Education
September 16, 2010
International Students Contribute
Significantly to the Atlantic Economy
International students contributed $565 million to the Atlantic
Canadian economy, in 2009-10, according to a new study,
The Economic
Impact of Post-Secondary International Students in Atlantic Canada
,
released today by the Council of Atlantic Ministers of Education and
Training (CAMET). In addition to their significant contributions to the
region's economy, the study highlights that international students are a
major source of potential immigrants for Atlantic Canada.
International students provide an immediate economic impact and
return on investment in Atlantic Canada. The study determined that
international students contributed $175 million of new money to the
region's economy in 2009-10. Furthermore, international students spent
$2.68 of new money in Atlantic Canada for every dollar spent by the four
Atlantic governments.
"The findings of this study support Newfoundland and Labrador's
commitment to international education," said the Honourable Darin King,
Minister of Education. "The study also provides useful information for
future consultations and decision-making among governments and
stakeholders on attracting and retaining international graduates."
Working together and individually, the four Atlantic provinces are
implementing strategic initiatives aimed at attracting and retaining
more immigrants to the region to address demographic challenges
associated with an aging population. The study highlights they are ideal
candidates for immigration as international students think highly of
Atlantic Canada, and are young, skilled, language proficient, and
already integrated into local communities.
"We value the economic contribution of international students to our
province," said Education Minister Marilyn More. "The province's new
immigration strategy will identify recruitment of international
graduates as a great way to tap into younger, well educated
professionals who are already in Nova Scotia."
"International students provide a significant boost to Atlantic
Canada's economy and generate millions in revenue," said the Honourable
Donald Arseneault, Minister of Post-Secondary Education, Training and
Labour.
The study underlines the cultural contributions of international
students, strengthening and enhancing Atlantic Canada's profile and ties
to the world. It also indicates that the market for international
students is becoming more competitive since students make choices based
on costs and institutional reputation. Since 2006, the price
competitiveness of Atlantic Canadian universities has improved and the
number of international students in the region has increased steadily by
approximately a third, with forty per cent of students coming from
China, the United States, and India.
"Prince Edward Island's post-secondary institutions are world-class
and our cost of living and quality of education and life are attractive
to international students," said the Honourable Allan Campbell, Minister
of Innovation and Advanced Learning. "We are well positioned to attract
more international students to our province and Atlantic Canada."
The Economic Impact of Post-Secondary International Students in
Atlantic Canada
study was commissioned by CAMET, in partnership with
the Association of Atlantic Universities, the Atlantic Provinces
Community College Consortium, and EduNova, and was undertaken by
researchers at Dalhousie University's School of Public Administration.
Fazley Siddiq was the principal investigator for the study and Warren
C.E. Nethercote was the project manager.
During the winter term of 2009-10, the study utilized an on-line
survey of international students registered and attending classes at
Atlantic Canada's universities and community colleges. The survey
addressed five main themes, including academic and living expenditures
by international students, demographics and employment status, as well
as future intentions to remain in Atlantic Canada.
The summary report of key findings is attached below. To view the
full report, please visit the CAMET website,
www.camet-camef.ca.
CAMET is an agency of the Council of Atlantic Premiers (CAP), and its
purpose is to enhance cooperation in public (Entry—12) and
post-secondary education in Atlantic Canada by working together to
improve learning, optimize efficiencies and bring added value to
provincial initiatives.
-30-
Media contacts:
Tara
Power
NL Department of Education
709-729-0048
tarapower@gov.nl.ca |
Lori-Jean Wallace
NB Department of Post-Secondary Education, Training & Labour
506-453-3465 |
Peter
McLaughlin
NS Department of Education
902-424-8307 |
Ron
Ryder
PEI Department of Innovation and Advanced Learning
902-620-3774 |
BACKGROUNDER
Summary Report of the
The Economic Impact of
Post-Secondary International Students in Atlantic Canada
Background:
Atlantic Canada faces a serious demographic
challenge. The region's population is aging and the proportion of
younger people is in decline. Atlantic Canada's dependency ratio will
rise in the future with negative consequences, such as increased costs
of social services. Over the next 15 years, Atlantic Canada's labour
force is expected to decrease (Martel et al., 2007; Everenden, 2008);
this is not encouraging in the face of increasing social services costs.
