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New Zealand: 2013 numbers down but HE sector thriving

Overall international student numbers in New Zealand fell 1.8% in 2013, however pockets of growth in key markets in the second part of the year have left stakeholders feeling optimistic for 2014. PTEs struggled but postgraduate courses continued a growth trajectory.
June 12 2014
2 Min Read

Overall international student numbers in New Zealand fell in 2013, however pockets of growth in key markets in the second part of the year have left stakeholders feeling optimistic for 2014 nonetheless. A major decline in numbers from Korea is one factor behind the slowing of momentum for Kiwi business but 2014 stats also suggest an upturn is around the corner.

Since 2010, international student numbers in New Zealand have steadily declined. In 2013, enrolments were down 1.8% to 97,283 foreign students compared with 99,094 in 2012.

A breakdown of trimesters reveals a slow start to 2013 across all sectors but from May to December there was a 4% overall increase in student numbers on the same period in 2012 – driven by the university sector.

An 11% increase in postgraduate numbers offset the loss of 2,705 students at Private Training Establishments

“There were two key factors that impacted on the overall student numbers in New Zealand’s international education industry: the loss of almost 1,450 Korean students contributing to 80% of the total decline in students and the PTE sector experiencing a loss of 2,705 students” the snapshot report states.

An 11% increase in postgraduate numbers offset the fall in numbers at Private Training Establishments (PTE), continuing the PG sector’s annual average increase of 7% since 2009.

The majority of the decline in the PTE sector (58%) was attributed to English language providers with the largest fall in numbers centred in Auckland, the report says.

Over the past six years, the PTE sector, made up of mostly small providers, has been hit hard by tough immigration policy, high compliance costs and the aftermath of the Christchurch earthquake (although this did not impact Auckland).

Last year the government released an engagement plan to support the PTE offshore marketing and give providers access to government grants.

In the yearly snapshot, Education New Zealand said PTE providers highlighted “increased global competition and the decline in Korean students” as being the key contributing factors of the decline in numbers for 2013.

The industry’s contribution to the national economy has given cause for optimism nonetheless, increasing by 1.3% mainly driven by a 4% increase in tuition income generated by high fees paid by postgraduate students in the government-funded tertiary sector.

“New Zealand’s international education industry is our fifth largest export industry. In 2013, an independent Infometrics report valued the industry at $2.6 billion annually,” said Immigration Minister Michael Woodhouse in a statement. “The industry also supports 28,000 jobs around New Zealand.”

Key source markets continued to grow despite the drop in Korean numbers, especially Japan, China, India and Thailand.

And initial figures from 2014 visa approvals from January to March suggest that this year could yield positive results, especially for PTEs.

For the first quarter, year-on-year visa approvals are up 22% representing the strongest Q1 results since 2010 when overall international numbers peaked at 104,460.

For the first quarter, year on year visa approvals are up 22% representing the strongest Q1 results since 2010

Demand so far in 2014 is coming from students in India, China, Korea and ASEAN countries predominantly enrolling in the PTE sector, the report states.

“The second half of 2013 – and early indications from 2014 – showed good signs of a lift in international student numbers particularly at higher levels,” commented Tertiary Education, Skills and Employment Minister Steven Joyce.

The government has a goal to double the economic value of New Zealand’s international education sector to $5 billion by 2025. It has collaborated with Tourism New Zealand to launch Think New awareness campaigns in India, China and Japan.

Immigration New Zealand is also currently running a pilot programme to enable streamlined visa processing for “quality providers”  in order to ease entry for first-time students.

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