“$18 billion last year and provided about 70,000 jobs in VET, universities, government agencies and support enterprises.”

The figure seems to have risen from $7 billion to $11 billion to $13 billion to $18 billion, but the number of students is declining.

This so called export industry of training foreign students is based on what students spend while in the country. If they get a job and earn money while in the country, (as most seem to do), and then spend the money they earnt in Australia, then the universities class this as an export.

If then spend their money on imports, such as an imported mobile, TV set etc, then the universities still class this as an export.

The $18 billion is basically creative accounting.

We now have 6 times more foregin students per head of population than the US, and why do academics need foreign students so much?

Because academics have not been effective enough, and they haven’t developed enough wealth in society to run the education system. The education system has produced a skills shortage and a large trade deficit.

For decades the education system treated the public as a cash cow, but now the education system has reached the limit of how much it can extract from the public, while giving back as little as possible.

So now it needs to extract as much money as possible from foregin students.

Part of the reason why unis need foreign funding is due to the gap between government funding and operating costs. Be mindful that the fall in overseas students will mainly hit the mid and low range unis.

Part of the problems is that about 34 of the 38 Australian unis run pretty much the same courses. For all of the reports going back to the 1980s, they're still living in the past. A failure to diversity.

The author is correct to say that the public don't care much about TAFEs or Unis. They're not an election issue. Without public support, I fear there will be more tears for our tertiary education sector.

Vanna - you're probably right. I'd day $15B is about right, but keep in mind overseas student spends on rent and food has a multiplier effect for the economy.

How is $18 billion creative accounting? Thats just an assertion without proof.

the higher education industry has been on a good thing for far too long with the cash cow from overseas students, and maybe it's about time they they started treating people as individuals who could do with some personal tutoring now and again.

also, here in the Philippines, there are some excellent private high schools and universities who also attract foreign students, and at a fraction of the fees. The medium of instruction is English, and the climate is benign.

Australian universities and our useless politicians need to start concentrating on Australian students. Encouraging foreign students simply for money equals encouraging immigration rorts. Malcolm King gives no evidence that 'two thirds' of students return to their own countries, and he doesn't mention the ones who do return home only to apply for visas at a later date to take control of certain professions in Australia as with the Chinese.

King also claims, falsely I believe, that immigration rorts were ‘minority’ occurrences; but he goes on to say that the Government’s much needed crack down on the connection between student visas and the real quest for permanent residence has had “…a harsh knock-on effect for the university sector.” If this is the case, he can hardly expect anybody to believe that immigration rorts were minority events. If his minority claim was true, it would have no effect on most students who were supposedly coming here to just study and go home.

The foreign student racket has served only to allow back door immigration and distort the true increase in population; ensure incompetent university management of income; get skills on the cheap, while Australians miss out on training. The Howard Government must take most responsibility for the cynical abusesof foreign student intakes. For all its faults, the Labor Government has, at least, removed the nexus between student visas and easy permanent residence. But even that action will allow the same old cons to continue for a while.

The ‘poor struggling’ real estate and building sector – always pushing for more and more customers to the detriment of Australia – will survive, as will everybody “from the Pilbara to the cafes of Darlinghurst.” Australian politicians and their urgers need to get their heads out of their bums and start working for Australia and Australians.

All students need is the source material and park to read in. The expensive buildings and high teacher salaries are a waste. Let the students learn for themselves.