Increased Desire Leads to Expansion of Global Education Institutions in Thailand
Thailand's international school sector experiences sustained growth, with the increasing demand for high-quality education for children mirroring this trend. As of April 30, the Department of Business Development (DBD) reports that 7,511 registered entities are operational in the education sector with a combined registered capital of 50.63 billion baht.
Nearly 90% of these entities are registered as limited companies, boasting a collective registered capital of 48.17 billion baht. The remaining 10% are composed of limited partnerships or ordinary partnerships, holding 1.11 billion baht in capital, while just 0.05% are public limited companies with a capital of 1.34 billion baht.
Foreign investment in the sector amounts to 5.73 billion baht, with the United Kingdom, China, and Singapore being the top three investing countries, contributing 30%, 11%, and 7%, respectively.
An analysis by the DBD of 20 international schools in Thailand reveals that, despite temporary revenue slowdown due to the Covid-19 pandemic, the sector has since recovered and posted continuous growth in both revenue and profit. In 2022, the sector generated 5.72 billion baht in revenue, marking a 6.57% increase from the previous year and a profit of 681 million baht, up 55.75%. In 2023, revenue surged to 7.32 billion baht, an increase of 28.04%, while profits soared to 1.60 billion baht, a rise of 136.28%. In 2024, revenue continued its upward trend, reaching 8.31 billion baht (up 13.45%) with profits of 1.83 billion baht, representing a 14.08% increase from the prior year.
Several factors contribute to the popularity of international schools among modern, wealthy parents. These include providing children with a stimulating and multicultural learning environment, fostering language competence in multiple languages, and equipping them with future-ready skills. The main drivers of profitability in this sector include placing tremendous emphasis on teacher quality and student care, adhering to high educational standards, and catering to the rising expatriate communities in Thailand.
The DBD anticipates that the sector's expansion potential remains substantial, with opportunities in extending services to provinces with significant expatriate populations, such as Phuket, Chiang Mai, and Pattaya, as well as developing curricula centered on emerging fields like artificial intelligence and computer programming.
Enrichment Data Integration:
- According to enrollment data, Thai students transitioning from state schools to international schools and the relatively affordable international education system in Thailand contribute to its growth, particularly attracting families from countries such as China and South Korea [1].
- The strong profit margin of international schools is largely due to high demand and premium fees [5].
- Four new international schools are slated to open in Thailand in the coming years, signaling ongoing investment and growth in the market [1].
- The favorable environment for international schooling in Thailand, combined with the trend of families moving to Thailand for educational purposes, is expected to continue driving growth in the sector [1].
- While the market presents some challenges, such as price sensitivity and competition, the demand for high-quality international education remains robust, offering opportunities for adaptation and innovation [4].
Citations:[1] "https://www.bangkokpost.com/business/2133134/school-business-picks-up-as-admission-rates-rise-in-thailand"[3] "https://www.aec.go.th/uploads/images/content/AEC/_74013/thai_intl_school_directory.pdf"[4] "https://www.bangkokpost.com/business/2644159/intnl-schools-hold-potential-amid-challenges"[5] "https://data.worldbank.org/indicator/SE.SEC.ENRR.SP.ZS?locations=TH"
- The growth in Thailand's international school sector is not limited to major cities like Bangkok, with provinces like Phuket, Chiang Mai, and Pattaya attracting new international schools due to their significant expatriate populations.
- The education sector in Thailand, with its 7,511 registered entities, is not only focused on traditional schooling but also on emerging fields like artificial intelligence and computer programming, reflecting the changing demands of the global economy.
- The international school sector in Thailand, with a combined registered capital of 50.63 billion baht, is not just a local concern but has attracted substantial foreign investment, particularly from the United Kingdom, China, and Singapore.
- The international schools' focus on future-ready skills, including language competency in multiple languages and a multicultural learning environment, aligns with the broader global trend of fostering educational environments that cater to the needs of the business and finance sectors.
- As the international school sector in Thailand continues to grow and recover from the temporary revenue slowdown due to the Covid-19 pandemic, it is expected to contribute significantly to the country's economy, particularly in tourism and culture, by attracting families and expatriates from around the world.
