Parison Srilanka Thailand

eConcordia
FITTskills International Trade Research Course
Thailand and Sri Lanka: Prospects for Canadian

Franchise Degree Programs?
And what rough beast, its hour come round at last,

Slouches towards Bethlehem to be born?
“The Second Coming”, William Butler Yeats (1919)
Name: Daniel J. Costello Student ID: 1811

Address: Daejin University, Department of International Trade and
Management, Pocheon, Gyeonggido, 487-711, South Korea. Telephone
Number: +82-(0)31-535-3554 E-mail: costello_daniel@yahoo.com
Table of Contents
1. Executive Summary Pg.3

2. Identification of research questions and
objectives/methodology
a. What is the potential size of franchise degrees Pgs. 4-5

market in Thailand and Sri Lanka?
b. What preferences or trends are typical of these

markets? Pgs. 5-6
c. Who are the local competitors in the market Pgs. 6-7

and what resources do they have?
d. How do regulations and restrictions influence

Pgs. 8-9
the ability to address these markets?
e. What resources will be needed to address these Pgs. 10-11

markets?
f. What marketing mix will be appropriate? Pg. 11

3. Country analyses
a. Country profiles: current size and future Pgs. 12-13

growth potential
Pgs. 13-14
b. Political characteristics and stability
4. Identification of strategic/tactical issues Pgs. 15-16
5. Analyses of the competition Pgs. 17-18
6. Recommendations and action plan Pgs 18-21
7. Appendices Pgs. 22-29
8. Bibliography Pgs. 30-35
eConcordia: International Research Assignment: Thailand and Sri Lanka 2

1. Executive Summary
This research report briefly outlines the opportunities and pitfalls

for any Canadian university franchise degree program approaching
foreign direct investment proposals in either Thailand or Sri Lanka.
The author while Canadian is employed by a Korean university
where similar information may prove useful in assessment of the
same potential markets and strategic alignments necessary at home
first before succeeding abroad.
While the franchise degree market in Thailand appears larger and

more lucrative with a more developed investment environment it
may be approaching saturation in Bangkok while Sri Lanka’s market
for higher education is somewhat underdeveloped due to poor
regulatory oversight. At the same time Thailand appears to prefer
graduate and doctorate programs however that is not what
Canadian schools appear to be marketing while Sri Lanka appears to
have higher demand for business, management and technical
degree programs yet Canada’s sole representation appears to be a
consultancy geared for immigration to Canada.
Thailand measures far greater numbers of competitors with fewer

accounted quality measures of their in country progress when
compared to Sri Lanka. Both would require effective agency
representation to sustain successful contract agreements either
with joint venture partners in the public or private educational
sectors as well as managing governmental regulatory procedures
through respective Boards of Investment. Both provide adequate
local advertising and marketing opportunities.
Competition is brisk in both markets concerning franchise degree

programs however little progress appears to be possible due to
current Canadian provincial and regulatory chaos not overseen by
either an independent educational standards body or a national
stakeholder marketing agency. Recommendations include formation
of a national educational standards agency in line with global best
practices as well as a national stakeholder owned marketing agency

and remediation of regulations to reduce non-compliance. In
addition self-financing of offshore programs is discussed.
2. Identification of research questions and
objectives and methodology
What is the potential size of franchise degrees market in

Thailand and Sri Lanka?
THAILAND: Estimates as of 2008 data may be made upon the

basis of student enrollments at secondary and tertiary institutions.
The Bangkok region represents the largest potential market with
approximately 18% of the total population of Thailand in target age
groups from lower to upper secondary, males and females. The
total enrolled market of 815,405 potential customers is calculated
on a population percentage basis and includes all secondary lower
and upper level students estimated to live in the Bangkok region.1
The highest 20% of population consumes 48.4 % of total wealth.2 A
potential student customer pool of 163,081 considers only the top
20% of the actual student population.
SRI LANKA: Estimates as of 2006 data may be made upon the

basis of student enrollments at secondary and tertiary institutions.
The Colombo region represents the largest potential market with
approximately 12% of the total population in Sri Lanka target age
groups from lower to upper secondary, males and females. Most
recent enrollment figures would present the best estimates of these
figures as any degree granting institution in Canada seeking to
develop these markets would conservatively require three to five
years to approve an action plan upon which time these students
would represent actual customers. The total enrolled market of
301,920 potential customers is calculated on a population
percentage basis and includes all secondary lower and upper level
students estimated to live in the Colombo region.3 Due to a general
1
Office of the Non-Formal and Informal Education, Ministry of Education, Bangkok (2007)
UNESCO, “The Development and State of Adult Education in Thailand (ALE)”
2
CIA (2008) Factbook: Thailand
3
UNICEF, Division of Policy and Practice, Statistics and Monitoring Section (2008) “Education

tendency for annual increases in urban population in Asia these
figures are conservative and may have 4-5% increases over the two
years since data was generated. Calculated highest 20% of
population consumes 42.8 % of total wealth4 and represents total
potential customers at 60,384.
What preferences or trends are typical of these

markets?
THAILAND: The Thai educational market is seen to provide

potential in primarily the post-graduate sector currently
experiencing growth in one year full-time enrollment programs with
an increase in government financed scholarships as well as self-
financed doctoral programs.5 Demand for higher education was seen
to have peaked in 2001/2002 with slight fall in demand as of 2004. 6
Limitations on demand growth are seen only in resolution of private
financing, provision of student loans and income deficiency gaps
between lower income families per capita schooling expenses and
opportunities costs. 7 Some consider the Bangkok education market
may have reached a point of saturation.8 At this time other than the
Canadian Education Centre (CEC), a non-profit cultural consultancy,
it appears Canadian institutions do not operate any educational
investments or franchise degree programs in Thailand. Canadian
recruitment however for Thai students through the Thai
International Educational Consultants Association (TIECA) is mostly
west coast based and includes various smaller colleges and
municipal school boards. At the same British Council research
indicates that this is not what the Thai market demands.
Understanding Canada’s laggard positioning, it is no surprise that
the Thai market may be being misread as strictly school-aged.
statistics: Sri Lanka”, May 2008

4
CIA (2008) Factbook:Sri Lanka
5
The British Council, Educational Market Intelligence Thailand (February, 2008)
6
The World Bank, Thailand Social Monitor 2008 on Youth: Development and the Next
Generation (Bangkok: March, 2008) Slide 13.
7
Ibid, Slides 16,17,18.
8
The Bangkok Post, International Education: A Beginners Guide (April, 2005)

