table 10: Annualised expenditure by program duration Program Duration

Assumed Duration in Years

Annualised Expenditure A$

4–6 months 7–12 months

0.5 0.9

43,508 43,880

1–2 years 3–4 years

1.5 3.25

44,327 40,640

Over 4 years Weighted Average

5.0

41,414 42,531

Respondents were also asked to estimate (in percent) their sources of funding for: • program fees • living expenses, and; • travel and recreation activities.

As shown in Figure 22, on average, the family was the highest contributor to funding all three components of the student’s stay in Australia. Scholarships, personal savings and loans were also contributors to funding program fees. Income from working and personal savings tended to be used to fund general living expenses and travel and leisure activities. Scholarships also contributed to general living expenses. Most students did not use loans to fund program fees, general living expenses or travel and leisure activities.

80.0 70.9 70.0

Percent (%)

60.0

63.9 57.6

50.0 40.0 31.7

29.8 30.0

25.0

23.4 19.6 20.0

14.5

16.8

11.4

11.8 6.6

10.0

8.7 5.1

0.0 From family

Scholarship Program Fees

Personal savings Living Expenses

Loan

Income from working

Travel and Recreation

Figure 22: Sources of funding for program fees, living expenses and travel and recreation

33

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES On average, most respondents studied more than 30 hours per week (31.7 percent) with some studying, on average, 11–20 hours per week (27.1 percent) and 21–30 hours per week (25 percent). Approximately half (51.2 percent) of respondents did not work and 46.3 percent worked at least 20 hours per week. Only 2.4 percent worked more than 20 hours per week. Most respondents indicated that they had some recreation and personal time, however this was limited to less than ten hours for one-third of the respondents (33.9 percent), and 11–20 hours another third (31.9 percent). Interestingly, approximately one-in-ten (or 11.9 percent) of respondents had 21–30 hours of recreational and personal time and a further one-in-four (or 22.4 percent) had more than 30 hours of recreational and personal time.

As shown in Table 12, during their recreation and personal time, on average, respondents spent approximately one-third of their time meeting with friends and one-third their time relaxing. Shopping for pleasure (15.4 percent) and travel and tourism activities (13.6 percent) were also popular activities, but took up a lesser proportion of their time in comparison to meeting with friends and relaxing.

Table 11: Percentage of recreation and personal time spent on each activity Activity

Percentage of Recreation and Personal Time

Meeting with friends Relaxation Shopping for pleasure Travel and tourism activities Other

32.1% 31.5% 15.4% 13.6% 16.6%

Country profiles The following sub-section provides a snapshot of the travel behaviour and the VFRs market for the various nationalities in the international student marketplace. Profiles are presented for the following nationality groupings: •

China (n = 1,414)

•

India sub-continent including India, Bangladesh, Pakistan and Sri Lanka (n = 404)

•

Korea (n = 194)

•

Europe, including Czech Republic, Frances, Germany, Hungary, Italy, Norway, Poland, Russian Federation, Slovakia, Sweden, Switzerland and United Kingdom (n = 361)

•

North America, including students from the United States and Canada (n = 366).

This analysis reveals that there are several differences between their groups, which impacts on their tourism market potential. A summary of these findings for each group is presented in the following sub-sections. Refer to Appendix E for graphs comparing all nationality groups.

China (n= 1,414) Travel behaviour As shown in Figure 23, Chinese students are more likely to typically travel with other international students from their nationality (63.4 percent) than all international students (41.9 percent). They are less likely to travel with international students from other nationalities (12.3 per cent) and other friends or relatives who are not students (13.6 percent) than all international students (22.6 percent and 22.1 percent respectively). Chinese students are more likely to stay in hotel/motel and holiday apartments and less likely to stay in backpacker hostels and go camping than all international students (refer to Figure 24). The majority (80.7 percent) of Chinese students had travelled away from the town or city where they study, however this was less than all international students at 84.9 percent. Chinese students were more likely to take a day-trip and travel by bus and less likely to stay away overnight. They tend to be more likely to travel by car or plane than all international students (refer to Figures 25 and 26). They also tended to spend slightly less than all international students, however this perhaps reflects their short trips (refer to Figure 27). On their most recent trip, Chinese students were more likely to have travelled with friends than all international students, and less likely to have travelled by themselves or with their partner or 34

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES family. Almost three-quarters of them (74.5 percent) travelled with friends compared to 62.4 percent for all international students (refer to Figure 28). As shown in Figure 29, on their next holiday break (being summer 2009/10), Chinese students were more likely to travel (60.5 percent) and work (52.9 percent) in Australia than all international students (51.7 percent and 43.1 percent respectively).

Visiting friends and relatives Chinese students are slightly more likely to encourage their friends and family to visit Australia (94.6 percent) than all international students (92 percent). The majority (88.5 per cent) thought their parents would maybe, or definitely, come for their graduation, which was more than all international students (80.7 percent). Most Chinese students anticipated at least one friend (83.2 percent) and one family member (89.7 percent) to visit them during their study in Australia. This is similar to the general international student population. In terms of actual visitation, however, Chinese students were less likely to have a friend or family member already visit them (49.6 percent for Chinese students compared to 57.5 percent for all international students). Friends and family from China visiting the Chinese students are less likely to stay with the student and more likely to stay in a hotel/motel compared to all international students (refer to Figure 30). The friends and family of Chinese students stayed in Australia a similar length of time to the friends and family of all international students, with 16 percent staying less than one week, 39.7 percent staying one to two weeks, 22.3 percent staying two to four weeks and 22 percent staying more than one month (refer to Figure 31).

70%

63.4%

60% 50%

41.9%

40% 30%

22.6%

20%

22.1% 13.6%

12.3%

7.0% 4.6%

10%

5.7% 5.3%

0.7% 0.8%

0% International students International students Australian students Other friends or from my nationality relatives who are not from other students nationalities All international students

By myself

Other

China

Figure 23: Chinese student travel companions

48.4% 50% 43.4% 45% 40% 35% 28.0% 30% 23.3%

22.0%

25% 16.9%

20% 15% 10%

5.5%

5.8% 3.7%

3.0%

5% 0% Hotel/Motel

Holiday appartment

Backpacker hostel

All international students

Camping

Other

China

Figure 24: Chinese student accommodation preferences

35

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES 38.2% 40% 34.4% 35% 29.4% 30% 24.7% 24.0%

22.8%

25% 20% 15% 9.1% 10%

6.2%

5.9%

5.3%

5% 0% Day visit

1-3nights

4-6nights

1-2weeks

All international students

Morethan2weeks

China

Figure 25: Chinese student length of visit on most recent trip 34.7% 35% 26.3% 26.4%

30%

23.1%

25%

17.4%

20% 13.4% 12.0%

15%

11.9% 8.0%

10%

5.9% 5.8%

5.9% 4.1%

5.1%

5% 0% Car

Plane

Bus

Train

Boat

All international students

Hitch hiking

Other

China

Figure 26: Chinese student mode of transport used on most recent trip

74.5% 80% 62.4% 70% 60% 50% 40% 30%

14.7%

20%

10.2%

14.5% 7.8%

8.4%

7.5%

10% 0% With friends

With family

With my partner

All international students

By myself

China

Figure 27: Chinese student travel party on most recent trip

36

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES 23.5%

23.1%

25%

21.3%

21.3%

20.1%

22.6%

21.4%

20% 16.1%

16.0%

15%

14.6%

10%

5%

0% Less than $100

$100-$300

$301-$500

$501-$1,000

All international students

More than $1,000

China

Figure 28: Chinese student expenditure on most recent trip 70% 60%

60.50% 52.90% 43.1%

51.7%

50%

41.9%44.30%

40%

21.4% 17.60%

30% 20%

5.9%7.90%

10% 0% Travel in Australia

Work (paid)

Return to their home country

All international students

Travel to other countries

Work (unpaid)

China

Figure 29: Chinese student plans for upcoming vacation period (i.e. Summer 2009/10)

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

47.1% 37.8%

36.5% 27.0%

13.8% 15.2% 6.7% 7.0% 2.6% 2.1% With the international student

Hotel/motel

With friends and relatives

Apartment

All international students

2.8% 1.4%

Backpacker hostel

Other

China

Figure 30: Where VFRs of Chinese student stayed while in Australia

45%

40.3% 39.7%

40% 35% 30%

23.9%

25% 20%

15.6%

22.3%

20.1%

22.0%

16.0%

15% 10% 5% 0% Less than 1 week

1-2 weeks

2-4 weeks

All international students

More than 1 month

China

Figure 31: Length of stay in Australia for Chinese student VFRs

37

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

India (n= 404) Travel behaviour Most Indian students (82.9 percent) have travelled away from the town or city where they study, however they are less likely to travel than international students in general (84.9 percent). They are less likely to travel with other Indian students (refer to Figure 32) and stay in at hotel/motel (refer to Figure 33) than the all international students. They are more likely to stay in other accommodation, particularly with friends and relatives, than international students. Their most recent trip away from the place where they study was more likely to be a daytrip and less likely to take an overnight trip compared to all international students, with approximately one in three Indian students taking a day-trip compared to one in four to all international students.(refer to Figure 34).

