Education to Hungary

(Last updated: 13 Jul 2007)

Trends and opportunities

The market

The number of Hungarian students studying abroad is currently estimated at 20,000. This includes full fee paying students and those funded by the government, and student exchange programs. Australia’s share of this business is increasing markedly from a low-base, particularly in English language and tertiary courses.

The rising levels of affluence and the emergence of a burgeoning middle and upper classes with higher disposable incomes have provided the opportunity for younger Hungarians to study overseas in greater numbers.

There is a combination of motivators driving Hungarian student migration:

• Prestige. In the late 1980s (before the decline of communism) only about 1500 Hungarian students were studying in foreign institutions of higher education, most of them in neighbouring communist countries. There was little or no opportunity to study in the West. Thus, those who have the opportunity to study abroad acquire a certain status, even though this opportunity is now more broadly available. Related to this is the fact that degrees and diplomas awarded by internationally renowned tertiary institutions in foreign countries are highly valued.
  
  
• Necessity for international experience. In an export-orientated economy, with high levels of foreign investment, Hungarians with international experience and language skills are highly sought after. Rapidly developing industries are demanding increased levels of specialisation by job seekers, backed by formal specialist qualifications. In addition, as Hungary is a transition economy, market economy experience is valued. Across all businesses, applicants with qualifications in newer Western-style curricular such as customer service, sales, management and leadership, and marketing are at a premium.
  
  
• English has become an increasingly important language in business in the last 10 years and has increased the popularity of English courses with students of all ages. To gain business-level fluency quickly, overseas experience is vital.
  
  Although approximately 37 per cent of young adults and teenagers over the age of 14 have studied a language other than Hungarian, only 25 per cent are fluent. Additionally, local providers have not coped with the growth in popularity of English studies. All local language schools offer English studies at varying levels. However, there is a chronic shortage of native English-speaking teachers in Hungary.
  
  Some Hungarian colleges and universities, in partnership with foreign educational institutions, offer English language courses, mainly for post-graduate students. The foreign partner usually provides teachers and tutors and organises the course curriculum, while the local institution provides the facility.

The Hungarian education system at a glance

Hungarian education is compulsory up to the age of 18 for those who started primary school in 1998 or after. The majority of the schools are public and co-educational. The academic year usually starts on the first working day of September and finishes in the middle of June providing for a long and relaxing summer holiday. The universities start later and allow students a longer exam period in May-June. There are breaks in autumn (usually at the end of October), in winter (including Christmas and New Year’s Eve period) and in spring (around Easter time).

• Primary and secondary schooling
  
  

  Primary school in Hungary consists of eight years compulsory education. Most students attend municipal schools that are co-educational and tuition-free. This education period may be broken down further into ‘lower primary education’ lasting from Years 1-4 and ‘upper primary education’ which lasts from Years 5-8.

  
  Secondary school starts in Year 9, can be completed in a secondary grammar school. It prepares children mainly for tertiary education and lasts for four to five years depending on any specialisation. Other types of secondary schools offer vocational training and to equip students for the labour market. After graduating from these schools, children have to pass a set of final exams that are a pre-requirement for further studies. There are also schools offering just vocational training (that lasts for three years) though their significance has steadily decreased.

• Higher education
  
  

  The present dual system in Hungary includes universities and colleges offering diplomas at the end of studies. Most university courses comprise of a five-year study program resulting in a degree (diploma), while in colleges, studies are four years in length also ending with a diploma.

  
  The Hungarian higher education system is dual in another aspect, too. Generally the system is free of tuition fees but institutes recruit fee-paying students as well. The institutes have a limit on student numbers for each course funded by the state but in order to generate income they are allowed (and encouraged) to recruit fee-paying students for the same courses.

• Vocational courses
  
  

  These are offered at both secondary and tertiary levels, however, it is a relatively new concept to obtain a profession outside the compulsory education framework. There is ongoing debate on vocational training as foreign investors have not been satisfied with the quality and quantity of the labour force available. The vocational schools are not popular among children and, according to manufacturing companies, in certain cases the quality of the training and the technology taught do not meet the latest market requirements. As a possible solution the Chamber of Commerce and Industry has had two recommendations:
  
  

  • The vocational education system should involve more enterprises where the practical knowledge can be obtained.
  • The Chamber might take on some manual trades /apprenticeships.