SRI LANKA: Possible demand driven educational markets include
tertiary, technical and vocational programs which would benefit
from private sector investment. Little data exists on the overall
quality of current private education providers in Sri Lanka.9 In
addition, academic bias of educational institutions prepares
graduates suitable for only a limited number of preferred white-
collar positions marking university graduates with a high rate of
unemployment.10 Demand for labour market ready skills remains
high as youth unemployment was measured at 21% in 2004. Demand
trend for education also indicates growth as all households
regardless of income were seen to spend double the amount on
private education in 2004 as compared to five years earlier. 11 Also
while information technology and internet accessibility is increasing
slowly there is seen to be a great need for training in how to use
these technologies. 12
Who are the local competitors in the market and what

resources do they have?
THAILAND: There are at least forty three universities and

colleges providing international studies programs and 780 public and
private institutions providing programs courses and programs in
higher education.13 Assumption University, Bangkok University,
Chiang Mai University, Chulalongkorn University, Kasetsart
University, Thammasat University, and the National Institute of
Development Administration all appear to offer franchised degree
programs. As well Heriot-Watt University, Schiller-Stamford
International College, Stamford International University, Swinburne
Tummasiri, and Webster University Thailand represent private
independent full-time degree program providers.14 Webster
University demonstrated particular zealous investment in bricks and
9
The World Bank, Building the Sri Lankan Knowledge Based Economy: Chapter Five Advancing
Sri Lanka’s Education System through Quality Inputs (2007). p. 9.
10
Britannica, Sri Lanka: Education (2008)
11
Asia Development Bank, Country Strategy and Program Update 2006–2008: Sri Lanka (2008)
12
The British Council, Educational Market Intelligence Thailand (February, 2008)
13
Sedgwick, R. (2008) Education in Thailand
14
Thailand Board of Investment (2008) The Cost of Doing Business in Thailand: 2008

mortar with early operating losses in 2002 due to lower than
expected enrollments and higher than anticipated competition.15
SRI LANKA: The World Bank determined in 2008 that the higher
education system of Sri Lanka consists of 17 public universities
serving approximately 100,000 students. There are also 13 post-
graduate and specialized institutes which enroll a further 6,000
students. However a large proportion of private sector providers
enroll students in IT, management, accounting, marketing, law,
business and finance. 16 Franchise degree providers in Sri Lanka
included (as of 2004): University of Bradford and the Social
Scientists' Association, University of Keele and Informatics Institute
of Technology, Kingston University and Asian Aviation Centre,
London Metropolitan University and IDM Computer Studies (PVT)
Ltd, Staffordshire University and APIIT Lanka, University of
Sunderland and Londontec International Computer School with full
accounting of their resources and challenges through the Quality
Assurance Agency for Higher Education UK.17 One Canadian oriented
management agency, Centre for Canadian Academic & Professional
Services (CCAPS) appears well poised to broker agreements between
local and Canadian universities if and when franchises come.
How do regulations and restrictions influence the ability
15
Starck, J. (2002) The Journal, “Webster's future in Thailand unclear”, December 5, 2002.
16
The World Bank, Building the Sri Lankan Knowledge Based Economy: Chapter Five Advancing
17
The Quality Assurance Agency for Higher Education (2004) Overseas partnership audit
reports: Sri Lanka

to address these markets?
THAILAND: Research shows 38% of high school graduates are

enrolled in universities in Thailand. 18 While this remains a higher
entry rate than in Sri Lanka it follows a global pattern of increase in
university enrollment figures with the majority of new universities
being private and described as demand absorbing. However
increased demand has created a concern for quantity over quality in
program offerings.19 Tax waivers apply to minimum initial
investment terms through BOI incentives often up to a term of five
years contingent on approved educational projects fulfilling
stipulations of BOI. Customs regulations ranked 59th out of 118
nations (or 3.7/7) stipulate private educational investments. 20
Approved training institute investment classified as regional office
and under HR Development 7.15.1 Educational Institutes or Regional
Training Centers. Tax exemptions: no import duty on machinery, no
corporate income tax for eight years, no caps on the amount of
corporate income tax, any and all revenue considered tax
exempted, all the way to advertising promotions and any or all
downstream subcontracts. 21Thailand ranks 15th for ease of doing
business at 5.6% of GNI per capita start up costs and total regular
commercial taxes at 37.7% without/post investment incentives. 22
SRI LANKA: An absence of private tertiary education institutions

limits the number of university enrollments. Pressure to increase
university admissions is considered significant and described as
“unsatisfied social demand” where only 6% of all students
graduating from high school are accepted into university and only
2% remain in university to program completion. Annual capacity of
13,000 new enrollments is insufficient to meet demands equaling
18
The Panel Of The United Nations Commission On Science And Technology For Development
(2007), Science Technology and Innovation in Sri Lanka.
19
Praphamontripong, P. (2005), International Higher Education, “Diversification within the Thai
Private Sector”, No. 40, Summer 2005.
20
World Economic Forum (2008), The Global Enabling Trade Report 2008
21
Thailand Board of Investment (2008) List of Activities Eligible for Promotion: 2007, “Policies
and Criteria”, p.36.
22
International Finance Corporation (2008), Doing Business Thailand 2009.

nearly 75,000 applicants. 23 Even so, science and engineering are
losing ground to business and management programs. 24 Investment
in higher education is restricted and subject to screening and
approval where foreign equity exceeds 40 percent. 25 Privately
managed universities remains politically unacceptable however
there is a New University Act in progress which would permit
improvement of course and program quality, career and staff
development, and more effective employer linkages. 26 Tax waivers
apply to minimum initial investment terms through BOI incentives
often up to a term of five years contingent on approved educational
projects fulfilling stipulations of BOI investments regimes while
customs regulations scored 71st of 118 nations (or 3.4/7). 27 A
minimum 100,000 USD is required capital for a training institute
investment. Tax holidays progressively increase dependent upon
enrollments from less than 250 students each year (a holiday of five
years) to more than 2000 students a year (holiday of 12 years).
Concessionary tax set at 10%, import duty exemptions on capital
goods.28 While controls exist on capital account transactions these
are often avoided on projects with Board of Investment (BOI)
approval. 29 Sri Lanka ranks 29th overall for ease of doing business at
statutory corporate tax rate total of 35.0% without/post incentives
and profit percentage of 26.3%. 30
What resources will be needed to address these markets?
23
Manoharan, N. (2006), Education System in Sri Lanka.
24
The Panel Of The United Nations Commission On Science And Technology For Development
25
United States Trade Representative (2008), Factsheet Sri Lanka 2008.
26
Asia Development Bank (2007) “Sector Paper: Sri Lanka Country Assistance Program
Evaluation: Education Sector”, p.17.
27
World Economic Forum (2008), The Global Enabling Trade Report 2008
28
Sri Lanka Board of Investment (2008) Industry-Wise Incentives -2006
29
U.S. & Foreign Commercial Service And U.S. Department Of State, (2006)
30
International Finance Corporation (2008) Doing Business 2009: Sri Lanka