On this trip, Indian students were most likely to get there by car (53.4 percent) and less likely to travel by plane (9.8 percent) than all international students (refer to Figure 35). They were more likely to intend to return to a destination they had visited in Australia (47.2 percent) compared to international students, in general (43.4 percent).

As shown in Figure 36, most Indian students went on this trip with friends (62.1 percent), however they were more likely to travel with their family (19.3 per cent) and less likely to travel with a partner (10 percent) than international students, in general (14.7 percent and 14.5 percent respectively). Figure 37 shows that Indian students tended to have similar expenditure on their last trip to all international students, with slightly more spending less than less than $100 and slightly less spending over $501. During their next student vacation period (being summer 2009/10), Indian students were more likely to travel in Australia and undertake paid work and less likely to return to India or travel in other countries than all international students (Figure 38).

Visiting friends and relatives Most (95.5 percent) Indian student encouraged their friends and family to visit Australia and this was higher than all international students (92 percent), however they were less certain about whether their parents would visit Australia for their graduate with 37.1 per cent indicating yes and 45.8 indicating maybe compared to 46.4 percent indicated yes and 34.3 percent indicating maybe across all international students. The majority of Indian students expected at least one family member (91.4 percent) and one friend (84.6 percent) to visit them in Australia, with 21.6 percent expecting three family members and two friends to visit them. Most Indian students had at least one family member (78.3 percent) and one friend (70.3 percent) already visit them. Two family members and two friends had already visited for 45.8 percent of Indian students.

As shown in Figures 39, most visiting friends and relatives stayed with the Indian student, however friends and family visiting Indian students were more likely to stay with friends and relatives and less likely to stay in hotel/motels than all international students. They were also more likely to stay for longer in Australia with 38.5 percent staying more than one month (refer to Figure 40).

45%

41.9%

40% 35% 30%

28.0%

28.0% 25.2% 22.6%

25%

22.1%

20% 15% 7.0%

10%

9.4% 5.7%

7.4% 0.7% 2.0%

5% 0% International students frommy nationality

International students fromother nationalities

Other friends or relatives who are not students

Australian students

All international students

By myself

India

Figure 32: Indian student travel companions

38

Other

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES 43.4% 37.8%

45% 40% 35% 30%

23.3% 22.8%

25%

22.0% 21.0%

20%

11.1%

15%

7.3% 5.5%

10%

5.8%

5% 0% Hotel/Motel

Holiday appartment

Backpacker hostel

All international students

Camping

Other

India

Figure 33: Indian student accommodation preference

38.2%

39.8%

33.8%

40% 35% 30%

24.0%

22.8%

18.9%

25% 20% 15%

9.1% 3.0%

10%

5.9% 4.5%

5% 0% Day visit

1-3 nights

4-6 nights

All international students

1-2 weeks

More than 2 weeks

India

Figure 34: Indian student length of visit on most recent trip

60%

53.4%

50%

40%

34.7% 26.4%

30%

14.2%

20%

9.8% 12.0%

10.5%

11.9% 4.7% 5.8%

10%

4.1% 4.4%

5.1% 3.0%

0% Car

Plane

Bus

Train

All international students

Boat

Hitch hiking

Other

India

Figure 35: Indian student mode of transport on most recent trip

39

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES 70%

62.4%

62.1%

60% 50% 40% 19.3%

30% 14.7%

14.5%

20%

10.0%

8.6%

8.4%

10% 0% With friends

With family

With my partner

All international students

By myself

India

Figure 36: Indian student travel party on most recent trip

30% 23.1%

25%

23.5%

24.2% 22.7%

21.3%

21.8%

20.0%

20% 16.1%

16.0%

15% 11.4%

10% 5% 0% Less than $100

$100-$300

$301-$500

$501-$1,000

All international students

More than $1,000

India

Figure 37: Indian student expenditures on most recent trip

70% 60%

64.1%

51.7%

55.4% 43.1%

50%

41.9%

40%

30.0%

30%

21.4% 15.6%

20% 10% 0% Travel in Australia

Work (paid)

Return to their home country

All international students

Travel to other countries

India

Figure 38: Indian student plans during upcoming vacation period (i.e. Summer 2009/10)

60% 50%

47.1% 47.9%

40% 29.6%

27.0%

30% 20%

13.0%

13.8% 6.7%

10%

5.9%

2.6%

1.2%

2.8%

2.4%

0% With the international student

Hotel/motel

With friends and relatives

Apartment

All international students

Backpacker hostel

Other

India

Figure 39: Where VFRs of Indian student stayed while in Australia

40

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES 45%

40.3%

38.5%

40% 35% 29.0%

30% 23.6%

25% 20%

23.9% 20.1%

15.6%

15% 10%

8.9%

5% 0% Less than 1 week

1-2 weeks

2-4 weeks

All international students

More than 1 month

India

Figure 40: Length of stay in Australia for Indian student VFRs

Korea (n= 194) Travel behaviour Korean students tend to travel with other international students, however they were less likely to travel with other Korean students and more likely to travel with students from other nationalities than international students (refer to Figure 41). Korean students were more likely to have taken a trip away from the town or city where they study at 90.7 percent compared to 84.9 percent for all international students. Korean students typically stayed in hotel/motels (46.9 percent) and holiday apartments (27.3 percent) and they were slightly less likely to stay in backpacker hostels and go camping than all international students (refer to Figure 42). They are also more likely to travel for more than two weeks and less likely to have taken a day-trip on their last trip, with 9.7 percent of Korean students travelling for more than two weeks on their last trip compared to only 5.9 percent for all international students. Only one in five Korean students took a day-trip on their last trip compared to one in four for all international students (refer to Figure 43).

As shown in Figure 44, Korean students were more likely to travel by plane and less likely to travel by car on their last trip compared to all international students (refer to Figure 45). They were more likely to travel with family and less likely to travel with friends (refer to Figure 46). They were also more likely to spend over $501 (refer to Figure 47), on this trip than all international students. Korean students tended to have similar plans for their next vacation period (being summer 2009/10) as international students, in general, with the majority planning to travel (52.6 percent) and/or work (47.4 percent) in Australia. Approximately one third (37.6 percent) planned to return to Korea during the period.

41

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES Visiting friends and relatives Korean students were similar to international students, in general, in terms of encouraging their friends and family to visit at 92.3 percent. Over half (52.1 percent) of the Korean students were certain (indicating ‘yes’) that their parents would visit Australia for their graduate and this was more than all international students (45.8 percent). Most Korean students expected at least one friend and/or one family member would visit Australia, with 22.8 percent expecting two friends and 28 percent expecting two family members to visit them.

Approximately three-quarters (73.7 percent) had a friend or family member already visit them, with approximately 64 percent had one to three friends and/or family members visit them already. Most friends and family members who visited Korean students stayed with them (52.4 percent), and this was higher than for all international students (refer to Figure 48). Friends and family of Korean students were also less likely to stay with other friends and family than for all international students (7 percent for Korean friends and family compared to 13.8 percent for all international students). Most friends and family of Korean students stayed in Australia for one to two weeks during this visit and this length of stay was consistent with the general international student population (refer to Figure 49).

