Economic Contribution of International Education in Western Australia June 2020

1 CONTENTS

THE STRATEGIC AND ECONOMIC CONTEXT...... 3 TRENDS IN INTERNATIONAL EDUCATION IN WESTERN AUSTRALIA...... 5 1.1 International Education and the WA Economy...... 6 1.2 Enrolments by education sub-sector...... 6 1.2.1 Higher education...... 8 1.2.2 Vocational education and training (VET)...... 9 1.2.3 Schools, ELICOS and Non-award...... 10 1.3 Enrolments by source market...... 11 ECONOMIC CONTRIBUTION OF INTERNATIONAL EDUCATION...... 15 2.1 Overall Results...... 16 2.2 Economic Contribution by Education Sub-sector...... 16 2.2.1 Gross State Product...... 17 2.2.2 Employment...... 17 2.3 Economic Contribution by Source Market...... 19 2.3.1 Gross State Product...... 19 2.3.2 Employment...... 20 2.4 Economic Contribution by Key Sectors...... 21 2.4.1 Gross State Product...... 21 2.4.2 Employment...... 22 2.4.3 Economic Contribution by Key Sectors for VFR Impacts...... 23 APPENDICES...... 24 A. Glossary Of Terms And Abbreviations...... 25 B. Modelling Methodology And Assumptions...... 26 C. Input-Output Modelling...... 29 D. Summary Tables...... 31 E. Quotes...... 36

2 THE STRATEGIC AND ECONOMIC CONTEXT

International education is receiving increasing attention from governments around Australia, both in terms of policy reform and direct funding support. Although international education is consistently recognised by states and territories through their economic agendas, differences emerge in the way they choose to enhance the student experience, support market development, undertake overseas marketing and promotion and facilitate industry collaboration.

The sector has been a growing source of export income for Western Australia in recent years. Since coming into power in 2017, the McGowan Government has understood the economic value of the international education sector as a multi-billion dollar growth industry. Export revenue from international education has increased by 51 per cent to $2 billion in 2018-19 from its most recent low in 2012-13. However, the rest of the nation has been growing faster. By 2018-19 Western Australia’s share of international education national export revenue had fallen to 5.3 per cent, from a high of 8.1 per cent in 2009-10.

Over the last two years, deliberate and critical changes have been made in response to Western Australia’s loss of market share. In 2018, the WA Government launched its strategy, developed in partnership with StudyPerth, to attract international students to Western Australia and grow the state’s share of the international education market – Where Bright Futures Begin: International Education in Perth, Western Australia 2018-2025 (the Strategy) .

The Strategy identifies StudyPerth as the lead agency to deliver its objectives. Entrusted to deliver these objectives and implement the Strategy, StudyPerth developed its International Education Action Plan 2019- 2025 which was endorsed by the StudyPerth Board and launched by the Premier in 2019.

In May 2019, the Premier announced in the budget an additional $4.5m funding over three years for StudyPerth, to be matched by a member contribution levy to create new project fund to promote Western Australia as a first-choice study destination. The importance of the international education sector was further recognised as a priority for the WA Government through its identification as one of six priority sectors in the Diversify WA economic development framework. This matches global trends with WA’s unique strengths and seeks to create secure and high-quality jobs, as well as a stronger, more resilient economy to ride out the highs and lows of economic cycles and commodity prices.

The sector ended 2019 strong and optimistic; all providers anticipated stimulus from the new WA Government initiatives: the additional funding, the Strategy and Action Plan, the new migration designation and the extension of the State Nominated Migration Pathway (SNMP) Skilled Occupation list.

The initiatives and investment were evidently working - in March 2020 international student commencements were up 4 per cent year on year, whereas nationally there was a 0.8 per cent decrease. Western Australia had turned the corner.

COVID-19 and associated restrictions have forced all organisations to review their operations and plans. This applies to StudyPerth and all our member institutions and partners. The decisions and actions we all take in the near term are likely to affect the success and sustainability of our industry in the longer term. StudyPerth aims to ensure that the international education sector is well positioned to emerge strongly and sustainably from the shadows of COVID-19 and consolidate its position as an important component of a diversified WA economy.

In recognition of the strategic focus that has been increasingly placed on the international education sector, in March 2020 StudyPerth engaged ACIL Allen Consulting (ACIL Allen) to examine the economic contribution of the international education sector in WA.

3 The economic contribution study will assist StudyPerth in progressing its Recovery and Renewal Plan by explaining the scale and the channels through which the international education sector in Western Australia helps to grow the economy and support job opportunities.

This study has been limited to the economic contribution associated with the spending by international students on the WA economy in terms of its contribution to output and employment across all sectors of the economy for the most recently completed calendar year of 2019.

It should be noted, however, that the economic contribution of international education extends further than by the spending of international students. Some of these benefits, which have not been measured as part of this study, but which should be considered in order to understand the overall economic and social contribution of international education in Western Australia, include:

• A growing source of income to education institutions – which helps to support broader strategic objectives, such as investment in their facilities and infrastructure, and in helping to support important research. • A critical contribution to academic research. There were 41,574 students enrolled in scientific PhD and Masters degrees in 2018 (latest available) of which 23,066 were from overseas. These students were not just doing research for their own benefit but contributing long running basic and applied research for government and industry. • An important source of labour for many sectors of the WA economy in terms of seasonal, part time or casual employment. Longer term, the value of international students studying in WA can help to enhance the State’s population with some students choosing to migrate. • A source of demand for housing, helping to stimulate housing activity, which supports thousands of jobs in the building and construction industry. • Enhancing diversity and a cultural richness to our community, helping to build the State’s links and relationships with other countries including key trade partners. • Researchers who were born overseas but conduct their research in Australia (diaspora scientists) have contributed to global science through the exceptional quantity and quality of their scientific work and through connections to overseas researchers and research.

In estimating the economic contribution of international education, expenditure has been isolated through the two streams of international student expenditure, and visiting friends and relatives (VFR) expenditure. The economic modelling has been undertaken using ACIL Allen’s Input-Output (I-O) model of the WA economy (Appendix C). Results were produced by education sub-sector (Higher Education, VET, Schools, ELICOS and Non-award) and by key source market in terms of the direct and indirect impact of international student and VFR expenditure.

International education has been identified as a key component of the WA Government’s plan to grow and diversify the State’s economy. While the financial impact of international education is significant, the benefits of welcoming an increasing number of international students to WA go well beyond the purely economic. International students bring diversity and a cultural richness to our community, helping to build the State’s links and relationships with other countries, especially our trade partners.

- Philip Payne, Chief Executive Officer, StudyPerth

4 TRENDS IN INTERNATIONAL EDUCATION IN WESTERN AUSTRALIA

This section explores historical trends in the international education sector in Western Australia, compared with the trends more broadly across Australia and the States and Territories.

5 1.1 International Education and the WA Economy 1.1 International Education and the WA Economy International education has been a growing source of export income for Western Australia in recent years. InternationalSince its most education recent low has in been2012-13, a growing export source revenue of fromexport international income for Westerneducation Australia has increased in recent by years. 51 per cent Sinceto $2 billionits most in recent2018-19 low (Figure in 2012 1.1)-13,. exportHowever, revenue despite from this international relatively strong education growth has in increased international by 51 education per centexports, to $2 by billion 2018-19 in 2018 Western-19 (Figure Australia’s 1.1). However, share ofdespite the national this relatively export strong take growth had infallen international to 5.3 per cent education exports, by 2018-19 of national export revenueWester from na Australia’shigh of 8.1 share per of cent the national in 2009-10 export. Western take had Australia’s fallen to 5.3 share per centof the of national export revenue from a high of 8.1 per cent in 2009-10. Western Australia’s share of the internationalinternational education education sector sector compares compares unfavourably unfavourably when when measured measured against against broade broaderr measures, measures, where where WA WA accounts forfor almostalmost 15 15 per per cent cent of of Australia’s Australia’s GDP GDP andand 11 11 per per cent cent of of Australia’s Australia’s population. population.

