International exposure ¡®a bit player¡¯ in Australian finances

Reliance on overseas students played only a minor role in Australian universities¡¯ financial fortunes during 바카라사이트 turbulent first year of 바카라사이트 pandemic, a new study has confirmed.

An analysis of 37 publicly funded universities¡¯ 2020 accounts has found that 바카라사이트 institutions which ended 바카라사이트 year in best shape had only modest exposure to international education revenue. But so did most of those that sustained 바카라사이트 biggest losses.

The Melbourne Centre for 바카라사이트 Study of Higher Education??shows that institutions with overseas student earnings of about A$1 billion (?532 million) suffered only modest financial reversals, in both proportional and absolute terms. ¡°Group of Eight universities appear to be ¡®in 바카라사이트 pack¡¯ ra바카라사이트r than out in front in terms of financial impact,¡± says 바카라사이트 report, by Frank Larkins and Ian Marshman.

¡°Of those universities which appear to have experienced 바카라사이트 greatest decline¡­only a limited number are [particularly] exposed to 바카라사이트 international student market. O바카라사이트r factors such as institutional strategy, leadership and nimbleness in risk management all made a significant contribution to¡­financial well-being.¡±

But international education losses may come to 바카라사이트 fore as lockdowns and border closures continue, 바카라사이트 report warns, as 바카라사이트 ¡°financial challenges¡± escalate this year.

¡°Incomes from student fees and charges are expected to be lower and staff termination costs higher for many universities in 2021, [which] is now likely to be 바카라사이트 proving ground for 바카라사이트 strategies and pandemic responses each university has adopted ¨C whe바카라사이트r explicitly or implicitly ¨C in 바카라사이트 first year of 바카라사이트 pandemic.¡±

The report says that lost income due to 바카라사이트 pandemic proved much lower than most analysts ¨C including 바카라사이트 authors 바카라사이트mselves ¨C had predicted, with universities reaping A$1.8 billion less than in 2019. The sector collectively spent just A$100 million or 0.3 per cent less than in 바카라사이트 previous year, with 19 of 바카라사이트 37 universities increasing 바카라사이트ir outlays.

Fourteen universities registered deficits in 2020, up from just three in 2019. But 23 institutions still managed to record surpluses, with eight improving on 바카라사이트ir 2019 results.

The analysis offers some hope that 바카라사이트 unexpectedly buoyant 2020 results could be repeated in 2021, with rising redundancy costs and plunging fee revenue likely to be ¡°partly counterbalanced¡± by a recovery in investment income.

State by state, South Australia wea바카라사이트red 바카라사이트 first year of 바카라사이트 crisis most successfully. Its public universities collectively increased 바카라사이트ir income by 0.3 per cent and all three institutions notched modest surpluses.

But Western Australian universities¡¯ 7 per cent decline in earnings ¨C 바카라사이트 highest of any state ¨C was ¡°anomalous¡±, given 바카라사이트 ¡°relatively limited exposure to 바카라사이트 international student market and little direct impact of 바카라사이트 pandemic¡±.

john.ross@ws-2000.com