Universities hit hard by slump in foreign students
Release date: 16 Dec 2010
The latest Federal Government figures show a 1.4 per cent decline in enrolments since this time last year for a sector that has grown almost 11 per cent a year for the past eight years.
International students make up about a quarter of all university enrolments in Australia, so any reduction in intake has a serious impact on the bottom line.
Monash University is Australia's largest university and has more international students than any other.
Vice-chancellor Professor Ed Byrne says enrolments in English language courses at Monash College are down 30 per cent.
With half of those students typically migrating to full-fee-paying university places, that is a substantial loss of income.
"For next year, we're about $40 million on the income side away from where we'd hoped to be," he said.
Monash has just approved 359 redundancies to improve its budget forecast for next year.
Jennie Lang is pro-vice-chancellor international at the University of New South Wales. She says the decline in student numbers is worrying.
"In some instances, the downturn will initially be small and will be handled on the margins. In other universities it will be catastrophic," she said.
China is Australia's biggest market for international students, with India a close second.
Government data shows Indian student enrolments are down 17 per cent on this time last year.
The high Australian dollar has increased competition from the US and UK, but Ms Lang says recent changes to immigration rules are also to blame.
"There's been really significant problems about the messages we used in the election campaign to do with migration and whether or not Australia wants to grow its population," she said.
"That's been interpreted in our major source countries in Asia as Australia now sort of moving away from having international students and migrants."
'Perceived racism'
Ms Lang says there is also a perception that Australia is not as welcoming as it could be to international students.
"We've been picking that up in a number of countries that we've been visiting this year," she said.
Spokesman for the Federation of Indian Students of Australia, Gautam Gupta, agrees with the assessment.
"I think everything plays a role. High Australian dollar obviously contributes, as for migration laws again, definitely a reason," he said.
"The biggest problem is the lack of confidence in the Australian Government and the lack of ability to stem the increasing violence."
Professor Byrne agrees perceived racism against Indian students has had an impact.
"We have a really good idea of this because of interviews with students and with our many agents throughout Asia," he said.
"So in South Asia, initially there were cultural safety factors as perceived in India. Now they've been addressed very vigorously by the Federal Government and by the university sector.
"I think cultural safety and a mutual understanding is being built up. It will take a few years to completely get over that hiccup but we'll get there.
"The Indian market was also very migration-focused and the new migration criteria I think have affected that market also."
But Professor Byrne is hopeful the downturn is not indicative of a long-term trend and that enrolment numbers from all overseas markets will have improved by 2013.
"I don't think there is going to be a decline in the long run," he said.
"Remember that the number of people who live in families that can afford university education privately in Asia is predicted to grow from something like 300 million today to over 1.4 billion in 10 years' time.
"The current international student market from Asia, especially China, is growing at more than 30 per cent a year and I think that's predicted to continue into the future.
"So this market is going to grow internationally for many, many years."
Source: ABC News
International students make up about a quarter of all university enrolments in Australia, so any reduction in intake has a serious impact on the bottom line.
Monash University is Australia's largest university and has more international students than any other.
Vice-chancellor Professor Ed Byrne says enrolments in English language courses at Monash College are down 30 per cent.
With half of those students typically migrating to full-fee-paying university places, that is a substantial loss of income.
"For next year, we're about $40 million on the income side away from where we'd hoped to be," he said.
Monash has just approved 359 redundancies to improve its budget forecast for next year.
Jennie Lang is pro-vice-chancellor international at the University of New South Wales. She says the decline in student numbers is worrying.
"In some instances, the downturn will initially be small and will be handled on the margins. In other universities it will be catastrophic," she said.
China is Australia's biggest market for international students, with India a close second.
Government data shows Indian student enrolments are down 17 per cent on this time last year.
The high Australian dollar has increased competition from the US and UK, but Ms Lang says recent changes to immigration rules are also to blame.
"There's been really significant problems about the messages we used in the election campaign to do with migration and whether or not Australia wants to grow its population," she said.
"That's been interpreted in our major source countries in Asia as Australia now sort of moving away from having international students and migrants."
'Perceived racism'
Ms Lang says there is also a perception that Australia is not as welcoming as it could be to international students.
"We've been picking that up in a number of countries that we've been visiting this year," she said.
Spokesman for the Federation of Indian Students of Australia, Gautam Gupta, agrees with the assessment.
"I think everything plays a role. High Australian dollar obviously contributes, as for migration laws again, definitely a reason," he said.
"The biggest problem is the lack of confidence in the Australian Government and the lack of ability to stem the increasing violence."
