Why is Hong Kong a Great City for an Education Franchise?
Welcome to the New Horizons English language franchise website. We trust you have found this page as you are considering the various education franchise opportunities that exist in your market. Hong Kong is a lucrative city with massive potential for an education business and we have outlined a few key points for you below.
As a potential business owner, please do evaluate various facts to better understand what a franchise offer like New Horizons English can bring to you as you look to build your own English language franchise.
In spite of its small size, Hong Kong is the world’s 8th largest trading economy and one of the most densely populated places in the world. If you are considering to open an education franchise, Hong Kong offers a ready market, developed infrastructure and diverse opportunities for growth.
Being close to China and having a strategic location in Asia, Hong Kong is a wise choice for an English language franchise for these reasons:
- Hong Kong is the most dense high-income world urban area. It has a strong economy that contributed to its GDP of US$290.90 billion in 2014.
- English is one of the official languages of Hong Kong, but the population is far from fluent in it.
- Hong Kong has a large population of 7.3 million (2015) projected to grow steadily over the next few years. [i]
- The city has excellent infrastructure, a great transport system and provides convenience and ease to residents and international businesses.
Here are further detailed reasons why Hong Kong is a rewarding opportunity to open an education franchise.
Economy and GDP Growth
Hong Kong is the 8th largest trading economy in the world. Its economy is characterised by free trade, lower taxes, and minimum government intervention. Hong Kong has strong trading ties with Mainland China, which is its major trading partner, and the city achieved consistent economic growth as revealed by the statics below:
- GDP: US$308 billion (2015)
- GDP growth: +2.4% (2015)
- GDP per capita: US$42,220 (2015)[ii]
Hong Kong is also one of the most densely populated places in the world. The population of Hong Kong stood at 7.3 million (as of 2015) and is growing at the rate of nearly 1% (as of end-2015). Today, it is the most dense high-income world urban area with 67,000 persons per square mile.[iii] Its population density is more than twice than that of the second most dense high-income world urban area of Busan, Korea. This shows that aside from a strong and stable growing economy, Hong Kong also has a booming population that will be ideal to open an English Language Franchise.
While the economy of Hong Kong is prospering, the level of education has also risen significantly in the past five years. There has been a rise from 63% in 2001 to 71% in 2011 in students completing lower secondary education and above[iv]. English is one of the official languages in Hong Kong, however, most locals still speak Cantonese. The number of English speakers in Hong Kong is a mere 3.5%, according to government statistics.[v] There is still a huge room for growth in this area.
To encourage young learners to receive education, the government provides free 12-year primary education and secondary education. Along with 51 international schools, there are government schools, government aided schools, and private schools in Hong Kong. With the government spending a whopping $79.3 billion on education (which is 18% of the total government expenditure) it shows that they believe in improving the knowledge of the local population.[vi]
According to a study by HKU’s Social Sciences Research Centre, English remains an important language of the workplace, especially for written communication. The study revealed the following:
- More than 85% used English for external and internal writing work.
- 9% used English in reading at work.[vii]
However, the study also revealed:
- Only 9.5% of the population reported knowing English before going to school.
- 9% of the respondents used English as the language of family communication.
- 9% used English for communication between friends.
This clearly shows there is a huge gap in the ability of the average Hong Kong citizen in their ability to read and write the language versus their ability to speak the language. This is a great opportunity for an English language franchise that is focused on training individuals to improve their spoken communication of the language. While it is very important to read and write, it is of extreme importance in today’s interconnected world and global citizens to be able to speak well!
Being the language of work and international communication, English is of great importance to the youth and working class in Hong Kong who learn the language to improve job prospects, opportunities for promotion, and trading. This shows that there is a market for you to open an education franchise in a large market consisting of students, business people and professionals.
Hong Kong is a vibrant city with a lot to offer. It is renowned for its deep-water harbours and remarkable skyline, which is considered one of the best in the world. Hong Kong also boasts an advanced transport system that is one of the most efficient and well-connected. In spite of the large population, its high-quality and efficient infrastructure provides convenience and ease to residents and international businesses. As well, with the world’s 6th best ranking for internet speed[viii], students are able to learn from home, office, any local coffee shop, or simply on the go at any time.
This all means that finding the “perfect” location is not as important for a modern language business. Students can easily access the learning center, yet even more interesting is noting that with a program like New Horizons English, the students are able to complete a substantial portion of their learning via live virtual learning over the internet. All in all, Hong Kong is a modern city with modern infrastructure and modern connectivity, allowing for an education business like New Horizons English to succeed.
To build a successful business, business owners have to think strategically about location, educational focus, the market size and the infrastructure of the city. Considering this, Hong Kong will make a great choice for an English Language Franchise.
The city has a large population coupled with an excellent infrastructure and healthy GDP growth rate. The government has a serious focus on education and is investing in the skillsets and knowledge of the locals. Hong Kong is largely untapped when it comes to English learning, and this is a great opportunity for you to open an education franchise using proven methods and strategies provided by the New Horizons English Language Franchise system.
New Horizons English Overview
We would now like to give you a simple overview of the New Horizons English franchise. Alternatively, you can visit our website and download our prospectus for more detailed information.
The New Horizons English franchise has been built with the intent to leverage the way modern, busy students learn – with flexibility. It is difficult to always be at the learning center when the student is a young adult (friends and activity are always more important) or a working adult (work, family, and life are always more important).
New Horizons English is the answer to providing instruction and test preparation for busy adults using an industry leading education platform to deliver a unique blend of multimedia, live instruction in-center, and on-line on any internet enabled device.
The New Horizons English teaching method enables students by giving them three key learning advantages:
- Learn at your own pace
- Learn anywhere, anytime with Online Live®
- Learn with your own teacher with Mentored Learning®
All of this is supported by a didactic team in state of the art learning centers designed around the student to give 360 degree support, every day of the week.
How does it work?
The New Horizons English Method uses the natural method of second language acquisition which focusses on the development of intuitive learning based on communication rather than learning the structure of the language. The result of this is the ability to speak the language far quicker than with traditional learning methods, in fact, the student will be speaking English from day one of their course.
The course is made up of 36 Cycles, each containing 9 multimedia lessons and 3 live lessons. The live lessons are divided onto Online Live® Progress classes and in-center Milestone classes where the student is assessed for progress to the next cycle. A cycle will generally require 1 month for completion. In addition, the student will be able to access digital workbooks which act as study aids and are available to download and use at the students’ convenience throughout the course.
Finally, the training center. We know that while our multimedia and online lessons are at the cutting edge, nothing can replace the human touch. For this reason we have carefully designed our centers to give the student access to teachers and a learning environment that has been designed to reflect the needs of today’s student. All our centers are fully equipped with the latest technology in specially designed zones that enable every student to tailor their learning experience with the New Horizons English education franchise.
We genuinely believe now is the right time for a new and modern approach to an English language franchise in Hong Kong, China. We are very interested to discuss in great detail with interested and qualified partners. For more details, please visit our site and download our franchise prospectus.