HSBC Bank International

HSBC Bank International The Expat Explorer Survey 2010 Report two: Expat Experience

PAGE 2 I EXPAT EXPLORER SURVEY 2010 About the Expat Explorer Survey Commissioned by HSBC Bank International, Expat Explorer is the world s largest global survey of expats. Now in its third year, the survey continues to deliver insights into expat life around the globe. Participation rates for the survey have continued to increase year-on-year and in 2010 the survey has more respondents than ever, with 4,127 expats answering questions relating to their finances, quality of life and even what it s like to raise children abroad. The survey continues to explore how expat life differs from country to country, continent to continent. 2010 even bigger than 2009: e Nearly 1,000 more expats sharing their experiences in this year s survey e Expats from over 100 countries e The addition of new countries in the Expat Explorer league tables, including Bermuda and the Philippines

PAGE 3 I EXPAT EXPLORER SURVEY 2010 Expat Experience Expat Experience is the second of three reports to be produced from the Expat Explorer research. The report focuses on expats experience of setting up in a new country of residence and integrating into local society as well as their quality of life in comparison to where they previously lived. A league table has been compiled using a comprehensive set of sub-criteria (29 in total) to reveal which locations expats voted as the places with the best life experience. Lastly, they were asked how well they integrate into local society. This was judged on whether they agreed with the following for their new country of residence: e I enjoy having local food rather than having food from my home country all the time e I am happy to experience local culture e I try to learn / use the local language One of the major criteria was quality of life for which expats rated accommodation, food/diet, entertainment, healthcare, work life balance, social life, commute to work and opportunities for sports and travel. In addition, they also rated the relative ease in which they were able to do the following in their new country of residence: e Organise schools for their children e Set up finances; healthcare; utilities e e e e It is easy for me to make local friends I am integrating well in the local community I feel welcome at work I like shopping for local produce in the local shops / markets e e e e e e Find accommodation Learn the local language Adapt to local food; weather; work culture Make friends Travel around locally Adjust to the new culture/lifestyle (in general)

PAGE 4 I EXPAT EXPLORER SURVEY 2010 Contents e Overall League Table 5 e Expat findings 6 Career prospects and quality of life don t go hand in hand for expats 6 Emotive worries top the list of expat concerns 7 UK top for entertainment but makes a poor lifestyle location for expats 8 European expats find it hardest to make friends 9 Expats gravitate to fellow expats 10 Personal development is more important than financial gain for most expats 10 BRICs and the Middle East are the most difficult expat locations to set up in 11 Retirees head for a better quality of life 12 Expats keen to continue travelling 13 e Country reports 17 United States 17 United Kingdom 19 Hong Kong 21 Singapore 23 United Arab Emirates 25 Australia 27 Canada 29 France 31 Spain 33 Germany 35 China 37 e League tables by criteria 15 e Methodology 16 About Expat Explorer 16 About Expat Experience 16 e Further information Contact 39

PAGE 5 I EXPAT EXPLORER SURVEY 2010 Overall league table Overall Experience Overall Setting up Overall Integration Overall Quality of Life score rank score rank score rank score rank Thailand 0.62 1 0.65 3 0.73 4 0.58 1 Canada 0.59 2 0.66 2 0.74 3 0.54 4 Bahrain 0.59 3 0.61 8 0.65 15 0.57 2 Spain 0.59 4 0.60 10 0.81 1 0.53 6 South Africa 0.58 5 0.66 1 0.67 12 0.54 3 France 0.58 6 0.60 11 0.79 2 0.52 7 Bermuda 0.57 7 0.60 9 0.67 11 0.53 5 Australia 0.55 8 0.64 4 0.70 7 0.49 9 Malaysia 0.54 9 0.62 5 0.65 13 0.49 9 Switzerland 0.53 10 0.49 17 0.65 13 0.50 8 Germany 0.52 11 0.52 15 0.72 6 0.47 12 Singapore 0.52 12 0.61 7 0.62 16 0.47 14 Hong Kong 0.52 13 0.62 6 0.61 18 0.47 15 Belgium 0.52 14 0.53 13 0.68 10 0.47 13 Philippines 0.51 15 0.52 14 0.60 20 0.49 11 United States 0.49 16 0.58 12 0.69 8 0.42 18 United Arab Emirates 0.48 17 0.49 18 0.51 24 0.46 16 Netherlands 0.48 18 0.45 21 0.61 19 0.45 17 Mexico 0.47 19 0.52 16 0.72 5 0.39 21 United Kingdom 0.44 20 0.49 19 0.69 9 0.37 23 China 0.44 21 0.45 20 0.62 17 0.38 22 Qatar 0.43 22 0.41 24 0.49 25 0.42 19 Saudi Arabia 0.42 23 0.43 22 0.51 23 0.40 20 Russian Federation 0.40 24 0.41 23 0.59 21 0.35 24 India 0.35 25 0.39 25 0.56 22 0.29 25

PAGE 6 I EXPAT EXPLORER SURVEY 2010 Expat findings Career prospects and quality of life don t go hand in hand for expats Moving abroad is an opportunity many people undertake to find a better way of life as well as an opportunity to boost their earning potential by taking on a new career challenge. But the findings show that the two benefits rarely go hand in hand. This year, the majority of expats (57%) claimed that increased career opportunities and increased financial gain were their key reasons for becoming an expat. However, their choice to move to a country that offers great benefits financially doesn t generally provide the same benefits in terms of expected quality of life in their new destination. Saudi Arabia (85%), Qatar (83%) and Russia (76%) are the most popular countries for those citing financial gain and increased career progression as one of the key motivations to become an expat. However, these countries typically score very low on the quality of life rankings (Saudi Arabia 20th, Qatar 19th and Russia 24th out of 25 countries). In contrast, expats moving to countries that score well on the quality of life league table such as South Africa (3rd), Spain (6th) and France (7th) are much less appealing as destinations to those looking for increased career progression and financial gain. Less than one in five (18%) expats moving to Spain did so for potential financial gain, alongside 26% in France and 40% in South Africa. There are exceptions to this rule. Expats in Bahrain and Bermuda both scored particularly well for quality of life, scoring 2nd and 5th respectively on the quality of life league table. These destinations are also popular amongst expats looking to boost their career prospects and increase their earning potential with both countries scoring in the top quartile in the Expat Explorer Economics league table in 2010.

