US Rebound, Pathway Woes and A World of Opportunity

Watching the gyrations of international recruitment as the pandemic, global tensions and the rise of online opportunities work their way through the sector is enough to make anyone slightly queasy.  There is still plenty to play for and with Australia looking ready to re-enter the fray in 2022 it is going to be a fascinating ride.  But for now it’s time to digest the latest Open Doors figures and have a small look under the hood to see what might be happening in the pathway sector.

The Open Doors press release trumpeted 914,095 international students for the 2020/21 academic year which was a 15% decline year on year.  But the inclusion of OPT (203,885) and non-degree students (21,151) doesn’t make a reasonable comparison with some other countries and when you strip them out the UG and Graduate student number is 689,069 – a 13% decline on the previous year.  The 45.6% year on year decline in new student enrollment becomes a slightly more palatable 39.9% with the removal of non-degree students.

But the real excitement was around the bounceback in the 860 university snapshot survey conducted by the Institute of International Education (IIE).  This suggested that new international students enrollments grew by 68% year on year to Fall 2021.  The obvious point to make is that if 2020/21 international student enrollment (including non-degree) was 145,528 then a 68% increase would take it to 244,487 which is still a lower new student intake than any year since 2011.

It’s good news that several US universities provide open and near contemporaneous access to detailed levels of information on international student recruitment which allows us to look under the hood and down to the pathway level.  It’s a state of affairs that Canada, the UK and Australia (which goes some of the way) should think of emulating.  Meanwhile, Fall 2021 updates from INTO University Partnerships (IUP) partners Oregon State University and George Mason University show how tough some are still finding things at direct and pathway levels.

Oregon State University (OSU)

IUP’s corporate website has an encouraging graph which shows the OSU international student growth story all the way up to 2019/20 so a visual moving the picture forward to Fall 2021 seems a helpful contribution.  The deterioration in undergraduate numbers is particularly evident as the university’s total enrollment falls to near 2012 levels and 2021 shows a further decline of 10% from 2020.  A wider consideration going forward may be that if there is a shift in major source countries the balance of UG to graduate enrollments may change for all universities with significant consequences for year on year stability.

Source: Oregon State University Institutional Research Office  

The situation for the INTO pathway operation at OSU is even more stark.  From a high point in 2014 the trend has been almost wholly downwards with a 78.7% decline in enrollments to 319 in 2021.  While the early stages of decline were in Academic English the most recent shrinkage has been in the core undergraduate and postgraduate intakes.

Source: Oregon State University Institutional Research Office  

INTO George Mason University (INTO GMU)

INTO GMU saw reasonable growth in its first two years and peaked at an enrollment of 387 in 2016.  Five years of decline has seen the 2021 intake down to 96 – a 75.2% fall from the peak with graduate and undergraduate numbers following similar paths.  INTO University Partnerships (IUP) July 2020 accounts show that INTO GMU’s level of debt to IUP had grown from £566k to £1.896m so it will be interesting to see how the 2021 annual report looks.

Source: GMU Office of Institutional Research and Reporting

To be fair and reasonable the announcement of the deal between IUP and GMU anticipated that the venture would add 1,000 international students to the university over five years.  In Fall 2014 the university’s census recorded a headcount of 2,136 non-resident aliens on GMU’s US campuses and by Fall 2019 that had risen to 3,247 so the original mission was accomplished.  The numbers for the pathway suggest that direct recruitment will have helped that along and tracking what happens next will be fascinating.

It’s difficult not to note that IUP, the pioneer of joint venture pathways, has had a bumpy few years with partnerships in the UK and US falling by the wayside.  Executive chairman, John Latham left the business on 31 October after being at IUP since April 2016 and just a few months after new Chief Executive, Olivia Streatfeild, was appointed around June this year.  INTO the Great Wide Open suggested some of the strategic issues the business faces with the suggestion that it “needs to establish some renewed momentum if it is to fulfil the promise of its early days of innovation, creativity and energy.”

Outside, the CEO and Chief Recruitment Officer, the IUP leadership team has been in place for five years or longer.  It’s a period that has seen six joint ventures close, three in the US and three in the UK, with little to match the growth of Shorelight in the US, no new UK partners and the recent addition of University of Western Australia in beleaguered Australia.  There are plenty of adjustments in the financial reporting but one measure of performance might be Total Comprehensive Income at Group level which looks to have moved from £8m to £12m over the period.

With the US and UK governments setting out to support ambitious growth targets and a reawakening of student mobility there should be good opportunities for nimble operations with a good foothold in key markets to move forward.  New operators and established companies, particularly in the UK, are showing that universities are still looking for support and Shorelight’s recent announcement of partnership with Austin College suggests there are opportunities in the US.  To borrow from Sherlock Holmes “the game’s afoot” but whether the answer is “elementary” remains to be seen.

Note: The data is gathered from public sources and referenced as necessary. In the event that there is a misinterpretation or error I am always happy to make amendments if approached with appropriate, verifiable information from an authoritative source.

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