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Costa Rica's Language Schools Slow to Recover

While most business publications (including our blog) were focused on the world recession and its mega-effects on the economy, Costa Rica's previously healthy private language schools were quietly taking it in the neck.

Last week, the English-language newspaer The Tico Times reported the stunning news that the 28-year-old Instituto Britanico was closing on June 30 after having graduated 15,000 students. But the news is not all bad.

In a pure example of mixed signals, the Brazil-based Wizard Language Institute opened its first outlet here last week. The enterprise has ambitious plans to open 15 sites by 2015. It has 1,200 sites worldwide.

For decades, language schools here had been a good business and a satisfying one, fulfilling the needs of countless students who had found that the English training in public high schools was simply not good enough for entry-level language skills in call centers and multinational corporations.

As the demand for English showed no signs of peaking, the niche market continued to grow. Then, the economic crunch of 2008-09 hit them hard. And, surprisingly, the schools were among the slowest businesses to recover.

"It's still very fragile but getting a little bit better as time goes on," Idioma Internacional"s owner Brian Logan told The Tico Times, but it could just be disrupted by any little thing.

"I don't feel bullish at all about anything," he added, "but I feel better than I did last year and certainly the year before."

Although many observers attributed Instituto Britanico's woes to having moved to a new, larger building the venerable school could not fill with students, its director, Marcy Devine, denied that plans were afoot to fill it the first year.

Britanico saw its student body dry up drastically during 2008. In 2009, businesses scheduled 330 hours of language classes for their personnel. Two years later, demand had dropped to 170 hours.

Idioma Internacional has the unique approach of contracting with companies to send instructors directly to the company, instead of the company sending students to the school's center.

An agreement signed with the public National Learning Institute and a lucrative contract with computer component giant Intel helped tide the company over the worst but, until an upturn early this year, company contracts were few.

The Tico Times noted that independent schools must compete against schools with multiple locations such as Intensa, Berlitz, the American-Costa Rican Cultural Center, Universal and Inlingua.

Intensa with four Central Valley locations went through a rough period in early 2010. Marketing manager Andrea Fernandez says the school benefited from an aggressive promotion campaign and is doing better than ever.

But Fernandez thinks it is all too easy to overstate the troubles of language schools. "The English market has always had institutes opening and closing," Fernandez told the paper, "Instituto Britanico draws attention because it is a big institution with 28 years in the country, so it has had an impact."

Although the paper reports that most schools are showing a recovery, competition is still fierce. Many invest in state of the art gadgets such as iPhones and Blackberrys to get an edge. Schools such as Berlitz, Idioma Internacional and CCCN all use these aids in what is termed "Blended Learning."

Who knows? Perhaps this increased competition will again cause the country to become a Latin American magnet for learning English.

By Rod Hughes, Fijatevos.com

 
 

 

 
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