45%

41.9%

40% 34.0%

35%

29.9%

30% 25%

22.1% 22.7%

22.6%

20% 15% 7.0%7.7%

10%

5.7%5.7%

5%

0.7%0.0%

0% International International Other friends or students frommy students from relatives who are nationality other nationalities not students

Australian students

All international students

By myself

Other

Korea

Figure 41: Korean student travel companions

50%

46.9% 43.4%

45% 40% 35%

27.3%

30%

23.3%

22.0%

25%

19.1%

20% 15% 5.5% 3.1%

10%

5.8%

5% 0% Hotel/Motel

Holiday appartment

Backpacker hostel

All international students

Camping

Other

Korea

Figure 42: Korean student accommodation preferences

42

3.6%

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES 38.2% 37.7%

40% 35% 30%

24.0% 22.8%

25%

23.4%

20.6%

20% 15% 9.1%

9.7%

8.6% 5.9%

10% 5% 0% Day visit

1-3 nights

4-6 nights

1-2 weeks

All international students

More than 2 weeks

Korea

Figure 43: Korean student length of visit on most recent trip

40%

37.0%

34.7%

35% 25.9%26.4%

30% 25%

17.3%

20% 12.0%

15%

11.9% 8.7%

10%

5.8%

3.7% 4.1% 4.3%

5.1%

3.1%

5% 0% Car

Plane

Bus

Train

Boat

All international students

Hitch hiking

Other

Korea

Figure 44: Korean student mode of transport on most recent trip

70%

62.4% 53.6%

60% 50% 40% 21.7%

30% 14.7% 20%

14.5%

14.5%

10.2% 8.4%

10% 0% With friends

With family

With my partner

All international students

By myself

Korea

Figure 45: Korean student travel party on most recent trip

43

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES 30% 26.3% 23.5%

23.1%

25%

21.3%

20%

21.1%

20.6%

17.7%

16.1%

16.0% 14.3%

15% 10% 5% 0%

Less than $100

$100-$300

$301-$500

$501-$1,000

All international students

More than $1,000

Korea

Figure 46: Korean student expenditures on most recent trip

60% 51.7%

52.6%

50%

43.1%

47.4% 41.9% 37.6%

40% 30%

21.4% 19.6%

20% 10% 0% Travel in Australia

Work (paid)

Return to their home country

All international students

Travel to other countries

Korea

Figure 47: Korean student plans for upcoming vacation period (i.e. Summer 2009/10)

60% 50%

52.4% 47.1%

40% 27.0% 28.0%

30% 20%

13.8% 7.0%

10%

6.7% 3.5%

2.6%

5.6%

2.8%

3.5%

0% With the international student

Hotel/motel

With friends and relatives

Apartment

All international students

Backpacker hostel

Other

Korea

Figure 48: Where Korean student VFR stayed while in Australia

45%

40.3%

41.2%

40% 35% 30% 23.9%

25% 20% 15%

15.6%

23.8%

20.1%

21.0%

14.0%

10% 5% 0% Less than 1 week

1-2 weeks All international students

2-4 weeks

More than 1 month

Korea

Figure 49: Length of stay in Australia for Korean student VFRs

44

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

Europe (n= 361) Travel behaviour As shown in Figure 50, the typical travel companion for European students varied greatly from the general international student population, and contrasts dramatically from the Chinese, Indian and Korean profiles. They were less likely to travel with other international students of their nationality and more likely to travel with friends and relatives who are not students, and students from other nationalities and Australia. Interestingly, they are also less likely to travel alone. A backpacker hostel is their preferred accommodation choice with 38.8 percent preferring this type of accommodation. This is well above the average for all international students at 22.2 percent. They are also more likely to go camping and less likely to prefer to stay at a hotel/motel or holiday apartment than all international students (refer to Figure 51). European students are most likely to have travelled in Australia (92.5 percent) and to return to places they have visited (53 percent) than all international students (84.9 percent and 43.4 percent respectively). On the last trip away from the town or city where they study, they were more likely to take a short break for one to three nights or a longer trip of more than one week (refer to Figure 52) and travel by car or plane than bus (refer to Figure 53) than all international students.

Over half of all European students (54.9 percent) travelled with friends on their last trip, however on average, this was less than all international students (67.9 percent). They were also less likely to travel with family (8.9 percent) than international students, in general (14.7 percent), but more likely to travel with their partner (27.6 percent for European students compared to 14.5 percent for international students, in general). Refer to Figure 54. European students tended to spend a similar amount on this trip compared to all international students, with some European students spending a little less in the $501–$1,000 category but a little more in the $1,001–$2,000 category (refer to Figure 55). During their next vacation period (being summer 2009/10), most (61.2 percent) planned to travel in Australia, which was higher than for all international students (51.7 percent). Only 30.7 percent planned to return to their home country during this period, which was less than all international students (41.9 percent). Refer to Figure 56.

Visiting friends and relatives European students were more likely to encourage friends and family to visit than all international students at 97.8 percent compared to 92 percent. However, they were less likely to anticipate their parents coming for graduation with only 21.9 percent indicating ‘yes’ and 30.7 percent indicating ‘maybe’ to this item. Similarly, 75.7 percent thought that at least one family member and 81.4 percent thought that at least one friend would visit them in Australia. Only 63.2 percent had a friend or family member visit them in Australia already.

Approximately 23 percent had two friends and/or friends visit them in Australia already. When visiting, friends and family members of European students were more likely to stay with the student (58.3 percent) and stay for longer periods than all international students (refer to Figure 57 and 58), with most staying two to four weeks (45.6 percent) or more than one month (20.1 percent).

45%

41.9%

40%

34.9%

33.2%

35% 30%

22.6%

25% 20%

22.1%

15.0%

13.6%

15%

7.0%

10%

5.7%

5%

3.0%

0.7%0.3%

0% International International Other friends or students frommy students from relatives who nationality other nationalities are not students

Australian students

All international students

By myself

Other

Europe

Figure 50: European student travel companions

45

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES 43.4% 38.8%

45% 40% 28.8%

35% 30%

23.3%

22.0%

25%

15.1%

20%

12.0%

15% 5.8%

5.5%

10%

5.3%

5% 0% Hotel/Motel

Holiday appartment

Backpacker hostel

All international students

Camping

Other

Europe

Figure 51: European student accommodation preferences

42.6% 45% 38.2% 40% 35% 30%

24.0%

22.8%

25%

21.1%

15.1%

20%

12.1% 15%

9.1%

9.1% 5.9%

10% 5% 0% Day visit

1-3 nights

4-6 nights

All international students

1-2 weeks

More than 2 weeks

Europe

Figure 52: European student length of visit on most recent trip

40%

37.4% 34.7%

35% 28.6% 26.4%

30% 25% 20%

12.0%

15%

11.9% 11.5% 9.2%

10%

5.8% 5.8%

4.1%

2.7%

5.1% 4.8%

5% 0% Car

Plane

Bus

Train

All international students

Boat

Hitch hiking

Other

Europe

Figure 53: European student mode of transport on most recent trip

46

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES 62.4%

70%

54.9% 60% 50% 40%

27.6%

30% 14.7%

14.5%

8.9%

20%

8.6% 8.4%

10% 0% With friends

With family

With my partner

All international students

By myself

Europe

Figure 54: European student travel party on most recent trip

30% 23.5%

23.1% 23.9%

25%

21.3%

20%

21.0%

18.0%

19.2%

17.9%

16.1%

16.0%

15% 10% 5% 0% Less than $100

$100-$300

$301-$500

$501-$1,000

All international students

More than $1,000

Europe

Figure 55: European student expenditures on most recent trip

70% 60%

61.2% 51.7% 43.1%

50%

41.9%

41.6%

40%

32.7%

30.7%

30%

21.4%

20% 10% 0% Travel in Australia

Work (paid)

Return to their home country

All international students

Travel to other countries

Europe

Figure 56: European student plans for upcoming vacation period (i.e. Summer 2009/10)

70% 58.2%

60% 50%

47.1%

40% 27.0%

30%

17.5%

20%

13.8% 7.9%

10%

6.7%

5.3%

2.6%

4.8%

2.8%

6.3%

0% With the international student

Hotel/motel

With friends and relatives

Apartment

All international students

Backpacker hostel

Other

Europe

Figure 57: Where European student VFRs stayed while in Australia

47

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES 50% 45.6%

45%

40.3%

40% 35% 30%

24.6%

25% 20%

23.9%

25.0% 20.1%

15.6%

15% 10%

4.8%

5% 0% Less than 1 week

1-2 weeks All international students

2-4 weeks

More than 1 month

Europe

Figure 58: Length of stay in australia for European student VFRs

North America (n= 366) Travel behaviour North American students had the greatest diversity of travelling companions. Although 27.6 percent travelled with other North American students, they were also more likely to travel with Australian students and less likely to travel with other students from their nationality compared to all international students (refer to Figure 59).

Their preferred accommodation type was hotel/motel (39.4 percent), but similar to European students, they were more likely to stay at the backpacker hostel (35.5 percent) or go camping (9.9 percent) than all international students (refer to Figure 60). They were more likely to have travelled away from the town or city where they study (94.8 percent) than all international students (84.9 percent). North American students tended to be more certain about places they would re-visit with 55.3 percent indicated ‘yes’ and 34.6 percent indicating ‘maybe’ when asked about returned to places they had visited. In comparison to all international students, only 43.4 percent indicated ‘yes’ and 46.8 percent indicating ‘maybe’ they would return to places they had already visited.