Professor Byrne agrees perceived racism against Indian students has had an impact.
"We have a really good idea of this because of interviews with students and with our many agents throughout Asia," he said.
"So in South Asia, initially there were cultural safety factors as perceived in India. Now they've been addressed very vigorously by the Federal Government and by the university sector.
"I think cultural safety and a mutual understanding is being built up. It will take a few years to completely get over that hiccup but we'll get there.
"The Indian market was also very migration-focused and the new migration criteria I think have affected that market also."
But Professor Byrne is hopeful the downturn is not indicative of a long-term trend and that enrolment numbers from all overseas markets will have improved by 2013.
"I don't think there is going to be a decline in the long run," he said.
"Remember that the number of people who live in families that can afford university education privately in Asia is predicted to grow from something like 300 million today to over 1.4 billion in 10 years' time.
"The current international student market from Asia, especially China, is growing at more than 30 per cent a year and I think that's predicted to continue into the future.
"So this market is going to grow internationally for many, many years."
Source: ABC News
Entry requirements lowered
Release date: 17 Dec 2010
The decision is in response to collapsing demand in the international education market.
Immigration Minister Chris Bowen and Tertiary Education Minister Chris Evans yesterday announced the changes for students applying to Australian universities, including from the multi-billion-dollar Indian and Chinese markets.
At present, university applicants from both countries must prove they or a close relative can provide three years' worth of money to support their study in Australia. Under the changes, students would only require two years' worth.
The change is designed to deal with a drop in applications across the $18 billion international education business, following tougher immigration restrictions imposed to stop students with poor English using low-skill vocational courses as a fast track to permanent residence.
Since the system was tightened in February, private sector training colleges catering for the international market have collapsed. But universities dependent on foreign income also warn demand is drying up.
Central Queensland University, where international students account for almost half of total enrolments, is expecting a 25 per cent drop in commencing overseas students both next year and in 2012.
Earlier this week, Monash University, Australia's largest international education provider, announced 350 redundancies in response to a 30 per cent drop in demand in its university preparation college, which relies on foreign students.
Senator Evans said the drop in demand was due to the high Australian dollar and increased competition from the US, Canada and New Zealand.
Both the training and university sectors say the fall-off is largely due to long application processing periods and strict visa restrictions that require potential students to prove they have about $100,000 to meet tuition fees and living expenses.
In contrast, competing English-speaking countries generally require a quarter of that amount.
According to Jennie Lang, pro vice-chancellor international at the University of NSW and spokeswoman for peak lobby group Universities Australia, the Gillard government's concession is "a very positive measure".
The government has also established a review chaired by former NSW Labor minister Michael Knight to review student visas, which Ms Lang said should recommend a new program to allow foreign graduates of local universities to stay in Australia for several years. This would improve their employment chances when they returned home, she said.
Source: The Australian
Immigration Minister Chris Bowen and Tertiary Education Minister Chris Evans yesterday announced the changes for students applying to Australian universities, including from the multi-billion-dollar Indian and Chinese markets.
At present, university applicants from both countries must prove they or a close relative can provide three years' worth of money to support their study in Australia. Under the changes, students would only require two years' worth.
The change is designed to deal with a drop in applications across the $18 billion international education business, following tougher immigration restrictions imposed to stop students with poor English using low-skill vocational courses as a fast track to permanent residence.
Since the system was tightened in February, private sector training colleges catering for the international market have collapsed. But universities dependent on foreign income also warn demand is drying up.
Central Queensland University, where international students account for almost half of total enrolments, is expecting a 25 per cent drop in commencing overseas students both next year and in 2012.
Earlier this week, Monash University, Australia's largest international education provider, announced 350 redundancies in response to a 30 per cent drop in demand in its university preparation college, which relies on foreign students.
Senator Evans said the drop in demand was due to the high Australian dollar and increased competition from the US, Canada and New Zealand.
Both the training and university sectors say the fall-off is largely due to long application processing periods and strict visa restrictions that require potential students to prove they have about $100,000 to meet tuition fees and living expenses.
In contrast, competing English-speaking countries generally require a quarter of that amount.
According to Jennie Lang, pro vice-chancellor international at the University of NSW and spokeswoman for peak lobby group Universities Australia, the Gillard government's concession is "a very positive measure".
The government has also established a review chaired by former NSW Labor minister Michael Knight to review student visas, which Ms Lang said should recommend a new program to allow foreign graduates of local universities to stay in Australia for several years. This would improve their employment chances when they returned home, she said.