PAGE 7 I EXPAT EXPLORER SURVEY 2010 Expat findings (continued) Country of residence % Mentioning career/money prospects as the key reason for becoming an expat Quality of life Rank Top concerns amongst expats Saudi Arabia 85% 20th Qatar 83% 19th Russian Federation 76% 24th United Arab Emirates 74% 16th Australia 42% 9th 48% 44% South Africa 40% 3rd 37% France 26% 7th 29% Spain 18% 6th Emotive worries top the list of expat concerns Moving abroad can understandably be daunting for any potential expats and this year s report reveals that emotive worries cause much greater concern than practical issues. The most common concern for expats ahead of moving to their new country is re-establishing a social life (41%), feeling lonely and missing friends and family (34%). The same worries are also much more prominent for female expats. Nearly half of female expats surveyed (48%) shared concerns about re-establishing their social life in their new country, compared to only 37% of men and 44% of female expats shared concerns about missing their friends and family, compared to less than one third (29%) of men. Re-establishing a social life Feeling lonely and missing friends and family Male Female Worries about re-establishing a social life caused less of a concern for those heading to the Middle East (Bahrain 28%, Saudi Arabia 27% and Qatar 33% compared to a 41% average), although this is unsurprising given how well countries in this region score on the social life rankings; Bahrain 1st, United Arab Emirates 10th and Qatar 12th. Missing friends and family is a large concern for expats based in Australia (49%) and Canada (46%) and can probably be accounted for by the distance these expats are moving away from home. As the majority of expats based in Australia and Canada were originally from the UK (70% in Australia and 62% in Canada), time difference and long journeys to see loved ones understandably cause concern for these expats. While language barriers caused concern for just under one third (30%) of expats overall, this figure was greatly increased for those heading to Europe. Expats heading to Germany were particularly worried about language barriers, which was a concern for 59%, as well as 58% in Switzerland, 57% in France, 55% in the Netherlands, 50% in Spain and 46% in Belgium.

PAGE 8 I EXPAT EXPLORER SURVEY 2010 Expat findings (continued) Top concerns amongst expats Re-establishing a social life 41% Feeling lonely and missing friends and family Career prospects 32% Language barriers 30% Relocation process 30% Healthcare (quality and access) Adapting to culture 25% Standard of living 21% Dealing with bureaucracy / corruption Raising my children 17% 19% 29% 34% since relocating. In addition, the UK scores the worst of all countries on the quality of accommodation and commute to work as well as getting used to the local weather. A positive factor for expats based in the UK is the local language. UK-based expats agreed that they found it easy to adapt to the local language and communicate when they arrived, which is unsurprising given that the English language is so widely spoken. The UK is an unfavourable location for those looking for increased quality of life and this is not helped by the relatively poor economic outlook for expats based here. High living costs and the reduced career opportunities created by recent economic turbulence has affected expats based in the UK with 67% agreeing that their economic situation has become worse over the past year according to our 2010 Expat Economics report. This will undoubtedly have had an effect on the quality of life expats are able to enjoy in the host country: Safety and crime 17% Managing finances 17% The weather 13% UK top for entertainment but makes a poor lifestyle location for expats The UK makes for a poor lifestyle location for many expats, ranking 20th in the 59% overall experience league table. Although many expats find the UK an easy country in which to integrate, (scoring 9th out of 25), many find the overall quality of life in the UK to be less than desirable. 21% 37% 20% 46% 30% One of the benefits in relocating to the UK is the great entertainment, which was ranked top overall. However, even with these excellent entertainment rankings, nearly half (49%) of expats based in the UK think their social life has become worse Difficulty to get used to local weather Overall Sample (100+ countries) I have a worse commute to work than in my home country UK My accommodation is of a higher quality/ nicer than in my home country

PAGE 9 I EXPAT EXPLORER SURVEY 2010 Expat findings (continued) European expats find it hardest to make friends Making friends is a key component in helping expats to deal with the challenges of moving to a new country and to settle into their new home. However, Europe is the hardest region to make friends according to this year s report, with European countries dominating the bottom five places in the ease of making friends league table. The Netherlands proved to be the hardest of all with only 36% of expats based here finding it easy to make friends when relocating, alongside 40% in Germany, 42% in UK and Switzerland and 44% in Belgium. This could be largely attributed to the language barriers expats heading to these countries face. Spain and France do fare better, placed 9th and 12th respectively, while Bermuda (1st) and Bahrain (2nd) hold the top spots. Country % find easy to make local friends Rank Bermuda 80% 1 Bahrain 75% 2 Thailand 70% 3 South Africa 67% 4 Hong Kong 66% 5 Malaysia 65% 6 Philippines 62% 7 Russian Federation 62% 7 Spain 61% 9 Qatar 61% 9 Mexico 58% 11 France 57% 12 Saudi Arabia 56% 13 Singapore 55% 14 United Arab Emirates 55% 14 India 55% 14 Australia 52% 17 United States 48% 18 China 48% 18 Canada 45% 20 Belgium 44% 21 Switzerland 42% 22 United Kingdom 42% 22 Germany 40% 24 Netherlands 36% 25 In terms of top spots to find love, Thailand for the second year running proves to be the most romantic destination, with 69% of single expats having found a partner since relocating, followed closely by Spain (68%).

