The number of fee-paying international students in New Zealand increased by 7 per cent in the first four months of the year compared to the same period last year, Tertiary Education Minister Steven Joyce said.
International education contributed $2 billion a year to the economy and future development of the sector would help economic growth and provide additional income to tertiary institutions, Mr Joyce said.
The revenue from international students grew by 10 per cent in 2009 to $664 million on 2008.
Private training international student numbers rose 8 per cent in 2009, public tertiary 7 per cent, primary schools 6 per cent and secondary schools 4 per cent.
The rise in public tertiary education enrolments was largely driven by polytechnics that were up 15 per cent, universities reported a four per cent increase in international student numbers.
International students make up around 13 per cent of the student roll in New Zealand universities compared with 20 per cent in Australian ones.
Mr Joyce said New Zealand universities must keep on developing their revenue streams if they were to compete with Australian universities for top academic talent.
"While government investment in the tertiary sector in this country is high by international standards fee income received from international students is low," he said.
Education Minister Anne Tolley said international students added to the understanding of other cultures by New Zealand students.
Meanwhile, the New Zealand Union of Students' Associations co-president David Do said students were concerned about the future of polytechnics and institutes of technology because of government funding cuts.
The sector would receive $20m a year less from 2011, he said.
Small polytechnics in isolated areas would struggle the most, he said.
"Students want to see enhanced access to higher education in all regions".
- NZPA
International student numbers rise
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