Scholarships and financial incentives

A large proportion of the Hungarian student population is highly subsidised. Hungarians studying at Australian education institutes do not usually qualify for Hungarian Government funding. Unless they are on a student exchange program or manage to qualify for scholarships from Australia, these students need to meet all their costs themselves. Thus, the pool of students to whom Australian educational institutions should be marketing is a much smaller segment than the total Hungarian student population studying abroad.

There are a variety of scholarships available to Hungarian students. The European Union (EU) sponsors a number of programs, such as Erasmus and Tempus, which are available at almost all EU universities. The Hungarian Government offers several opportunities on the basis of bilateral agreements with other nations, which work as exchange programs.

The Hungarian Government has offered financial incentives to institutes of higher learning to increase the number of qualified IT experts. The government is committed to creation of a knowledge-oriented society via education, research and development, and electronic literacy.

Online education

Online education is at a very early stage of development in Hungary, primarily limited by the penetration rate of PCs in homes (only 18 per cent of Hungarian households own a PC, and only 16 per cent of these have Internet access). However, this sector is poised for rapid growth as government assistance, combined with the high uptake of the Internet in academic circles and educational institutions.

The Hungarian Government has financed the National Information Infrastructure Development Programme, which provides free computer network services, including Internet services, to higher education institutions, research institutes of the Hungarian Academy of Sciences, libraries and other selected institutions through the Hungarnet network.

The government has also launched the SuliNet (SchoolNet) programme that provides all secondary schools and some primary schools with computers and Internet connectivity. The network currently has over 3000 participating schools. Opportunities may exist to promote Australian educational services and content (particularly higher education) through the SuliNet channel.

In addition, the Hungarian Ministry of Education has established the Hungarian National Council for Distance Education to promote, encourage and coordinate the development and implementation of distance education in Hungary. The Council has completed international cooperation projects and feasibility studies, and there may be scope for Australian educational institutions in this area.

Opportunities

In the following sectors, Australia is already represented in the Hungarian education market, but also provide solid opportunities for expansion:

• English language courses that are subject to some quality controls or standards are flexible enough to be substantially tailored for individual student language needs and have the ability to provide internationally acknowledged certificates upon completion. These courses are currently provided to Hungarian students by Australian institutions belonging to the English Language Intensive Courses for Overseas Students Association (ELICOS). Sydney, Perth, Brisbane and the Gold Coast are the most popular destinations.
  
  
• Vocational training courses including both TAFE and private institutions. These are estimated to represent over 48 per cent of current traffic to Australia and offer significant growth potential. Australia has particular advantages when marketing vocational courses, based on variety, price and a modular approach to courses.
  
  

  Hungarian institutions do not usually offer short certificated courses, rather require student to undertake full two to four-year programs. Offering a Hungarian student the one key module required for their vocational needs in a 3–12 month unit is attractive for reasons of timing, price and a tailored outcome for the student. Specific areas include:
  
  

  • business management and general administration
  • hospitality (hotel and tourism management)
  • marketing (intermediate level)
  • fashion and graphic design
  • photography
  • film and television production
    
    
• Tertiary degrees and diplomas awarded by institutions with an international reputation. Faculties of interest are:
  
  
  • business
  • accountancy
  • hospitality
  • tourism
  • veterinary science
  • agriculture
  • horticulture
  • animal husbandry
  • arts

Further, postgraduate and secondary diplomas (mainly MBAs) are increasing in popularity. One issue of concern for Hungarians who obtain degrees or diplomas in foreign countries is ‘equivalence’ or acceptance by the Hungarian system. Therefore professional degrees such as medicine, law and other undergraduate courses will be difficult to market as a whole, however, one or two semester exchange programs may be attractive.