Source: The Australian
New federal review of student visa program
Release date: 17 Dec 2010
The move is being welcomed by the education and business sectors.
Earlier this year, a review of Australia's international education sector found there had been an emphasis on revenue rather than quality in some institutions.
The review's chairman, former Liberal MP Bruce Baird, labelled them "permanent residency factories".
Mr Baird's findings led the Federal Government to tighten up student visa requirements.
That crackdown, along with adverse publicity about attacks on students, the strong dollar, and global economic conditions has seen a sharp drop in the number of students coming to Australia to study.
Now under pressure from educators and business, the Federal Government has announced another review, specifically of the student visa program.
Universities Australia says it is a breakthrough for the troubled industry.
"We think it is important now to look at student visas more strategically and to also ensure that the policy settings actually support the students that we are hoping to attract particularly to our universities," said spokeswoman Jennie Lang from the University of New South Wales-International.
"We would like to see the financial impost that is placed on a number of students applying to study in Australia significantly reduced so that what we require is in line with what the US or the UK require.
"We would also like to see the Australian Government start to look at some interesting packages.
"We understand that it was important to break education from migration but at the same time we would really like to see students who are the best students come to Australia and if they so wish, remain in our country for two or three years to work in a professional area and then return home or abroad with a first rate degree."
The drop in overseas student enrolments has also worried the Business Council of Australia, which has welcomed news of the review.
"With the existing visa program, there seems to be some inconsistency with the way it applies to foreign students from different countries," policy director Patrick Coleman said.
"We understand that there are issues that need to be examined in relation to how Australia's visa system compares to countries like the United Kingdom and like America, we need to make sure that we are competitive with those countries.
"Also, the amount of money that students have to demonstrate that they have available and the amount of evidence that they need to provide to support their claims for a visa are all issues that need to be considered."
Mr Coleman says it is essential to strike a balance between a strong, profitable sector and one that is not simply used as a means to permanent residency.
"It is important to also have integrity with the visa system and so it is a careful balancing act," he said.
"We think that if we focus on student visa changes that are linked to high-quality educational institutions and high-quality courses then that may provide the correct balance."
Former NSW Labor MP Michael Knight will chair the review of the student visa program.
The Federal Government is expecting his report by mid next year.
Source: ABC News
Earlier this year, a review of Australia's international education sector found there had been an emphasis on revenue rather than quality in some institutions.
The review's chairman, former Liberal MP Bruce Baird, labelled them "permanent residency factories".
Mr Baird's findings led the Federal Government to tighten up student visa requirements.
That crackdown, along with adverse publicity about attacks on students, the strong dollar, and global economic conditions has seen a sharp drop in the number of students coming to Australia to study.
Now under pressure from educators and business, the Federal Government has announced another review, specifically of the student visa program.
Universities Australia says it is a breakthrough for the troubled industry.
"We think it is important now to look at student visas more strategically and to also ensure that the policy settings actually support the students that we are hoping to attract particularly to our universities," said spokeswoman Jennie Lang from the University of New South Wales-International.
"We would like to see the financial impost that is placed on a number of students applying to study in Australia significantly reduced so that what we require is in line with what the US or the UK require.
"We would also like to see the Australian Government start to look at some interesting packages.
"We understand that it was important to break education from migration but at the same time we would really like to see students who are the best students come to Australia and if they so wish, remain in our country for two or three years to work in a professional area and then return home or abroad with a first rate degree."
The drop in overseas student enrolments has also worried the Business Council of Australia, which has welcomed news of the review.
"With the existing visa program, there seems to be some inconsistency with the way it applies to foreign students from different countries," policy director Patrick Coleman said.
"We understand that there are issues that need to be examined in relation to how Australia's visa system compares to countries like the United Kingdom and like America, we need to make sure that we are competitive with those countries.
"Also, the amount of money that students have to demonstrate that they have available and the amount of evidence that they need to provide to support their claims for a visa are all issues that need to be considered."
Mr Coleman says it is essential to strike a balance between a strong, profitable sector and one that is not simply used as a means to permanent residency.
"It is important to also have integrity with the visa system and so it is a careful balancing act," he said.
"We think that if we focus on student visa changes that are linked to high-quality educational institutions and high-quality courses then that may provide the correct balance."
Former NSW Labor MP Michael Knight will chair the review of the student visa program.
The Federal Government is expecting his report by mid next year.
Source: ABC News
Sector pins hopes on TEQSA legislation
Release date: 17 Dec 2010
This follows a "constructive" confidential meeting in Canberra on Monday.