THAILAND: Any and all educational institutions in Thailand must
be externally accredited to meet and satisfy standards and agreed
procedures. Organizations such as the European Council of
International Schools (ECIS), the Council of International Schools
(CIS), the Western Association of Schools and Colleges (WASC) and
the New England Association of Schools and Colleges (NEASC) would
need to monitor and extend approval of institutional accreditation.
In the short-term any Canadian institution seeking to set up
franchise degree programs in Thailand would need accreditation
available through the Office of the Private Education Commission’s
Standards of Quality Assurance Procedure. 31Strong representation
in trade associations, business networks, credit agencies and
extensive employment of private agents would be required to
determine with whom and under what provisions of contract to
successfully conduct business. 32
SRI LANKA: Current regulatory environment lacks clear policies

for the establishment and monitoring of franchise degree
educational programs. Many Sri Lankans see establishment of
foreign schools or institutions under BOI terms of contract and
Companies Act as provisioning a two tier system of education for
the rich versus the poor which is considered non-complementary to
Sri Lankan culture. 33 At the same time foreign companies are seen
to be able to enter this market through opening branch offices and
would require “patient, persistent, and professional” agents to
lobby contracts with Sri Lankan and higher education government
officials.34 Dispute resolution difficulties and delays are seen to
impede local contracts arrangement and enforcement. Finally an
intellectual culture somewhat based on mono-lingualism has
influenced a “kaduwa concept” among many who view English
language as a colonial legacy despite increased importance in
31
International Schools Association of Thailand (2008),” Frequently Asked Questions: How is
educational quality assured?”
32
The World Bank (2008) “Benchmarking—enforcing contracts, South Asia—compared with
global best practice”, p.28.
33
Coalition for Educational Development Sri Lanka (2007), “Issues and Concerns for Advocacy.”
34
Foreign Affairs and international Trade (2008), “Tips For Business Travellers - Sri Lanka.”

international trade. 35
What marketing mix will be appropriate?
THAILAND: To meet perceived value drivers advertising would

need to focus on a “student centred” approach, emphasizing the
benefits of a western education, prioritizing critical thinking,
reinforcing and or improving social status, as well as providing cost
affordable tuition lower than that available in competitor host
nations such as the UK, the US and Australia. 36 In country
observance of educational marketing includes: internet, billboards,
newspapers, radio, and television.
SRI LANKA: To avoid negative comparisons to low quality local

educational providers advertising and promotion must emphasize
locally sustainable profits, foreign qualifications recognized and
valued by local employers, a lack of elitism, and an under-emphasis
on English as the medium of education as well as how the programs
meet national higher education policy objectives. 37 A small number
of locally associated advertising agencies exist complete with
annual innovation awards and no apparent global marketing of their
collective skills. Yellow pages Sri Lanka reveals merely 21 listings a
vast number of which specialize exclusively in tourism marketing.
38
In country educational marketing includes: internet, billboards,
newspapers, radio, and television.
3. Discussion of the country analysis using detailed research

information from both primary and secondary sources and
comparison of key research areas for each country.
35
Warnapala, W. (2007), “Need for a National Institute of Language Education.”
36
Techavijit, V.(2007), University of Oxford, Presentation, “The International Schools
Phenomenon in Thailand and the Implementation of the International Baccalaureate”, March
1, 2007.
37
Knight, J. (2006) “Higher Education Crossing Borders: A Guide to the Implications of the
General Agreement on Trade in Services (GATS) for Cross-border Education.”
38
The Yellow Pages Sri Lanka (2000) “This site is Under Construction”

Country profiles: current size and future growth
potential
THAILAND: While current growth potential appears far from

certain rising inflation, rising oil prices, the possibility of epidemics
or serious health problems through avian flu or viruses as well as
non-resolution of ethnic and political problems in southern
provinces are all listed barriers to future growth. 39 Where little
enough is known about profit margins in educational programs in
Thailand do there remain incentives for Canadian educational
companies and investors to enter this market?40 John Wrenshall,
Academic Supervisor of American University Alumni (AUA) raised
concerns of slight declines in student enrollments for basic English
language classes with a business model and market intelligence
described as “muddy” as he describes, “sometimes our 50 year
history locks us into the past.” Lawrence A. Krogen may be
paraphrased to describe the potential growth in educational
franchise degrees in Thailand. Markets fluctuate in times of volatile
supply and demand and in response to consumer sentiment. There
are no guarantees of profitability as nothing can be guaranteed
forever. Automobiles, food and agriculture have propelled much
export led growth reaching 17% in 2006 and 12% export growth in
2007. The Thai economy as a whole grew 4.5% in 2007. 41
SRI LANKA: THE OECD describes Sri Lanka in terms of cross-

border education as an, “intermediate nation with inadequate
domestic capacity, globally active as importers only.”42 Continued
government policies impede the enrollment of a significant portion
39
Austrade (2008), Thailand profile
40
Institute for Trade Standards and Sustainable Development (2007),”ITSSD Response to the
Draft Global Strategy and Plan of Action.”
41
CIA (2008) Factbook: Thailand.
42
OECD (2004) Internationalisation and Trade in Higher Education: Opportunities and
Challenges, Chapter 4, Cross-border post-secondary education in the Asia-Pacific region,
p.147.

of eligible university aged students. Participation rates for 20-24 yr
olds remained just 3.4% in 2006 while this indicates progress as
total enrollments of undergraduate and postgraduate students
increased 35% from 2000 to 2006.43 Such statistics suggest progress
on the New Universities Act may swiftly impact demand and supply
requirements in the near future. However current regulatory affairs
appear to discourage private university competition at present. The
Economist Intelligence Unit predicts, “GDP growth will average
around 5.2% a year in 2008-12. Exports and the services sector will
remain the primary drivers of the economy during the forecast
period. Consumer price inflation will ease slowly downwards from
its current double-digit rates to an average of 5.4% in 2012.”44
Political characteristics and stability
THAILAND: A pro-business climate appears to exist in Thailand

with faster, fairer and more transparent environment despite fast
growth and the economic downturn of 1997.45 Inflation and interest
rates are currently modest. Following a military coup in 2006
consumer confidence fell due to uncertain political climate up to
the December 2007 elections. Foreign investor sentiment was
affected by a 30% reserve requirement on capital inflows from
December 2006, and amendments to Thailand's rules governing
foreign-owned businesses are under consideration. Predominantly
Muslim southern provinces have prompted border closures and
controls with Malaysia to limit terrorist activities. Enhanced border
surveillance exists to limit the spread of avian flu. Demarcation
with Laos is problematic and disputes remain over several islands in
the Mekong River. Thailand deals with Karen and other ethnic
rebels, refugees, and illegal cross-border activities. In 2006, more
than 116,000 Karen, Hmong, and other refugees and asylum seekers
came from Burma. Cambodia and Thailand disagree over border
boundaries with missing boundary markers. Cambodia believes
regular Thai encroachments into Cambodian territory. Recent
43
Kubler, J. & Lennon, M.C. (2008), International Trade in Higher Education: Implications for
the Commonwealth, The Association of Commonwealth Universities, p.43.
44
The Economist (2008) “Economic data: Sri Lanka”
45
Thamvorapol, S. (2004) “Thailand: Economic Policy Analysis”, The McKeever Institute Of
Economic Policy Analysis.

protests in southern provinces focus on wealth inequities. 46
SRI LANKA: Since 1983 the LTTE (Liberation Tigers of Tamil

