Page 20 - StudyTravel Magazine July 2014 Issue

agenCy Survey ARGEnTinA

Key points
Argentina’s

fluctuation

Recent tax changes in Argentina have forced some agencies out of business, although
some are also reporting positive business growth. Georgina Deacon investigates.

the total number of students Market Growth Most popular course requests Average percentage of agency
placed by the six agencies in our Five out of the six agencies business by sector
survey was 962
that took part in our survey
individual agencies placed between reported business growth of 25.5% 34.5%
42 and 700 students on courses between 10 and 70 per cent, and general language
per year cited excellent English courses language
and the good quality of life in
average business growth was English-speaking countries as 22% 29%
19.2 per cent
the reasons for this growth. summer Higher
the average length of stay for However, the average business language education
argentinian students was 6 weeks growth of participating agencies
was 19.2 per cent, brought down academic preparation 17% Work and travel 23%
overall, 39.9 per cent of by one agency, which reported a intensive language 15% High school 9%
argentinian students preferred undergraduate 14% internships 4.5%
private accommodation when decrease of 60 per cent. other 2.5%
studying overseas This agent described language plus work 2%
Argentina as going through a Junior language 1%
the largest percentage of “special moment” and explained Business language 1%
argentinian students (42 per cent) that, in December 2013, the
were studying for further work
opportunities Argentinian government
imposed new tax regulations
language study is the largest affecting international monetary their studies through their bank accounts in
sector of the study abroad market
for argentinian agencies transactions and credit card 19.2% Argentine pesos, since this is not regulated
(34.5 per cent) payments in foreign currency. by the Tax Department, but the Federal
The agent added, “The tax was the average Bank of Argentina.” If a student sends their
affects the business because we offer letter from the school with a form from
Reasons for have to add 35 per cent on the money we business growth their local bank to the Federal Bank, it will
studying overseas pay outside of Argentina. Two years before, be authorised and the local bank will therefore be able to transfer
42% I sent over 200 students a year – today, it’s the funds from the student’s bank account in pesos converted into
far from this. From March this year to today the foreign currency at the official rate. “There is no tax on this sort
Future work [early May], we had eight students. The of transaction as there is now if the same payment was made by
32% economic situation is very delicate.” credit card,” explains Wober.
Another agent, Graciela Gatti, now at
Further studies LAL Language Centres www.lalgroup.com, Language and destination trends
overseas
who was not able to participate in the survey In the survey, the most popular study abroad destinations were the
Further studies at due to the severity of the economic situation USA (55 per cent), the UK (21 per cent) and Canada (15.5 per cent).
home 22% forcing her out of business, said she had It is therefore unsurprising that the vast majority of students wanted
current work 3%
Pleasure only 1% always transferred money through her local to study English – a huge 98.7 per cent.
bank, but that this was no longer possible. It seems that flight prices are affecting students’ choices of
How do agencies
find new schools to “We cannot transfer money to any part of destination, as well as how long they choose to study for. Silvia
represent? the world, neither pay through Western Argentina Key Facts
43% Union nor other platforms available on world rankings)
the internet. We also cannot buy foreign
GDP growth rate in 2013: 3.5%
agent workshop currency here to pay cash upon arrival.” Population: 43,024,374 (33rd in (94th in world rankings)
world rankings)
35% International Education www. youth population (aged 15-to-24): inflation rate in 2013: 20.8%
Carola Wober, Director of CW
(219th in world rankings)
15.7%
Fairs and expos cwinternationaleducation.com, who Unemployment rate: 7.5% (82nd in Education expenditures (GDP):
world rankings) 6.3% (32nd in world rankings)
reported healthy growth in her business, literacy rate: 97.9%
internet 7.5% said that she provides students with “the youth unemployment rate: 18.3% English proficiency: moderate
(68th in world rankings)
study travel right information” so they can make GDP per capita: uS$18,600 (75th in (19th in world rankings)
Magazine 1%
other press 1% payments via bank transfer which are not Sources: CIA Factbook / EF English Proficiency Index
other 12.5% subject to the tax. “Students can actually pay
18 | Study travel Magazine | july 2014