Sustained economic growth will be required to offset the cost of
providing social services to an aging population. Barring a significant
change in the nature of Atlantic Canada's economy, growth in the labour
force will be required to support economic growth. Alternatively, change
in the nature of Atlantic Canada's economy to a greater proportion of
knowledge-based activities will require increasing numbers of the very
demographic group, the young, that is in decline. In both of these
scenarios, immigration would be a key contributor to an effective labour
force.
Citizenship and Immigration Canada (2008) credits immigration with
avoiding population shrinkage in Atlantic Canada. This observation
belies the true situation in Atlantic Canada, where immigrants make up
less than 4 per cent of the population, compared to about 18 per cent
for Canada as a whole (Akbari, 2008).
The Council of Atlantic Ministers of Education and Training (CAMET)
contracted Dalhousie University to analyse the economic impact of
post-secondary international students in Atlantic Canada by means of an
expenditure analysis. The study used a survey of international students
and a combination of the literature, government and information from
post-secondary institutions.
Results:
A cross-jurisdictional review revealed a competitive
international market for international students, in which Canada is
ranked seventh as an academic destination and attracts only a four per
cent share of international students. Across the globe, international
students are valued, both as economic assets and as potential future
immigrants who will be well-prepared to contribute to knowledge-based
economies. Australia, Belgium, Canada, and the United Kingdom are the
only nations charging differential tuition fees to international
students. All others treat international and native students equally, in
recognition of their benefit culturally and economically, and to
maximize opportunities to attract future immigrants. Immigrants augment
the stock of human capital which is diminishing in some jurisdictions
due to demographic trends.
The initial economic impact of international students in Atlantic
Canada was found to be $376 million in 2009-2010, including an initial
injection of $175 million of new money to Atlantic Canada. The total
economic impact of international students was $565 million in 2009-2010
after application of the spending multiplier. Direct spending by
international students averaged $29,000 during the same period.
International students spent 1.3 times the amount spent for their
benefit by governments, universities and private sources. International
students spend over $1.91 of new money in Atlantic Canada for every
dollar spent by Provincial Governments on their education and health
care. This "return on investment" varies from province to province in
Atlantic Canada, from $1.78 in New Brunswick to $4.04 in Nova Scotia.
This province-to-province variation is due both to variations in
spending from province-to-province by students and variations in
spending from province-to-province by governments.
International students in Atlantic Canada are generally satisfied
with Atlantic Canada and its educational institutions and 40 per cent of
the respondents to the survey expressed interest in applying for
permanent residence in Canada. Citizenship and Immigration Canada (2008)
indicates that 39.5 per cent of foreign students transition to foreign
worker status nationally, but that only 15.6 per cent transition to
permanent resident status. There appear to be opportunities to improve
the retention rate for those international students who choose to work
in Canada after completing their education, to the benefit of Atlantic
Canada's labour force.
Significance:
International students think highly of Atlantic
Canada and its educational institutions, and are acclimatized to
Atlantic Canada; therefore, they are ideal candidates for immigration,
to help address Atlantic Canada's demographic challenges. International
students alone cannot address demographic issues in their entirety, even
if they immigrated as a cohort, but improving the retention rate for
international students can contribute to offsetting the negative effects
of an aging society.
International students also have an important, immediate economic
impact on Atlantic Canada. For example, most international students live
in rental accommodations, to the benefit of local rental markets. The
study estimates that the overall economic impact of international
students on Atlantic Canada's economy is $565 million in 2009-2010, or
almost 0.6 per cent of GDP. International students inject more new money
into the economy than governments spend for their benefit; therefore,
international students represent an important, profitable export market
for Atlantic Canada.
Provincial Governments in Atlantic Canada should view international
students positively, whether as potential immigrants to address future
labour force problems, or as ongoing contributors to Atlantic Canada's
economy.
2010 09 16 12:15 p.m.
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