FIGURE 1.1 WESTERN AUSTRALIA – INTERNATIONAL TRADE IN SERVICES – EDUCATION-RELATED SERVICES

$2,500m 10% WA Education-related Services (LHS)

National share (RHS) $2,000m 8%

$1,500m 6%

$1,000m 4%

$500m 2%

$0m 0% 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

SOURCE: AUSTRALIAN BUREAU OF STATISTICS

11.2.2 Enrolments byby educationeducation sub sub-sector-sector In 2019, there were in WA education and training institutions In 2019, there were53,404 53,404 international international student student enrolments enrolments in WA education and training institutions (Figure 1.2). While this was a healthy 70 per cent increase from 2005 levels, this does not compare favourably against(Figure the 1.2) trends. While nationally this was where a healthy total international 70 per cent student increase enrolments from 2005rose by levels 176 per, this cent does over not the compare same period.favourably against the trends nationally where total international student enrolments rose by 176 per cent over the same period.

The value gained from international education spreads way beyond the classroom and into our community, to support Australian society, our global standing, diplomatic, trade and investment relationships - all which have been enriched through our international education efforts. While the economic benefits are often spoken about, more importantly and more difficult to calculate, is the lasting legacy of an Australian education in our graduates and how it creates opportunities to enhance Australia’s global capabilities on an international stage.

- Rebecca Hall, Head of International Education Centre of Excellence, Australian Trade and Investment Commission (Austrade)

6 By sub-sector, higher education and vocational education and training (VET) account for the largest shares of Bytotal sub international-sector, higher student education enrolments and vocational in Western education Australia. and In training 2019, higher (VET) account education for accountedthe largest for shares almost ofhalf total of allinternational enrolments student (46.8 perenrolments cent), with in WesternVET accounting Australia. for In a 2019, further higher 29 per education cent. While accounted international for almoststudents half studying of all enrolments in higher (46.8 education per cent) institutions, with VET accounting accounts for for a the further largest 29 per share cent. of W allhi lstudents,e the igrowthnternati oovernal s ttimeuden t(43s s tperudy incent)g in h hasighe beenr edu cwellation below institu ttheions growth accoun tins f oVETr th eenrolments largest shar ofe o 350f all per cent sbetweentudents, t 2005he gr oandwth 2019. over t ime (43 per cent) has been well below the growth in VET enrolments of 350 per cent between 2005 and 2019. Of the remaining numbers of international students in Western Australia in 2019, they were either enrolled in OfELICOS the remaining (18.5 per numberscent), Non-award of international education students (4.5 per in cent) Western and AustraliaSchools (1.6in 2019, per cent). they wereIn the either period enrolled between in2005 ELICOS and 2019,(18.5 perinternational cent), Non student-award educationenrolments (4.5 in VETper coursescent) and have Schools increased (1.6 per by cent).350 per In centthe period and in higher betweeneducation 2005 courses and by2019, 42.6 international per cent. student enrolments in VET courses have increased by 350 per cent and in higher education courses by 42.6 per cent.

FIGURE 1.2 WESTERN AUSTRALIA INTERNATIONAL STUDENT ENROLMENTS BY EDUCATION SUB-SECTOR, 2005- 2019

60,000 Higher Education VET Schools ELICOS Non-award

50,000

40,000

30,000

20,000

10,000

0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

SOURCE: DEPARTMENT OF EDUCATION, SKILLS AND EMPLOYMENT

Quite apart from its economic contribution, the international education sector has also been a major catalyst for soft diplomacy which has benefited both the state and the nation.

Western Australia’s universities and its other education providers (including high schools, English Language Colleges and TAFE) continue to imbue overseas students with our western democracy inspired ideals, ethics and “can do” multicultural spirit.

There is also, increasingly, a happy juxtaposition between the teaching provided by our state’s education institutions and the world of work. Global corporations are actively seeking out young graduates with the same above mentioned attributes. These corporations see Australian educated students as having global citizenship attributes which allow them to work effectively in teams across different political systems and cultures.

- Hon. Phil Honeywood, Chief Executive Officer, International Education Association of Australia

7 Figure 1.3 highlights the trends in the growth in international student enrolments in WA relative to other States and Territories. Between 2005 and 2019, total international student enrolments in Western Australia have increased by 4.2 per cent per annum, which was the lowest annual rate of growth of any State or Figure 1.3 highlights the trends in the growth in international student enrolments in WA relative to other Territory. States and Territories. Between 2005 and 2019, total international student enrolments in Western Australia have increased by 4.2 per cent per annum, which was the lowest annual rate of growth of any State or Figure 1.3 highlights the trends in the growth in international student enrolments in WA relative to other Territory. States and Territories. Between 2005 and 2019, total international student enrolments in Western Australia FhaveIGUR increasedE 1.3 byAV E4.2RA GperE A NcentNUA perL G Rannum,OWTH R whichATE OF was TOT AthL eIN loTEwReNsAt TaInOnNuAaLl SrTaUteD oENf gT rEoNwRtOhL oMfE aNnTyS ,S 2ta0t0e5 -o2r0 19 Territory. 18% FIGURE 1.3 AVERAGE ANNUAL GROWTH RATE OF TOTAL INTERNATIONAL STUDENT ENROLMENTS, 2005-2019 15% 18% 12% 15% 9% 12% 6% 9% 3% 6% 0% 3% NT TAS VIC ACT NSW QLD SA WA

SOURCE:0% DEPARTMENT OF EDUCATION, SKILLS AND EMPLOYMENT NT TAS VIC ACT NSW QLD SA WA

SOURCE: DEPARTMENT OF EDUCATION, SKILLS AND EMPLOYMENT 1.2.1 Higher education 1.2.1 Higher education In 2019, there were 24,886 international student enrolments in higher education in Western Australia, In 2019, there were 24,886 international student enrolments in higher education in Western Australia, equating equating1.2.1 Higher to 5.6 per education cent of the total international student enrolments for higher education in Australia. As to 5.6 per cent of the total international student enrolments for higher education in Australia. As presented in presented in Error! Reference source not found., WA’s share of the national enrolments from international InFigure 2019, 1.4 there, WA’s were share 24, of886 the international national enrolments student enrolments from international in higher students education in higher in Western education Australia, has been in students in higher education has been in steady decline since 2005 when WA accounted for 9.8 per cent of equatingsteady decline to 5.6 since per cent 2005 of when the total WA accountedinternational for student 9.8 per enrolmentscent of the nationalfor higher total. education in Australia. As the national total. presented in Error! Reference source not found., WA’s share of the national enrolments from international FstudentsIGURE 1. 4in higherWE SeducationTERN AUS ThasRAL beenIA SHA inRE steady OF INT declineERNATIO sinceNAL S2005TUDE NwhenT EN RWAOL MaccountedENTS FOR HforIG H9.8ER per EDU centCATI OofN the national total.IN AUSTRALIA, 2005-2019

FI12%GURE 1.4 WESTERN AUSTRALIA SHARE OF INTERNATIONAL STUDENT ENROLMENTS FOR HIGHER EDUCATION IN AUSTRALIA, 2005-2019 10% 12%

