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International students hit by the world economic crisis are opting to study in New Zealand instead of traditional centres such as Britain and the United States.
In the year to February 1, Immigration NZ issued 67,530 student visas - 4200 more than last year - and some education providers are reporting growth of up to 36 per cent, said Education New Zealand.
Despite the cooling of the international student market worldwide, foreign students are coming to New Zealand, and some parents are rushing to pay fees for up to two years upfront to take advantage of the New Zealand dollar's sharply reduced exchange rate.
"I am really quite surprised at the number of parents who have paid next year's fees up front," said Takapuna Grammar School principal Simon Lamb.
His school had 146 foreign students - about 10 per cent of its roll - and each paid $14,400 a year in fees and $220 a week for homestay accommodation.
The fall in the dollar's value had made it "increasingly good value for money to get quality education" in New Zealand, Mr Lamb said.
Students numbers fell from 126,919 in 2002 to 90,934 in 2007. A high dollar and the perception that New Zealand was a dangerous place had combined to bring down student numbers.
But Education NZ, which promotes education services to overseas families, believes this could be a bumper year for international education.
The actual number of foreign students studying in New Zealand this year will not be known until next month at the earliest, as many who have applied for visas have not yet started their courses.
Education NZ chief executive Robert Stevens said several institutions had reported increases in applications. "But whether these students turn up, we will only know when the term starts."
International student applications at the University of Auckland are up 20 per cent on last year, and the university says it is on track to meet its international student targets for the year.
AUT University has had a 17 per cent increase in international student applications, said spokeswoman Tiffany White.
The chairman of the Association for Migration and Investment, Richard Howard, said his group would push for measures to make it easier and more attractive for foreign students to study in New Zealand.
It would meet the Minister of Immigration, Dr Jonathan Coleman, this morning to push for a "study to residence visa", among other things.
"A recent survey found 61 per cent of international students intend to apply for permanent residence on completion of their studies, and there is little doubt that those who have graduated here are most suitable migrants as they are New Zealand-qualified, have good English, and have lived here for several years," Mr Howard said.
"Their young age makes them potentially lifelong taxpayers, and attracting more students would provide a direct stimulus to the country."
"Export education" produces nearly 7 per cent of NZ's export earnings. "Some families who have lost their jobs in the economic downturn are now taking on homestays to help pay their mortgages," Mr Howard said.
Education NZ last year reported an increase in students from traditional markets such as China and South Korea, but said the biggest growth was from new markets, including India, Saudi Arabia and Vietnam.
VALUE FOR MONEY
An Education NZ study in 2007 compared costs for international students in New Zealand, Australia, Canada, the UK and US and found New Zealand to be cheaper in everything except courses for masters' degrees. The group has commissioned Deloitte to do a new study at the current exchange rate, which is expected to show international education has become even cheaper.
A sample of findings, in US dollars.
* English language school, general English course: NZ $463 a week, Australia $502, UK $715, US $540
* University Bachelor of Arts: NZ $11,241 a year, Australia $11,566, UK $18,203, US $21,362
* Private training establishment Bachelor of Business: NZ $64,100 a year, UK $70,846, US $139,775
* Secondary school annual fee: NZ $8935, Australia $9705, UK $22,051, US$20,000
* Annual living expenses: NZ $8958, Australia $11,322, UK $20,181, US $12,362.