Elam) have fought a guerilla/terrorist war for independence of the
north east portion of the island nation which has cost in excess of
60,000 lives and displaced over 400,000 people as internal refugees.
“Sri Lanka’s financial management arrangements compare very well
with those of other countries: both developing and developed—at
least for the private sector. In contrast, public corporation financial
governance practices are poor—as are other public sector
accounting arrangements.” (Athukorala and Reid, 2002) Inflation
rates are considered the highest in Asia, “annual inflation by
December should drop to around 20 percent, down from a peak of
28.2 percent in June. In July, consumer price inflation was at 26.6
percent. The central bank has left its monetary policy rates
unchanged for the past 18 months…”(Aneez and Hull, 2008)
“Political stability is a critical factor in the business environment.
Sri Lanka remains among the world’s most unstable countries...”
(IFC, 2005)
4. Identification of strategic/tactical issues
Any Canadian university contemplating offshore franchise degree

delivery faces the reality that their strategy might represent an
exclusive counter-culture among Canada’s educational community.
Joint degree programs represent only fourteen institutions and even
the vocabulary in Canadian reports on the topic by no means
utilizes the term, “franchise.” Furthermore none of the institutions
46
CIA (2008) Factbook: Thailand.

surveyed are either named or highlighted as demonstrating best
practices and nowhere are there publically accessible quality
reports for any of the programs listed in AUCC’s August 2007 report,
“Knowledge exports by Canadian universities.”47
Demonstrating a possible under-representation of Canadian

knowledge exports as well as global standards in best practices in
terms of quality management of offshore programs, AUCC appears
to self-monitor its quality rather than assign, develop or
recommend an independent national agency in terms of higher
education quality similar to the QAA in the UK, an independent
body set to safe guard the UK’s educational standards for higher
education. This is a serious tactical impediment to developing
transparent franchise degree linkages and damages the exercise of
program developments abroad. Under such policies which global
partners would rely upon Canadian educational quality standards?
“Education is a provincial – not federal – responsibility in Canada, notes Lucie

Langlois of Industry Canada. Langlois’s department is still trying to get the
public colleges and universities to simply agree with the small group of
accredited private language schools on common standards and a unified brand,
such as ESL Canada, for overseas promotion. But she concedes the public
schools and the 70-odd CAPLS schools working together won’t be enough to
save Canada’s reputation for ESL. Canada’s global market share now stands at
13 per cent, Langlois adds, and it will slip.” (Howard, 2006)
Without similar QAA reporting standards at a national level it would

be impossible to evaluate franchise degree programs as an
independent researcher, anywhere, at anytime, and least of all in
Sri Lanka, or Canada at this time. AUCC does not even provide an
author’s reference for its latest report as follow up to 1999’s
“Progress and Promise.” If the AUCC cannot even follow the
recommendations of their own references and resources standards
demanded of students how can they be expected to adequately
manage and protect educational quality in the face of global
competition which provides better resources?
The largest barrier to Canadian educational franchise degree

programs development appears to be Canada itself as a nation of
47
AUCC (2007) “Knowledge exports by Canadian universities”

deregulators, and perhaps national and damaging perception of
proprietary information as well as divisive provincial interests
consuming a global educational income which by terms of national
population and GDP should exceed Australia’s 10.1 billion in
earnings annually. If resources are available yet only on a need to
know basis without public access and without quality assessment,
global competitiveness in international education cannot be
improved. In fact such realities appear its major impediment to
developing high profile franchise degree programs.
There is the danger under such standards that what the British and
Australians provide to global researchers, in terms of market
information, for free access, is exponentially better than what
Canadian institutions and special interest groups appear to keep
behind closed doors. Perhaps the difficulty in resourcing primary
information in this vital industry is the result of embarrassment
regionally at Canada’s global positioning and franchise degree
programs development to date rather than an unwillingness to make
these challenges known. One of the few books which adequately
describes such a political/sociological milieu of silence and under-
performance was written by a US consultant operating in Jakarta
entitled, Corruption Arts in Third World International Business:
Traps, Swizzles, and Swindles Used by the Master Players.
(Gottbreht, 2005) It appears a paradox that the Canadian
educational regulations surrounding international studies in Canada
reveals provincial corruptions of purpose, chaos in terms of federal
regulation and lack of national standards all tarnishing of Canada’s
global educational image and a major impediment to progressive
educational partnerships abroad.
5. Analysis of the competition in Thailand and Sri Lanka
THAILAND: This market is highly competitive and relies on

bridging programs in ESL as well as drawing students away from
local franchise degree options at present.

Competitor activities are significant, with Australia being the most aggressive,
followed by the USA, Canada and New Zealand. Student numbers going into
Australia's HE sector declined by 6.3 per cent in the year 2005 / 2006 but
sharply increased for the vocational and English language sectors by 17.6 per
cent and 18.2 per cent respectively. Canadian numbers are low. The majority
of Thai students going to the USA were students in work and travel and student
exchange programmes. (British Council, 2008)
The only way to increase those numbers is to increase presence and

addressing one year franchise programs and doctoral programs in
the most popular subject areas would certainly be the best step for
any Canadian university to take in Thailand. As Mr. Audsitti
Sroithong, Senior Investment Promotion Officer, Office of the Board
of Investment explained, “Canada is half-way around the world”
with respect to the Thai educational market. More Canadian market
presence would provide “Canada in Thailand” which is what
franchise degree programs would provide Canadian competitors in
Thailand.
SRI LANKA: Known franchise degree programs are codified,

monitored and reported by The Quality Assurance Agency of Higher
Education in the UK. Addressing IT, management, accounting,
marketing, law, business and finance all key subject areas which
the market appears to demand would represent the best franchise
degree programs to develop in this country. As York University
appears to have the largest toe-hold here in its affiliation with the
Centre for Canadian Academic & Professional Services (CCAPS) in
Colombo, it might be the best first Canadian entrant to offer
franchise degree programs in Sri Lanka. However, the best
opportunities for franchise degree development might be Canada’s
smaller and more numerous maritime universities which might more
quickly and easily manage to develop franchise systems abroad due
to their smaller sizes and perhaps easier movement of capital. As a
result smaller sized universities might have more advantages
offshore. This perspective may be attributed to the comments of
the Canadian CEO of Boswell Capital Management Pte. Ltd. (in
Singapore) as he explained why smaller banks may outperform
larger ones through easier asset capital movements. Indeed relevant
to both markets are my further recommendations.

6. Recommendations and action plan
RECOMMENDATIONS: “Laissez faire,” inaction, laggardness,

reveals a daunting set of uncertainties surrounding the delivery of
Canadian franchise degree programs in Thailand and Sri Lanka.
First, the competition is brisk and well supported by government
sponsored advertising, marketing, research, and quality
management agencies especially those of Australian and British
competitors. This would imply that any Canadian university
contemplating entry into either Thailand or Sri Lanka is already at
an informational disadvantage due to a paucity (some might say
travesty) of Canadian federal government agencies delivering
similar or superior agency, marketing and research resources.
Second, while DFAIT is making some progress current market
information remains lacking. Where is Canada's equivalent to IDP,
Australia's independent education export development corporation
which markets Australia as an education destination and is owned
by shareholders which includes all of Australia's 37 universities? This
would be my first recommendation. Finally, without universities
demanding it global progress is uncertain and local consensus is
thwarted. Mr. Greg Goldhawk, Aerospace and Defense Trade
Commissioner, Embassy of Thailand, one of the few primary
contacts who had the time and interest to yet respond to my
enquiries, agrees, “There can be little doubt that virtually all other
English-language destinations -- but most particularly Australia --
have made a substantial advance on Canada in terms of education
marketing. There are some structural / institutional reasons for
this of course, but I don't think it can be denied that part of the
reason for our laggard performance is because Canada has not
gotten behind a concerted strategy on the education front. The
Department of Foreign Affairs and International Trade is now
putting some effort behind education marketing…” Dr Sheryl Bond
at Queen’s University also reflects in, “Northern Lights:
International Graduates Of Canadian Institutions And The National
Workforce” that, “The government of Canada should look critically
at the model currently in place in Australia (Australia Education
International), and consider committing resources to a similar
special unit within either Citizenship and Immigration Canada (CIC)