8% 10%

6% 8%

4% 6%

2% 4%

0% 2% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

SOURCE:0% DEPARTMENT OF EDUCATION, SKILLS AND EMPLOYMENT 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

SOURCE: DEPARTMENT OF EDUCATION, SKILLS AND EMPLOYMENT

1.2.2 Vocational education and training (VET) 1.2.21.2.2 Vocational educationeducation andand trainingtraining (VET)(VET) In 2019, there were 15,406 international student enrolments in VET in Western Australia, equating to 5.4 perInIn cent 2019, of there the total were international 115,4065,406 iinternationalnter nstudentational senrolmentst ustudentdent enr enrolmentso forlme VETnts iinn VAustralia.E inT i nVET We in s2,139te Westernrn A ofus thesetra lAustraliaia, equatingenrolments, equating to 5.4were to Government5.4per percent cent of VETthe of the totaland total 13,267international international were nonstudent student-Government enrolments enrolments VET, for equating forVET VET in Australia. in to Australia. 13.0 2,139per 2,139 cent of these ofand these 5.0 enrolments perenrolments cent wereof thewere totalGovernment international VET Government and 13,26713,267 were wereand nonnon-Government--GovernmentGovernment VET, VETVET, equating enrolmentsequating to to 13.0 in13.0 Australia, per per cent cent respectively.and and 5.0 5.0 per per cent As cent of theof the total international Government and non-Government VET enrolments in Australia, respectively. As presented presentedtotal international in Figure Government1.5, WA’s share and of non the-Government national enrolments VET enrolments from international in Australia, studentsrespectively. in non As - in Figure 1.5, WA’s share of the national enrolments from international students in non-Government VET Governmentpresented inVET Fig experiencedure 1.5, WA’s ashare strong of periodthe national of gro enrolmentswth from 2007 from to international 2016 where students WA’s share in non increased- experiencedGovernment aVET strong experienced period of a growth strong from period 2007 of gro to 2016wth from where 2007 WA’s to share 2016 increased where WA’s from share 3.6 increasedper cent to 8.1 from 3.6 per cent to 8.1 per cent (non-Government VET). Government VET experienced a similar strong perfrom cent 3.6 per(non-Government cent to 8.1 per VET). cent (nonGovernment-Government VET experienced VET). Government a similar VET strong experienced period aof similar growth strong from 2006 period of growth from 2006 to 2013 where WA’s share increased from 10.2 percent to 21.9 per cent. Since toperiod 2013 of where growth WA’s from share 2006 increased to 2013 wherefrom 10.2 WA’s percent share increased to 21.9 per from cent. 10.2 Since percent 2016, to 21.9WA’s pershare cent. of nationalSince 2016, WA’s share of national enrolments from international students in non-Government VET has declined enrolments2016, WA’s sharefrom internationalof national enrolments students in from non-Government international students VET has declinedin non-Government sharply to reach VET has a level declined in 2019 sharply to reach a level in 2019 of 5.0 per cent. Government VET recovered slightly from its drop in ofsharply 5.0 per to cent.reach Government a level in 2019 VET of recovered 5.0 per cent. slightly Government from its drop VET recoveredin 2013/2014 slightly between from 2014its drop and in 2016, then 2013/2014 between 2014 and 2016, then declined sharply to a level in 2019 of 13.0 per cent. Overall, WA’s declined2013/2014 sharply between to a level2014 in and 2019 2016, of 13.0 then per declined cent. Overall, sharply WA’s to a share level ofin national2019 of 13.0enrolments per cent. from Overall, international WA’s share of national enrolments from international students in VET has declined to a level in 2019 (5.4 per studentsshare of nationalin VET has enrolments declined tofrom a level international in 2019 (5.4 students per cent) in VETthat hasis below declined WA’s to share a level in in2005 2019 (6.7 (5.4 per per cent). cent) that is below WA’s share in 2005 (6.7 per cent). cent) that is below WA’s share in 2005 (6.7 per cent). FIGURE 1.5 WESTERN AUSTRALIA SHARE OF INTERNATIONAL STUDENT ENROLMENTS FOR GOVERNMENT AND FIGURE 1.5 WESTERN AUSTRALIA SHARE OF INTERNATIONAL STUDENT ENROLMENTS FOR GOVERNMENT AND NONNO-NG-OGVOEVRENRNMMENENT TV VEET TI NIN A AUUSSTTRRAALLIAIA, ,2 2000055--22001199

SOURCE:SOURCE: DEPARTMENT DEPARTMENT OF OF EDCUATION, EDCUATION, SKILLS SKILLS AND AND EMPLOYMENT EMPLOYMENT

An Australia education is a fast-track to becoming influential members of the community on a student’s return to their home country or wherever they live their lives. Australia must be at the cutting edge of new knowledge, essential in a fast-evolving world. Former international students bring those links to allow us to be part of leading international networks. As examples, those who enter the diplomatic, commercial and academic worlds have an advantage when forming international alliances and partnerships: there is a common understanding and greater confidence of a good outcome.

- Professor Lyn Beazley AO FAA FTSE, Former Chief Scientist and Western Australian of the Year

9 1.2.3 Schools, ELICOS and Non-award

In 2019, there were 864 international student enrolments in Schools in Western Australia, equating to 3.4 1.2.3per cent Schools, of the total ELICOS international and Non-award student enrolments for Schools in Australia. WA’s share of the national enrolments from international students in Schools has been in steady decline since 2005 when WA accounted Infor 2019, 8.8 per there cent were of the 864 national international total (2,210 student international enrolments students). in Schools in Western Australia, equating to 3.4 per cent of the total international student enrolments for Schools in Australia. WA’s share of the national 4 enrolmentsIn 2019, there from were international 9,868 inte rstudentsnational sintu Schoolsdent en hasrolm beenents iinn EsteadyLICOS decline in We ssincetern A2005ustra whenlia, equating WA accounted to 6.3 forper 8.8 cent per of cent the oftotal the international national total student (2,210 international enrolments students).for ELICOS in Australia. WA’s share of the national enrolments from international students for ELICOS remained within a tight range of 8-10 per cent in the Inperiod 2019, between there were 2005 9,868 and 2016.international However, studentin the last enrolments three years, WA’sin ELICOS share4 of in the Western national Australia total has ,declined equating toand 6.3 in per 2019 cent was of sitting the total at justinternational over 6 per student cent. enrolments for ELICOS in Australia. WA’s share of the national enrolments from international students for ELICOS remained within a tight range of 8-10 per cent in the period 5 betweenIn 2019, 2005there andwere 2016. 2,38 However,0 interna tinio ntheal slasttud threeent e nyears,rolme WA’snts i nshare Non of-aw theard national course stotal in Whases tdeclinedern Aus tandralia in, 2019equa twasing tsittingo 4.9 pate rjust cen overt of t6h pere to cent.tal international student enrolments for Non-award courses in Australia. WA’s share of the national enrolments from international students for Non-award courses remained within a Intight 2019, range there of were6-8 per 2,380 cent international in the period betweenstudent 2005enrolments and 2016. in Non-awardHowever, in coursesthe last three5 in Western years, WA’s Australia, share equatingof the national to 4.9 total per has cent declined of the and total in 2019 international was sitting atstudent just under enrolments 5 per cent. for Non-award courses in Australia. WA’s share of the national enrolments from international students for Non-award courses remained withinFigure a1 tight.6 presents range of Western 6-8 per Australia’scent in the shareperiod of between international 2005 andstudent 2016. enrolments However, in for the Schools, last three ELICOS years, and WA’s shareNon-award of the in national Australia total over has the declined period andfrom in 2005 2019 to was 2019. sitting at just under 5 per cent.

4 ELICOS courses help to support students who require English language training before commencing formal studies in FigureAustralia. 1.6 5 Non presents-award coursesWestern do Australia’s not result inshare an award of international (or qualification) student that is enrolmentsrecognised under for Schools, the Australian ELICOS and Non-awardQualifications in Framework Australia overand generally the period have from a duration 2005 to of 2019.less than one year.

FIGURE 1.6 WESTERN AUSTRALIA SHARE OF INTERNATIONAL STUDENT ENROLMENTS FOR SCHOOLS, ELICOS AND NON-AWARD IN AUSTRALIA, 2005-2019

12% Schools ELICOS Non-award 10%

0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 SOURCE: DEPARTMENT OF EDUCATION, SKILLS AND EMPLOYMENT

4 ELICOS courses help to support students who require English language training before commencing formal studies in Australia. 5 Non-award courses do not result in an award (or qualification) that is recognised under the Australian Qualifications Framework and generally have a duration of less than one year.

Having my son study in a school with international students, to me, means that he can gain the advantages of learning the value of empathy and understanding for different cultures. Something that I feel a lot of teenage boys can struggle with these days. As we move into a new and dynamic world, it is very likely that global mobility and diversity will be an increasing part of everyday life. I want to make sure that I have done all I can to prepare my child for this and ensure he is able to actively participate as a 21st century global citizen. With him learning beside international students in the classroom and making friends with other students from all corners of the globe, he gains the awareness and understanding needed that will see him better skilled to successfully navigate his pathway through life.

- Parent of a Year 11 student at St Mark’s Anglican Community School

10 1.3 Enrolments by source market 1.3 Enrolments by source market The scope of source markets for international students in Western Australia is uniquely diverse. In this The scope of source markets for international students in Western Australia is uniquely diverse. In this section, section, it is highlighted how this diversity has developed in conjunction with the broader growth of the it is highlighted how this diversity has developed in conjunction with the broader growth of the international internationaleducation sector, education and the sector, flow-on and theeffects flow -onfor effectsthe demand for the fordemand the different for the different education education sub-sectors sub- sectorsin Western inAustralia. Western Australia. Figure 1.7 presents the top ten source markets for international students in Western Australia and the Figure 1.7 presents the top ten source markets for international students in Western Australia and the breakdown of enrolments by education sub-sector. The two largest source markets for international students breakdown of enrolments by education sub-sector. The two largest source markets for international are India and China, which account for 16.7 per cent and 15.7 per cent of total international student students are India and China, which account for 16.7 per cent and 15.7 per cent of total international student enrolments respectively.respectively. IndiaIndia andand ChinaChina havehave aa similarsimilar number number of of students students enrolled enrolled in in higher higher education, education, however the the breakdown breakdown of of the the remaining remaining enrolments enrolments differ, differ, with with India India having having a higher a proportionhigher proportion in VET inVET coursescourses aandnd China with a higherhigher proportionproportion enrolled in ELICOS. Malaysia (5.7 per cent), Brazil (4.3 per cent) and Bhutan (4.2 per cent) are the next three largest source Malaysia (5.7 per cent), Brazil (4.3 per cent) and Bhutan (4.2 per cent) are the next three largest source markets markets for international students. A significant share of international students from Brazil are enrolled in for international students. A significant share of international students from Brazil are enrolled in either ELICOS either ELICOS or VET courses, with smaller numbers enrolled in higher education. This compares against or VET courses, with smaller numbers enrolled in higher education. This compares against countries such as countriesMalaysia, Pakistan,such as Malaysia, and Singapore, Pakistan, where and theSingapore, greatest where numbers the ofgreatest international numbers students of international are typically students enrolled arein higher typically education. enrolled in higher education.

