Managing immigration in offshore markets

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Managing immigration in offshore markets
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Contents

• The Offshore Perspective
• What Drives our Approach Offshore?
• Government priorities
• Government Expectations
• NZ Inc Strategic Direction and Priorities
• INZ Offshore Strategic Alignment with NZ Inc
• Priorities for Offshore Service Strategy
• What Changed? Focus on Adding Value

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Contents - cont

• Adding Value
• Global Sample of Markets Moscow
• China
• Hong Kong
• India
• Issues
• Looking Ahead

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The Offshore Perspective

• Looking at
• What drives our approach in offshore markets
• What we are doing to add value to NZ Incs
  efforts to grow the education sector in markets
• Global overview of markets
• Future Thinking

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What Drives Our Approach Offshore?

• November 2004 Offshore Managers Conference
• To develop service strategy for our offshore
  activity
• Key elements of strategy to focus Branch
  Managers offshore in developing plans for each
  market
• AMO presents key priorities for Government
• Deputy Secretary gives direction and priorities
  for DOL
• Strategic priorities of NZ Inc (NZ Tourism,
  MFAT, NZTE, Ed. NZ)
• Alignment and gaps

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Government Priorities

• AMO identified following priorities
• Improving NZ ranking in the OECD
• Increasing income per capita for all New
  Zealanders and ensuring a distribution of income
  across various groups
• Developing a high-growth, high-wage economy
• Focus on expanding trade agreements

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Government expectations

• In meeting these priorities Governments
  expectations are
• A whole-of-Government approach
• Labour market policy will be critical and New
  Zealand cannot allow the skills shortages to be a
  constraint to economic growth (33 of industry
  had identified the skill shortages as a
  constraint on their industry)
• The priority will be to train and develop New
  Zealanders. This means increased training and
  apprenticeships.

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Government expectations cont

• Immigration will be important in meeting skill
  needs and migrants have an overall positive
  impact on New Zealand. However, immigration must
  not be seen as a default training policy.
• Need to do more to attract people with skills and
  to ensure we have enough applications flowing in
  to meet the residence programme.
• In marketing New Zealand there is a need for
  Departments to be working closely together

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NZ Inc Strategic Direction and Priorities

• MFAT, NZ Tourism, NZTE Education Strategy
  includes
• Focusing on the quality of education and the
  benefits to New Zealand.
• Coordination across agencies to address the
  reputation issues in China and to strengthen this
  market.
• Developing further the market in India for
  tertiary and post graduate skills/talents.

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NZ Inc Strategic Direction and Priorities cont

• Looking for opportunities to develop twinning
  programmes and offshore campuses to strengthen
  education linkages.

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INZ Offshore Strategic Alignment with NZ Inc

• Conclusions from our analysis of alignment with
  NZ Inc
• The education strategy is well understood and
  there is a commitment to work together to give
  effect to it.
• The interactive traveller provides an opportunity
  to reach a targeted group for more than just
  tourism. This group may also reflect the skills
  New Zealand is seeking for migration, work and
  study.

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INZ Offshore Strategic Alignment with NZ Inc

• The need for a whole of government approach to
  representing New Zealand offshore is well
  understood by all New Zealand Incorporated
  parties. There are real opportunities to work
  together to market New Zealand and we need to
  ensure information on these is shared.
• A conclusion relevant to the Education
  Sector was the need for more work with other key
  stakeholders (NZQA, ED NZ, industry and
  educational institutions)

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Priorities for Offshore Service Strategy

• Expectations that the service strategy will
• Enhance the contribution to the economic growth
  and social cohesion
• Work with other agencies and industry to maximise
  the benefits and contribution
• Manage the external risks and minimise adverse
  impacts
• Be responsive and flexible to changes in the
  environment
• Focus on the outcomes not just the process
• Enhance our reputation and affirm our role

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Priorities for the Service Strategy

• What will be needed for success
• Linked to the direction of the Government and the
  Department
• Aligned to the strategies of our partners and
  stakeholders
• Meets New Zealand needs and opportunities
• Meets customers needs
• Manages the risks (external and internal)

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Priorities for the Service Strategy

• Develop relationships with trusted and accredited
  institutes and through the institutions, provide
  the students with
• Reduced requirements
• Improved access and support
• Improved processing times
• Length of course visa

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Priorities for the Service Strategy

• Differentiate services for low-risk students
  based on the value and a positive profile and
  provide to them
• Ease of access
• Improved processing times
• Work with Education NZ and NZ Trade Enterprise
  to jointly market to these segments of the
  student market offshore and support this through
  online application.