or Human Resources and Social Development Canada (HRSDC).”
A second recommendation is that market entry is infinitely better

than doing nothing or maintaining the status quo which is “laissez
faire,” inaction and laggardness. The transition of international
students from local to global consumers of international education
has made them more demanding and knowledgeable of program
qualities, offerings and overall cost-benefits. Canada loses in the
bargain. IDP Australia predicts, “Global demand for international
higher education will grow from 2.173 million in 2005 to 3.720
million in 2025. This is growth of 71% over 20 years, or compound
growth of 2.7% per year. “ This may appear too small a margin of
growth to sustain Canadian offshore franchise degree developments
in the short-term however it would be a mistake to maintain the
status quo in the long-term, for at the same time, “the
international student program may be the only component of the
Australian university student population that grows, out to 2025.
Universities may face choices about whether they downsize or
whether they grow their international student programs.” (Banks,
Olsen & Pierce, 2007) What is true for Australia’s international
education industry totaling 10.1 billion in profits each year must be
triply true for Canada’s which while with nearly double the national
population earns only about a third in profits from international
education as compared to Australia. Avoidance of propelling
franchise degree programs entry into these markets is an arbiter of
future enrollments at Canada’s most popular universities and
programs for similar degrees. Market entry is recommended within
the next three to five years which should be enough time to
hammer out a significant reconstruction of Canadian federal and
national universities’ global strategy to maintain and increase
international education offshore at the front lines where the future
customers are.
Evidence suggests that franchise degree programs are gaining

ground in both nations at the expense of Canadian institutions who
provide no similar programs. Closer to home, my own alma mater,
The University of Wollongong has transitioned its popular Master’s
of International Business program (of which I was a graduate in
2004) to a two year home campus program with a fully associated

part-time or full-time franchise option program available at
Assumption University in Bangkok offshore. Such actions suggest
visible flexibility in delivery of franchise programs and are in direct
response to international consumer preferences to avail such
services in their own countries at significant cost savings in travel,
living and opportunities costs as well as attracting students who
would otherwise undertake the program in Australia. While these
may include Australian students themselves Thailand options also
provide opportunities for attracting non-Thais such as Chinese and
Vietnamese who already represent large proportions of Thailand’s
international student market. These would include customers who
might not avail Canadian education programs in Canada due to cost.
Yet unaddressed in current academic literature are the potential

net cost-benefits savings in perhaps sending vast percentages of
Canadian under-graduate students abroad in an attempt to jump-
start self-financing of such programs detailed as a key stumbling
block by the AUCC report. Everyone expects the federal government
to finance their global positions. Especially those in fields of study
most highly preferred by international candidates might benefit
from overseas positioning, building global consciousness into the
Canadian students and offering local networks, as indicated by
foreign student enrollments percentages in Canada's universities.
Through full-time enrollment in Canadian universities, local
students could be provided with added incentives to enroll in global
joint-venture partnership programs of study abroad actually gaining
experience and learning local languages in key markets of interest
to Canadian business start-ups if reduced credits requirements and
flexibilized modular course timings or similar incentives could be
developed in Canada. This would be the opposite approach to
attempting to attract foreign students to Canada of course. It would
also be a competitive advantage to take an alternative financing
and focus position and would allow Canadian universities ready and
easy financing of franchise degrees abroad. If their sole concern is,
“Who should pay for it?” then they have not fully committed to
global learning and must accept the fates of international
businesses for those leaders who seek not to pay for it out of pocket
or out of hard experience.

In conclusion the short-term risks do not deter the presence of
Canadian competitors in these markets and are outweighed by the
continued long-term losses of delayed market entry of franchise
degree programs in either of these markets. In fact, first Canadian
entrants may offer a unique contribution to current offerings in
these exceptional nations and will give advantages to those who
arrive first. For it is currently a regrettable Canadian trait to only
really seek to compete with other Canadians in terms of
international education. Especially comfortably, languidly observing
the global education market and dispassionately at home. What if
any success could come from true progress abroad?
7. APPENDIX
1. Office of the Non-Formal and Informal Education, Ministry of Education, Bangkok (2007)
UNESCO, “The Development and State of Adult Education in Thailand (ALE)”
Bangkok region: 18% of total population age groups from lower to upper secondary, males and
females.
Enrolled
Secondary 4,530,029 2.19%
Lower secondary 2,761,219 3.01%
Upper secondary 1,768,810 0.96%

(UNESCO , 2008)
Enrolled total market: 815,405 potential customers.
2.CIA (2008) Factbook: Thailand
Household income or consumption by percentage share:

lowest 10%: 2.7%
highest 10%: 33.4% (2002)
3. UNICEF, Division of Policy and Practice, Statistics and Monitoring Section (2008) “Education
statistics: Sri Lanka”, May 2008
Total population, all ages, 2007 19299 (male) 9514 (female)9786
4. CIA (2008) Factbook:Sri Lanka
Household income or consumption by percentage share:

lowest 10%: 1.1%
highest 10%: 39.7% (FY03/04)
5. The British Council, Educational Market Intelligence Thailand (February, 2008)
Thailand is predominantly a postgraduate and ELT market (specifically summer schools and
preparation programmes for postgraduate study). These two sectors account for over 60 per
cent of all student visas issued.
There is considerable room for growth in the postgraduate sector, which has seen steady
growth in one-year taught programmes. There is an increase in the number of governmental
scholarships, as well as a growth in the self-funded sector for doctoral programmes.
The ELT sector also demonstrates scope for growth in the March / April language holiday period
for 14 to 19 year-olds.
6. The World Bank, Thailand Social Monitor 2008 on Youth: Development and the Next
Generation (Bangkok: March, 2008) Slide 13.
Demand-side constraints
 Direct education costs as a share of per capita household expenditure increase sharply at
higher levels of education and limit access to secondary and tertiary schooling
 Opportunity costs deter poor households from sending children to school
 The gap between expenditure on secondary and tertiary education between rich and poor
is widening
7. Ibid, Slides 16,17,18.
Supply-side constraints
 While secondary schools seats have grown over time, there may still be room for expansion
 Principals report shortage/inadequacy of teachers and teachers consider themselves not
adequately prepared in mathematics and science
 There is room for a more efficient and progressive utilization of public spending on
education
8. The Bangkok Post, International Education: A Beginners Guide (April, 2005)
As By law, all international schools should be externally accredited, so look out for the
certificate granted by a recognised body such as CIS, NEASC, WASC or the Office of the Private