FIGURE 1.7 TOP TEN SOURCE MARKETS IN WESTERN AUSTRALIA (2019)

10,000 16.7% Higher Education VET Schools ELICOS Non-award 15.7% 8,000

6,000

4,000 5.7% 4.3% 4.2% 3.5% 3.2% 2,000 3.3% 3% 2.7%

0 India China Malaysia Brazil Bhutan Nepal Pakistan Colombia Vietnam Singapore

SOURCE: DEPARTMENT OF EDUCATION, SKILLS AND EMPLOYMENT

In today’s world we need to find ways for greater understanding of different cultures, traditions and languages and our international students provide us this opportunity. International students also bring different perspectives, points of view and approaches that enrich the research and learning environment for their local student counterparts, which ultimately enhances productivity, stimulates innovation and supports skills and preparedness for a changing global workforce. I also see first-hand the engaged and active “citizenship” by international students within our local communities; be it engaging in part-time work and giving back through volunteering. Their contribution is enormous and goes a long way in helping our communities to be more cohesive, more resilient and more inclusive.

- Morgan Lewis, Chief Executive Officer, Auspire

11 Across all source markets, Western Australia’s share of the national total is highest for Bhutan (56.4 per cent Across all source markets, Western Australia’s share of the national total is highest for Bhutan (56.4 per cent of all enrolments, for a total of 2,222 enrolments) Singapore (17.6 per cent of national enrolments, for a total of all enrolments, for a total of 2,222 enrolments) Singapore (17.6 per cent of national enrolments, for a total of 1,468 enrolments), and Malaysia (9.9 per cent of national enrolments, for a total of 3,051 enrolments (Table of 1,468 enrolments), and Malaysia (9.9 per cent of national enrolments, for a total of 3,051 enrolments (Table 1.2). While India and China are Western Australia’s largest source markets for international students, their 1.1). While India and China are Western Australia’s largest source markets for international students, their share ofshare the nationalof the national total is lowtotal compared is low compared to other sourceto other markets source (at markets 6.2 per cent(at 6.2 and per 3.2 cent per centand respectively).3.2 per cent respectively).

TABLETABLE 1.11.2 TOPTOP TENTEN SOURCESOURCE MARKETSMARKETS ININ WWESTERNESTERN AAUSTRALIAUSTRALIA CCOMPAREDOMPARED TTOO NNATIONALATIONAL E ENROLMENTSNROLMENTS ( 2(2019)019)

Country Western Australia Australia

Enrolments Share of Total Share of Total Enrolments Share of Total (Rank) WA Enrolments AUS (Rank) AUS Enrolments Enrolments India 8,904 (1) 16.7% 6.2% 143,691 (2) 15%

China 8,394 (2) 15.7% 3.2% 260,819 (1) 27.3%

Malaysia 3,051 (3) 5.7% 9.9% 30,726 (7) 3.2%

Brazil 2,310 (4) 4.3% 5.7% 40,874 (4) 4.3%

Bhutan 2,222 (5) 4.2% 56.4% 3,938 (30) 0.4%

Nepal 1,866 (6) 3.5% 2.7% 69,259 (3) 7.2%

Pakistan 1,746 (7) 3.3% 9.1% 19,198 (12) 2%

Colombia 1,708 (8) 3.2% 5.4% 31,773 (6) 3.3%

Vietnam 1,587 (9) 3% 5% 31,850 (5) 3.3%

Singapore 1,468 (10) 2.7% 17.6% 8,323 (20) 0.9%

SOURCE: DEPARTMENT OF EDUCATION, SKILLS AND EMPLOYMENT

Some clear trends emerge in relation to international student demand across the five education sub-sectors Somewhen theclear source trends markets emerge are in relation aggregated to international at a regional student level. Asdemand presented across in theErr ofiver! R eeducationference s osuburc esectors not whenfound .the, approximately source markets 54 perare aggregatedcent of international at a regional students level. fromAs presented Asian countries in Figure are 1.8 enrolled, approximately in higher 54 pereducation. cent of By international contrast, only students 7 per centfrom of Asian international countries students are enrolled from in South higher American education. countries By contrast, and 15 only per 7 percent cent from of European international countries students are from enrol Southled in American higher education. countries Theand top15 per education cent from sub European-sector for countries South are enrolled in higher education. The top education sub-sector for South American students is ELICOS (62 per American students is ELICOS (62 per cent) and for European students it is VET courses (41 per cent). cent) and for European students it is VET courses (41 per cent). Approximately 38 per cent of North American Approximately 38 per cent of North American students are enrolled in Non-award courses. students are enrolled in Non-award courses.

12 FIGURE 1.8 REGIONAL INTERNATIONAL STUDENT ENROLMENT BY EDUCATION SUB-SECTOR

FIGURE 1.8 REGIONAL INTERNATIONAL STUDENT ENROLMENT BY EDUCATION SUB-SECTOR Higher Education VET Schools ELICOS Non-award

Higher Education VET Schools ELICOS Non-award Asia

Asia

South America

Europe

Africa

North America

North America 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% SOURCE: DEPARTMENT OF EDUCATION, SKILLS AND EMPLOYMENT

SOURCE: DEPARTMENT OF EDUCATION, SKILLS AND EMPLOYMENT

Error! Reference source not found. presents the top ten source markets for higher education in Western Figure 1.9 presents the top ten source markets for higher education in Western Australia. The six source Australia. The six source markets with greater than 1,000 students enrolled in higher education are China, Emarketsrror! Re withferen greaterce sour thance n o1,000t foun studentsd. presents enrolled the top in higherten source education markets are for China, higher India, education Malaysia, in Singapore,Western India, Malaysia, Singapore, Bhutan and Pakistan. Australia.Bhutan and The Pakistan. six source markets with greater than 1,000 students enrolled in higher education are China, India,FIGUR EMalaysia, 1.9 Singapore,TOP TEN SO UBhutanRCE MA andRKE TPakistan.S FOR HIG HER EDUCATION (2019)

FIG6,000URE 1.9 TOP TEN SOURCE MARKETS FOR HIGHER EDUCATION (2019)

6,000 5,000

5,000 4,000

4,000 3,000

3,000 2,000

2,000 1,000

1,000 0 China India Malaysia Singapore Bhutan Pakistan Nepal Sri Lanka Kenya Vietnam 0 SOURCE: DEPARTMENTChina India OF EDUCATION,Malaysia SKILLSSingapore AND EMPLOYMENTBhutan Pakistan Nepal Sri Lanka Kenya Vietnam

SOURCE: DEPARTMENT OF EDUCATION, SKILLS AND EMPLOYMENT

13 In 2019, there were international students from a total 152 countries in Western Australia, yet only two countriesIn 2019, there (India were and international China) had studentsa share of from the a total total international152 countries student in Western enrolments Australia, in yet Western only two Australia countries greater(India and than China) 10 per had cent a share (Erro ofr! Rtheefe rtotalence international source not f ostudentund.). The enrolments top five sourcein Western markets Australia for international greater than students10 per cent in Western(Figure 1.7)Australia. The topcapture five 46.6source per centmarkets of totalfor international international students student in enrolments, Western Australia while the capture top 46.6 per cent of total international student enrolments, while the top ten source markets capture 62.3 per cent ten source markets capture 62.3 per cent (Error! Reference source not found.). This reflects the diversity of (Figure 1.10). This reflects the diversity of source markets in Western Australia compared to other Australian source markets in Western Australia compared to other Australian jurisdictions such as Victoria, the second jurisdictions such as Victoria, the second largest state in Australia for total international student enrolments, largest state in Australia for total international student enrolments, where the top source markets account where the top source markets account for 63.2 per cent of total enrolments and the top ten source markets for 63.2 per cent of total enrolments and the top ten source markets account for 77.8 per cent of the total in account for 77.8 per cent of the total in Victoria. Victoria.