Almost half of the North American students took a short break of one to three nights on their last trip. They were also more likely to take an overnight trip of less than two weeks and travel by car or plane and less likely to take a day-trip and travel by bus than all international students (refer to Figure 61 and 62). Over half of the North American students (56.8 percent) went on this trip with their friends, but they were less likely to travel with their friends or family compared to all international students (refer to Figure 63). They were also more likely to travel with their partner (27.5 percent) on this trip than all international students (14.5 percent). As shown in Figure 64, North American students tended to spend similar amounts on this trip compared to all international students, with a slightly higher proportion spending in the $101 to $300 and $301 to $500 categories. During their next vacation period (being summer 2009/10), almost half (49.1 percent) of the North American students planned to return home, which is higher than all international students (41.9 percent). Only 44.8 percent planned to travel in Australia. They were also more likely to travel in other countries compared to all international students (refer to Figure 65). Less than one-third (30.6 percent) planned to work in Australia during this period. Refer to Figure 65.

Visiting friends and relatives Similar to all international students, most (95.4 percent) encourage their friends and family to visit Australia, however approximately only third-quarters expected a friend or family member to visit and only 61 percent thought that their parents would come (34.2 percent) or might (26.8 percent) visit Australia for their graduation.

Over half (59.3 percent) have already had a friend or family member visit them. Approximately 48 percent had one or two people visiting them already. As shown in Figures 66, friends and family members visiting international students are more likely to stay with the student and less likely to stay with friends and relatives than all international students. They are also more likely to stay two to four weeks, and less likely to stay less than two weeks or more than four weeks, than all international students (refer to Figure 67).

48

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES 45%

41.9%

40% 35% 27.6%

30%

22.1% 23.0%

22.6% 22.1%

25%

21.0%

20% 15% 10%

7.0%

5.7%6.0%

5%

0.7%0.3%

0% International International Other friends or students frommy students from relatives who are nationality other nationalities not students

Australian students

All international students

By myself

Other

North America

Figure 59: North American student travel companions

43.4% 39.4%

45%

35.5%

40% 35% 30%

23.3%

22.0%

25% 20%

11.0%

9.9%

15%

5.8%

5.5%

10%

4.2%

5% 0% Hotel/Motel

Holiday appartment

Backpacker hostel

All international students

Camping

Other

North America

Figure 60: North American student accommodation preferences

47.1% 50% 45%

38.2%

40% 35% 30%

27.0% 24.0%

22.8%

25% 20% 10.5%

15%

9.1%

11.6% 5.9%

10%

3.8%

5% 0% Day visit

1-3 nights

4-6 nights

All international students

1-2 weeks

More than 2 weeks

North America

Figure 61: North American student length of visit on most recent trip

49

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES 45%

41.0%

40%

34.7%

33.9%

35% 26.4%

30% 25% 20%

12.0%

15%

9.5%

11.9%

10%

5.4%

5.8% 4.8%

4.1% 3.5%

5.1% 1.9%

5% 0% Car

Plane

Bus

Train

All international students

Boat

Hitch hiking

Other

North America

Figure 62: North American student mode of transport on most recent trip

70%

62.4% 56.8%

60% 50% 40%

27.5%

30% 14.7% 20%

14.5% 6.4%

8.4%

9.3%

10% 0% With friends

With family

With my partner

All international students

By myself

North America

Figure 63: North American student travel party on most recent trip

30%

26.8% 23.1%

25%

25.1%

23.5% 23.9% 21.3%

20% 16.1%

16.0% 13.8%

15% 10.4%

10% 5% 0% Less than $100

$100-$300 All international students

$301-$500

$501-$1,000

More than $1,000

North America

Figure 64: North American student expenditures on most recent trip

50

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES 60% 51.7% 50%

49.7% 44.8%

43.1%

41.9%

40% 30.9%

30.6% 30%

21.4%

20% 10% 0% Travel in Australia

Work (paid)

Return to their home country

All international students

Travel to other countries

North America

Figure 65: North American students plans for upcoming vacation period (i.e. Summer 2009/10)

60% 50%

53.0% 47.1%

40% 27.0% 27.2%

30% 20%

13.8% 6.7%

10%

2.8%

6.0%

2.6%

5.5%

2.8%

5.5%

0% With the international student

Hotel/motel

With friends and relatives

All international students

Apartment

Backpacker hostel

Other

North America

Figure 66: Where North American student VFRs stayed while in Australia

45%

40.3%

40%

42.4% 35.0%

35% 30% 23.9%

25% 20% 15%

20.1% 15.6% 12.0%

10.6%

10% 5% 0% Less than 1 week

1-2 weeks All international students

2-4 weeks

More than 1 month

North America

Figure 67: Length of stay in Australia for North American student VFRs

51

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES Chapter 8

DISCUSSION AND IMPLICATIONS The report has highlighted some major opportunities for Australia’s tourism operators in the rapidly growing international education market. It has been found that international students travel extensively within Australia regardless of nationality. Because of the large sample size (over 5,500), the research were able to analyse travel behaviours by country. The report is the first of its kind to provide meaningful insights into a range of market sources and reveal the diversity among international students.

It is apparent that the international student market represents a significant opportunity for the Australian tourism industry. There appear to be two sub-markets associated with international students: (1) international students themselves, and (2) their VFRs. Each of these markets present potential benefits for Australia’s tourism industry. The findings from this study suggest that international students are opportunistic travelers, who tend towards day-trips and short breaks undertaken within friendship groups. Based on the estimates provided by the participants in this study, the VFRs market associated with international students constitutes a significantly higher proportion of international leisure visitor arrivals to Australia than was previously thought. Attending graduations appears to be an important motivation to travel to Australia for the parents of international students.

These findings suggest that there are opportunities for tourism product and destination management and marketing organisations to tailor their products and develop packages to better service these markets. As well as implement marketing campaigns to ignite interest in travel among international students such actions should increase the number of trips taken by the student during their stay in Australia and to motivate their VFRs to visit them during and following their study in Australia.

The report has highlighted some important commonalities across the travel behaviours of international students, notably their enthusiasm for seeing Australia and telling others about it. This provides evidence that international students are valuable advocates for Australia via word of mouth, most obviously amongst friends and relatives. This potential stresses the critical interdependencies between motives for travel including education, visiting friends and relatives and recreation. This study also suggests that, across all nationalities, the size of the visiting friends and relatives market associated with international students is larger than previously indicated and warrants greater attention by the tourism industry, particularly given its importance to maintaining and increasing international visitor arrivals to Australia. The international student alumni may also be a source of repeat visitation to Australia.

In addition to the many commonalities, the various source markets have some distinct characteristics. Friends and relatives visiting Indian students in Australia have a longer average length of stay than VFRs for other international students, with over one-third staying for over a month, than the friends and relatives of other international students. Indian students also travel extensively within Australia along with their VFRs, though typically on shorter trips and by car. By contrast Chinese students travel extensively with friends rather than family and most commonly with other Chinese students. These differences between China and India may be indicative of different family structures with the prevailing China one child policy contrasting with the typically larger Indian family groups.

Another key difference in the travel patterns of students by nationality is the tendency of European and North American students to use backpacker-style accommodation, whereas students from Asian countries make use of other accommodation types such as hotels/motels and rented units and apartments.

52

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

Further Research This research has taken an important step by highlighting the differences and similarities between the travel behaviours of students studying in different spheres within the postsecondary education system. The report offers some preliminary estimates about the income and spending of international students on study, work and travel.

The research has also started to identify demographic and behavioural differences between students studying at different levels and for different periods (i.e. higher education, VET and ELICOS); these differences however require some further investigation in future research. Cross-sectoral comparisons are becoming increasingly important in light of the Australian Government’s emphasis on strengthening linkages between the public and private education sectors and between government VET providers (e.g. TAFEs) and universities. Future research could also place greater emphasis on distinctions between students who are studying in VET as an intended pathway into university and those who are studying with a view to acquiring a VET qualification for immediate entry into the workforce. Such insights are required urgently in light of the changes underway to the Government’s MODUL listing of priority occupations for migration which are likely to have a major impact on enrolment patterns, particularly in the VET sector. It is yet to be seen whether the huge growth of international VET enrolments will be sustained. Frequent research updates will be needed to provide timely analysis of this fast changing environment.

