In 2012–13, tuition fees from non-EU students had grown to £3.5 billion, 12.1% of the sector’s total income

The Patterns and Trends in UK Higher Education also reveals a shift in funding sources over the last 10 years towards education contracts and student tuition, a large part provided by international fees.

In 2012–13, tuition fees from non-EU students had grown to £3.5 billion, 12.1% of the sector’s total income. Overall, the sector returned a surplus of £1.23 billion in 2012–13, 4.2% of turnover.

According to Nicola Dandridge, Chief Executive of Universities UK, revenue from international students is only set to rise.

“Increasing the number of international students coming to the UK could bring enormous benefits to economies in all corners of the country,” she told The PIE News. “Income from universities’ international activities is projected to grow considerably in the coming years.”

The report shows that the UK’s international student market share increased from 10.7% in 2000 to 12.6% in 2012 while other key markets lost ground such as the US whose market share declined from 22.8% in 2000 to 16.4% in 2012 and Germany who lost 2.7% in the same period.

Based on data from the Higher Education Statistics Agency, non-EU students increased from 8.6% of total student population in 2003-04 to 12.8% in 2012-13. Additionally, students from the rest of the EU increased from 4.2% to 5.4% across the same period.

Enrolments in the UK are expected to return from 2013 onwards, but the report says universities need to “demonstrate value to prospective students,” while also emphasising the importance of non-EU students to the UK both economically and culturally. Overall, international students contribute more than £7bn to the UK’s economy.

Paul O’Prey, Vice-Chancellor, University of Roehampton introduces the report underlining “international higher education is an increasingly competitive market, and the governments of the UK’s competitor countries are implementing bold strategies and policies, backed by investment, in an attempt to attract more international students.”

“International higher education is an increasingly competitive market, and the governments of the UK’s competitor countries are implementing bold strategies and policies”