FIGURE 1.10 DIVERSITY OF SOURCE MARKETS – JURISDICTION COMPARISON

100% Top 5 Share 90% Top 10 Share 80%

70%

60%

50%

40%

30%

20%

10%

0% WA NSW VIC QLD SA TAS ACT NT SOURCE: DEPARTMENT OF EDUCATION, SKILLS AND EMPLOYMENT

International students are ambassadors for our state within Australia and internationally, not only as examples of the excellence of our educational institutions but also because they can provide authentic testimonials about the quality of the state as a destination in which to live, study and visit.

The international student alumni that have studied in WA and now reside overseas, either in their home country or elsewhere, is an invaluable professional network that provides intelligence and connections into international business, industry and academia.

- Gareth Martin, Chief Executive Officer, Business Events Perth

14 ECONOMIC CONTRIBUTION OF INTERNATIONAL EDUCATION

The results presented in this section articulate the economic contribution that spending by international students made to Western Australia in 2019, using ACIL Allen’s Input-Output modelling framework. The economic contribution has been measured in terms of the direct and indirect contribution to value added (Gross State Product) and employment (FTE basis). The results of ACIL Allen’s analysis and modelling are presented in terms of the overall results, with results also presented by education sub-sector, by source market, and by industry.

15 2.1 Overall Results

This section highlights the important economic contribution that international education makes to the WA economy, both directly to the education and training sector, and also more broadly across all sectors of the WA economy.

It is estimated that international students directly contributed $549 million to the WA economy in 2019, with a further $1,556 million boost to the economy indirectly as a result of the international student expenditure. When the contribution of visiting friends and relatives is also included, is it estimated that the 53,404 international students studying in Western Australia contributed $2.1 billion to the WA economy in 2019.

Based on these results, it is estimated that for every international student enrolled in WA, $39,417 is contributed to the State’s economy.

The economic multiplier of international student expenditure is estimated to be 3.84, meaning every dollar of spending by an international student generates $3.84 in value added across the WA economy. The high economic multiplier highlights the significant stimulus that international student expenditure generates across the WA economy.

It is estimated that the expenditure by international students in 2019 directly supported the employment of 4,144 FTE jobs, and a further 7,790 FTE jobs were indirectly created as a result of this spending, with an implied employment multiplier of 2.88.

Overall, international student expenditure supported 11,935 direct and indirect FTE jobs across Western Australia in 2019. To put this into comparison, the total number of FTE jobs supported by international student expenditure, equated to around one fifth of all FTE jobs in the education and training sector and was more than the total number FTE jobs in the Arts and Recreational Services sector in WA at the end of 2019. Based on these results, it is estimated that for every 5 international students enrolled in WA, an additional FTE job is created in the State.

2.2 Economic Contribution by Education Sub-sector

In addition to the overall results presented in the previous section, ACIL Allen has estimated the economic contribution of international students in Western Australia by education sub-sector (Higher education, VET, Schools, ELICOS and Non-award). When drawing inferences and assessing the implications of the results presented below, it is important to recognise that the duration and associated fee structures for each of the education sub-sectors differ substantially. For instance, an international student enrolled in higher education is likely to have the longest duration of time spent in WA over the course of a year and the fees associated with a higher education course are significantly higher compared to the other education sub-sectors.

Not only does the City of Perth value highly the significant contribution international students make to the economic health of Perth, we also recognise the vibrant role the presence of international students play in bringing Perth’s cultural and entertainment precincts alive. This is why the City continues to invest in supporting the development and growth of the education sector within the city.

- Daniel High, Alliance Manager of Economic Development, City of Perth

16 2.2.1 Gross State Product 2.2.1 Gross State Product Figure 2.2 presents the value added contribution to GSP from international students by education sub-sector. TheErro rhigher! Refer educationence sour csectore not fmadeound. uppresents the largest the value share added of the contribution overall contribution, to GSP from reflecting international the larger share ofstudents international by education students sub in- sector.higher education,The higher theeducation higher feessector associated made up with the largesthigher educationshare of the and overall the longer durationcontribution, of courses reflecting relative the larger to other share education of international sub sectors. students in higher education, the higher fees associated with higher education and the longer duration of courses relative to other education Itsub is-sec estimatedtors. that expenditure by international students in higher education contributed $1.53 billionIt is est itoma WA’sted t heconomy,at expend equatingiture by in ttoer nalmostational three-quartersstudents in high eofr etheduc totalation impact.contribu tTheed $VET1.5 3sector billio nwas to the nextWA’s largest,econom contributingy, equating t o$371 alm omillionst thre eto-q GSP,uart efollowedrs of the bytot aELICOSl impac ($93.9t. The VETmillion), sector Non-award was the next ($58.2 largest, million) andcontributing Schools ($51.5$371 million million). to GSP, followed by ELICOS ($93.9 million), Non-award ($58.2 million) and Schools ($51.5 million).

FIGURE 2.2 VALUE ADDED CONTRIBUTION FROM INTERNATIONAL STUDENTS BY EDUCATION SUB-SECTOR

$1,800m

Direct $1,500m Indirect

$1,200m

$900m

$600m

$300m

$0m Higher education VET Schools ELICOS Non-award SOURCE: ACIL ALLEN CONSULTING

Based on the numbers of studentsstudents enrolledenrolled inin eacheach educationeducation subsub-sector,-sector, itit isis estimatedestimated that that in in 2019, 2019, higher educationhigher education contributed contributed the greatest the greatest on a per on aenrolment per enrolment basis, basis, with witheach each international international student student contributing $61,508contributing to WA’s $61,508 economy. to WA’s Across economy. other Across education other sub-sectors, education sub it is-sectors, estimated it is estimatethat everyd thatenrolment every in VET contributedenrolment in $24,063 VET contributed to WA’s economy, $24,063 forto WA’s schools economy, every enrolment for schools generated every enrolment $59,646 generated to WA’s economy, $59,646 while to forWA’s ELICOS economy, $9,513 while per for enrolment ELICOS $9,513 and non per award enrolment it was and$24,463 non- awardper enrolment. it was $24,463 per enrolment.

2.2.2 Employment

Figure2.2.2 2.3Employment presents the employment supported by international students by education sub-sector. Higher educationError! Ref eagainrence provided source ntheot largestfound. boostpresents to jobs the ofemployment all education supported sub sectors, by reflecting international the largerstudents share by of international students in higher education, the higher fees associated with higher education and the longer education sub-sector. Higher education again provided the largest boost to jobs of all education sub sectors, duration of courses relative to other education sub sectors. reflecting the larger share of international students in higher education, the higher fees associated with higher education and the longer duration of courses relative to other education sub-sectors. Higher education supported 8,562 direct and indirect FTE jobs across WA, equating to 72 per cent ofHig theher totaleduca employmenttion supporte dsupported 8,562 dire cbyt a internationalnd indirect FTE students. jobs acros Thes W AVET, eq sectoruating wasto 7 the2 p esecondr cent olargestf the tcontributorotal employ tom ethent s overallupport eemploymentd by interna timpactsional stu (1,948dents. FTEThe VETjobs), sector followed was bythe ELICOS second (715largest FTE contributor jobs), Schools to (368 FTE jobs) and Non-award (341 FTE jobs). the overall employment impacts (1,948 FTE jobs), followed by ELICOS (715 FTE jobs), Schools (368 FTE jobs) and Non-award (341 FTE jobs).

17 FIGURE 2.3 EMPLOYMENT CONTRIBUTION FROM INTERNATIONAL STUDENTS BY EDUCATION SUB- SECTOR

10,000

Direct Indirect

8,000

6,000

4,000

2,000

0 Higher education VET Schools ELICOS Non-award SOURCE: ACIL ALLEN CONSULTING

Based on the numbers of students enrolled in each education sub-sector in Western Australia, it is estimated that in 2019 one FTE job was supported in the WA economy for:

The •economic every 3 studentscontribution enrolled study in higher will education;assist StudyPerth in progressing its Recovery and Renewal Plan by explaining the scale and the channels through which the international education sector in • every 8 students enrolled in VET; Western Australia helps to grow the economy and support job opportunities. • every 2 students enrolled in Schools; Based• onevery the numbers14 students of enrolledstudents in enrolled ELICOS; in and each education sub-sector in Western Australia, it is estimated that in 2019 one FTE job was supported in the WA economy for: • every 7 students enrolled in the non-award sub sector.