High schools can offer ‘equivalence’ with the Hungarian system. Location and a reputation for academic excellence, particularly in the fields of maths, sciences and the arts are important. Australian institutions wishing to market Australian high schooling need to ensure that they provide special support during the school year to assist students in passing exams. The Hungarian Equivalence and Information Centre provides further information on equivalence issues.

Another area for future development by Australia could be in technical education, as there is an increasing shortage of qualified workers in the informatics and communications sectors. 

Competitive environment

Australia is not generally considered a major supplier of education services to Hungary, however, Australia has a number of fundamental competitive advantages that educational institutions should be able to build on, such as:

• An attractive location offering a high level of personal safety. Australia has a good image as an exciting and exotic destination.
• Distance is often viewed as a problem, but this can also be positively marketed with possible add-ons that could include tourism and travel within Australia.
• Tuition fees and cost of living are globally competitive. These, in addition to a favourable exchange rate outweigh any additional cost of travel. It is important to position the total cost of an Australian study package (airfare and course of study) against key competitors. It is also important to state the cost in known currencies so direct comparisons can be made.
• A flexible and innovative approach to education that often distinguishes it from its key competitors.
• The quality of education in Australia is generally perceived by Hungarians as high. This professional reputation important to Hungarian students.

Hungarian students look for equal or better quality in international education as that offered at home, and need compatibility with their own system for high schooling and tertiary education. The local availability of Western-style curricular, such as MBA programs, is improving with more Hungarian institutions offering these courses, mostly in cooperation with USA and Western European university business schools.

Strong local educational system with some gaps. Vocational training are not provided with flexible formats or in any quantity locally. English language training is not fully developed to meet the increased demand with only limited availability of native English teachers in Hungary. For Australian institutions wishing to attract Hungarian students, these motivators will be important to capitalise upon, while bearing in mind some limitations, such as competing with subsidies and maintaining equivalence with the Hungarian educational system.

Tariffs, regulations and customs

Industry standards

Courses in Hungary are required to be accredited by the Ministry of Education. This is valid in all sectors of education. Private language schools without this accreditation have to include Value Added Tax of 25 per cent in their course fees.

Marketing your products and services

Market entry

Australian educational institutions interested in entering the Hungarian education sector should consider:

• Tailoring their products to suit Hungarian student needs. Visiting as many places as possible – both in Budapest and other cities - to build up a clear picture of the educational environment in Hungary is essential. An understanding of the Hungarian education market will enable Australian institutions to better tailor their services to meet Hungarian requirements.



• Appointing local education agents to promote services. Promotion of foreign education in Hungary, including student recruitment, is primarily carried out by specialised ‘education agencies’, mostly located in Budapest. In rural areas, the larger Budapest-based education agencies have sub-agent arrangements, usually with local travel agents. These agents assess the potential students, advise them on possible courses of study, and assist them with their course and visa applications.
  
  Additionally, the local education agencies with ties to Austrade in Budapest regularly promote Australian institutions through direct mail campaigns, course brochures and ads in the media. Austrade can assist you in identifying a representative to suit your needs. Alternatively, a cooperative agreement between an Australian institution and an equivalent Hungarian university is suggested.



• Planning regular visits. It is essential for Australian service providers to visit the Hungarian market regularly to keep the education agents’ interested. Regular visits are essential to maintain ties with Hungarian agents, and an incentive and commission structure often exists. The market is also changing rapidly, with new entrants and increased local offerings. Regular visits will also facilitate ongoing relevance in a highly competitive market.



• Cooperating with an equivalent Hungarian university.



• Developing alumni is important, as they are the best ambassadors and referral mechanisms. They can provide first-hand knowledge to prospective students, and feedback to the institution.



• Launching and maintaining a presence at key trade fairs. The biggest local tourist trade fair is Utazas held in every March, and some Australian institutions have been represented in previous years. This is the largest event in Hungary for the promotion of foreign education.
  
  Another local language fair is Nyelvparade held every September. Austrade Budapest organised the Australia stand. for the third time at this year's Nyelvparade education show. The show was held between 8-10 September 2006. The Austrade stand had 12 education providers from Australia including English-language schools, TAFE institutions and vocational colleges from all states.
  
