Overview
This release provides details on spending by international students in New Zealand. This spending forms part of the exports of travel services component in the Balance of Payments and also the expenditure measure of Gross Domestic Product.
Travel exports (spending by visitors to New Zealand) were valued at $7,079 million for the year ended March 2007 and accounted for 14.8 percent of total exports of goods and services. Estimated spending by international students contributed $1,242 million, or 17.5 percent, of travel exports. Spending by international students is made up of expenditure by international students studying at primary and secondary schools, and for formal tertiary qualifications, as well as students studying at English language schools.
Total expenditure by international students
The estimated total value of expenditure by all international students studying in New Zealand was $1,242 million for the year ended March 2007, compared with a revised figure of $1,289 million for the year ended March 2006. These figures will be further revised in the June 2007 quarter release of the Balance of Payments and International Investment Position statistics, to be published on 20 September 2007. See the Data sources section at the end of this report for further details. Estimated expenditure by international students studying at primary and secondary schools, and for formal tertiary qualifications, fell $57 million from the March 2006 year to the March 2007 year. This decrease was due to fewer foreign students studying in New Zealand this year. According to the English Language Providers (ELP) survey, expenditure by students studying at English language schools increased $9 million over the same period. This release focuses on the data gathered from the ELP survey.
Results from the ELP survey
During the March 2007 year, there were a total of 35,166 international students enrolled in English language schools in New Zealand, which earned schools $116 million in tuition and related fees. There was a 1.1 percent decrease in the number of English language students from the March 2006 year to the March 2007 year. This followed an 18.1 percent drop in student numbers for the previous March year. The number of Chinese students studying at English language schools continued to decrease, and again recorded the largest nominal fall out of all countries of student origin. There are now 84.0 percent fewer Chinese students studying at English language schools than there were in the March 2003 year. In the March 2007 year, income earned from tuition and related fees increased $5 million (4.1 percent) compared with the March 2006 year. This compares with a decrease of $43 million between the March 2005 and March 2006 years. On average, students enrolled in longer courses in the March 2007 year than in the previous year. The increase in average student weeks was the main contributor to the increase in tuition revenue reported, more than offsetting the small decrease in student numbers.
Expenditure by international students at English language schools
Total expenditure by international students studying at English language schools includes expenditure on tuition and accommodation sourced from the ELP survey. Also included is an estimate for other expenditure, such as living costs, which is derived from ELP figures. The total estimate for expenditure by international students studying at English language schools was up $9 million from the March 2006 year compared with the March 2007 year, to $233 million. Revenue from tuition and related fees increased 4.1 percent in the March 2007 year, while revenue from accommodation provision increased 5.3 percent.
English language provider tuition revenue
Revenue from English language tuition was $116 million for the March 2007 year, up from the $112 million reported for the previous March year. This 4.1 percent increase follows the 28.0 percent decrease of the previous year, and tuition revenue remains 54.9 percent lower than the peak of $258 million recorded in the March 2003 year. The largest increase in tuition expenditure between the March 2006 year and the March 2007 year was by students from the Republic of Korea (South Korea), whose expenditure increased $6.3 million (34.8 percent). Both the number of students from Korea and the amount of weeks studied by Korean students were up compared to the previous year. Other large increases in tuition revenue during the latest period were for Japan, up $1.5 million (7.4 percent) and Saudi Arabia, up $1.5 million (49.3 percent). These increases were partly offset by an $8.2 million (23.8 percent) decrease in tuition revenue received from Chinese students. Expenditure on tuition and related fees by Chinese students has fallen for four consecutive years, and is now $109.9 million lower than in the March 2003 year.
Student numbers
The number of international students enrolled in English language courses in New Zealand during the March 2007 year was 35,166, down 1.1 percent from the previous March year. Student numbers have fallen in every year since the March 2003 year, when 71,503 students were enrolled. The number of students from China fell 1,080 (19.6 percent) from the March 2006 year to the March 2007 year. This is the fourth consecutive year that the number of Chinese students has decreased. Although Chinese students make up only 12.6 percent of student numbers, their tuition expenditure makes up 22.5 percent of total tuition revenue received by English language schools. Other countries to record significant decreases in student numbers between the March 2006 and March 2007 years were Japan (down 436) and Germany (down 189). These decreases, combined with the fall in the number of Chinese students, were partly offset by an increase in the number of Korean students (up 645) enrolled at English language schools in New Zealand. Student numbers from Brazil (up 554) and Saudi Arabia (up 335) also increased in the latest March year.
Student weeks
Respondents are asked to provide data on the number of student weeks by country. This data is used to analyse changing course lengths over time. Refer to the Student weeks section of the Technical notes accompanying this release for further information. The average length of study attributed to English language courses for the March 2007 year was 10 weeks. Total weeks studied by all students increased 2.2 percent from the March 2006 year to the March 2007 year. Students from Korea recorded the largest increase in the number of weeks studied, with 12,738 (19.9 percent) more student weeks than in the previous year. The largest decrease in weeks studied was by students from China, which reflects the fall in student numbers from that country.
English language provider accommodation provision
Accommodation revenue collected in the ELP survey only includes revenue for accommodation provided or arranged by English language schools. English language provider accommodation revenue was $30 million for the year ended March 2007, an increase of $1.5 million (5.3 percent) from the March 2006 year. The largest increase in accommodation expenditure from the March 2006 year to the March 2007 year was by students from Saudi Arabia. Accommodation revenue from Saudi Arabian students was up $1.0 million from the March 2006 year. Other increases in accommodation revenue were recorded for Korean (up $0.7 million) and Brazilian students (up $0.6 million). As with tuition expenditure and student numbers, the largest decrease in accommodation expenditure this year was by students from China. This expenditure was down $1.7 million (27.2 percent) from the previous year. For further information on the accommodation data from the ELP survey please refer to the Limitations section of the Technical notes accompanying this release.
Data sources
There are two main data sources used in estimating spending by international students in New Zealand:
- The survey of English Language Providers (ELP), an annual survey that collects information from English language schools on expenditure by non-resident students studying in New Zealand.
- Estimated spending by international students studying at primary and secondary schools, and in formal tertiary courses, is calculated using enrolment numbers from the Ministry of Education. Data on student enrolments at these institutions is provided as at 31 July 2006. This data is used as an approximation for the year ended March 2007, as it is the most recent data available.
The estimated total value of expenditure by all international students studying in New Zealand reported in this release will be revised in the June 2007 quarter release of the Balance of Payments and International Investment Position statistics. These revisions will reflect a change in the way student numbers data are collected by the Ministry of Education. Currently, student numbers are a snapshot as at 31 July. From the next release, Statistics NZ will use Full-time Equivalent (FTE) student numbers for the year ended December instead. Statistics NZ is also investigating tuition fee estimates used to calculate total expenditure by international students. These revisions will not affect figures reported in the ELP survey.
For technical information contact:
Wido Van Lijf
Wellington 04 931 4600
Email: info@stats.govt.nz