Educational tourism, a segment about to take off
A report reveals that this niche will surpass US $ 1,947 billion in 2031, supported by favorable government policies
Future Market Insights (FMI) in its latest analysis has projected that the global educational tourism market will register a year-on-year growth of 16.5% in 2021, surpassing a valuation of around US $ 399.8 billion by the end of the year.
According to the report, this niche will have an impressive compound annual growth rate (CAGR) of 17.2% between 2021 and 2031, reaching a valuation of around US $ 1,947.0 Bn by the end of 2031.
Several countries around the world are promoting educational tourism as part of their strategy to boost the local economy. They seek to capture the spillover of international students in accommodation, food and beverages, tuition fees, taxes and other leisure activities.
Digital marketing plays a vital role in promoting the services and packages offered by various educational institutions and other companies.
According to the FMI, the graduate segment with more than 71% market share will continue to be the type of education with the highest demand among students. At the regional level, North America is the market leader. The region is expected to account for more than 31% of the global share during the forecast period.
"The growing interest of students to opt for higher education in foreign countries and the implementation of favorable policies that invite students from all over the world will boost the segment rapidly during the forecast period," said an FMI analyst.
Key Findings from the Educational Tourism Market Survey
- The United States dominates the educational tourism market in North America. This can be attributed to the presence of leading educational institutions and the excellent educational facilities available in the country.
- Due to the availability of a flexible educational system, the UK is emerging as an attractive destination for students.
- The growing interest of foreigners to study Indian culture and the availability of various postgraduate courses with special scholarship programs for foreigners are some of the factors driving the market in India.
- In terms of the type of course, the Master's (MA) is still the most preferred, accounting for around 71% of the global market share.
- The 19 to 25 year-old segment leads the educational tourism market. According to the IMF, this age group generates around 73% of income for the global educational tourism market.
- Government initiatives undertaken to promote the country as a destination for educational tourism will have a positive impact on market growth.
- The introduction of advanced teaching aids and various scholarship programs to attract international students will boost the market rapidly in the future.
- The high cost associated with educational tourism is hampering the growth of the market.
- The COVID-19 pandemic negatively affected the educational tourism market, as most educational institutions remained closed for an extended period of closure.