Education Commission.
9. The World Bank, Building the Sri Lankan Knowledge Based Economy: Chapter Five Advancing
Sri Lanka’s ability to create a demand driven education system that focuses on lifelong learning
will determine the country’s capacity to embrace the benefits of knowledge economy. A
successful education system will focus on learning rather than schooling, and creating an
enabling environment that promotes creativity, improves the quality of basic and tertiary
education, and provides opportunities for lifelong learning.
10. Britannica, Sri Lanka: Education (2008)
Formal higher education in the country has a strong academic bias, making the large majority
of university graduates suitable for only a limited number of white-collar jobs; this has caused
widespread frustration, especially among the educated unemployed youth.
11. Asia Development Bank, Country Strategy and Program Update 2006–2008: Sri Lanka (2008)
Given the past neglect and low public investment in education, a rapid improvement in key
indicators cannot be expected. Youth unemployment in 2004 remained high at 21%. In addition,
a central bank survey found that all households regardless of income spent more than twice as
much on private education in 2003–2004 as they did 5 years ago. This could be a sign that
public education has not yet improved sufficiently. Strengthening vocational training, another
ADB focus area, is also crucial: about 13,000 unfilled vacancies are reported by JobsNET, a
Government e-initiative. A Local Government Infrastructure Improvement Project in 2005 aims
to improve the delivery of key social services (such as communal water supply, drainage,
municipal clinics, etc.) by local authorities.
12.The British Council, Educational Market Intelligence Thailand (February, 2008)
Competitor activities are significant, with Australia being the most aggressive, followed by the
USA, Canada and New Zealand. Student numbers going into Australia's HE sector declined by
6.3 per cent in the year 2005 / 2006 but sharply increased for the vocational and English
language sectors by 17.6 per cent and 18.2 per cent respectively. Canadian numbers are low.
The majority of Thai students going to the USA were students in work and travel and student
exchange programmes.
13. Sedgwick, R. (2008) Education in Thailand
There are a total of 780 public and private institutions in Thailand offering courses and
programs in higher education. The Ministry of University Affairs sets educational standards,
approves curriculum, and is the main institutional and professional accrediting body.
14.Thailand Board of Investment (2008) The Cost of Doing Business in Thailand: 2008
Universities Offering International Programs
15.Starck, J. (2002) The Journal, “Webster's future in Thailand unclear”, December 5, 2002.
But the first few years weren't as positive. According to Vice President of Finance Dave
Garafola and verified by Board of Trustees meeting notes, Webster sent WUT $443,000 in cash
support during the 1999-2000 school year, $700,000 during 2000-2001 and $200,000 in 2001-
2002.

16.The World Bank, Building the Sri Lankan Knowledge Based Economy: Chapter Five Advancing
17. The Quality Assurance Agency for Higher Education (2004) Overseas partnership audit
reports: Sri Lanka
18. The Panel Of The United Nations Commission On Science And Technology For Development
19. Praphamontripong, P. (2005), International Higher Education, “Diversification within the

Thai Private Sector”, No. 40, Summer 2005.
Following the still-rising global pattern, the bulk of Thai private higher education institutions
can be regarded as demand absorbing. Generally, demand-absorbing institutions intend to
accommodate an overabundant demand of higher education and are often concerned more
with quantity than quality. These institutions have grown enormously in the past decade. All
but three hold only a tiny share of total private enrollments, whereas the three account for
one-third of the demand-absorbing subsector's enrollments. Demand-absorbing institutions may
be divided into two subcategories: (1) the ones offering programs emulating those in public or
private elite universities, and (2) those focusing on professional training in limited specific
areas. Both generally have high student:faculty ratios. Some have no faculty holding doctoral
degrees in the entire institution.
20. World Economic Forum (2008), The Global Enabling Trade Report 2008
Source: International Monetary Fund, World Economic Outlook Database (October 2007); United
Nations Population Fund,State of World Population 2007; The World Bank, World Development
Indicators 2007 (CD version)
21.Thailand Board of Investment (2008) List of Activities Eligible for Promotion: 2007, “Policies
and Criteria”, p.36.
1) Scope of business must be approved by the

Board as follows:
a) Educational institutes or vocational training centers that teach courses on industrial
mechanics, engineering, science and technology, including design training center (74) and have
students in these courses numbering not less than 50 percent of the total number of students
b) International schools
c) Hotel training institutes that teach courses on hotels and have students in these courses
numbering not less than 50 percent of the total number of students
d) Maritime training institutes that teach courses on maritime training and have students in
these courses numbering not less than 50 percent of the total number of students
2) Classified as a priority activity of special importance and benefit to the country
3) Exempt from import duty on machinery, regardless of zone
4) Exempt from corporate income tax for 8 years, regardless of zone
5) Promoted projects will not be subject to any cap on the amount of corporate income tax
exemption.
6) Other rights and privileges will be granted in accordance with Board of Investment
Announcement No. 1/2543.
22. International Finance Corporation (2008), Doing Business Thailand 2009.
The first table lists the overall "Ease of Doing Business" rank (out of 181 economies) and the
rankings by each topic. The rest of the tables summarize the key indicators for each topic and

benchmark against regional and high-income economy (OECD) averages.
23. Manoharan, N. (2006), Education System in Sri Lanka.
Accommodating students deprived of university education should be the primary concern. Apart
from increasing the number of universities, it would be wise to consider expanding the Open
University system, part-time learning, self-study and such other means to cater for candidates
from different areas. But adding to the number of graduates without improving the quality of
education is irrelevant. Introduction of new non-traditional vocational courses and reorientation of
the existing curriculum to meet the needs of the market should be seriously considered.
24. The Panel Of The United Nations Commission On Science And Technology For Development
(2007), ScienceTechnology and Innovation in Sri Lanka.
The major stumbling block for the development of scientific and technological capabilities in
Sri Lanka is the low state support for R & D, lack of highly trained professionals in R & D
organizations, underdevelopment of higher education and the science base in universities and
the preference for foreign technology rather than the development of local technology by the
industrial sector. The science base in the universities need to be expanded with more Ph.D and
R & D programmes coupled with peer review and measures to ensure standards of excellence.
Diffusion of R & D remains weak and left to natural play of different actors and attempts to
forge linkages between the Universities, industry and government agencies have not been very
successful.
25. United States Trade Representative (2008), Factsheet Sri Lanka 2008.
Foreign investment is not permitted in the following businesses: non-bank money lending;
pawn-brokering; retail trade with a capital investment of less than $1 million (with one notable
exception: the BOI permits retail and wholesale trading by reputed international brand names
and franchises with an initial investment of not less than $150,000); coastal fishing; and the
awarding of local university degrees. Foreign degree courses can be offered in Sri Lanka by
affiliating with foreign universities. However, there is no scheme to monitor the quality
assurance or accreditation of the foreign courses offered in Sri Lanka.
26. Asia Development Bank (2007) “Sector Paper: Sri Lanka Country Assistance Program
Evaluation: Education Sector”, p.17.
Although Sri Lanka achieved notable gains in literacy, gender equity in education, and universal
primary education, several gaps have existed in the sector: (i) lack of responsiveness of the
education system to labor market requirements, (ii) disparities in access to quality education,
(iii) lack of an effective linkage between secondary and tertiary education, and general
education and TEVT, (iv) inadequate management capabilities that constrain decentralization,
(v) inadequate teacher deployment and management, (vi) declining government expenditures
on education, and (vii) limited public-private partnerships.
27. World Economic Forum (2008), The Global Enabling Trade Report 2008
Source: International Monetary Fund, World Economic Outlook Database (October 2007); United
Nations Population Fund,State of World Population 2007; The World Bank, World Development
Indicators 2007 (CD version)
28. Sri Lanka Board of Investment (2008) Industry-Wise Incentives -2006
Incentives will be provided for career or job oriented educational and training institutions