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What Changed?

• Focus on Adding value
• Branch Managers offshore developed their
  strategic objectives for their own markets for
  the current year based on the outcomes of the
  November 04 conference
• Meetings with NZ Inc locally to communicate
  direction and intent in the market
• Planning with NZ Inc to harmonise and align
  activities
• Increased visibility of INZ staff in Education
  events

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What Changed?

• Focus on Adding value
• Increased activity in promoting NZ to agents and
  agent training
• Focus on facilitation and excellent customer
  service
• Pro-active connection with Government agencies
  offshore (Moscow)
• Promotion of positive profiles
• Active promotion of pathways to residence

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Adding Value

• Active promotion of policy changes/benefits
• Bank loan scheme for PRC students
• Promotion of pre-verification with agents
  (India) - incentive accelerated
  processing

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Global Sample of Markets - Moscow

• Modest volumes around 500 but has potential
• NZ third choice for study overseas behind UK
  and Malta, ahead of Australia and Canada
• NZ has 5 of market share, Australia 2
• Australia investing heavily to close the gap
• Providers from NZ active in the market
• Quality of applications quite high outcomes
  good

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Moscow

• 91 approval rate last two years
• 60 decided in 5 days
• Support to NZ providers in market
• Branch Manager met with Ministry of Education
  Khazikstan to encourage govt to send scholarship
  students to NZ.
• Room for steady growth but need to keep ahead of
  competitors

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China

• A lot of optimism and effort by NZ Inc but only
  a slight increase in volumes across China
• A very competitive market Brits, Irish, Canadians
  struggling. Brits say they have had significant
  decline in the last year. Australia remaining
  stable big investment by competitors in the
  market
• Demand flat because of more opportunities for
  students in China reduction in number of
  students going offshore for education

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China

• INZ timeliness improved 50 of decisions in 15
  days and 97 within 60 days. Ahead of
  competitors.
• Decline rate down from 23 last year to 17 this
  year
• INZ very active in student agent training
  promoting pathways to residence, work
  entitlements

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Hong Kong

• Modest in volumes but has potential
• Focus on mainland but Hong Kong has high quality
  prospects
• Of the 70,000 studying abroad only 2 in NZ
• Need for more NZ visibility in the market
• Feedback from agents is that there is too much
  competition among providers- should be more
  differentiation. Institutions could identify
  niches and specialize
• If institutes targeted niche areas agents would
  promote

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Hong Kong

• Agents feedback commissions too low
• INZ can add value by promotion with agents,
  brokering
• Potential for more vocational training as NZTE
  adjust focus business to business
• Branch Manager brokering role between agents
  willing to promote and providers

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India

• Vibrant, dynamic, growth up 26 on last year -
  likely to continue
• Increased level of interest in NZ compared to
  competitors
• Good media coverage in India and good news
  stories in the market about NZ
• Changes to student policy has put us ahead
• 70 approval rate virtually no adverse outcomes

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India

• Growing market of high quality student prospects
• Education mission led by Minister launch of
  model valued group of agents, trusted partners
  meeting volume and quality criteria accredited
  agent status
• Pathways to residence important in this market

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Issues

• Medicals have been an issue settling down
• Need for more explicit strategy by INZ to market
  pathways to residence
• Consistency of policy application e.g. 2
  courses issue some branches issue one visa,
  some two
• Concern in market about turn around time of
  institutions offer of place competitors are
  ahead
• Role of agents with more online applications.
  Potential as distribution link disseminate
  information
• Need for INZ to complement, not duplicate NZTE

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Looking ahead

• More online
• Medicals online will put us ahead of
  competition
• Changing, diminishing role of agents in the
  market. Need to consider how they can still add
  value in the world of online
• More support networks to agents who actively
  promote NZ workshops
• Increase in accredited agents model with improved
  access and support, improved processing times

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Looking ahead cont

• More differentiating services for low-risk
  students based on value and positive profile and
  providing them with ease of access, faster
  processing times
• More pre-verification especially in high-risk
  markets. Institutions could promote this to
  agents. Offer of place costs 2000, costly if
  application declined
• More institution to institution education links
  as in China
• More vocational education and training options as
  NZTE develop business to business model further

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Questions

• Thank you