  Austrade Budapest invited an aboriginal artist, Turtle to support the events with cultural contribution. The common participation of education providers, agents and other service providers (eg. Adina Apartment Hotel, Singapore Airlines, QBE Atalsz Biztosito and BPS International) has worked well. Austrade Budapest intends to organise similar participation for 2007.
  
  For further information, please contact Eva Czegledi, Post Manager, Austrade Budapest: eva.czegledi@austrade.gov.au



• Considering an online presence. As the target student population is the most Internet literate segment in the Hungarian market, a first point of entry may be via a website.
  
  Austrade Budapest in conjunction with International Education Network (AEI), have launched a website as part of their awareness raising campaign, designed to encourage Hungarians into choosing Australia as a tourist, study and business destination.
  
  The website or 'Off to Australia!' as it translates, provides general and more specific information ranging from providing a historical background to outlining visa requirements and conditions of travel, all in Hungarian. There is a dedicated page on study opportunities in Australia with information about the range of education services available as well as a list of outbound operators and successful Australian investors and exporters in Hungary.

Please remember not to:

• Confuse Budapest with Bucharest! It is a very sensitive issue for Hungarians and Romanians.
• Schedule visits in July/August (summer vacation period) and mid-December/early January.  Agents sell most of their courses from April to August and are therefore less receptive to visits.
• Expect positive responses if you do a general mail out, in English, to the agency network seeking expressions of interest
• Start business with a completely unknown Hungarian education agency.
• Engage in overly commercial behaviour when liaising with Hungarian institutions. The mutual benefits accruing from a potential partnership should be emphasised, rather than the need to ‘seal a deal’.

When presenting your product to an education agent or directly to a Hungarian institution, Australian education providers should consider the following:

• Why Hungarians should consider education in Australia
• What is the value to the agent of promoting your product
• How your product ‘fits’ in the current product offering
• Who the target market is
• Projected level of sales
• Cost of Australian education versus other countries (eg. UK, USA)
• Visa requirements for Hungarian students
• Commission structure for the agent
• Equivalency issues
• Is an exclusivity deal between your institution and a Hungarian agent or equivalent institution appropriate

Australian Education International (AEI), in partnership with Austrade is raising the profile of Australia as a provider of educational services in Hungary. The ‘Study in Australia’ program should raise the awareness of Australia as a prestigious, quality and price competitive destination for students. The activities under the campaign consist of:

• Conducting monthly workshops and seminars for potential students facilitated by Hungarian universities and colleges
• Maintaining a network of experienced and committed agents promoting Australian institutions to their clients
• Building an online presence in Hungarian language for Australian education
• Providing market intelligence reports to AEI on significant movements in the Hungarian market

Distribution channels

Two ways of tapping into the Hungarian education sector are:

1. Using the services of a local education agent. This method provides local knowledge and connections at ground level. However, finding the right education agent who will properly promote Australian interests is crucial and will determine the success or failure of your venture. In business life in Hungary (in any field) personal connections are very important.
2. Establishing a direct cooperative venture between an Australian institution and an equivalent Hungarian one.

Links and industry contacts

Education–related resources

Australian Centre for Education – www.acehu.com
Big Ben Language Studies – www.bigben.hu
Hungarian Accreditation Committee  – www.mab.hu
Hungarian Equivalence and Information Centre – www.om.hu/j4598.html
Hungarian Ministry of Education – www.om.hu/jg.html
Hungarian National Council for Distance Education – www.ntt.hu
Hungarian Scholarship Board – www.scholarship.hu
Irany Ausztralia! - www.iranyausztralia.hu
Katedra – www.katedra.hu
LINGVISIT – Agency of Education and Language Studies Abroad – www.lingvisit.hu
Masterclass – www.masterclass.hu
OXFORD Hungaria Nyelvstudio – www.oxford.hu
StudyGo- www.studygo.hu
Study Tours – www.studytours.hu

Media

There are no specific education industry publications in English. Once a quarter, the Hungarian dailies produce an educational special edition. PestiEst, a free Hungarian entertainment/program guide (in Hungarian only) has a quarterly educational feature.