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International students and Hales Institute - the tip of a dangerous iceberg : Comments
By Wesa Chau, published 16/3/2010Government's immigration policy change risks damaging long-established reputable colleges and the future for 212,000 foreign students.
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Normally the figure quoted is $13 billion to $15 billion, but in this article it has risen to $17 billion.
Such figure are more than likely a vast over-estimation.
“Perhaps on this account, the overseas education industry, including AEI and Universities Australia can be excused for treating the entire $13.7 billion for 2007–08, and $15 billion in
2008, as export revenue akin to the sale of wool or wheat. Yet it is well known that most
overseas students enter the Australian labour market and that the income they earn is used
to defray expenses here, including fees and to pay off loans taken in the home country.”
http://www.universityworldnews.com/filemgmt_data/files/ExportRevenue%5BFinal%5D.pdf
So the usual figures quoted are actually based on money spent by foreign students while in Australia, but how much of that money goes straight offshore?
Almost nothing is made in Australia, so if the student purchases something while in Australia from a car to a computer, then their money leaves the country in the form of imports.
If a tertiary student purchases textbooks or software for their studies, then there is about 100% guarantee that the textbooks and software will be imported, as almost no tertiary textbooks and software are being produced in Australia.
So it now depends on the money they spend on food, accommodation and of course their “fees”.
If the student works in Australia to pay for their food, accommodation and fees, then there is no great gain at all for Australia.
Added to this is the fact that the rest of the education system is a giant importer of everything from sporting equipment to photocopy paper, then the education system cannot claim that it is an export industry.
Indeed, it cost Australia dearly to run the current education system.