Across• allevery sub 3-sectors, students it enrolledis estimate in higherd that oneducation; average every five international students studying in Western Australia• every supported 8 students one FTE enrolled job. in VET; • every 2 students enrolled in Schools; • every 14 students enrolled in ELICOS; and • every 7 students enrolled in the non-award sub sector.

Across all sub-sectors, it is estimated that on average every five international students studying in Western Australia supported one FTE job.

WA is the powerhouse of our nation’s trade. Providing overseas students access to higher education makes a significant contribution to our economy and provides the foundation for greater trade and cultural exchange for generations to come.

The jobs created through international education extend beyond our universities and VET sector to sectors such as tourism, retail, hospitality and real estate.

- Chris Rodwell, Chief Executive Officer, Chamber of Commerce and Industry of Western Australia

18 2.3 Economic Contribution by Source Market

This report estimated the economic contribution of international students in Western Australia by source markets with total enrolments of greater than 1,000 students. There are 17 source markets that meet the criterion for this threshold, with the remaining source markets included under the ‘All Others’ category. When 2drawing.3 Economic inferences andContribution assessing the by implicationsSource Market of the results presented below, it is important to recognise differences across source markets are mainly driven by variations in education sub-sector compositions (eg. This report estimated the economic contribution of international students in Western Australia by source markets a low proportion enrolled in higher education) and variations in relative spending patterns which have been with total enrolments of greater than 1,000 students. There are 17 source markets that meet the criterion for adjusted for through the allocation of expenditure profiles based on the relative wealth of the source market this threshold, with the remaining source markets included under the ‘All Others’ category. When drawing inferences(see Table andD.2 ).assessing the implications of the results presented below, it is important to recognise differences across source markets are mainly driven by variations in education sub-sector compositions (eg. a low proportion2.3.1 Gross enrolled State in higher Product education) and variations in relative spending patterns which have been adjusted for through the allocation of expenditure profiles based on the relative wealth of the source market (see TableFigure 2 .2.42). presents the value added contribution to GSP from international students by source markets with total enrolments of greater than 1,000 students. It is estimated that the top two source markets in India 2and.3.1 China Gross accounted State Product for 38 per cent of the total value added contribution to GSP from international students in 2019. Figure 2.4 presents the value added contribution to GSP from international students by source markets with total enrolments of greater than 1,000 students. It is estimated that the top two source markets in India and ChinaInternational accounted students for 38 fromper cent India, of thethe total largest value sourceadded contributionmarket, contributed to GSP from $398 international million studto theents WAin 2019.economy in 2019, closely followed by international students from China, which collectively contributed $393 million to GSP. International students from India, the largest source market, contributed $398 million to the WA economy in 2019, closely followed by international students from China, which collectively contributed $393 million to GSP. While India and China were the largest single markets for international students, one of the defining features Whileof international India and China education were inthe Western largest single Australia markets is the for breadth international of source students, markets, one of with the defininga further features 15 source of internationalmarkets with education student numbers in Western of overAustralia 1,000. is Ofthe these, breadth the of largest source source markets, markets with a in further 2019 were15 source Malaysia markets ($134 withmillion), student Bhutan numbers ($95 million)of over 1and,000. Singapore Of these, ($81 the largest million). source markets in 2019 were Malaysia ($134 million), Bhutan ($95 million) and Singapore ($81 million).

FIGURE 2.4 VALUE ADDED CONTRIBUTION FROM INTERNATIONAL STUDENTS BY SOURCE MARKET

$500m Direct

$400m Indirect

$300m

$200m

$100m

$0m

SOURCE: ACIL ALLEN CONSULTING

Based on the numbers of students from each source market, it is estimated that in 2019, the highest value source market on a per student basis was Singapore, with each student contributing on average $55,365 to the WABased economy, on the numbersfollowed by of Chinastudents ($46,768 from eachper student), source market, Pakistan it ($46,427),is estimated Indonesia that in 2019,($46,008), the highest and Kenya value ($45,281).source market Across on alla persource student countries, basis wasthe Singapore,average contribution with each ofstudent each internationalcontributing studenton average to the $55,365 WA economyto the WA in economy,2019 was followed$39,417. by China ($46,768 per student), Pakistan ($46,427), Indonesia ($46,008), and Kenya ($45,281). Across all source countries, the average contribution of each international student to the WA economy in 2019 was $39,417.

2.3.2 Employment 2.3.2 Employment Figure 2.5 presents the employment supported by international students by source markets with total Figure 2.5 presents the employment supported by international students by source markets with total enrolments of greater than 1,000 students. It is estimated that the top two source markets in India and China enrolments of greater than 1,000 students. It is estimated that the top two source markets in India and aChinaccoun accountedted for 38 p eforr c e38nt perof t hcente tot aofl n theum btotaler of numberjobs supp ofor jobsted b supportedy internatio nbyal sinternationaltudents in 201 students9. in International2019. students from China, the largest source market, supported 2,260 direct and indirect FTE jobs in WA, followed closely by Indian students which supported 2,241 direct and indirect FTE jobs. International students from China, the largest source market, supported 2,260 direct and indirect FTE Asjobs noted in WA, above, followed given closelythe brea bydth Indian of the studentscountries ofwhich origin supported of international 2,241 students direct and studying indirect in WA,FTE therejobs. areAs noted thousands above, of given additional the breadth jobs supported of the countries by international of origin of studentsinternational from students smaller studyingmarkets. inOf WA, those, there the are largestthousands number of additional of jobs supported jobs supported in WA by were international from students students from from Malaysia smaller (767 markets. FTE jobs), Of Bhutanthose, the (535 largest FTE jobs)number and of Singapore jobs supported (470 FTE in WAjobs). were from students from Malaysia (767 FTE jobs), Bhutan (535 FTE jobs) and Singapore (470 FTE jobs). Based on the numbers of students from each source market in Western Australia, it is estimated that in 2019 oBasedne FT Eon jo theb w anumberss suppor ofte dstudents in the W fromA eco eachnom ysource for: market in Western Australia, it is estimated that in 2019 one FTE job was supported in the WA economy for: • every 3 students from Singapore;

• • every 43 students from Singapore;China; • every 4 students from China; • • every 4 students from Pakistan; • • every 4 students from Indonesia; and • every 4 students from India. • every 4 students from India. Across all source countries, one FTE job was supported for every five international students studying in Western AcrossAustralia all in source 2019. countries, one FTE job was supported for every five international students studying in Western Australia in 2019.

FIGURE 2.5 EMPLOYMENT CONTRIBUTION FROM INTERNATIONAL STUDENTS BY SOURCE MARKET

2,500 Direct Indirect 2,000

1,500

1,000

500

India China Brazil Nepal Japan Taiwan Kenya Bhutan Pakistan Vietnam Malaysia Colombia Indonesia Singapore Philippines All Others Hong Kong South Korea SOURCE: ACIL ALLEN CONSULTING

International Students are also great consumers in our economy both individually in their enjoyment of food, beverage and hospitality as well as in attracting visiting friends and relatives to Western Australia.

- Bradley Woods, Chief Executive Officer, Australian Hotels Association Western Australia

20 2.4 Economic Contribution by Key Sectors

ACIL Allen has estimated the economic contribution of international students and VFR by sector in order to demonstrate the broader impacts that arise from international students studying in Western Australia.

