Foreign student numbers predicted to soar in Auckland

By ALAN PERROTT, Education Reporter


Conservative growth in Auckland's export education industry could see 6000 extra students arriving in the city each year, according to an Auckland City Council report.

The report, made public, yesterday predicted student numbers to grow by about 10 per cent a year, a big drop from the 57 per cent growth experienced between 1998 and 2002, but warned that action is needed if that rate is to be sustainable.

Auckland City commissioned the Infometrics report to get a snapshot of the $1.7 billion industry that grew nationally from 29,000 students in 1998 to 88,000 in 2002.

About 50,000 students, mostly Asian, study in the region, contributing up to $930 million in income and 8900 education-related jobs.

Auckland City estimates the income derived from schools is the equivalent to hosting an America's Cup regatta every year.

But the report found income could be undermined by developers constructing unacceptably small student apartments, some as small as 14sq m, and insufficient attention on providing quality leisure services.

Education businesses are the biggest users of office space in the Auckland CBD with an occupancy rate of 14 per cent, up from 3 per cent in 1996.

The report said this rapid growth had decreased vacancy rates, increased rental rates and encouraged the construction of new buildings.

Infometrics predicted 5755 new apartments would be built in the central city between 2003 and 2006 - Auckland University is looking to build 600 rooms in two buildings, a 300-apartment building for students is being built in Mount St, and a Japanese company is converting the Park Tower Hotel in Scotia Pl for about 200 students.

The report warned that congregating students in small clusters within the city increased the negative images of the students and made them more vulnerable to crime.