engaged in Tertiary, Technical, Vocational, Skill Development, Business and Management, Post-
graduate & Continuing education programmes. All courses should comply with minimum
training period and international or local accreditation. Areas identified for training are as
follows: •English, English & IT, BPO Industry training, Mathematics & English, IT related
training. •Post-Graduate diploma courses for Professionals, Business, Industry, Administration
& Services• Vocational & Skill Development for carpentry, masonry, motor mechanism welding
and other job oriented technician level courses. •Foreign employment training •Textile &
Clothing Industry, Nursing, Hospitality & catering, secretarial & food processing •Skill
development & productivity improvement courses for industry, services, agriculture &
plantation sectors including the training & retraining of employees. •Institutes providing
apprenticeship schemes with employees where trainees obtain practical skills and attend
classes part time. •Foreign Universities setting up Campuses in Sri Lanka for approved courses.
•Teacher training institutes• Institutes providing education for disabled •Media such as
Television, Radio, E-Learning institutes set up to provide education & training. •Training for
graduates & provision of industrial training. •Accounting and Financial Services or any other
profession as approved by the Board. Existing BOI and non-BOI companies meeting criteria will
also be entitled to these incentives provided they undertake training number of students as per
tabled III and set up expansion units out of Colombo and Gampaha districts. Additional
incentives will be provided to institutes which set up centers outside Colombo & Gampaha
districts.
29. U.S. & Foreign Commercial Service And U.S. Department Of State, (2006)
Doing Business In Sri Lanka: A Country Commercial Guide

U.S. & Foreign Commercial Service And U.S. Department Of State, 2006
30. International Finance Corporation (2008) Doing Business 2009: Sri Lanka
The first table lists the overall "Ease of Doing Business" rank (out of 181 economies) and the
rankings by each topic. The rest of the tables summarize the key indicators for each topic and
benchmark against regional and high-income economy (OECD) averages.
31. International Schools Association of Thailand (2008),” Frequently Asked Questions: How is
educational quality assured?”
The Ministry of education requires that all international schools are externally accredited to
ensure that they meet recognized standards and follow agreed procedures. Accrediting
organizations include the European Council of International School (ECIS), the Council of
International Schools (CIS), the Western Association of Schools and Colleges (WASC) and the
New England Association of Schools and Colleges (NEASC). As an interim measure, the Ministry
allows accreditation through the Office of the Private Education Commission’s Standards of
Quality Assurance Procedure.
32. The World Bank (2008) “Benchmarking—enforcing contracts, South Asia—compared with
global best practice”, p.28.
Where contract enforcement is efficient, businesses are more likely to engage with new
borrowers or customers. Doing Business tracks the efficiency of the judicial system in resolving
a commercial dispute, following the step-by-step evolution of a commercial sale dispute before
local courts. The data are collected through study of the codes of civil procedure and other
court regulations as well as surveys completed by local litigation lawyers (and, in a quarter of
the countries, by judges as well).
33. Coalition for Educational Development Sri Lanka (2007), “Issues and Concerns for
Advocacy.”

Ever increasing demand for the prestigious schools has created several problems. It has led to
overcrowding of urban, prestigious 1AB and National schools, malpractices in admissions and
imposed a threat of closing down on small rural schools. Innovative exercises suggested and
implemented such as clustering and establishment of National and Navodya schools have not
proved effective and acceptable substitutes. Therefore, a clear policy to restructure the school
system in Sri Lanka should be advocated and pursued .
34. Foreign Affairs and international Trade (2008), “Tips For Business Travellers - Sri Lanka.”
Sri Lankans like to know their business partners well, before they enter into any transactions.
Due to the bureaucracy, business decisions are made slowly in the public sector organizations.
Most corporate offices in Sri Lanka are situated in Colombo. There are various Industrial Parks
that are scattered in many parts of the country. Sri Lanka is strategically located in South Asia,
and the Sri Lankan business environment is generally investor friendly and enriched with a
skilled workforce.
35. Warnapala, W. (2007), “Need for a National Institute of Language Education.”
In Sri Lanka, the study of English has been in decline for more than five decades and mono-
lingualism created a terrible intellectual culture which does not tolerate debate, discussion,
argument and dissent. The intellectual culture based on mono – lingulaism, failed to produce
people with originality and vision; more than that it failed to produce cultured men. At one
stage in the history of this country, very leading people openly condemned English as a colonial
legacy and this assertion, in the end created the “Kaduwa concept” among the undergraduate.
I would like to quote Chancellor Von Bismark of Germany on the importance of English. In 1898,
a young journalist asked Chancellor Bismark – “ What had been the most determining event of
the 19th century?” He replied, “ The fact that North America speaks English”. It was very
prophetic on the part of Chancellor Bismark. Today English is the global ‘ lingua – franca’.
36. Techavijit, V.(2007), University of Oxford, Presentation, “The International Schools

Phenomenon in Thailand and the Implementation of the International Baccalaureate”, March 1,
2007.
In Thailand, the Ministry of Education requires that all international schools are externally
accredited to ensure that they meet recognised standards and follow agreed procedures. I have
no doubt that this is true in other countries as well. Accrediting organisations widely known in
Thailand include the Western Association of Schools and/or Colleges (WASC) and the New
England Association of Schools and Colleges (NEASC) for American based international schools;
Worldwide Education Services (WES) for British based international schools; and the Council of
International Schools (CIS) for any international schools.
37. Knight, J. (2006) “Higher Education Crossing Borders: A Guide to the Implications of the
General Agreement on Trade in Services (GATS) for Cross-border Education.”
The demand for international education is forecast to increase from 1.8 million international
students in 2000 to 7.2 million international students in 2025. This is a staggering increase that
presents enormous challenges as well as opportunities. It is not known what proportion of the
demand will be met by student mobility, but it is clear that there will be exponential growth in
the movement of programs and institutions/providers across national borders.
38. The Yellow Pages Sri Lanka (2000) “This site is Under Construction”
Never say you missed it!
39. Austrade (2008), Thailand profile