Future research could also focus on providing an accurate assessment of the economic contribution of international students with a detailed breakdown of income and expenditures as they relate to study, work and travel. It would help to address current disagreements that have been played out in the media about the magnitude of the overall economic contribution of international students. Such research would provide a stronger evidence-based underpinning for studies on international student travel behaviour. Likewise, comparing the travel behaviour of domestic and international students may provide evidence which can inform our understanding of the tourism needs of this sizeable consumer group.

In order to advance these prospects, further dialogue is required between leaders in the tourism and international education industries. It is clear that tourism and travel plays a role in the international student’s experience of studying in Australia and both sectors could benefit from a closer working relationship to facilitate positive outcomes for international students, whilst also advancing the economic stimulus provided by this market to the Australian economy.

53

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

APPENDIX A—STUDENT VISA DEFINITIONS

Main course of study

Definition

English Language Intensive Courses for Overseas Students (ELICOS)

applies to either; stand-alone English language courses that lead to a certificate I, II, III, IV or stand-alone English language courses that result in no formal Australian award

Primary or secondary school course

applies to primary, junior secondary or senior secondary school courses, and approved secondary school exchange programs

Vocational education and training (VET)

applies to Certificates I, II, III or IV (except ELICOS), diploma, advanced diploma, vocational graduate certificate or vocational graduate diploma courses

Higher education

applies to a Bachelor degree, associate degree, graduate certificate, graduate diploma, or Masters by coursework

Postgraduate research

applies to Masters by research or a doctoral degree

Non-award

applies to non-award foundation studies, or other full-time courses or components of courses not leading to an Australian award

AusAID and Defence

applies to students sponsored by AusAID or the Australian Department of Defence undertaking full-time courses of any type

Student Guardians

parents or relatives can apply for a visa to stay in Australia as the guardian of a student who is studying in Australia

Source: Australian Government, Department of Immigration and Citizenship. Retrieved from http://www.immi.gov.au/students/students/chooser/ on 4 January 2009.

54

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

APPENDIX B—INTERNATIONAL STUDENT TRAVEL SURVEY

55

International Student Tourism and Travel In Australia 1. Welcome Thank you for volunteering to participate in this survey into the tourism and travel activities of international students in Australia.

We are interested in your opinions and experiences during your stay in Australia.

This research is being undertaken by Griffith, Southern Cross and Victoria universities and is funded by the Sustainable Tourism Cooperative Research Centre (CRC) project.

Other You must be an international student that is currently living temporarily in Australia for the primary purpose of education and studying at a registered English language, TAFE, vocational education and training or university provider. $3,000 IN PRIZES Remember, if you complete the survey you are eligible to enter a prize draw for 13 Coles-Myer vouchers with a total value of $3,000.

So, let's get started.

Page 1

International Student Tourism and Travel In Australia 2. Activities Please tell us about your tourism activities and experiences in Australia.

* 1. Within the city or town where you study, have you done any of the following activities?

Tick one or more boxes. c d e f g

Shopping for pleasure

c d e f g

Sightseeing

c d e f g

Visiting natural attractions (such as beaches and national parks)

c d e f g

Entertainment activities (such as visiting a theme park, casino, bar/nightclub)

c d e f g

Attending events and festivals

* 2. Outside the city or town where you study, have you done any of the following activities?

Tick one or more boxes. c d e f g

Shopping for pleasure

c d e f g

Sightseeing

c d e f g

Visiting natural attractions (such as beaches and national parks)

c d e f g

Entertainment activities (such as visiting a theme park, casino, bar/nightclub)

c d e f g

Attending events and festivals

* 3. Who do you typically undertake these activities with?

Tick one box. j k l m n

International students from my nationality

j k l m n

International students from other nationalities

j k l m n

Australian students

j k l m n

Other friends or relatives who are not students

j k l m n

By myself

Page 2

International Student Tourism and Travel In Australia 3. Accommodation Please give us your views on accommodation in Australia.

* 4. What is your view on backpacker accommodation in Australia?

It does not matter whether you have stayed or not in this type of accommodation.

Tick one box for each line.

Very Poor

Poor

Neutral

Good

Very Good

Safety

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

Cleanliness

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

Easy to book

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

Value for money

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

Convenient

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

Understands the

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

needs to international students

* 5. What is your view on other types of accommodation (e.g. hotels, motels, holiday apartments) in Australia?

It does not matter whether you have stayed or not in this type of accommodation.

Tick one box for each line.

Very Poor

Poor

Neutral

Good

Very Good

Safety

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

Cleanliness

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

Easy to book

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

Value for money

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

Convenient Other Understands the

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

needs to international students

Page 3

International Student Tourism and Travel In Australia

* 6. While travelling in Australia I prefer to stay at...

Tick one box. j k l m n

Backpacker hostel

j k l m n

Hotel/Motel

j k l m n

Holiday apartment

j k l m n

Camping

j k l m n

Other (please specify)

Page 4

International Student Tourism and Travel In Australia 4. The Tourist Experience Please tell us your level of agreement with the following statements.

* 7. Tick one box for each line.

There are good international student

Strongly disagree

Disagree

Neutral

Agree

Strongly Agree

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

travel discounts available throughout Australia.

The stories I tell about Australia encourage my friends and family to visit here.

I do NOT have enough time to travel.

Travelling in Australia is safe.

Travelling in Australia is expensive.

There is nothing to do in Australia.

There are good student travel packages in Australia.

I do NOT have enough money to travel.

Shops in Australia are open when I want to visit them.

Australia is a boring tourist destination.

Travelling in Australia helps me learn about the Australia 'way of life'.

* 8. Since arriving in Australia, have you travelled for pleasure away from the town or city where you are studying?

Tick one box. j k l m n

Yes

j k l m n

No

Page 5

International Student Tourism and Travel In Australia 5. Places You Have Visited Please tell us about places you have visited in Australia.

* 9. Apart from your normal place of residence while studying, what overnight trips have you taken?

Tourist destinations are places like Rottest Island WA, Barossa Valley SA, Blue Mountains NSW, Uluru (Ayers Rock) NT, Gold Coast QLD, Cradle Mountain TAS and Phillip Island VIC. Tick one box in each line.

YES

NO

Capital City of the State where I study.

j k l m n

j k l m n

Regional City in the State where I study.

j k l m n

j k l m n

Tourist Destination in the State where I study.

j k l m n

j k l m n

Capital City in another state.

j k l m n

j k l m n

Tourist Destination in another state.

j k l m n

j k l m n

* 10. Do you plan to return to any of these places?

Tick one box. j k l m n

Yes

j k l m n

No

j k l m n

Maybe

If yes, where and why?

Page 6

International Student Tourism and Travel In Australia 6. On Your Most Recent Tourist Visit Thinking about your most recent tourist visit in Australia that was away from the city or town where Other you study, please answer the following questions.

* 11. How long was the visit?

Tick one box. c d e f g

Day visit

c d e f g

1-3 nights

c d e f g

4-6 nights

c d e f g

1-2 weeks

c d e f g

More than 2 weeks

Other

* 12. What transport did you use?

Tick one box. c d e f g

Car

c d e f g

Bus

c d e f g

Plane

c d e f g

Boat

c d e f g

Train

c d e f g

Hitch hiking

c d e f g

Other (please specify)

* 13. Who did you travel with?

Tick one box. c d e f g

By myself

c d e f g

With my partner

c d e f g

With friends

c d e f g

With family

Page 7

International Student Tourism and Travel In Australia

* 14. How much did you spend?

Tick one box. j k l m n

Less than $100

j k l m n

$101-$300

j k l m n

$301-$500

j k l m n

$501-$1,000

j k l m n

$1,001-$2,000

j k l m n

More than $2,000 (please specify amount)

Page 8

International Student Tourism and Travel In Australia 7. Future Travel Plans Please tell us about the places you plan to visit in the future.

* 15. Where do you plan to visit as a tourist?

Tourist destinations are places like Rottest Island WA, Barossa Valley SA, Blue Mountains NSW, Uluru (Ayers Rock) NT, Gold Coast QLD, Cradle Mountain TAS and Phillip Island VIC. Tick one box in each line.

YES

NO

Capital City of the State where I study.

j k l m n

j k l m n

Regional City in the State where I study.

j k l m n

j k l m n

Tourist Destination in the State where I study.

j k l m n

j k l m n

Capital City in another state.

j k l m n

j k l m n

Tourist Destination in another state.

j k l m n

j k l m n

* 16. On my next holiday break, I intend to...