PAGE 10 I EXPAT EXPLORER SURVEY 2010 Expat findings (continued) Expats gravitate to fellow expats Expats tend to spend more time with expat friends, rather than making new local friends in their host country. Nearly three in five expats (58%) agreed that they re more likely to go out with expat friends rather than local friends. But this figure increases dramatically for some countries. Expats in Qatar (85%) and the UAE (84%) are most likely to only integrate with fellow expats, followed by Bahrain (81%), Hong Kong (79%) and Saudi Arabia (73%). Expats in Canada are most likely to integrate within local society and make friends in their host country. Nearly half (45%) of Canada-based expats go out with local friends as much as fellow expats. Expats in the USA (37%) and Australia (36%) are also more likely to go out with local friends than fellow expats. I tend to go out with expat friends more then local friends Agree Disagree Personal development is more important than financial gain for most expats While there are many benefits to moving abroad, the most commonly cited benefits relate to personal development rather than financial gain. 81% of expats believe broadening their horizons and gaining life experience is the most important benefit of becoming an expat. This is even more important for those in Russia (97%), the Netherlands and Belgium (both 92%) where expats feel they have gained valuable life experience since relocating. A better quality of life was cited by two-thirds (66%) of expats as the key benefit to relocating, especially in countries such as Australia, France, Spain and Canada where improved quality of life is a key feature. In comparison, career development (60%) and financial wealth (55%), while still important benefits for expats, were largely cited as being less crucial than life experience opportunities. Career progression was particularly important for expats based in the UK where 91% of expats cited career progression as one of the key benefits of moving to the country. 58% 22% Overall Sample (100+ countries) 85% 84% Qatar 7% 6% United Arab Emirates 81% 79% 16% 5% 73% 11% 24% 45% 34% Bahrain Hong Kong Saudi Arabia Canada United States 37% 39% 36% Australia

PAGE 11 I EXPAT EXPLORER SURVEY 2010 Expat findings (continued) Top benefits of becoming an expat Personal development life experience, broaden my horizon Better quality of life 66% Career development 60% Financial wealth 55% Making new friends / networking 39% The weather 32% Tax efficiency 29% Less crime 27% Cost of living 26% Better environment for my children Healthcare (quality and access) 23% 20% Finding love or a life partner 17% Escaping political / government intrusion in home country 13% BRICs and the Middle East are the most difficult expat locations to set up in A smooth relocation process is crucial for expats, helping create a positive first impression of their new country. Taking into account a range of factors such as the ease of setting up their finances, healthcare, accommodation and utilities, South Africa proved to be the easiest country to do this (1st) followed by Canada (2nd). The only area South Africa-based expats found difficult to set up was their finances, where nearly a third (31%) admitted having problems when first relocating. 81% The most difficult regions were BRIC (Brazil, Russia, India, China) countries and the Middle East. India was the most difficult country for expats to set up in overall (25th) with adjustment to the new culture and lifestyle something expats here found particularly challenging. Russia (23rd) and China (20th) also dominated the bottom quartile, with expats having particular trouble when it came to organising their healthcare and travelling around locally. Overall Setting up Country Score Rank South Africa 0.66 1 Canada 0.66 2 Thailand 0.65 3 Australia 0.64 4 Malaysia 0.62 5 Hong Kong 0.62 6 Singapore 0.61 7 Bahrain 0.61 8 Bermuda 0.60 9 Spain 0.60 10 France 0.60 11 United States 0.58 12 Belgium 0.53 13 Philippines 0.52 14 Germany 0.52 15 Mexico 0.52 16 Switzerland 0.49 17 United Arab Emirates 0.49 18 United Kingdom 0.49 19 China 0.45 20 Netherlands 0.45 21 Saudi Arabia 0.43 22 Russian Federation 0.41 23 Qatar 0.41 24 India 0.39 25

PAGE 12 I EXPAT EXPLORER SURVEY 2010 Expat findings (continued) The Middle East also proved to be a difficult location for expats to set up in, with Qatar (24th), Saudi Arabia (22nd) and the United Arab Emirates (18th) all scoring fairly low. Adapting to the new language and travelling around locally were particular problems for expats in this region, while Bahrain was the only Middle Eastern country to fare well on the set up score, ranking 8th overall. Retirees head for a better quality of life Countries that score well on the quality of life rankings are very popular with those wishing to retire abroad. A high proportion of expats based in Spain (38%), France (33%), South Africa (24%), Thailand (24%) and Canada (17%) are retirees, with many having moved specifically for this reason. In Spain, one in four (25%) expats moved there to retire, alongside 21% in France and Thailand. While scoring well on quality of life overall, these countries scored particularly well on food, local diet and healthcare, which could explain why many expats decide these countries offer the ideal location to spend their retirement years. Overall Quality of life Country Score Rank Thailand 0.58 1 Bahrain 0.57 2 South Africa 0.54 3 Canada 0.54 4 Bermuda 0.53 5 Spain 0.53 6 France 0.52 7 Switzerland 0.50 8 Australia 0.49 9 Malaysia 0.49 9 Philippines 0.49 11 Germany 0.47 12 Belgium 0.47 13 Singapore 0.47 14 Hong Kong 0.47 15 United Arab Emirates 0.46 16 Netherlands 0.45 17 United States 0.42 18 Qatar 0.42 19 Saudi Arabia 0.40 20 Mexico 0.39 21 China 0.38 22 United Kingdom 0.37 23 Russian Federation 0.35 24 India 0.29 25

