Posted by: Pradeep | January 23, 2009

GEMS Modern High – new fee structure

Yesterday I got SMS from my daughter’s school informing me about new fee structure. As I got that message my heart sank; knowing well that GEMS group has been working towards increasing their profits for last one year now. There is unconfirmed news in the market that already about 6000 enrollment cancellation requests have been made to GEMS group schools in last one month. Recent survey by the group asking parents about their intentions to apply for TC somewhere confirms this.

This must be putting big strain on profits of GEMS group. When economy is down, people are losing jobs and prices are falling; GEMS group decided to punish the parents who entrusted their kids eduction to them. Dubai Modern Highschool decided to increase the fees in two installments taking the total increase to 110.25% by start of academic year in April 2010 (year on year increase of 45% doesn’t mean 90% in two years, local news papers like Gulf News need to learn this mathematics). This is nothing but polished pickpocketing. Last year from September 2008 they had anyways increased tranportation fees by about 300% under the disguise of higher oil prices. Since then oil has fallen by 70% but transportation fees remains same.

GRADE

TUITION FEE STRUCTURE

(FOR 10 MONTHS)

 

 

2008-09

(CURRENT)

2009-10

(NEW)

2010-2011

(NEW)

Effective

increase

KG I

14,094

20,430

29,620

110.16%

KG II

14,094

20,430

29,620

110.16%

G I

15,950

23,120

33,520

110.16%

G II

15,950

23,120

33,520

110.16%

G III

16,820

24,380

35,350

110.17%

G IV

16,820

24,380

35,350

110.17%

G V

17,690

25,650

37,190

110.23%

G VI

17,690

25,650

37,190

110.23%

G VII

17,690

25,650

37,190

110.23%

G VIII

17,690

25,650

37,190

110.23%

G IX

18,908

27,410

39,740

110.18%

G X

18,908

27,410

39,740

110.18%

G XI

20,880

30,270

43,890

110.20%

G XII

20,880

30,270

43,890

110.20%

 

Economic laws clearly state that going up is always faster than falling down in terms of costs/prices. I am wondering how Federal Government is allowing such exhorbitant fees hikes in times when expats are anyway reeling under tremendous pressure to keep up themselves up and going in Emirates.

The reasons for fees hike are change in campus. Why parents have to pay for campus facilities which are GEMS properties? What kind of expenses are there for keeping up the campus? What rate of depreciation has been applied to new campus equipment? I feel Dubai education authority should have shown some social responsibility before approving such kind of fees hikes.

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Responses

  1. […] Pradeep shares his frustration on this exorbiant fee hike by Dubai Modern High School: There is unconfirmed news in the market that already about 6000 enrollment cancellation requests have been made to GEMS group schools in last one month. Recent survey by the group asking parents about their intentions to apply for TC somewhere confirms this. […]


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