Tick one or more boxes. c d e f g

Return to my home country

c d e f g

Work (paid)

c d e f g

Work (unpaid)

c d e f g

Travel in Australia

c d e f g

Travel to other countries

c d e f g

Other (please specify)

Page 9

International Student Tourism and Travel In Australia 8. Limits to Travel Please tell us about what limits your travel in Australia.

Other

* 17. Indicate your level of agreement with the following items.

Tick one box per line.

Strongly disagree

Disagree

Neutral

Agree

Strongly Agree

Lack of time

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

Concerns about money

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

Study commitments

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

Money

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

Work commitments

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

Safety and security

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

j k l m n

concerns No student travel discounts No student travel packages Not interested in travelling in Australia

Page 10

International Student Tourism and Travel In Australia 9. Visiting friends and family from my home country Please tell us about friends and family who have visited you or intend to visit you while you are in Australia.

* 18. Do you encourage your friends and family to visit Australia?

Tick one box. j k l m n

Yes

j k l m n

No

* 19. How many friends and family members from your home country intend to visit you, but have not come to Australia yet?

Select one number for each box.

Number of people Friends Family

* 20. Will your parents come to Australia for your graduation?

Tick one box. j k l m n

Yes

j k l m n

No

j k l m n

Maybe

* 21. Have friends and family from your home country already visited you in Australia?

Tick one box. j k l m n

Yes

j k l m n

No

Page 11

International Student Tourism and Travel In Australia 10. Friends and Family That Have Already Visited You Please tell us about the friends and family that have already visited you in Australia.

* 22. How many friends and family members from your home country have already visited you?

Select one number for each box.

Number of people Friends Family

* 23. Where did they stay?

Tick one box. j k l m n

With me

j k l m n

With friends and relatives

j k l m n

Backpacker hostel

j k l m n

Hotel/motel

j k l m n

Apartment

j k l m n

Other (please specify)

* 24. How long did they stay in Australia?

Tick one box. j k l m n

Less than 1 week

j k l m n

1-2 weeks

j k l m n

2-4 weeks

j k l m n

More than 1 month

Page 12

International Student Tourism and Travel In Australia 11. Your Budget and Lifestyle Please tell us about your budget and lifestyle while living in Australia.

* 25. The money for my program fees comes from...

Enter a % amount in each line so that they total 100%.

Income from working in Australia (%) Personal savings (%) From family (%) Scholarship (%) Loan (%)

* 26. The money for my general living expenses comes from...

Enter a % amount in each line so that they total 100%.

Income from working in Australia (%) Personal savings (%) From family (%) Scholarship (%) Loan (%)

* 27. The money for my travel and recreation comes from...

Enter a % amount in each line so that they total 100%.

Income from working in Australia (%) Personal savings (%) From family (%) Scholarship (%) Loan (%)

* 28. How many hours per week do you spend?

Select the number of hours for each activity.

Hours Studying Working Recreation and personal time

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International Student Tourism and Travel In Australia

* 29. What do you do during your recreation and personal time?

Enter a % amount in each line so that they total 100%.

Meet with friends (%) Shopping for pleasure (%) Relaxation (%) Travel and tourism acitivities (%) Other (%)

* 30. Please estimate the OVERALL cost to complete your program of study in Australia.

Enter an amount in Australian dollars.

Exclude your return airfare to your home country.

Include any program fees and other charges, and living, recreational and tourism expenses.

Amount A$

Page 14

International Student Tourism and Travel In Australia 12. Your Program Please tell us about your program of study.

* 31. What program are your studying?

Tick one box. j k l m n

English language

j k l m n

Certificate

j k l m n

Diploma

j k l m n

Associate degree

j k l m n

Under-graduate degree

j k l m n

Post-graduate degree

j k l m n

Research Higher Degree (RHD) or PhD

j k l m n

Other (please specify)

* 32. What type of institution are you studying at?

Tick one box. j k l m n

ELICOS

j k l m n

University

j k l m n

State college/TAFE

j k l m n

Private college (vocational)

j k l m n

Other (please specify)

* 33. What is the name of your institution?

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International Student Tourism and Travel In Australia

* 34. In which state/territory are you studying?

Tick one box. j k l m n

New South Wales

j k l m n

Australian Capital Territory

j k l m n

Victoria

j k l m n

Tasmania

j k l m n

South Austalia

j k l m n

Western Australia

j k l m n

Northern Territory

j k l m n

Queensland

* 35. Are you studying in Australia for your full program?

Tick one box. j k l m n

Yes

j k l m n

No

* 36. What is your anticipated length of study in Australia?

Tick one box. j k l m n

Less than 1 month

j k l m n

1-3 months

j k l m n

4-6 months

j k l m n

7-12 months

j k l m n

1-2 years

j k l m n

3-4 years

j k l m n

More than 4 years

Page 16

International Student Tourism and Travel In Australia 13. About You Please tell us about yourself.

* 37. What is your home country?

Select one from the list.

Other (please specify)

* 38. What is your age?

Tick one box. j k l m n

Under 18

j k l m n

18-21

j k l m n

22-25

j k l m n

26-29

j k l m n

Over 30

* 39. What is your gender?

Tick one box. j k l m n

Male

j k l m n

Female

* 40. What type of Australian visa do you have?

Tick one box. j k l m n

Student visa

j k l m n

Tourist visa

j k l m n

Working Holiday visa

j k l m n

Other (please specify)

Page 17

International Student Tourism and Travel In Australia 41. Are you considering applying for permanent residency in Australia?

Tick one box. j k l m n

Yes

j k l m n

No

j k l m n

Maybe

Page 18

International Student Tourism and Travel In Australia 14. Thank you Thank you for completing this survey.

42. TO ENTER THE $3,000 PRIZE DRAW There are 13 prizes of Coles-Myer vouchers with the value of: 1x $1,000 2x $500 10x $100 The prize draw will occur on Monday 30 November 2009 at 12pm. Winners will be notified via email. One entry per participant. Participants can win only one prize.

To enter the prize draw, please enter your email address below.

Page 19

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

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INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

APPENDIX C—NATIONALITY OF SURVEY RESPONDENTS Nationality Bangladesh Brazil Brunei Darussalam Burma (Myamar) Canada Chile China Colombia Czech Republic Egypt Fiji France Germany Hong Kong Hungary India Indonesia Iran Italy Japan Kenya Lebanon Malaysia Mauritius Mexico Nepal New Zealand Norway Pakistan Papua New Guinea Peru Philippines Poland Republic of Korea Russian Federation Saudi Arabia Singapore Slovakia Sri Lanka Sweden Switzerland Taiwan

Number of Respondents 42 46 16 18 195 31 1414 40 10 3 10 64 88 270 7 253 199 72 19 63 15 10 328 34 26 61 1 24 61 15 20 47 11 194 24 93 319 10 48 25 10 122

Percent of Sample (%) 0.8 0.9 0.3 0.4 3.8 0.6 27.7 0.8 0.2 0.1 0.2 1.3 1.7 5.3 0.1 5.0 3.9 1.4 0.4 1.2 0.3 0.2 6.4 0.7 0.5 1.2 0.0 0.5 1.2 0.3 0.4 0.9 0.2 3.8 0.5 1.8 6.3 0.2 0.9 0.5 0.2 2.4

75

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES Nationality Thailand Turkey United Arab Emirates United Kingdom United States of America Vietnam Zambia Zimbabwe Other countries Nationality not stated Total

76

Number of Respondents 105 12 13 69 171 198 3 12 161 889

Percent of Sample (%) 2.1 0.2 0.3 1.4 3.4 3.9 0.1 0.2 3.2 0.0

5991.0

100.0

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

APPENDIX D—INTERNATIONAL STUDENT EXPENDITURES The expected length of study was identified in seven categories ranging from less than one month to over four years. Students provided estimates of likely expenditure to include fees and living costs but excluding airfares to and from Australia. Some responses were consideration unrealistic and the data were cleaned to remove these.

The method of calculating what was considered to be realistic is detailed below. Due to small response numbers program durations of lower than four months have been excluded. Respondents were also excluded from the analysis if their expenditure was lower than the minimum amount or more than the maximum amount by program duration (as shown in Table 13). Missing data were also removed from the analysis.

Data Cleaning Due to the wide possible variations in living costs and fees the resultant bands are broad especially for categories four and five that span length variations of two years where the program duration is over three years duration.

To identify minimum possible expenditure it was assumed: • low fees were a minimum of A$10,000 per annum • student living was rent free with family or friends • minimum casual expenditure was of A$5,000 per annum.

To identify maximum possible expenditure it was assumed • high fees were up to A$50,000 per annum • living costs were up to A$50,000 per annum • capital expenditure (cars, furniture etc) was of A$25,000 in a program of one year or less and A$50,000 on longer programs.