PAGE 13 I EXPAT EXPLORER SURVEY 2010 Expat findings (continued) Expats keen to continue travelling Expats seem to be spending less time abroad. This year only 35% of expats questioned said they had been living in their host country for more than five years, compared to 58% of those asked in 2009. However, this isn t necessarily an indication that expats are returning home. Instead, almost three-quarters (71%) of those surveyed are planning another expat posting after their current one. Just under half (43%) are planning another posting to a different location, while 8% would like to experience another country with the aim of returning to the country they are currently living in. Only one fifth (20%) said they would plan to return to their home country eventually. Nearly one fifth (16%) of expats are planning to stay in their current country for the long haul, especially those in Thailand (47%) and Canada (42%), which seem to make the most popular destinations for expat lifers. Expats based in these countries are also the most likely to have stayed for five years or more already (Thailand 56%, Canada 47%). Given how well these countries score on the overall experience league table, the results highlight that while expats might initially be drawn to certain countries for career progression and earning potential, those that provide a good quality of life are more likely to encourage long term settlement among expats. Length of time in the country of residence Would you consider another expat posting after this one? 19% 8% l 0 6 months l 7 months 2 years 16% 6% 6% 43% l Yes I would like to go to another country l Yes but I would like to come back here eventually l Yes but I would like to return to my home country eventually 16% 30% l 3 5 years l 6 9 years l 10 years or more l No I will stay here for a long time 27% 20% l No I will return to my home country after this one 8% l Don t know

PAGE 14 I EXPAT EXPLORER SURVEY 2010 Expat findings (continued) Expats based in countries that score low on the overall experience league table were most likely to contact their friends and family more frequently since becoming an expat. Expats based in Saudi Arabia (32%), Qatar (24%) and Russia (24%) which all score within the bottom quartile of the experience league table, agree they spend more time contacting friends and family than they did before relocating (compared to an overall average score of 19%). These results highlight that expats based in low scoring experience countries may be feeling more homesick than their counterparts based in higher scoring locations. These expats are also likely to be taking advantage of increasingly popular social media tools such as Twitter, Skype and Facebook that make contacting loved ones while abroad cheaper and easier to do. Contacting friends and family more often Overall Sample (100+ countries) 19% Saudi Arabia 32% Qatar 24% Russia 24%

PAGE 15 I EXPAT EXPLORER SURVEY 2010 Regional League Tables Overall Experience Overall Setting up Overall Integration Overall Quality of life Country SCORE RANK SCORE RANK SCORE RANK SCORE RANK THE AMERICAS Canada 0.59 1 (2) 0.66 (2) 0.74 (3) 0.54 (4) Bermuda 0.57 2 (7) 0.60 (9) 0.67 (11) 0.53 (5) United States 0.49 3 (16) 0.58 (12) 0.69 (8) 0.42 (18) Mexico 0.47 4 (19) 0.52 (16) 0.72 (5) 0.39 (21) Thailand 0.62 1 (1) 0.65 (3) 0.73 (4) 0.58 (1) Australia 0.55 2 (8) 0.64 (4) 0.70 (7) 0.49 (9) Malaysia 0.54 3 (9) 0.62 (5) 0.65 (13) 0.49 (9) ASIA PACIFIC Singapore 0.52 4 (12) 0.61 (7) 0.62 (16) 0.47 (14) Hong Kong 0.52 5 (13) 0.62 (6) 0.61 (18) 0.47 (15) Philippines 0.51 6 (15) 0.52 (14) 0.60 (20) 0.49 (11) China 0.44 7 (21) 0.45 (20) 0.62 (17) 0.38 (22) Russian Federation 0.40 8 (24) 0.41 (23) 0.59 (21) 0.35 (24) India 0.35 9 (25) 0.39 (25) 0.56 (22) 0.29 (25) Spain 0.59 1 (4) 0.60 (10) 0.81 (1) 0.53 (6) France 0.58 2 (6) 0.60 (11) 0.79 (2) 0.52 (7) EUROPE Switzerland 0.53 3 (10) 0.49 (17) 0.65 (13) 0.50 (8) Germany 0.52 4 (11) 0.52 (15) 0.72 (6) 0.47 (12) Belgium 0.52 5 (14) 0.53 (13) 0.68 (10) 0.47 (13) Netherlands 0.48 6 (18) 0.45 (21) 0.61 (19) 0.45 (17) United Kingdom 0.44 7 (20) 0.49 (19) 0.69 (9) 0.37 (23) MIDDLE EAST AND AFRICA Bahrain 0.59 1 (3) 0.61 (8) 0.65 (15) 0.57 (2) South Africa 0.58 2 (5) 0.66 (1) 0.67 (12) 0.54 (3) United Arab Emirates 0.48 3 (17) 0.49 (18) 0.51 (24) 0.46 (16) Qatar 0.43 4 (22) 0.41 (24) 0.49 (25) 0.42 (19) Saudi Arabia 0.42 5 (23) 0.43 (22) 0.51 (23) 0.40 (20)