2.4.1 Gross State Product

Figure 2.6 presents the value added contribution to GSP from international students by key sectors. The 2.4 Economic Contribution by Key Sectors Education and Training sector of the WA economy was the largest beneficiary of the expenditure ACILby international Allen has estimated students, the witheconomic $549 contribution million directly of international contributed students to the and sector VFR by(primarily sector in in order the form to demonstrateof course fees) the and broader a further impacts $34 that million arise indirectly from international to the sector. students For other studying sectors in Western of the economy,Australia. reflect the indirect benefits arising from the expenditure from international students that is not related to the provision 2of.4.1 education. Gross State Product Figure 2.6 presents the value added contribution to GSP from international students by key sectors. The EducationIt is estimated and Trainingthat the sector contribution of the WA to Rental,economy hiring was the and largest real beneficiary estate services of the expenditure sector amounted by international to $451 students,million in with value $549 added million terms directly in contributed2019. To put to thisthe sector into perspective, (primarily in the international form of course student fees) and expenditure a further $34accounted million indirectly for one toin the every sector. twelve For otherdollars sectors generated of the economy, in the Rental, reflect hiringthe indirect and benefitsreal estate arising services from thesector expendit in 2019ure .from international students that is not related to the provision of education. It is estimated that the contribution to Rental, hiring and real estate services sector amounted to $451 million in valueRetail addedtrade terms($228 inmillion), 2019. To Transport, put this into postal perspective, and warehousing international ($105 student million) expenditure and Financial accounted and for insurance one in 6 everyservices twelve ($92 dollars million) generated sectors in were the Rental, also significant hiring and real beneficiaries estate services from sector international in 2019. student expenditure in 2019. Retail trade ($228 million), Transport, postal and warehousing ($105 million) and Financial and insurance services ($92 million) sectors6 were also significant beneficiaries from international student expenditure in 2019. 6 Expenditure allocated as “Food, drink and accommodation” under the TRA expenditure profile framework has been split by 6ACIL Expenditure Allen in the allocated I-O modelling as “Food, across drink four and categories. accommodation” The accommodation under the TRA component expenditure of “Accommodation profile framework and has food been services” split is byhotels, ACIL but Allen not inrenting the I- aO home.modelling Renting across a home four wouldcategories. be categorized The accommodation under “Rental, component hiring and of real “Accommodation estate services”. and food services” is hotels, but not renting a home. Renting a home would be categorized under “Rental, hiring and real estate services”.

FIGURE 2.6 VALUE ADDED CONTRIBUTION FROM INTERNATIONAL STUDENTS BY KEY SECTORS

Education and training Rental, hiring and real estate services Retail trade Transport, postal and warehousing Direct Financial and insurance services Indirect Administrative and support services Accommodation and food services Manufacturing Wholesale trade Professional services Health care and social assistance Agriculture, forestry and fishing Information media and telecommunications Other services Electricity, gas, water and waste services Construction Mining Arts and recreation services Public administration and safety

$0m $200m $400m $600m SOURCE: ACIL ALLEN CONSULTING

2.4.2 Employment 2.4.2 Employment Figure 2.7 presents the employment supported by international students by key sectors. It is estimated that Figureinternational 2.7 presents students the directly employment supported supported 4,144 FTE by jobs international in the Education students and by training key sectors. sector, Itwith is estimated a further 384 that FTE jobs supported on an indirect basis. On an indirect basis, the industries that generated the largest international students directly supported 4,144 FTE jobs in the Education and training sector, with a further employment opportunities as a result of the expenditure by international students were Retail Trade (1,577 FTE 384 FTE jobs supported on an indirect basis. On an indirect basis, the industries that generated the largest jobs), followed by Accommodation and food services (1,349 FTE jobs), Transport, postal and warehousing (510 employmentFTE jobs) and opportunities Manufacturing as (499a result FTE of jobs). the expenditure7 These results by international highlight the students important were role Retailthat international Trade (1,577 FTEstudents jobs), make followed in not by only Accommodation growing Western and Australia’s food services education (1,349 andFTE trainingjobs), Transport, sector, but postal also inand supporting warehousing job 7 (510creation FTE mor jobs)e broadly and Manufacturing across all sectors (499 of FTEthe economy jobs). These. results highlight the important role that international students make in not only growing Western Australia’s education and training sector, 7 “Accommodation and food services” has a high labour to capital ratio, while “Rental, hiring and real estate services” has a but also in supporting job creation more broadly across all sectors of the economy. high capital to labour ratio.

FIGURE 2.7 EMPLOYMENT CONTRIBUTION FROM INTERNATIONAL STUDENTS BY KEY SECTORS

Education and training Retail trade Accommodation and food services

Transport, postal and warehousing Direct

Manufacturing Indirect Other services Professional services Health care and social assistance Administrative and support services Wholesale trade Arts and recreation services Agriculture, forestry and fishing Financial and insurance services Construction Rental, hiring and real estate services Information media and telecommunications Public administration and safety Electricity, gas, water and waste services Mining

0 1,000 2,000 3,000 4,000 5,000 SOURCE: ACIL ALLEN CONSULTING

7 “Accommodation and food services” has a high labour to capital ratio, while “Rental, hiring and real estate services” has a high capital to labour ratio.

The contribution of international students is well understood by developers and urban planners, and for the first time this report reveals the actual economic value to WA. Visiting international students who invest in our State are attracted by the lifestyle, safety, amenity and long term capital growth prospects.

Beyond contributing to the thousands of direct and indirect jobs in the property sector, international students and temporary migrants add to the vibrancy and viability of the places they inhabit, filling cafes, restaurants, shops and gyms.

- Sandra Brewer, Executive Director, Property Council of Western Australia

22 2.4.3 Economic Contribution by Key Sectors for VFR Impacts

In relation to the economic contribution of visiting friends and relatives of international students in WA in 2019, the2.4.3 impact Economic by sector Contributionfollows a similar by profile Key Sectors to international for VFR students’ Impacts non-education related expenditure.

In relation to the economic contribution of visiting friends and relatives of international students in WA in 2019, Figure 2.8 presents the value added and employment contribution from VFR by key sectors. From a value the impact by sector follows a similar profile to international students’ non-education related expenditure. added perspective, it is estimated that Rental, hiring and real estate services were the largest beneficiary to the tuneFigure of 2 $5.8.8 presents million, the followed value added by Retail and tradeemployment ($3.9 million), contribution Transport, from VFR postal by keyand sectors.warehousing From a($1.37 value million),added Accommodationperspective, it is estimateand foodd servicesthat Rental, ($1.03 hiring million) and realand estateManufacturing services were($0.95 the million). largest beneficiary to the tune of $5.8 million, followed by Retail trade ($3.9 million), Transport, postal and warehousing ($1.37 million), FromAccommodation an employment and food perspective, services ($1.03the impacts million) were and slightlyManufacturing different, ($0.95 reflecting million). the different levels of labour intensityFrom an relatingemployment to each perspective, sector. It isthe estimated impacts werethat theslightly Retail different, trade sector reflecting would the have different the largest levels numberof labour of jobsintensity supported relating by to theeach expenditure sector. It is associated estimated thatwith theVFR Retail (24 FTE trade jobs), sector followed would by have Accommodation the largest number and food of servicesjobs supported (17 FTE by jobs), the andexpenditure Transport, associated postal and with warehousing VFR (24 FTE (7 FTEjobs), jobs). followed by Accommodation and food services (17 FTE jobs), and Transport, postal and warehousing (7 FTE jobs).

FIGURE 2.8 ECONOMIC CONTRIBUTION FROM VFR BY KEY SECTORS

Rental, hiring and real estate… Retail trade Retail trade Accommodation and food… Transport, postal and… Transport, postal and… Accommodation and food… Manufacturing Manufacturing Other services Wholesale trade Wholesale trade Financial and insurance services Professional services Administrative and support… Administrative and support… Agriculture, forestry and fishing Agriculture, forestry and fishing Professional services Arts and recreation services Electricity, gas, water and waste… Health care and social assistance Other services Rental, hiring and real estate… Construction Education and training Information media and… Construction Health care and social assistance Financial and insurance services Mining Electricity, gas, water and waste… Education and training Information media and… Arts and recreation services Public administration and safety Public administration and safety Mining

$0m $2m $4m $6m 0 5 10 15 20 25 30 SOURCE: ACIL ALLEN CONSULTING

International students make a significant contribution to the cultural and economic prosperity of our State, particularly when it comes to attracting international tourists. A strong international student market will help attract visiting friends and relatives from overseas. International students are also important to resourcing the tourism workforce.

- Evan Hall, Chief Executive Officer, Tourism Council of Western Australia

23 APPENDICES

24 A. Glossary Of Terms And Abbreviations A. Glossary Of Terms And Abbreviations

TABLE A.1 SUMMARY OF TERMS USED

Term used Meaning

Employment The number of full-time equivalent jobs created as a result of expenditure in the economy, which includes direct and indirect employment.

Gross product or real Gross product is a measure of the output generated by an economy economic output over a period of time (typically a year). It represents the total dollar value of all finalised goods and services produced and is considered as a measure of the size of the economy. At a national level, it is referred to as Gross Domestic Product (GDP); at the state level, Gross State Product (GSP); while at a regional level, Gross Regional Product (GRP).

