Earnings from foreign students at three-year low

Earnings from the international education business have dipped below $2 billion for the first time in three years as the number of foreign students coming here continues to drop.

Education New Zealand, the body representing the export education industry, said foreign exchange earnings during 2005 were $1.89 billion.

That is more than 11 per cent down on 2004 and comes after a 13 per cent drop in the number of students.

Ministry of Tourism figures paint an even bleaker picture. They show there has been a 39 per cent drop in the value of international education.

But Stuart Boag, communications director at Education New Zealand, said that failed to take into account large numbers of international students in the tertiary system, making up for the drop-off in students at language and secondary schools.

The foreign exchange earnings for 2003 were a record high at $2.21 billion. In 2004 they dropped to $2.18 billion. The total number of foreign fee-paying students dropped from 102,136 to 84,130 over the same period.

International education remains one of the largest export earners, behind tourism and dairy products.

Mr Boag said the figures still demonstrated the importance of international education to New Zealand, "in spite of what have been the most difficult couple of years the industry has ever faced".

The value of tuition fees alone paid by international students in 2005 was just under $700 million, Mr Boag said.

Added to that was the money paid for accommodation and living costs, other course-related expenses, and travel and entertainment spending.

"For every dollar that is spent on tuition, an international student will spend about $1.80 on other costs," Mr Boag said.

"Our international students continue to be of immense value, both educationally and economically."


Earnings fall

Income from foreign students
* 2003 - $2.21 billion.
* 2004 - $2.18 billion.
* 2005 - $1.89 billion.