PAGE 16 I EXPAT EXPLORER SURVEY 2010 Methodology About Expat Explorer The Expat Explorer survey, now in its third year, is the largest global survey of expats. Commissioned by HSBC Bank International and conducted by third party research company GfK, 4,127 expats were questioned through an online survey between 26th April 2010 and 7th June 2010, with expats from over 100 countries worldwide taking part making this unique survey the largest of its kind. Individuals from four continents described the opportunities and challenges they experience living away from home. The survey provides an insight into how expat life differs from country to country, continent to continent and from an expats country of origin. Please note: the sampling technique used for the 2010 survey does not claim to give a fully representative sample of expatriates. In addition, it differs substantially from the sampling technique used in 2009. Therefore, comparisons of results year on year are not statistically valid and have been made for illustrative purposes only. A sample size of 30 or more respondents from each country was required for inclusion in the league tables, in order to be considered robust and indicative of the views and trends of the specific population it relates to. The league tables are based on a series of interrelated factors (rather than a single factor or question) to ensure a fair assessment of how individual countries rate across the full criteria. The responses of those who answered not applicable or refuse to say have been excluded. About Expat Experience Expat Experience is the second report to be produced from the Expat Explorer research. It explores the quality of life as an expat, looking at those factors directly impacting upon an expat s lifestyle in their country of residence. In addition, the report also explores the crucial factors of integration and assimilation into a new culture, such as the ability to learn a new language and make friends. The ranking table is determined by 29 sub-criteria, including the increase or decrease in quality of a number of day-to-day items including accommodation /food/social life, ease of organising finances, ease of finding accommodation and the ability to make friends. These sub-criteria are grouped into 3 main factors: Setting up, Integrating and Quality of life. Each sub-criterion is equally weighted to arrive at a score for each factor. Scores from each factor are then weighted to arrive at an Overall Expat Experience Score and Overall Rank. The weighting applied is as follows: Setting up 16.7%, Integration 16.7% and Quality of life 66.7%. An expatriate is defined as someone over the age of 18 years old and currently living away from their home country (country of origin). It was designed so that we could capture the views from expats with origins from around the globe.

PAGE 17 I EXPAT EXPLORER SURVEY 2010 Country reports UNITED STATES OF AMERICA e Overall ranking: 16th out of 25 e Setting up Score: 12th out of 25 e Integration: 8th out of 25 e Quality of Life Score: 18th out of 25 Interesting and challenging but bureaucratically frustrating, particularly with respect to taxation, immigration and healthcare. Professional advice is very costly and generally not reliable. Expat in the USA

PAGE 18 I EXPAT EXPLORER SURVEY 2010 United States of America (continued) Organising finances and healthcare is challenging in the USA but it s a good place to make local friends Overall Sample (100+ countries) USA Overall, the United States ranked 16th as a favourable location to live in terms of expat experience, falling in the third quartile of the Experience league table. Broadly speaking, US-based expats felt that their social life, healthcare, food and diet were better in their country of origin. Almost half (45%) of those surveyed believed that their social life was more active back home than compared to the worldwide average of 38%. 38% 45% 35% 44% 27% 41% There appears to be a mixed picture painted for the United States. While the quality of life ranking was comparatively low (18th), the US ranked 8th in terms of ease of integration. One in five (20%) felt it was easy to pick up the local language, which could be attributed to English being the second most spoken language around the world. Half (50%) of all US-based expats found it easy to make local friends compared to the average of 42%. The results of the survey suggest that ease of learning the local language and adapting to the local culture are areas that the United States fares well as an expat destination. Social life more active in country of origin Healthcare (access and quality) better in country of origin Healthier diet in country of origin

PAGE 19 I EXPAT EXPLORER SURVEY 2010 Country reports (continued) UNITED KINGDOM e Overall ranking: 20th out of 25 e Setting up Score: 18th out of 25 e Integration: 9th out of 25 e Quality of Life Score: 23rd out of 25 Career developing, mind-opening, complex, sometimes uncertain, dislocated, fun, tasty... Expat in the UK

PAGE 20 I EXPAT EXPLORER SURVEY 2010 United Kingdom (continued) The UK ranks poorly in terms of lifestyle location for expats The results from this year s Expat Experience report paint a grey picture for UK-based expats. The findings show that the majority of expats based in the UK do not believe their quality of life is better than their country of origin. Of the top 25 countries, the UK was the only European country to fall in the bottom quartile of the Experience league table, ranking 20th in terms of overall experience. The UK performs only slightly better than expats based in China, Qatar, Saudi Arabia, Russia and India who dominate the bottom quartile of the league table. In terms of quality of life, the UK ranks 23rd out of 25 countries. Almost four in five (78%) expats believed they experienced no change in the quality of accommodation in the UK or thought it had worsened compared to their home country. The UK also performs badly in terms of the ease of finding accommodation. Here, the UK ranks 20th out of 25 countries, falling behind Thailand, Bahrain and South Africa who dominate the top three spots in the upper quartile of this category. UK-based expats also rank their commute to work as poor, reflected in the UK s ranking (25th out of 25) when compared to other countries. Almost half (46%) of those surveyed worked within the financial sector, suggesting the majority of expats are based in London and therefore have to navigate the daily commute on London s busy public transport system. Nearly half of all UK-based expats (46%) think that they had a better commute back home. However, it is not all bad news for expats in the UK. The quality of entertainment is a category where the UK appears to do well from an expat s point of view. Excellent entertainment offerings mean the UK ranks first for this aspect of expat life, with more than two thirds (69%) citing that they enjoy the local entertainment. Looking at the other areas of expat experience, the UK does well on ease of integration ranking 9th out of 25. 41% of UK-based expats think that it is easy for them to make local friends and almost two thirds (62%) feel they are integrating well in the local community. Overall Sample (100+ countries) 20% 46% I have a worse commute to work than in my home country 48% UK 37% It was easy to find accommodation 46% 22% My accommodation is nicer than in my home country 45% 69% I enjoy the local entertainment

