International Student Enrolments in New Zealand 2003-2009

Appendix 3: Economic benefit from international education

The economic contribution of the international education sector (ie. international fee-paying students enrolled in New Zealand educational institutions) to the New Zealand economy has previously been calculated by Infometrics, based on 2004 data from the Export Education Levy³. This study estimated that the overall economic benefit – including tuition fees paid, living costs for students, and multiplier factors for the wider economy – amounted to $2.21 billion in 2004.

A further study was undertaken for the 2007/08 period⁴, based on a statistically significant survey of international students and research with New Zealand education providers which are active in other countries. The following table summarises the key findings of these research projects, together with data from the Export Education Levy on the fees revenue earned by providers from their enrolments of international students. 

It is notable that the international education sector has consistently produced an annual economic benefit to New Zealand of over $2 billion since 2004.  The fees revenue, amounting to nearly $664 million in 2009, also means international education is one of New Zealand’s top services export earners.

Table 16 refers to the extent of offshore earnings by NZ education providers and consultancies which are known to be active in other countries. This is an expanding area of business which has significant potential for further growth, particularly in the Gulf States and South-East Asia.

A number of New Zealand tertiary providers are becoming more active in establishing education joint ventures with providers in other countries (for example Victoria University’s small satellite campus in Ho Chi Minh City, Vietnam; and a major project by a consortium of New Zealand providers in developing the vocational training sector in Oman). 

Footnotes

3. “The Economic Impact of Foreign Fee-Paying Students” Infometrics, February 2006.  This report can be downloaded from Education Counts.
4. “The Economic Impact of Export Education” Infometrics, NRB and SkinnerStrategic, 30 June 2008.  This report can be downloaded from the Education NZ website.