Possible higher levels of capital expenditure for accommodation purchase were considered but thought to skew the data to too large an extent. It was assumed that responses outside these ranges had been the result of a misinterpretation by respondents or extraordinary purchases (e.g. houses). On this basis responses outside the range shown in Table 13 were excluded.

Table 12: Expenditure ranges included Program Duration

Minimum Expenditure A$ 5,000 8,750 15,000 45,000 75,000

4–6 months 7–12 months 1–2 years 3–4 years Over 4 years

Maximum Expenditure A$ 75,000 125,000 250,000 450,000 650,000

In Table 14 the results for expenditure across the program durations are provided.

Table 13: Expenditure figures by program duration Program Duration

N

Mean A$

Median A$

St Dev A$

4–6 months

162

21,754

19,000

14,274

7–12 months

269

39,492

35,000

22,027

1–2 years

1766

66,491

60,000

33,843

3–4 years

1626

132,082

120,000

65,114

Over 4 years

553

207,071

200,000

103,244

After cleansing data are therefore reported for 73 percent of the sample. It was also necessary to annualise the figures and the expenditures were therefore adjusted to represent a 12 month program. The expected duration is provided in Table 15 together with the annualised expenditure. Shorter programs were assumed to be at the

77

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES longer end of the expected duration and the three to four year program was assumed to be 75 percent of students on a three year program as this is the most common duration for undergraduate degrees.

In Table 15 the annualised expenditures are provided by program duration.

Table 14: Annualised expenditure by program duration Program Duration

Assumed Duration in Years

Annualised Expenditure A$

4–6 months 7–12 months

0.5 0.9

43,508 43,880

1–2 years 3–4 years

1.5 3.25

44,327 40,640

5

41,414 42,531

Over 4 years Weighted Average

On average, international students estimated they worked 6.4 hours per week. Using an estimated average hourly rate of $17.64* and assuming 48 working weeks per year, their income from working was estimated at $5,419 per year. Working income therefore contributed an estimated 12.7 percent to their total annual expenditure. The balance of average annual expenditure of $37,112 is assumed to be funded principally from savings and from family sources, and therefore viewed as export dollars. * Based on the casual award rates in retail and hospitality and an average age of 19 years for undergraduate students and of over 21 for postgraduate students.

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INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

APPENDIX E—COMPARISON OF INTERNATIONAL STUDENT TRAVEL BEHAVIOUR BY NATIONALITY 0.3% 0.3% 0.0% 2.0% 0.8% 0.7%

Other

6.0% 3.0% 5.7% 7.4% 5.3% 5.7%

By myself

21.0% 13.6% 7.7% 9.4%

Australian students

4.6% 7.0% 23.0% 34.9%

Other friends or relatives who are not students

22.7% 28.0% 13.6% 22.1% 22.1% 33.2%

International students from other nationalities

29.9% 25.2% 12.3% 22.6% 27.6% 15.0%

International students from my nationality

34.0% 28.0%

63.4% 41.9%

10%

0%

20%

30%

All international students

40%

China

India

Korea

50% Europe

60%

70%

North America

Figure 68: Travel companions by nationality 4.2% 5.3% 3.6%

Other

11.1% 3.0% 5.8% 9.9% 15.1% 3.1%

Camping

7.3% 3.7% 5.5% 35.5% 38.8% 19.1%

Backpacker hostel

21.0% 16.9% 22.0% 11.0% 12.0% 27.3%

Holiday appartment

22.8% 28.0% 23.3% 39.4% 28.8%

46.9%

Hotel/Motel

37.8% 48.4% 43.4% 0%

10%

20% All international students

30% China

India

40% Korea

Europe

50%

60%

North America

Figure 69: Accommodation preferences by nationality

79

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES 3.8% 9.1% 9.7%

More than 2 weeks

4.5% 5.3% 5.9% 11.6% 12.1% 8.6%

1-2 weeks

3.0% 6.2% 9.1% 27.0% 21.1% 23.4%

4-6 nights

18.9% 24.7% 22.8% 47.1% 42.6% 37.7%

1-3 nights

39.8% 34.4% 38.2% 10.5% 15.1%

20.6%

Day visit

33.8% 29.4% 24.0% 0%

5%

10%

15%

20%

25%

All international students

China

30%

India Korea

Europe

35%

40%

45%

50%

North America

Figure 70: Length of visit on most recent trip by nationality 1.9% 3.1% 3.0%

Other

4.8% 8.0%

5.1% 3.5% 2.7% 4.3% 4.4%

Hitch hiking

4.1%

5.9%

4.8% 5.8%

3.7%

Boat

10.5% 17.4%

5.8% 5.4%

Train

11.5% 17.3%

4.7% 5.9% 11.9% 9.5% 9.2% 8.7%

Bus

14.2% 23.1%

12.0%

28.6%

Plane

33.9% 37.0%

9.8% 13.4% 26.4%

41.0%

37.4%

25.9%

Car

53.4%

26.3% 34.7% 0%

10%

20% All international students

30%

40%

China India Korea Europe North America

Figure 71: Mode of transport on most recent trip by nationality

80

50%

60%

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES 9.3% 8.6% 10.2%

By myself

8.6% 7.5% 8.4%

27.5% 27.6% 14.5%

With my partner

10.0% 7.8% 14.5%

6.4% 8.9% 21.7%

With family

19.3% 10.2% 14.7%

56.8% 54.9% 53.6%

With friends

62.1% 74.5% 62.4%

0%

10%

20%

30%

40%

All international students

China

50%

India Korea

Europe

60%

70%

80%

North America

Figure 72: Travel party on most recent trip by nationality

13.8% 19.2% 21.1%

More than $1,000

11.4% 14.6% 16.0% 23.9% 17.9% 26.3%

$501-$1,000

21.8% 22.6% 23.5% 26.8% 21.0% 20.6%

$301-$500

24.2% 21.4% 21.3% 25.1% 23.9% 17.7%

$100-$300

22.7% 21.3% 23.1% 10.4% 18.0% 14.3%

Less than $100

20.0% 20.1% 16.1% 0%

5%

10% All international students

15% China

India

20% Korea

Europe

25%

30%

North America

Figure 73: Expenditures on most recent trip by nationality

81

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES 4.9% 5.5% 5.2% 5.7%

Work (unpaid)

7.90% 5.9% 30.9% 32.7% 19.6%

Travel to other countries

15.6% 17.60% 21.4% 49.7% 30.7% 37.6%

Return to their home country

30.0% 44.30% 41.9% 30.6% 41.6% 47.4%

Work (paid)

55.4% 52.90% 43.1% 44.8% 61.2% 52.6%

Travel in Australia

64.1% 60.50% 51.7% 0%

10%

20%

30% All international students

40% China

India Korea

Europe

50%

60%

70%

North America

Figure 74: Plans for upcoming vacation period (i.e. Summer 2009/10) by nationality

5.5% 6.3% 3.5% 2.4% 1.4% 2.8%

Other

5.5% 4.8% 5.6%

Backpacker hostel

1.2% 2.1% 2.6% 6.0% 5.3% 3.5%

Apartment

5.9% 7.0% 6.7% 2.8% 7.9% 7.0%

With friends and relatives

29.6% 15.2% 13.8% 27.2% 17.5% 28.0%

Hotel/motel

13.0% 37.8% 27.0% 53.0% 58.2% 52.4%

With the international student

47.9% 36.5%

0%

10%

20%

30% All international students

47.1%

40% China

India Korea

Europe

50% North America

Figure 75: VFRs stayed while in Australia by nationality

82

60%

70%

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES 12.0% 25.0% 21.0%

More than 1 month

38.5% 22.0% 20.1%

42.4% 45.6% 23.8%

2-4 weeks

29.0% 22.3% 23.9%

35.0% 24.6% 41.2%

1-2 weeks

23.6% 39.7% 40.3%

10.6% 4.8% 14.0%

Less than 1 week

8.9% 16.0% 15.6%

0%

5%

10%

15%

20% All international students

25% China

India Korea

30% Europe

35%

40%

45%

50%

North America

Figure 76: Length of stay in Australia for VFRs by nationality

83

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

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International student enrolments.

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Australian Government. (2009b, August 8). Bruce Baird to head up international student review. [media release]. Retrieved from www.pm.gov.au on 16 November 2009.

Australian Government. (2009c, September). Review of the Education Services for Overseas Students (ESOS) Act 2000: Issues paper. Canberra: Author.

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(2009e).