PAGE 21 I EXPAT EXPLORER SURVEY 2010 Country reports (continued) HONG KONG e Overall ranking: 13th out of 25 e Setting up Score: 6th out of 25 e Integration: 18th out of 25 e Quality of Life Score: 15th out of 25 Culturally challenging, but personally rewarding. Expat in Hong Kong

PAGE 22 I EXPAT EXPLORER SURVEY 2010 Hong Kong (continued) Hong Kong is the all-rounder for a favourable destination to relocate Overall Sample (100+ countries) Hong Kong Hong Kong performs well in terms of its overall ranking in the Expat Experience league tables (13th out of 25) suggesting that it is a favourable destination for expats to relocate to. In particular, the ease of setting up (6th) coupled with the overall quality of life (15th) makes Hong Kong a particularly attractive location. However when it comes to integration, Hong Kong scores poorly, ranking 18th along with others in East Asia including Singapore (16th) and China (17th). More than half of respondents (58%) said that it was relatively easy to find accommodation compared to the overall average of 48%. Hong Kong s transportation system was also well regarded by expats living in Hong Kong. The ubiquity of the Octopus card, well sign-posted stations and seamless MTR network are reflected in Hong Kong s high ranking for ease of travelling around (2nd out of 25). Almost nine in ten (89%) Hong Kong-based expats found it easy to travel around locally, whilst more than two-thirds (67%) claimed a rise in the quality of their commute to work when compared to their home country. 48% 58% It is easy to find accommodation 75% 89% It is easy to travel around locally 50% 67% I have a better commute to work than in my home country Making friends was also another area where Hong Kong performed well, ranking 4th overall. Almost two-thirds (65%) of expats claimed it was easy to make friends, but 44% of expats said they found it difficult to make local friends, suggesting that expats tend to stick with other Hong Kong-based expats. The results also show that Hong Kong performs poorly in terms of integration, ranking 18th out of 25 for expats choosing to join a local community group and 19th when it comes to learning the local language. * Please note that although Hong Kong is referred to here as a country for the sake of this report, Hong Kong is a territory of China.

PAGE 23 I EXPAT EXPLORER SURVEY 2010 Country reports (continued) SINGAPORE e Overall ranking: 12th out of 25 e Setting up Score: 7th out of 25 e Integration: 16th out of 25 e Quality of Life Score: 14th out of 25 Varied and interesting exposure to different cultures giving a broader understanding of life outside home country. Expat in Singapore

PAGE 24 I EXPAT EXPLORER SURVEY 2010 Singapore (continued) Integration and ease of setting up paint a mixed picture for expats in Singapore Overall Sample (100+ countries) Singapore While Singapore topped the income league table in our 2010 Expat Economics report, the quality of life (14th) is worse in comparison to other popular expat destinations such as Bahrain, which ranked second in the overall quality of life ranking. Expats who have made Singapore their home reported that while setting up was easy, many found it difficult to integrate with local people and it scored poorly in this respect, ranking 16th out of 25, painting a similar picture to that of Hong Kong. 75% 86% 50% 61% Looking more closely at the results, Singapore performed well on the ease of settling in. Nearly half (47%) of all expats based in Singapore said it was fairly easy for them to adapt to the local work culture and nearly two thirds (61%) found it very easy to organise their healthcare, with more than a third (34%) agreeing that access to and quality of healthcare was much better than their country of origin. Similar to Hong Kong, Singapore s transport system impressed expats based there. Almost two thirds (61%) of expats claim a rise in general transport quality in terms of their commute to work. However, results from the ease of integration show a different story. Singapore performed badly in terms of socialising with local people and participating in local communities ranking 19th out of 25 and fell into the third quartile for both categories. It is easy to travel around locally I have a better commute to work than in my home country

PAGE 25 I EXPAT EXPLORER SURVEY 2010 Country reports (continued) UNITED ARAB EMIRATES e Overall ranking: 17th out of 25 e Setting up Score: 18th out of 25 e Integration: 24th out of 25 e Quality of Life Score: 16th out of 25 Becoming an expat has been one of the most fulfilling experiences of my life. It is one of the best things I have done. Expat in the UAE

PAGE 26 I EXPAT EXPLORER SURVEY 2010 United Arab Emirates (continued) UAE-based expats find it hard to integrate into the local community but enjoy a good social life Overall Sample (100+ countries) UAE Ranked 24th out of 25 countries, the United Arab Emirates performs poorly in six of the seven criterion used to measure overall ranking for integration. The UAE falls to the bottom of the fourth quartile in terms of experiencing local culture, learning and using the local language, ease of making local friends, integrating into the local community, feeling welcomed at work and overall enjoyment in shopping for local produce in the local shops and markets. Only one in five (20%) found it easy to make local friends compared to the worldwide average of 42%. 42% 20% On quality of life however, the UAE compares favourably on accommodation (ranking 10th out of 25) and participation in sports (12th). With its long coastline, UAE-based expats are within easy reach of a whole host of water sports and other sporting activities. 37% of expats in the UAE thought that they were more active in sports than in their home country, compared to the worldwide average of 33%. The UAE also rates favourably on social life (10th out of 25). It is easy for me to make local friends Almost half (45%) of UAE-based expats said they enjoyed the local entertainment and 37% felt they had a more active social life than in their home countries. There was an indication that UAE-based expats tend to stick with other expats within the community, with more than half (54%) of expats saying it was easy for them to make friends.

