But more support needed for marketing destination, visas and incoming flights

"Our industry has been investing a lot to raise the standards to the level they are today. Our accreditation procedures are very stringent and are reviewed every year and all our member schools abide by the requirements of these accreditations. The increased contribution that the sector is bringingto the local economy warrants more support from all those stakeholders, especially Government, who can help this industry achieve even better results."

This was stated by Genevieve Abela, CEO of FELTOM during the presentation of the 5th edition of its ELT Industry Report compiled by Deloitte and based on thorough research amongst FELTOM's 20 member schools.

The report is considered as an excellent tool that shows a clear picture of the state of the ELT sector in Malta, its contribution in terms of arrivals in Malta purposely to study English and a generic profile of these visitors in terms of demographics.

The report was presented to stakeholders and press during a presentation at the Radisson Blu Hotel in St George's and was attended by Edward Zammit Lewis, Minister for Tourism.

The key highlights of the 2014 results show an increase in student arrivals of 3.4% compared to 2013, an increase in the average length of stay of 1.8% and a 5% increase in student weeks. In 2014, the ELT sector accounted for 12.7% of total tourist bed nights with significant contribution recordedduring the months of February and March as well asthe peak summer period. The sector reported significantnumbers from some of Malta's top tourist marketssuch as Italy, Germany and France, but is also attractingstudents from non-traditionalmarkets such as Colombia, South Korea, Brazil, and Poland.

"This year's report confirms the importance of this sector and the contribution that it is giving to the Maltese economy given that it sees the involvement of around 2,300 gainfully occupied people as well as 1000 licensed families who host students in their homes.The sector is doing well and our member schoolshave managed to keep their operations healthy. Volume growth was registered thanks to a 5% increase in the number of student weeks. Student arrivals increased as well, up by 3.41% from 74,992 in 2013 to 77,550 in 2014," announced Genevieve Abela.

Genevieve Abela added that Government could support the ELT industry by commissioning a very much needed market competitiveness analysis which could help the sector understand better where Malta's ELT sector stands in relation to its foreign counter-parts, with whom Malta is competing, and how Malta can attract a bigger share of the world market.

"Pathway programmes at university level could attract students from big potential markets whereas faster processing of visa applications for FELTOM members and more advantageous routes and offers from our national airline Air Maltawill put us on a higher playing field that would benefit not only all our member schools but would give greater visibility to Malta as a destination that will favour of the economy at large," concluded Genevieve Abela.

Other Highlights in ELT Industry Report

• Whilst total revenue increased by 4.4% from2013 to 2014, the total revenue per student weekdecreased by 0.6%.This drop in average turnover per studentweek contrasts with the shift in business mixtowards more juniors as average revenue per weekis typically higher on junior bookings.

 

• On the other hand, the continued trend towards longer courses is a factor that impacts average prices as it is customary for language schools to offer discounted prices for longer bookings. The increase in relevance of the Italy as a source market could also have had an impact on average prices as Italy is known to be a price-sensitive market in this industry.

• Indirect costs (excluding payroll) appear to have been contained in an effort to stem the erosion of profitabilitycoming from the lower net revenue and increaseddirect expenditure and payroll costs. Marketing costshave decreased for the second year consecutively andthe total marketing spend per student week reached a5-year low.

• Accommodation cost per week increased by 1.5% in contrast with the decrease in accommodation revenue per week 8.3%. The average margin on accommodation dropped from27% in 2013 to 24% in 2014.

 

• Payroll was one of the most significant cost increases reported by the language schools in 2014. Teaching costs per student week increased by 4.8%. This could be indicative of increased teacher rates as well as lower average numbers of students per class.

 

• Non-teaching payroll costs increased by 8.6% continuing the trend reported in 2013 and 2012.