International student numbers in the Bay of Plenty have dropped and schools are losing millions. Photo / Getty Images
Millions of dollars of international student revenue has been stripped from language providers in the Bay - causing job losses and pushing some centres to the brink.
Student numbers continue to fall with calls for the Government to lift border restrictions before the end of this year and extend funding, set to run out in June, that is keeping some schools afloat.
But Education Minister Chris Hipkins said there were many variables that would impact the future opening of the New Zealand border.
It was not possible to predict precisely when additional international students would be approved for entry, he said.
He said $8.08 million had been paid out to Private Training Establishments through the Covid-19 Response and Recovery Fund.
Rotorua English Language Academy principal Chris Leckie said the academy would have closed without government funding and would lose $900,000 in tuition fees and $200,000 in homestay fees this year. The academy had about 20 students each week.
All but four of them were studying at a heavily discounted rate and competition was fierce, she said.
''We have refocused our programme to provide suitable lessons for our migrant students, and we have tenanted some of our property to generate income.
'' The academy received government funding but it will run out at the end of June. ''Without that, we would have already closed. So our prospects for the rest of 2021 are uncertain.
"We are waiting for whatever happens next, which means we cannot yet feel confident.''
She said the borders in many competitor countries were already opening for international students. ''We fear New Zealand will be left behind. However, our handling of the virus is a strong attraction, and we have students waiting to enrol. We are not issuing any Offers of Place before January 2022.''
Aspire2 International Tauranga Campus manager Poonam Khirsariya said it had to downsize and would see further staff reductions to match falling international student numbers.
''We are very conscious of the huge impact this is having on our personnel and we are grateful to them for their understanding – we also want to acknowledge the ongoing support we have had from our landlord.
''The sacrifice staff have made and this support has made survival possible.''
It had 200 students and had recently been approved to deliver IT programmes free to eligible New Zealanders.
''This opens up an opportunity for New Zealanders to study our New Zealand Diploma in Information Technology Technical Support Level 5 and New Zealand Diploma in Systems Administration Level 6 to domestic students.''
Mount Maunganui Language Centre director Geoff Butler said it had about 30 per cent of the students it would normally have and had to say goodbye to several staff in 2020.
''That was tough.''
The centre's revenue dropped by about 75 per cent last year.
But demand from students was still strong and while he applauded New Zealand's handling of the pandemic, he hoped the Government would allow international students to travel safely here, soon.
Olive Fitzjohn from the Tauranga Korean Times, which places students in schools, said it had about 250 students from 140–150 families last year compared with 185 students (95 families) living in Tauranga at the moment.
Another 30 families had paid a deposit to schools in Tauranga and were waiting for the border to open.
''We really hope the Government will consider opening the border before the end of the year or at least we would like to hear a planned schedule about when international students will be able to enter New Zealand.
''We think a full recovery in 2021 will be very unlikely.''
The Korean Times estimated Tauranga schools would have lost about $300,000 in tuition fees as a result alongside $1m to $1.5m from the local economy, last year.
Rotorua English Language Academy principal Chris Leckie said the academy would have closed without government funding and would lose $900,000 in tuition fees and $200,000 in homestay fees this year.
The academy had about 20 students each week. All but four of them were studying at a heavily discounted rate and competition was fierce, she said.
''We have refocused our programme to provide suitable lessons for our migrant students, and we have tenanted some of our property to generate income.''
The academy received government funding but it will run out at the end of June.
''Without that, we would have already closed. So our prospects for the rest of 2021 are uncertain.
"We are waiting for whatever happens next, which means we cannot yet feel confident.''
She said the borders in many competitor countries were already opening for international students.
''We fear New Zealand will be left behind. However, our handling of the virus is a strong attraction, and we have students waiting to enrol. We are not issuing any Offers of Place before January 2022.''
Toi Ohomai head of international Peter Richardson said there were 795 international students at its Tauranga and Rotorua campuses contributing about $12.7m in revenue this year - down from $22.5m in 2020.
''A number of international students are also studying online offshore. This number is increasing while New Zealand borders are closed, this includes those preparing to come to New Zealand when borders are open and others planning to complete their qualifications offshore.''
Data shows in 2020, 1902 or 1410 equivalent full-time student (EFTS) were studying that contributed $22.5m compared to 1950 or 1100 EFTS in 2019 that contributed about $17.6m.
Those students contributed about $16,000 each but a number of international students were also studying online, offshore.
Meanwhile, a higher proportion of international students were choosing to study at the Windermere campus in 2021.
''There are various contributing factors to this including, natural attrition of courses ending and borders being closed. Employment opportunities, the economic and population growth of the Tauranga district and new to Toi Ohomai onshore students are moving to Tauranga from other locations.''
The majority of 2021 international students had Indian citizenship (61 per cent), followed by Chinese (12 per cent), Nepalese (10 per cent) and Philippines citizenship (6 per cent).
Waikato University vice-chancellor Professor Neil Quigley said it was too early to report on
2021 figures because the numbers had not been finalised.
But in 2020, there were 1315 international students including 40 at the Tauranga campus compared to 1043 in 2019 that included 37 in Tauranga.
Total revenues had dropped from $47.6m in 2019 to $39.7m last year which had impacted staff.
''A number of staff have opted for voluntary redundancy or taken enhanced retirement packages, and a number of contract positions have not been renewed as a result of the overall financial impact of the pandemic on the university. ''
Hipkins said: ''This year, Education New Zealand has hosted workshops with sub-sectors of the international education sector to assess impacts and scope support that may be needed both now and for a rebuild once borders open.''
He said the purpose of the PTE English for Speakers or other languages programme was to increase demand for English language training to be met by English Language Schools struggling as a result of the border closure to international students.
The total of this allocation was $1.5m, and it had all been allocated.
In 2019, student fees and their broader economic contribution to the New Zealand economy hit $5.2 billion. The 2020 figures were not yet available.
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