PAGE 27 I EXPAT EXPLORER SURVEY 2010 Country reports (continued) AUSTRALIA e Overall ranking: 8th out of 25 e Setting up Score: 4th out of 25 e Integration: 7th out of 25 e Quality of Life Score: 9th out of 25 Always on the move, constantly changing and full of surprises and new experiences. I don t regret this life at all. Expat in Australia

PAGE 28 I EXPAT EXPLORER SURVEY 2010 Australia (continued) Australia makes an attractive destination for expats Overall Sample (100+ countries) Australia The results from this year s Expat Explorer survey show that Australia continues to be an attractive destination for expats from an experience perspective. Overall, Australia is ranked 8th out of the 25 countries included in the study and is found in the top ten for ease of setting up (4th) integration (7th) and quality of life (9th). One of the main drivers behind Australia s high quality of life score is that many expats admit to leading a healthier lifestyle than in their home country, with 41% suggesting that they play more sport, 50% saying that they eat a healthier diet and 48% having a better work life balance. Interestingly, this healthier lifestyle is also accompanied by better access to and quality of healthcare with over a third (36%) agreeing with this statement. 33% 41% I am more active in sports than in my home country 34% 50% I have a healthier diet than in my home country 43% 48% My work life balance is better than in my home country One of the main advantages of becoming an expat in Australia is the ease of setting up in the country. Nearly two thirds (63%) of all expats with children in education described the process of organising schools as easy, placing it in the top five (4th) of all countries surveyed. This trend is also mirrored in terms of organising finances, setting up utilities and making friends with 64%, 66% and 53% of Australia-based expats respectively who described the process as easy. In addition to this, expats often find integrating into local culture an easy process with 53% agreeing they enjoyed the local entertainment and a further 35% suggesting they would rather eat the local cuisine than that of their home country.

PAGE 29 I EXPAT EXPLORER SURVEY 2010 Country reports (continued) CANADA e Overall ranking: 2nd out of 25 e Setting up Score: 2nd out of 25 e Integration: 3rd out of 25 e Quality of Life Score: 4th out of 25 Much better standard of living, healthy lifestyle, more time together. Expat in Canada

PAGE 30 I EXPAT EXPLORER SURVEY 2010 Canada (continued) Canada scores top for setting up and integration For those looking to relocate to the far west, Canada is the ideal location. While Canada ranked at the top of the Experience league table in 2009, this year it is placed 2nd, being just beaten to the top spot by Thailand. Overall Sample (100+ countries) Canada Canada still performs well on the setting up score, (2nd out of 25), and integration (3rd), suggesting it is a fairly easy place for expats to relocate to. It is ranked as one of the top five countries for organising schools for children, organising finances, finding somewhere to live, ease of getting used to local food, learning the local language and setting up utilities leaving only getting used to the weather as the most challenging aspect. Canada-based expats typically integrate well within local society with 45% claiming they go out with local friends as much as fellow expats the highest score of all 25 countries. 33% 43% I am more active in sports than in my home country 43% 57% My working environment is better than in my home country 43% 57% My work life balance is better than in my home country 50% 73% I live in a nicer / bigger property 34% 50% I have a healthier diet than in my home country From a quality of life perspective (where Canada ranks 4th out of 25), the country scores well on a number of factors. Expats based in Canada are more active in sports (43%), have a better work environment (57%) and a better work life balance (57%). Many expats based in Canada also agree that they are able to live in a nicer or bigger property (73%), and have a healthier diet (50%). One area where fewer expats agreed, compared to their counterparts elsewhere, was that they were travelling more than before 58% of expats based in Canada believe they travel more since relocating, compared to an average of 69%.

PAGE 31 I EXPAT EXPLORER SURVEY 2010 Country reports (continued) FRANCE e Overall ranking: 6th out of 25 e Setting up Score: 11th out of 25 e Integration: 2nd out of 25 e Quality of Life Score: 7th out of 25 Great lifestyle, friends in every continent, career booster and definitely a new eye to the world. Expat in France

PAGE 32 I EXPAT EXPLORER SURVEY 2010 France (continued) France makes a popular lifestyle choice for retirees Overall Sample (100+ countries) France France ranks 6th overall in the Experience league table, making it second only to Spain in the experience rankings for Europe. France has one of the highest numbers of retiree expats (33%) and 21% of those who move to France do so specifically to retire, showing that many expats decide it is the perfect place to spend their retirement years. 79% 85% 95% The country scores particularly well on integration (2nd out of 25), with expats in France especially enjoying the local food and local culture (both score 1st out of 25), making it one of the most friendly, culturally rich and inclusive locations. Expats in France reported that while the country scores well for quality of life and integration, many didn t find the country very easy to set up in, scoring 11th out of 25. Some of the most difficult aspects were organising healthcare (18th) and getting used to the new work culture (15th). However, when healthcare had been set up, the majority of expats in France (67%) thought it was of better quality and easier to access than in their home country. 52% I enjoy having local food rather than having food from my home country all the time I am happy to experience local culture

PAGE 33 I EXPAT EXPLORER SURVEY 2010 Country reports (continued) SPAIN e Overall ranking: 4th out of 25 e Setting up Score: 10th out of 25 e Integration: 1st out of 25 e Quality of Life Score: 6th out of 25 I have a full and varied life in a good country with little local crime and friendly Spanish people, great healthcare and fabulous weather mostly. Expat in Spain

