The future of teaching in English in Thailand

So you're thinking of working here, it sounds like an interesting place for a year or two.  Who knows, maybe I'll make Thailand my home ? But wait, what about future job prospects - has the number of language schools reached saturation point ? Will there be a demand for teachers in 5 years time ?
Once again I've come to your aid by finding a useful document, that was probably cobbled together after a night out in Nana Plaza, by the Commercial Attache from the US Embassy in Bangkok - copyright US State Department 1999. It's pretty lengthy, but stay with it and you'll learn plenty - including the fact the US State department thinks the majority of language schools are, basically, crap. I've highlighted the more interesting points.

Summary

The English language is the major second language in Thailand, and is widely used in the educational and business sectors. Unfortunately, standard English courses offered at the secondary level in Thailand do not seem to prepare students to be competitive in their higher education entrance examination. In addition, a certain degree of competency is also required to achieve an acceptable score on the Test of English Language Fluency (TOEFL) exam, a basic requirement for Thai students intending to pursue education of all levels in the United States. 

Companies in Thailand require increasingly higher levels of English language competency as part of their minimum employment requirements. Applicants with strong English language skills have improved chances of being employed. The type of language training most people receive in the tertiary level is very limited, as well, and may not be adequate for most white collar jobs. In face of the current economic crisis, people are taking more English classes to be more competitive in the workforce. There is an increasing demand for Language Schools as a result. The above mentioned factors have created an increased demand for seats at language schools, which, in turn, open up opportunities for the language school industry in Thailand. The English language school business is an untapped business in Thailand.

Market Demand

The demand for the English language competency in Thailand derives from two segments of the market. The first segment is comprised of students from the secondary and tertiary levels, and the second is composed of the workers (office and factory) and businessmen. In general, the demand for the English language competency is very high. The current economic slowdown makes the demand even higher, especially among workers and businessmen. With businesses closing down and employees being laid off, the need for employees to enhance their credentials has increased. Taking short English courses is seen as an effective and affordable tool to improve their marketability.  

The demand for English language learning is expected, by many major language schools, to be very high and solid at least for the next five years. Most language schools and centers see their industry as an untapped market, and find that they have more students than there are seats available. In fact, there is a shortage of qualified English language instructors.

Bangkok is the major market area for the international language schools. It accounts for 80 percent of the total language school business in Thailand. Chiang Mai province in the north represents the second largest market for this business. It is estimated to have approximately five percent of the market. Chiang Mai is the second major province in Thailand. Cholburi province in the east coast represents the third largest market, estimated at approximately two percent. The rest is scattered around some major provinces such as Rayong, Nakorn Ratchasima, Phuket, and Songkhla. 

Most schools are reluctant to expand into other provinces except Bangkok. The main reason being Bangkok residents have more than two times the per capita income as the average per capita for the whole country. In addition, all business and commercial activities are concentrated in Bangkok. The lack of potential students in provinces outside the Bangkok metropolitan is very apparent.  Thailand demographics show an approximate 20 million Thais between the age of 25 to 45 years old. This group of young people, whether they are working or not, constitute very good potential clients for language schools.

The standard English language schools and centers' set up have between 12 and 17 steps, from the very beginning first step to the most advance 17th step. Each step length of time is varied from the minimum of four weeks to the longest of eight weeks. The minimum class size (number of the students) is five students up to a maximum of 20 students. Most schools or centers have a student evaluation test to evaluate their proficiency. The test is used mainly to classify and group the students. Most schools or centers offer English as their main product. 

The market for language schools in Thailand is divided between the franchising and the non-franchising operations. The group that operates under the franchising system covers the middle to low income market, while the group that operates their own schools and centers cater to the high income market. There are also some small centers that offer the English classes at very cheap price (range between Baht1,000.- to Baht2,000.-). A phone survey done in early June 1998 shows that most of these small schools locate in Bangkok had already gone out of business (40 schools/centers out of 70 schools).

Although there is ample demand, competition is very strong in both groups. All of the language schools that operate under the franchising system, except Berlitz, cater to the mid to low end of the market. The competition for students is not very strong as there are more students than seats. There is strong competition for qualified instructors. Most of them have very low standards for instructors using the philosophy that the more instructors they have, the more number of classes they can offer, and the more money they can make.

The American University Alumni Language Center (AUA) is an English and Thai language school operated by the American University Alumni Foundation and supported by American Embassy through the United States Information Service (USIS). The AUA Language Center is the most famous and successful middle class English language school in Thailand. This school does not operate under the franchising system because of problem of quality control on both the curriculum and the instructors. The AUA has four locations in Bangkok and metropolitan area and 11 locations up country. All of the locations are operated and supervised by AUA's head office in Bangkok. 

ECC (Thailand) Language & Computer Institute is the leading computer training and language school franchise in Thailand. It main business is computer training and has English language as an add on to the operation. ECC operates 53 outlets throughout the country. ECC is an affiliate with Inlingua (School of Languages). ECC caters to students and middle to entry level students while Inlingua captures the high end market. Inlingua leads the high-end language school market. In the middle to low end market, some computer training institutes also provide English language training services, including Bangkok Computer Center (48 branches) and Siam Computer (35 branches). 

In the high-end market, Inlingua (Switzerland), Berlitz, British Council (United Kingdom), and Kingwood Language School (United Kingdom) compete with each other fiercely for market share. All have very good images, are known for their high quality and well-known brand name. Berlitz and British Council are very well established in Thailand, while Inlingua and Kingwood are not more than ten years old. All four of them offer classes to an individual student and also tailor classes to fit special requirements from companies and other institutes.

The instructor's qualification is the most important competitive factors in the language school business for both franchise and non-franchise operations in Thailand.  Instructors with the high end language schools/centers (non-franchises) are reported to receive a much better compensation than the instructors with the middle to low end centers (franchises). They are normally under a one year contract. The language schools that operate under the franchising system will find it hard to maintain a high standard of instructors. 

There you have it, the US government's point of view, if you disagree with any of the above don't tell me . . . . .   tell Bill Clinton. 

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