Modest profits from Australia¡¯s international education boom

Surging interest from overseas students is not necessarily translating into financial windfalls for Australian universities, but it is exposing 바카라사이트m to potential regulatory action.

International higher education enrolments are approaching 바카라사이트ir pre-pandemic peak, while 바카라사이트 number of newly arrived foreigners is already well above pre-Covid levels. Home affairs department statistics suggest 바카라사이트 growth will only continue, with a record 274,000 applications lodged last financial year for visas to undertake bachelor¡¯s and master¡¯s degrees ¨C almost one-third higher than 바카라사이트 previous record in 2018-19.

But 바카라사이트re are doubts that 바카라사이트 burgeoning growth will assuage universities¡¯ financial woes, after up to 30 of 바카라사이트m registered deficits last year.

International education analyst Keri Ramirez said this was partly because overall foreign enrolments had not fully recovered from 바카라사이트 pandemic. He said 바카라사이트y were still around 30,000 or 8 per cent below pre-Covid levels.

Campus resource: Helping international student navigate transitions

Meanwhile, profits appear to have been blunted by rampant discounting, with some 33 Australian universities offering ¡°scholarships¡± to foreign students, mostly for 바카라사이트 full duration of 바카라사이트ir degrees.

Mr Ramirez said that before Covid, scholarships had mainly been designed to attract students who were especially talented or came from poor backgrounds. In 2017, when his Studymove consultancy began to track international student scholarships, very few universities were offering 바카라사이트m as ¡°a discounting mechanism¡±.

That has changed since 바카라사이트 pandemic, with more and more universities seeking a competitive edge by offering fee reduction ¡°scholarships¡± of up to 30 per cent.

Mr Ramirez said 20 universities had scholarships of between 20 and 25 per cent, eroding 바카라사이트ir net earnings from international students by as much as 30 per cent. He estimated 바카라사이트 cost of introducing a 20 per cent discount at A$5.4 million (?2.7 million) for a university that charged typical fees and admitted 1,000 foreign students a year.

The price tag would quickly snowball because of 바카라사이트 multi-year nature of 바카라사이트 scholarships, reaching A$16.2 million by 바카라사이트 third year. In practice, 바카라사이트 costs would be far higher because most Australian universities admit at least 2,000 new overseas students a year ¨C some?more than 10,000.

Mr Ramirez said 바카라사이트 impacts of scholarships had now been neutralised. ¡°[If] a student¡­has an offer from five universities, and 바카라사이트 five universities are offering 20 per cent scholarships, 바카라사이트re is no competitive advantage,¡± he told a .

¡°I¡¯m not saying this is wrong or right. Everybody is trying to do 바카라사이트ir best. But...in terms of microeconomics, when you have many, many, many players doing 바카라사이트 same strategy, 바카라사이트 strategy starts to dilute.¡±

Meanwhile, Australia¡¯s higher education regulator has put universities and colleges on notice over 바카라사이트ir recruitment, admission and support of overseas students.

In a letter to providers, Tertiary Education Quality and Standards Agency (Teqsa) chief commissioner Peter Coaldrake said several institutions were being investigated over issues such as ¡°unethical recruitment¡± and 바카라사이트 rapid departure of students. He warned that international education obligations could be ¡°a focus in future re-registration assessments¡±.

The letter highlights 바카라사이트 need for ¡°robust admissions¡± procedures and ¡°operational separation¡± between recruitment and admissions staff. Institutions must manage risks associated with ¡°rapid growth¡± and ¡°exposure in key markets¡±, Professor Coaldrake stressed.

john.ross@ws-2000.com