Nelson Marlborough Institute of Technology out of pocket

A drop in student enrolment means the Nelson Marlborough Institute of Technology expects to end the year with a deficit of $500,000, says chief executive Neil Barns.

Mr Barns said the institute had experienced a significant drop in revenue because student numbers from China and South Korea had fallen.

There had also been a drop in student numbers across all classes.

High employment and a forced reduction in the number of aviation students had also contributed to the decline in overall enrolment, he said.

The institute could handle another year with a debt of $500,000. It was also looking at ways to update its courses.

Mr Barns said this year's problems related specifically to enrolment problems and not cost blow-outs.