"The commonwealth has sought to respond constructively to each of the issues we raised," Universities Australia chairman and Queensland University of Technology vice-chancellor Peter Coaldrake said.
"We are hopeful and encouraging the government to release a draft at an appropriate point in January," he said. Such a release would help build confidence and trust in the process.
Meanwhile, interim Tertiary Education Quality and Standards Agency chairwoman Denise Bradley has unveiled details of what to expect as TEQSA gears up to start work as a quality assurance agency from July 1 and as a full-blown regulator from January 1, 2012.
Professor Bradley said several projects would be under way by the new year to clarify how TEQSA would "operate with a risk-based, proportionate approach using threshold standards". "All [these projects] will produce papers for widespread discussion in the higher education sector," she said.
"One of the principles enunciated in all discussions with the peak bodies is that the standards will be developed in partnership with the sector."
One discussion paper on teaching and learning standards would draw on expert advice, a review of international practice and on work funded by the Australian Learning and Teaching Council.
Another paper would deal with regulation of dual-sector institutions, while three projects to do with research standards had begun already. Development of the My University website had begun.
An early priority would be appointment of TEQSA's commissioners, once legislation for the new agency had passed through parliament in autumn.
The closed-door and confidential nature of talks on TEQSA's draft legislation has irritated the sector. After a two-day, budget lock-up-style meeting in November, the government was forced to delay finalising the legislation.
Sector representatives had expressed concerns about the punitive powers of the regulator and threats to university autonomy.
But this week's meeting appears to have eased many concerns.
Professor Coaldrake said talks had been productive and he was hopeful of a decent outcome.
Ahead of the meeting, a spokesman for Tertiary Education Minister Chris Evans said much of the feedback from the sector had been "directed at ensuring the government's objective, that TEQSA's regulatory approach should be both risk-based and proportionate, is brought to life in its establishing legislation.
"This is an area in which the government acknowledges that there are some complex issues, thus the need for an extended period of consultation with the sector before the legislation is made public."
Other vice-chancellors at Monday's meeting were the Australian Catholic University's Greg Craven and Deakin's Jane den Hollander. There were also deputy vice-chancellors from several other universities, including Group of Eight universities such as the universities of Melbourne, Queensland and NSW.
Source: The Australian
"The commonwealth has sought to respond constructively to each of the issues we raised," Universities Australia chairman and Queensland University of Technology vice-chancellor Peter Coaldrake said.
"We are hopeful and encouraging the government to release a draft at an appropriate point in January," he said. Such a release would help build confidence and trust in the process.
Meanwhile, interim Tertiary Education Quality and Standards Agency chairwoman Denise Bradley has unveiled details of what to expect as TEQSA gears up to start work as a quality assurance agency from July 1 and as a full-blown regulator from January 1, 2012.
Professor Bradley said several projects would be under way by the new year to clarify how TEQSA would "operate with a risk-based, proportionate approach using threshold standards". "All [these projects] will produce papers for widespread discussion in the higher education sector," she said.
"One of the principles enunciated in all discussions with the peak bodies is that the standards will be developed in partnership with the sector."
One discussion paper on teaching and learning standards would draw on expert advice, a review of international practice and on work funded by the Australian Learning and Teaching Council.
Another paper would deal with regulation of dual-sector institutions, while three projects to do with research standards had begun already. Development of the My University website had begun.
An early priority would be appointment of TEQSA's commissioners, once legislation for the new agency had passed through parliament in autumn.
The closed-door and confidential nature of talks on TEQSA's draft legislation has irritated the sector. After a two-day, budget lock-up-style meeting in November, the government was forced to delay finalising the legislation.
Sector representatives had expressed concerns about the punitive powers of the regulator and threats to university autonomy.
But this week's meeting appears to have eased many concerns.
Professor Coaldrake said talks had been productive and he was hopeful of a decent outcome.
Ahead of the meeting, a spokesman for Tertiary Education Minister Chris Evans said much of the feedback from the sector had been "directed at ensuring the government's objective, that TEQSA's regulatory approach should be both risk-based and proportionate, is brought to life in its establishing legislation.
"This is an area in which the government acknowledges that there are some complex issues, thus the need for an extended period of consultation with the sector before the legislation is made public."
Other vice-chancellors at Monday's meeting were the Australian Catholic University's Greg Craven and Deakin's Jane den Hollander. There were also deputy vice-chancellors from several other universities, including Group of Eight universities such as the universities of Melbourne, Queensland and NSW.
Source: The Australian