PAGE 34 I EXPAT EXPLORER SURVEY 2010 Spain (continued) Spain makes a popular retirement destination Overall Sample (100+ countries) Spain Spain is the most popular destination for retirees with 38% of the expat community made up of this group and 25% of Spain-based expats moving to the country specifically to retire. And it s no surprise to see it is such a sought after retirement location. Spain scores top of all European countries in the overall experience league table (4th out of 25). Perhaps unsurprisingly, given the number of retirees in Spain, very few decide to relocate there for monetary gain (18% vs 57% overall). Spain scores the highest of all countries for integration, especially in relation to local friends and local shopping (1st), local food, local culture and local language (2nd), suggesting that once expats in Spain are settled into their new location they feel completely involved in their local community. Over three-quarters of expats there choose to eat the local food rather than food from their home country and 92% agree they have tried to learn and use the local language, showing that those who move to Spain are keen to get completely involved in their new country. 42% 58% It is easy for me to make local friends 67% 88% I like shopping for local produce in the local shops / markets 52% 79% I enjoy having local food rather than having food from my home country all the time 85% 93% I am happy to experience local culture 60% 92% I try to learn / use the local language Many expats also decide to stay in Spain for a considerable length of time 52% have lived there for longer than six years, much more than the overall average of 35%. Similar to France, Spain also causes expats some problems in terms of setting up, scoring 10th out of 25. The area Spain-based expats found particularly difficult was the setting up of utilities (20th) which appear to be much more challenging in Spain than in many expats home countries.

PAGE 35 I EXPAT EXPLORER SURVEY 2010 Country reports (continued) GERMANY e Overall ranking: 11th out of 25 e Setting up Score: 15th out of 25 e Integration: 6th out of 25 e Quality of Life Score: 12th out of 25 Difficult at times but there is nowhere else I would rather be. It has made me a better person. Expat in Germany

PAGE 36 I EXPAT EXPLORER SURVEY 2010 Germany (continued) Expats in Germany find learning the local language a considerable challenge Of the European countries, Germany ranks 11th in the overall Expat Experience league table, placing it behind Spain (4th), France (6th) and Switzerland (10th). Expats surveyed typically found that relocating to Germany had improved their everyday lifestyle, with 37% agreeing their working environment was better in comparison to their home country and 45% agreeing that their work life balance had improved. Expats in Germany also found it a relatively easy place for integrating with 46% agreeing they enjoyed the local entertainment while 72% described adapting to the local food as easy. Despite this ease of integration, Germany did rank 24th out of the 25 countries surveyed on ease of making friends, with 36% describing this as difficult. One of the key drivers of this may be overcoming the challenge of learning the local language (49% described this as difficult). Many expats also found initially setting up in Germany a difficult process (the country ranked 15th out of the 25 surveyed). Nearly one in four expats said that organising their finances in Germany has been difficult, with a further 29% suggesting that organising schools for their children had also been challenging. On the positive side, 54% of expats said that organising their healthcare provisions had been easy, suggesting that certain aspects of expat life were easier to set up than others. Interestingly, once this initial set up has been achieved many expats choose to remain in Germany for a considerable period of time, with 36% of those surveyed having lived there for 6 years or more. Overall Sample (100+ countries) Germany 40% 49% It was difficult to learn the local language

PAGE 37 I EXPAT EXPLORER SURVEY 2010 Country reports (continued) CHINA e Overall ranking: 21st out of 25 e Setting up Score: 20th out of 25 e Integration: 17th out of 25 e Quality of Life Score: 22nd out of 25 It is a very good opportunity for me and I try to enjoy my life in the country where I am working until repatriation. But work wise, hard to understand local behaviour. Expat in China

PAGE 38 I EXPAT EXPLORER SURVEY 2010 China (continued) As one of the world s economic powerhouses, China doesn t appear to be a popular destination for expat experiences Overall Sample (100+ countries) China Despite being one of the world s economic powerhouses, the results of this year s Expat Explorer survey show that China doesn t appear to be one of the more popular destinations from an experience perspective, with an overall ranking of 21st out of 25. One of the key factors underpinning this position is the difficulty many expats face when trying to set up in their new host country. Nearly a quarter (24%) of expats surveyed described organising their finances as difficult, placing China at the bottom of the global league table (25th) for this. In addition to finances, other difficulties included organising healthcare (34%), learning the local language (57%) and adapting to the local work culture (31%). Expats in China also found that in several instances their quality of life was also lower than in their home country. 41% of expats disagreed with the statement that they had a more active social life than in their home country and only 30% agreed that they enjoyed the local entertainment. Many expats also found that their work life balance had diminished since relocating to China. 48% thought their work/life balance was worse than in their home country, while 43% thought their working environment was worse. 29% 48% My work life balance is worse than in my home country 25% 43% My working environment is worse than in my home country

PAGE 39 I EXPAT EXPLORER SURVEY 2010 Further information Contact: Katy Ringsdore PR Manager HSBC Bank International Phone: 01534 606865 Email: katy.ringsdore@hsbc.com Karen Butcher / Nick Woods Hill & Knowlton Phone: 020 7413 3181 / 3515 Email: Karen.Butcher@hillandknowlton.com / Nick.Woods@hillandknowlton.com Web: Blog: Twitter: www.offshore.hsbc.com/expatexplorer www.expatexplorer.blogspot.com www.twitter.com/expatexplorer