Main courses of study for student visas.

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Australian Government. (2010a). Stronger, simpler, smarter ESOS: Supporting international students. Retrieved from www.aei.gov.au on 26 March 2010.

Australian Government. (2010b). Fact sheet 49: Working holiday program. Retrieved from www.immi.gov.au on 4 January 2010.

Australian Government. (2010c). Total working holiday and work & holiday visas granted: 2004–05 Through To 2008–09.

Retrieved from www.immi.gov.au on 4 January 2010.

Babin, B., & KuemLim, K. (2001). International students’ travel behaviour: A model of the travel-related consumer dissatisfaction process. Journal of Travel and Tourism Marketing, 10(1), pp.93–106.

Barron, P., Baum, T., & Conway., F. (2009). Learning, living and working: Expectations and realities for international postgraduate students at a Scottish University. Journal of Hospitality & Tourism Education, 21(3), pp.6–16.

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Field, A. (1999). The college student market segment: A comparative study of travel behaviors of international and domestic students at a Southeastern University. Journal of Travel Research, 37, pp.375–381.

Gillard, J. (2009, May 26). International education: Its contribution to Australia. [speech]. Retrieved from www.deewr.gov.au on 16 November 2009.

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Lawrence, R. (2009). The buyer behaviour of international students: How they decide. Presentation from Australian International Education Conference, 13–16 October 2009, Sydney.

Mazzarol, T., Soutar, G., & Seng, M. (2003). The third wave: Future trends in international education. The International Journal of Education Management, 17(3), pp.90–99.

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Weaver, D. (2002). The contribution of international students to tourism beyond the core educational experience: Evidence from Australia. Tourism Review International, 7, pp.95–105.

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International Journal of Tourism Research, 11, pp.255–268.

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AUTHORS Michael Davidson Professor Michael Davidson is currently Director of the Centre of Tourism, Sport and Service Innovation and former Head of Griffith University’s Department of Tourism, Leisure, Hotel and Sport Management in Australia (2005–2007). Previously he was the Director of the Kabacoff School of Hotel, Restaurant, and Tourism Administration, University New Orleans (2000–2005) and was the Foundation Head of Griffith’s School of Tourism and Hotel Management (1990–1996). His research interests examine the impact of organisational culture and climate on service quality, operational and marketing performance, employee motivation and turnover in the hospitality industry. He started his career in hotels and became a general manager of a five star hotel in the Southern England. He has undertaken many research and consultancy projects, in the UK, US and Australia, published widely, and serves on editorial boards and is a reviewer for a number of journals.

Email: m.davidson@griffith.edu.au

Hugh Wilkins Hugh Wilkins, PhD is an Associate Professor in the Griffith Business School. Prior to joining Griffith University he taught in the UK at Staffordshire and Oxford Brookes universities. In the period since he joined Griffith University he has been Head of School of Tourism and Hotel Management and is currently Director of Offshore Operations for the Griffith Business School. His research interests are in consumer behaviour related to the service sector with a particular focus on tourism and hotel management. He has a number of publications in international journals within these areas.

Email: h.wilkins@griffith.edu.au

Brian King Brian King is Professor of Tourism Management and Director in the Office of the Pro Vice-Chancellor (Institutional Services) at Victoria University. He is also Chair of the International Centre of Excellence for Tourism & Hospitality Education (THE-ICE), an elected Fellow of the International Academy for the Study of Tourism (IAST) and founding joint Editor-in-Chief of the Journal Tourism, Culture and Communication. He has been actively involved in leadership roles within tourism education for 30 years and has a longstanding interest and involvement in the relationship between international education and tourism. He has published widely in the area of tourism education in developed and developing countries at both vocational and higher education levels.

He has a particular interest in the emergence of a pluralistic system of post-secondary education for tourism in Australia bringing Universities, Hotel Schools and Vocational Education and Training (VET) providers with the tourism industry.

Email: brian.king@vu.edu.au

Perry Hobson Perry Hobson is an Associate Professor in the School of Tourism and Hospitality Management at Southern Cross University (SCU). He is also the Director of the International Centre for Excellence in Tourism and Hospitality Education (THE-ICE). He has been the Editor-in Chief of the Journal of Vacation Marketing for over ten years, and was until recently also the co-Editor of the Journal of Hospitality & Tourism Education. Perry is the Founding Chair of the Academic Board of the Blue Mountains International Hotel School and Australian International Hotel School (Leura/Canberra) which are part of Laureate Hospitality Education group. He also sits on the academic boards of the Think Education Group (Sydney), and William Angliss Institute (Melbourne). He is currently the President of APacCHRIE (a regional association of hospitality and tourism educators), and was also twice elected Chair of the Council of Australian Universities for Tourism and Hospitality Education (CAUTHE). He has also held full-time academic positions in USA and Hong Kong, and also held visiting positions in The Netherlands and Austria.

Email: perry.hobson@scu.edu.au

86

INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES Stephen Craig-Smith Associate Professor Stephen Craig-Smith is the Deputy Head of the Tourism School at the University of Queensland. He has been actively involved in Tourism Degree Education for 30 years and has a research interest in Tourism Curriculum. He is an Inaugural Fellow of CAUTHE and is a Queensland Ministerial Advisory Panel Member on tourism and hospitality higher degree education provision.

Email: s.craigsmith@uq.edu.au

Sarah Gardiner Sarah Gardiner is a PhD candidate in the Department of Marketing at Griffith University, Australia. Prior to commencing her PhD studies, she worked as a Senior Industry Development Officer Tourism for the Gold Coast City Council. In this role, she was responsible for planning and implementing tourism and economic development projects in the Gold Coast region. Sarah has completed a Bachelor of Business with Honours and Bachelor of Exercise Science. Her current research interests are in the areas of consumer behaviour and public policy relating to tourism and event planning and development. She is also particularly interested in youth and Generation Y travel.

Email: s.gardiner@griffith.edu.au

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INTERNATIONAL EDUCATION VISITATION—TOURISM OPPORTUNITIES

88

• Travel and tourism industry • Academic researchers • Government policy makers

N

COLLABORATION

TI

INDUSTRY P ARTNERS

EDUCATION AND TRAINING

ON

OVA

O I T

RESEARCH AND DEVELOPMENT

INN

A C O M M UNIC

COMMERCIALISE

UTILISE • New products, services and technologies • Uptake of research finding by business, government and academe • Improved business productivity • Industry-ready post-graduate students • Public good benefits for tourism destinations

UNIVERSITY P ARTNERS

C O M M E R C I A L I S AT I O N

EC3, a wholly-owned subsidiary company, takes the outcomes from the relevant STCRC research; develops them for market; and delivers them to industry as products and services. EC3 delivers significant benefits to the STCRC through the provision of a wide range of business services both nationally and internationally.

TOURISM NT NORTHERN TERRITORY AUSTRALIA

KEY EC3 PRODUCTS

Chairman: Stephen Gregg Chief Executive: Ian Kean Director of Research: Prof. David Simmons CRC for Sustainable Tourism Pty Ltd Gold Coast Campus Griffith University Queensland 4222 Australia ABN 53 077 407 286 Telephone: +61 7 5552 8172 Facsimile: +61 7 5552 8171 Website: www.crctourism.com.au Bookshop: www.crctourism.com.au/bookshop Email: info@crctourism.com.au

Sustainable Tourism Cooperative Research Centre (STCRC) is established under the Australian Government’s Cooperative Research Centres Program.

STCRC is the world’s leading scientific institution delivering research to support the sustainability of travel and tourism—one of the world’s largest and fastest growing industries.

Introduction STCRC has grown to be the largest dedicated tourism research organisation in the world, with $187 million invested in tourism research programs, commercialisation and education since 1997.

STCRC was established in July 2003 under the Commonwealth Government’s CRC program and is an extension of the previous Tourism CRC, which operated from 1997 to 2003.

Role and responsibilities The Commonwealth CRC program aims to turn research outcomes into successful new products, services and technologies. This enables Australian industries to be more efficient, productive and competitive.

The program emphasises collaboration between businesses and researchers to maximise the benefits of research through utilisation, commercialisation and technology transfer.

An education component focuses on producing graduates with skills relevant to industry needs.

STCRC’s objectives are to enhance: •

the contribution of long-term scientific and technological research and innovation to Australia’s sustainable economic and social development;

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the transfer of research outputs into outcomes of economic, environmental or social benefit to Australia;

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the value of graduate researchers to Australia;

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collaboration among researchers, between searchers and industry or other users; and

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efficiency in the use of intellectual and other research outcomes.