The value of international education to Australia

The value of international education to Australia

Prepared by Deloitte Access Economics

The value of international education to Australia

Prepared by Deloitte Access Economics

About this report

In 2015, the Australian Government Department of Education and Training commissioned the Deloitte Access Economics to assess the value of international education to the Australian community. This assessment encompasses the sector's contribution to the Australian economy and its broader economic and social impact on regional communities, tourism and the calibre and productivity of Australia's workforce. For further information, please visit the website .au.

About Deloitte Access Economics

Deloitte Access Economics (ACN: 149 633 116) is Australia's pre-eminent economics advisory practice and a member of Deloitte's global economics group. For more information, please visit the website .au.

Acknowledgments

The Australian Government Department of Education and Training would like to thank all those individuals and organisations that contributed to the study by supplying data and information and otherwise assisting.

Disclaimer

The Commonwealth of Australia, its officers, employees or agents disclaim any responsibility for loss howsoever caused whether due to negligence or otherwise from the use of information in this publication. No representation expressed or implied is made by the Commonwealth of Australia or any of its officers, employees or agents as to the currency, accuracy or completeness of the information contained in this report. The reader should rely on their own inquiries to independently confirm the information and comment on which they intent to act.

ISBN Print 978-1-76028-716-0 PDF 978-1-76028-685-9 DOCX 978-1-76028-690-3

Creative Commons

With the exception of the Commonwealth Coat of Arms, the Department's logo, any material protected by a trade mark and where otherwise noted all material presented in this document is provided under a Creative Commons Attribution 3.0 Australia ( by/3.0/au/) licence.

The details of the relevant licence conditions are available on the Creative Commons website (accessible using the links provided) as is the full legal code for the CC BY 3.0 AU licence ().

The document must be attributed as the Value of International Education to Australia.

Contents

Glossary

vi

Executive Summary

1

1 Introduction

5

2 Quantifying the value of international education exports

8

2.1How international education is captured by the ABS

8

2.2ELICOS students on non-student visas

10

2.3Offshore revenue

15

3 The economic contribution of international education

21

3.1Contribution by mode of delivery

22

3.2Contribution by sector

25

3.3Industries best placed to leverage off future growth in international education 27

4 The regional contribution of international education

31

4.1Contribution by state

31

4.2Regional distribution of international students

35

4.3Impact of international education on regional areas

37

5 Flow-on effects: visiting friends and relatives

41

5.1Quantifying the links between international students and visiting friends

and relatives

41

5.2The economic contribution of visiting friends and relatives

43

6 The role of international education in developing a skilled workforce

46

6.1The contribution of international students' human capital to the

Australian economy

47

6.2The relative value of Australian international education

50

6.3Building industry links and opening up new markets for Australian businesses 51

7 The broader benefits of international education to Australian communities 52

7.1Broader economic and social benefits

52

7.2Raising community awareness

56

The value of international education to Australia

iii

References

61

Appendix A: ABS treatment of international education services

65

Appendix B: Non-student visa ELICOS student revenue

67

Appendix C: Economic contribution modelling framework

70

Appendix D: Student contribution estimation methodology

73

Appendix E: Regional contribution

77

Case study 1: Armidale

77

Case study 2: Impact of international economic activity on regional Victoria

80

Appendix F: VFR contribution estimation

81

Limitation of our work

84

Charts

Chart 1.1: International student enrolments over time

6

Chart 1.2: Trends in student enrolments by nationality

7

Chart 2.1: ELICOS enrolments by visa type, 2014

12

Chart 2.2: ELICOS average course study length by visa type, 2014

13

Chart 2.3: ELICOS export revenue by source, 2014?15

14

Chart 2.4: Offshore higher education student numbers, 2012?14

16

Chart 2.5: Offshore VET student enrolments, 2011?2013

17

Chart 3.1: Total value added by education sector, 2014?15

26

Chart 3.2: Indirect value added to GDP from international education fees, 2014?15 27

Chart 3.3: Direct value added to GDP from living expenses, 2014?15

28

Chart 3.4: Indirect value added to GDP from living expenses, 2014?15

29

Chart 4.1: Relative total international education contribution to states, 2014?15

32

Chart 5.1: Indirect value added from tourism activity, 2014?15

44

Chart E.1: International student enrolments by broad level of course, 2014

79

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The value of international education to Australia

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