Thailand has slowly recovered from the 1997 economic crisis to become one of East Asia’s best
performers for the period 2002-2008. It welcomes foreign investment and has a reported
increase in consumption and investment spending. The increase spurred the GDP growth to 5
per cent in 2006 and 4 per cent in 2007 despite a slower global economy.
40. Institute for Trade Standards and Sustainable Development (2007),”ITSSD Response to the
Draft Global Strategy and Plan of Action.”
Markets are profit-, not cost-driven. Volume-based business models with tight profit margins
are an extremely risky investment in the long term, even if supported by government efforts to
artificially make markets by providing advance market commitments. Since the natural
tendency of markets is to fluctuate in response to the sometimes volatile supply and demand of
raw materials, goods-in-process, finished products, etc., as well as, to consumer perceptions
and idiosyncrasies, it would be extremely difficult to gauge in advance the true economic value
of such a guarantee in terms of profitability. After all, nothing can be guaranteed forever, let
alone for the extended period of time that may be required to develop, manufacture and
distribute a successful life-saving drug to needy patients free of complications. Consequently,
if governments regulate company profit margins internationally and domestically without truly
guaranteeing markets for more than the short-term, company and investor incentives to enter
into any such arrangement are likely to evaporate very quickly.
41. CIA (2008) Factbook: Thailand.
Disputes - international
42. OECD (2004) Internationalisation and Trade in Higher Education: Opportunities and
Challenges,
Chapter 4, Cross-border post-secondary education in the Asia-Pacific region, p.147.
Programme and institution mobility involves lower personal costs than studying abroad, and
although such services might not offer the same cultural and linguistic experiences as foreign
study, they are likely to meet a growing demand in the future. In the degree granting sector,
the growth of for-profit cross-border education through programme and institution mobility is
mostly driven by “traditional” public or private not-for-profit educational institutions, which
are increasingly offering private provision.
43. Kubler, J. & Lennon, M.C. (2008), International Trade in Higher Education: Implications for
the Commonwealth, The Association of Commonwealth Universities, p.5/43.
It is not only the mobility of students that is growing; the movement of academic programmes
and services across borders is also becoming increasingly common. New technologies and more
open markets have made this more viable. One of the most comprehensive mechanisms for
programme mobility is the development of branch campuses overseas. While the number of
international branch campuses set up by higher education institutions remains relatively low
the numbers are steadily increasing. A recent report by the Observatory on Borderless Higher
Education (OBHE) indicates that there has been significant growth in branch campus activity in
recent years, with half of the 82 branches listed in the report established since 2000. However,
setting up a branch campus is a very resource intensive enterprise and while there has been
significant growth in the past few years this provision is dominated by a few key countries,
notably, the UK, Australia and the US. Other, more common, forms of cross-border provision
include: franchising, selling or validating programmes delivered by a foreign institution;
programme articulations (i.e. twinning), where institutions collaborate to deliver joint
programmes; off-shore institutions and other types of internationally sponsored universities; as
well as online and distance provision.

The countries grouped within the South Asian region (India, Pakistan, Bangladesh and Sri Lanka)
have, like their counterparts in sub-Saharan Africa, struggled to achieve minimal participation
rates.
44. The Economist (2008) “Economic data: Sri Lanka”
Partly as a result of the country's reliance on aid from multilateral agencies (which are in
favour of free markets), and partly owing to the need to improve the fiscal position, the
government may implement some economic liberalisation measures.
45. Thamvorapol, S. (2004) “Thailand: Economic Policy Analysis”, The McKeever Institute Of
Economic Policy Analysis.
People usually give respect to persons who have a power to open up a business. And they also
feel that all businessmen, Thai or foreign alike. Therefore people can be confident that when
they invest in Thailand, they will receive fast, fair and transparent treatment.
46. CIA (2008) Factbook: Thailand.
47. AUCC (2007) “Knowledge exports by Canadian universities”
Chief among these challenges is the lack of financial support to offset the considerable upfront
costs associated with entering the international market successfully. This was identified in the
2006 survey as the top barrier to developing and delivering education products and services
overseas. When asked which key support services and measures they needed from the Canadian
government and other stakeholders to enhance institutional efforts to export educational
products and services overseas, most institutions gave a high level of importance to a number
of measures including the need for “seed funds to help universities to foster strategic
alliances” and “seed funds to support universities to develop products” (see Figure 2). In
addition, respondents underscored the importance of a coordinated government approach and
strategic engagement by the Department of Foreign Affairs’ networks of trade commissioners
and science and technology counsellors.
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eConcordia

FITTskills International Trade Research Course

Thailand and Sri Lanka: Prospects for Canadian

And what rough beast, its hour come round at last,

“The Second Coming”, William Butler Yeats (1919)

Name: Daniel J. Costello Student ID: 1811

1. Executive Summary Pg.3

a. What is the potential size of franchise degrees Pgs. 4-5

b. What preferences or trends are typical of these

c. Who are the local competitors in the market Pgs. 6-7

d. How do regulations and restrictions influence

e. What resources will be needed to address these Pgs. 10-11

f. What marketing mix will be appropriate? Pg. 11

a. Country profiles: current size and future Pgs. 12-13

eConcordia: International Research Assignment: Thailand and Sri Lanka 2

This research report briefly outlines the opportunities and pitfalls

While the franchise degree market in Thailand appears larger and

Thailand measures far greater numbers of competitors with fewer

Competition is brisk in both markets concerning franchise degree

eConcordia: International Research Assignment: Thailand and Sri Lanka 3

What is the potential size of franchise degrees market in

THAILAND: Estimates as of 2008 data may be made upon the

SRI LANKA: Estimates as of 2006 data may be made upon the

eConcordia: International Research Assignment: Thailand and Sri Lanka 4

What preferences or trends are typical of these

THAILAND: The Thai educational market is seen to provide

statistics: Sri Lanka”, May 2008

eConcordia: International Research Assignment: Thailand and Sri Lanka 5

Who are the local competitors in the market and what

THAILAND: There are at least forty three universities and

eConcordia: International Research Assignment: Thailand and Sri Lanka 6

How do regulations and restrictions influence the ability

eConcordia: International Research Assignment: Thailand and Sri Lanka 7

THAILAND: Research shows 38% of high school graduates are

SRI LANKA: An absence of private tertiary education institutions

eConcordia: International Research Assignment: Thailand and Sri Lanka 8

What resources will be needed to address these markets?

eConcordia: International Research Assignment: Thailand and Sri Lanka 9

SRI LANKA: Current regulatory environment lacks clear policies

eConcordia: International Research Assignment: Thailand and Sri Lanka 10

What marketing mix will be appropriate?

THAILAND: To meet perceived value drivers advertising would

SRI LANKA: To avoid negative comparisons to low quality local

3. Discussion of the country analysis using detailed research

eConcordia: International Research Assignment: Thailand and Sri Lanka 11

THAILAND: While current growth potential appears far from

SRI LANKA: THE OECD describes Sri Lanka in terms of cross-

eConcordia: International Research Assignment: Thailand and Sri Lanka 12

Political characteristics and stability

THAILAND: A pro-business climate appears to exist in Thailand

eConcordia: International Research Assignment: Thailand and Sri Lanka 13

SRI LANKA: Since 1983 the LTTE (Liberation Tigers of Tamil

4. Identification of strategic/tactical issues

Any Canadian university contemplating offshore franchise degree

eConcordia: International Research Assignment: Thailand and Sri Lanka 14

Demonstrating a possible under-representation of Canadian

“Education is a provincial – not federal – responsibility in Canada, notes Lucie

Without similar QAA reporting standards at a national level it would

The largest barrier to Canadian educational franchise degree

eConcordia: International Research Assignment: Thailand and Sri Lanka 15

5. Analysis of the competition in Thailand and Sri Lanka

THAILAND: This market is highly competitive and relies on

eConcordia: International Research Assignment: Thailand and Sri Lanka 16