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knackeredII
13th Jul 2007, 04:56
An article in today's International Herald Tribune.

School shortage dims Hong Kong's appeal

By Le-Min Lim Bloomberg News

HONG KONG: Judy Carline helps expatriates settle in after they've transferred to Hong Kong. These days, she spends most of her time helping anxious parents who are trying to get their kids into international schools.

"This year is particularly bad," says Carline, a real estate agent at Savills. There are more of "these bankers, between 35 and 42, with young children. These days, people think their 3-year-olds are going to Harvard. The Manhattan ladies, they are the worst. They work themselves into a state."

Hong Kong's booming economy and increased demand for English-language instruction from local Chinese parents have filled the city's international schools to the bursting point. The shortage is so bad that some employees have decided not to relocate to Hong Kong, says Lee Quane, Hong Kong-based general manager at the personnel consultant ECA International.

"Those who reject Hong Kong are the ones with families," says Quane. "Pollution used to be the main reason, now education is coming to the fore."

U.S. families face particular hassles. Hong Kong International School, or HKIS, the largest of three schools teaching a U.S. curriculum, has a waiting list of 630 for the fall term. The school, which charges as much as 157,100 Hong Kong dollars, or $20,110, a year, has 2,600 places for students aged 4 to 18.

"The number of children on our wait lists is at historic highs," says the school director, Richard Mueller. "Demand has gone up dramatically since 2005 because more companies are adding staff or relocating to Hong Kong to tap China's economic growth."

That contrasts with 2003, when an outbreak of severe acute respiratory syndrome, or SARS, killed 299 people in Hong Kong, causing expatriates to flee. International schools responded by admitting more local children, Mueller says.

Demand for English-language schools has increased since Hong Kong returned to Chinese control in 1997. Since then, three-quarters of the city's 414 secondary schools have had to switch their language of instruction to Cantonese from English.

About 70 percent of students at international schools are locals whose parents left Hong Kong in the 1980s and 1990s and later returned, says David Dodwell, former head of a government education advisory committee.

Tracie Pangrazio started looking for schools in March 2006, 10 months before her family moved to Hong Kong from Singapore. While 12-year-old Ben immediately landed a place at the Australian International School, Matthew, 8, and Laura, 6, didn't secure spots until November.

"We didn't think schooling would be such a problem, and certainly not in a city like Hong Kong," says Pangrazio.

The rush for school places has grown with Hong Kong's economy. Companies raised 325.4 billion dollars in the city last year, making it the biggest market for initial public offerings, ahead of London and New York, according to Ernst & Young.

"While supply is expanding, they aren't keeping apace of demand," says Mark Michelson, an associate director at InvestHK, the city's investment promotion agency.

Hong Kong's government says there are plenty of spaces for expatriate students. The city has 35,900 places for expatriate students, only 85 percent of which are filled, says Bernadette Linn, deputy secretary at the Education and Manpower Bureau.

Those figures are misleading, says Jack Maisano, president of the American Chamber of Commerce in Hong Kong.

"Schools are not all of the same caliber," he says. "Many are not where executives would send their kids."

Hong Kong's first fee-charging international schools - like HKIS, French International School and Chinese International School - were set up as nonprofit institutions under British rule to serve the overseas business community.

Since 1967, the government-subsidized English Schools Foundation has offered a cheaper alternative at 10 grade schools and five secondary schools. For-profit schools also provide an alternative, though facilities are typically more cramped.

Companies like FedEx try to secure places by buying debentures issued by top schools. The certificates help schools raise money, while giving the holders priority in admissions.

"There's a long queue to get into the better international schools," says Winnie Chan, a Hong Kong-based FedEx human resources officer. "That's why we offer debentures."

Gwen Dahlberg paid 250,000 dollars in 2002 for a debenture to help her daughter enroll at the Canadian International School.

While her 10-year-old daughter has since transferred to a school in a rural area of Lantau Island, Dahlberg says she is not selling the debenture. Canadian International's debentures, which now sell for 450,000 dollars for individuals, are sold out.

"Knowing how competitive it now is to get a place at the Canadian International School, we thought we would keep the debenture as a security measure," says the Hong Kong-born Dahlberg.

Ultimately, Hong Kong must add more international school places, says Michelson at InvestHK. That may require government intervention because nonprofit schools rely on government land grants to expand. Such schools are mostly located in the city's most expensive neighborhoods and should consider opening new facilities in more remote areas, Linn says.

"This school situation is going to get worse, not better," says Carline of Savills. "The government hasn't done enough to deal with this problem."

Dan Winterland
14th Jul 2007, 07:02
The schools situation is crazy. Since the handover, the local schools teach in Cantonese but to get a good job you have to be fluent in English. So the pressure from local kids on the international schools is immense. The South China Morning Post recently reported debentures for one international school were trading at $1,000,000. Someone then wrote in and said he had paid $3,000,000 for a debenture!

Something to seriously consider before coming here!

SIC
15th Jul 2007, 04:22
I know of some people on Lantau that have to send their kids to school in Kowloon Tong cause thats the only place they can get in - thats about a 2 hour commute away in the following sequence:
1. Bus
2. Ferry
3. ANother bus
4. Underground MTR
5. Bus/Taxi to school gate.

Followed by 7 hours of schooling and the same trip home...

Funfunfun.

N1 Vibes
15th Jul 2007, 04:55
SIC

2hrs?! So they don't like taking the bus to Tung Chung MTR then? Only about 30 minutes to Kowloon Tong from there.....:bored:

newbie1972
16th Jul 2007, 15:49
So what? Whether it is 1 1/2 or 2 1/2 hours, it's still a big commute for the young ones. I am lucky to have kiddies near where I live. Don't envy those in worse circumstances.

The schooling system here is a joke, with no respite in sight. No wonder education is a biggie when expats consider HKG.

christep
16th Jul 2007, 15:57
And just out of curiosity, how good is the Chinese language schooling in your home country?

Mink
19th Jul 2007, 02:24
Hong Kong's schools
The $1m question

Jun 14th 2007 | HONG KONG
From The Economist print edition
What is the price of a good education?



AMONG the most commercial of cities, Hong Kong follows many markets; but none more intently than the trade in debentures tied to admissions to the city's international primary and secondary schools. These non-interest-bearing bonds are typically issued to pay for construction or other costs. Bought by parents anxious to do the best by their children, or by employers anxious to attract the best staff, they are then traded at prices set by the city's volatile economic fluctuations.
Recently, slots in international schools have become precious. The economy is booming in China's tailwind, attracting well-paid expatriates. Prosperous local residents, meanwhile, are deserting local schools because of what is seen as deterioration in English-language teaching since the reversion to Chinese sovereignty in 1997. It is not just the very rich who are worried: early this month a small group of not very well-off South Asian residents marched through central Hong Kong, demanding more schooling in English, arguing their children were suffering from having to attend classes conducted in Chinese.


Demand is high, supply is limited, and the results, at the top end of the market, are predictable: soaring prices. In 2004, the price of a debenture at the Chinese International School, possibly the most sought-after institution, sold for HK$600,000 ($77,000). On June 9th the South China Morning Post splashed on its front page a report that a family had paid HK $1m for a debenture, and then entered its child in the school's first grade. Similar, if less dramatic, price increases were reported at other international schools.
The schools all treat the debentures differently. The Chinese International School stresses that theirs does not guarantee a school place. Applicants sit a merit-based test, and some debenture-holders are rejected and some non-holders accepted. Still, holders must feel their children gain some advantage. Hong Kong International School, popular among Americans, gives debenture-holders more rights. If an applicant meets the school's standards, a debenture places him at the head of the queue. Most schools lie somewhere in between these two approaches.
All the international schools have lengthy waiting lists for all ages. So companies scoop up debentures for their staff—some expatriates are refusing jobs in Hong Kong because they cannot find schools for their children. Resale rights exist, with schools in some cases sharing the profits. Alternatively, two years ago Hong Kong International School bought back all its debentures and then reissued them at a higher price—much as a company might when business is good.
Even so, the debenture systems are opaque—the ratio between debenture-holders and accepted students is unknown. Schools are understandably sensitive about acknowledging the embarrassing tie between money and admittance. Raising money for education is a challenge everywhere and Hong Kong's system compares favourably with, say, British private schools, where prices are stratospheric, or American ones, where parents' “contributions” often can carry the same benefits as debentures, but have no market-signalling value. Hong Kong's school-debenture prices are sending two messages: there is a market for good education; and some people have the money to pay for it.

badairsucker
19th Jul 2007, 04:03
Because of the schooling issues and the crap air quality, we are thinking of a base or a change in company(waiting to see the comical pay rise).:ugh:


Honkers is losing it's appeal. Look at the banking industry, some moving to Singapore.

christep
19th Jul 2007, 18:14
You can't have this both ways - either it's so crap that everyone's leaving, or the schools are overflowing and the property prices are going through the roof because some many people are desperate to be here. I think if you look at the data it's pretty obvious which is the stronger trend.

knackeredII
22nd Jul 2007, 08:56
christep,

It's not a matter of having it both ways! The schools are overflowing because of demand from locals, not an influx of expats. It's making it more and more difficult for expats to get a place for their kids as sending your kid to a local school is not an option.

Same with the property market. It's not expat pressure that's driving it up, they are simply an additional component.

newbie1972
22nd Jul 2007, 12:38
Quite right. The locals are seeing the advantages of non-local style education and are fighting to get their kids into the (seemingly?) better schools. This is taking up many of the places that are available. After the handover, Tung and his friends really pushed for teaching in the mother tongue. I believe this has backfired and has chased many away from the local schools. I also believe this has been somewhat reversed though.

Apart from some of the big corporations paying out for slots for their high end expats, it is really the local parents that are pushing the price of debentures up. Remember there is a huge rising middle to upper class now who are willing and able to pay the big bucks.

Christep, I believe the data shows less expats here. The bottom line is Hong Kong is going through a downwards phase in that respect.