Input-Output Tables Input-Output (I-O) tables capture the direct and indirect effects of expenditure by capturing, for each industry, the industries it purchases inputs from and also the industries it sells its outputs to.

TABLE A.2 SUMMARY OF ACRONYMS

Acronym Meaning

ABS Australian Bureau of Statistics

DESE Department of Education, Skills and Employment

ELICOS English Language Intensive Courses for Overseas Students

FTE Full Time Equivalent

GDP Gross Domestic Product

GSP Gross State Product

IVS International Visitor Survey

TRA Tourism Research Australia

VET Vocational education and training

VFR Visiting friends and relatives

25 B. B. Modelling Methodology And Assumptions

This sectionsection of of the the report report provides provides an an overview overview of of the the modelling modelling methodology, methodology, derived derived data data inputs inputs and andassumptions assumptions that have been used by ACIL Allen to estimate the economic contribution of international education in Western that have been used by ACIL Allen to estimate the economic contribution of international education in Western Australia. Australia.

B.1 BModelling.1 Methodology Methodology Overview And Assumptions

The calculation ofof aa setset ofof derivedderived data data inputs inputs was was a a critical critical step step prior prior to to the the commencement commencement of of the the economic economic modelling, as mostmost ofof thethe requiredrequired datadata inputs inputs are are not not directly directly available available from from the the primary primary data data sources sources of of the the ABS, TRA andand DESE.DESE. FigureFigure B.1B.1 demonstratesdemonstrates thethe interrelated interrelated data data inputs inputs that that capture capture different different aspects aspects of of the theinternational international education education sector sector and andthe transformationthe transformation of the of derivedthe derived data datainputs inputs to summarised to summarised data inputsdata and finally to the Input-Output modelling outputs. inputs and finally to the Input-Output modelling outputs.

Further information on ACIL Allen’s Input Output (IO) modelling framework is provided in AppendixAppendix C C. .

FIGURE B.1 SUMMARY OF ECONOMIC CONTRIBUTION MODELLING

Derived data inputs Summarised data inputs Input-Output (IO) modelling

Expenditure by education subsector Expenditure by industry Economic contribution by education subsector by education subsector Expenditure profile by Economic education sub-sector contribution of international Expenditure by VFR of education in WA international students Expenditure by industry Economic contribution by VFR of international by VFR of international Expenditure profile of VFR of students students* international students

Expenditure by market source Expenditure by industry Expenditure by industry by market source by education subsector Expenditure profile by market source

Note: The economic contribution by VFR of international students is presented as an aggregate figure and not by country of origin due to data constraints

SOURCE: ACIL ALLEN CONSULTING

B.2 Assumptions and Data Sources

This sectionB.2 of theAssumptions report provides andan overview Data Sources of the modelling methodology, derived data inputs and assumptions Thisthat studyhave beenfocuses used on by onshore ACIL Allen student to estimate enrolments the economic in higher contribution education, vocationalof international education education and training in Western Australia. (VET), schools, English Language Intensive Courses for Overseas Students (ELICOS) and non-award courses for students studying on student visas only. The contribution of revenue from other forms of international educationB.1 Modelling (such education Methodology consultancy And services Assumptions and other education services, and non-student visa markets) has not been considered. This study focuses on onshore student enrolments in higher education, vocational education and training (VET), schools, English Language Intensive Courses for Overseas Students (ELICOS) and non-award courses for students studying on student visas only. The contribution of revenue from other forms of international education (such education consultancy services and other education services, and non-student visa markets) has not been considered.

26 Export revenue for international education services is reported by the ABS for states and territories. However, the ABS data is not broken down into the five education sub-sectors of higher education, VET, schools, ELICOS andExport non-award revenue atfor the international state and territory education level. services In order is reported to calculate by thethe ABSrevenue for states for each and education territories. sub-sector inHowever, Western the Australia, ABS data ACIL is not Allen broken used down international into the fivetrade education in services sub data-sectors from of the higher ABS, education, which breaks VET, down theschools, total ELICOSexport revenueand non -intoaward fees at andthe stategoods and and territory services level. for the In ordereducation to calculate sub-sectors the revenue at the national for each level, andeducat theion DETE sub -enrolmentsector in Western figures Australia, by education ACIL Allensub-sector used internationalfor WA. For example,trade in services given that data higher from theeducation enrolmentsABS, which breaks in WA downare 5.6 the per total cent export of the revenue national into total, fees it andis assumed goods and that services the revenue for the from education fees for sub higher- educationsectors at theis also national equal level, to 5.6 and per the cent DETE of enrolmentthe national figures total. byFee education revenue subfor -othersector education for WA. For sub-sectors example, is similarlygiven that allocated. higher education enrolments in WA are 5.6 per cent of the national total, it is assumed that the revenue from fees for higher education is also equal to 5.6 per cent of the national total. Fee revenue for Thisother step education provided sub ACIL-sectors Allen iswith similarly the average allocated. expenditure per enrolment for fees and goods and services for the five education sub-sectors(Table B.1). Applying these figures and DETE enrolment data for source markets forThis international step provided students ACIL Allen in WA, with ACIL the Allenaverage calculated expenditure the expenditure per enrolment for feesfor fees and andgoods goods and andservices services for a selectedfor the five set education of the largest sub -sourcesectors markets. (Table B.1). Applying these figures and DETE enrolment data for source markets for international students in WA, ACIL Allen calculated the expenditure for fees and goods and services for a selected set of the largest source markets.

TABLE B.1 INTERNATIONAL STUDENT EXPENDITURE BY EDUCATION SUB-SECTOR, 2018-19

Higher VET Schools ELICOS Non- Total education award

Fees ($m) 661.4 104.7 18.6 36.3 32 853.1

Living expenses ($m) 764.4 270.8 29.2 62 18.5 1144.9 Total expenditure ($m) 1425.9 375.6 47.9 98.2 50.5 1998

Average expenditure per $57,296 $24,377 $55,385 $9,956 $21,213 $37,413 enrolment

SOURCE: ACIL ALLEN CONSULTING AND AUSTRALIAN BUREAU OF STATISTICS

TABLE B.2 DERIVED DATA INPUTS

Derived data inputs Data Relevant assumptions Sources (Table 3.3) Expenditure International student 1, 2, 3 - A deflator is used to reconcile the total expenditure across expenditure by education sub- all education sub-sectors with the WA education-related sector services international trade total in Source 2. The deflator accounts for the price differentials between states. - Ausaid and Defence international student categories in Source 3 have not been included in this study as an education sub-sector. - The average fee for an enrolment in each education sub- sector is the same across Australian states and territories.

27 International student 1 - ACIL Allen uses the derived average expenditure per expenditure by market source enrolment by education sub-sector (split into education fees and living expenses) and the enrolment data from Source 1 to calculate the total expenditure by market sources. Expenditure by VFR of 6 - Over a quarter (26%) of students studying in WA were international students visited by friends and relatives. - One third of these students received more than one visit by friends and relatives. (*Total number of trips = 34.7% of total international student enrolments). ACIL Allen has assumed two visits for international students with more than one visit from VFR. - Average spend per trip of VFR tourists in Western Australia = $1,229 Expenditure profile International student 5 - Expenditure allocated to Education fees uses derived expenditure profile by expenditure by education sub-sector calculations. education sub-sector - Remaining expenditure after education fees is allocated to ‘Living expenses”. - TRA expenditure profile categories of package tour, pre- paid international airfares and conference fees are excluded (assumed also for following two data inputs). - Expenditure profile for living expenses is based on the aggregate expenditure profile for living expenses across all market sources (calculated in the input below). This assumes students in each education sub-sector have the same consumption bundle. International student 5 - Selected countries are those with total international expenditure profile by market student numbers greater than 1,000 source - Higher income Asian countries allocated the TRA expenditure profile for visitors (all categories of travel) to Australia from China (China, Malaysia, Singapore, Taiwan, Hong Kong, Japan, South Korea). - Remaining selected countries allocated the TRA expenditure profile for visitors to Australia from ‘Other’ (which accounts for all countries other than China, US, UK, New Zealand and Japan). - All other countries (<1,000 international students) allocated the derived expenditure profile of the largest market sources (top 17 countries). VFR of international students 4 - TRA Purpose of Visiting category is ‘Visiting Friends and expenditure profile Relatives’. - Share of expenditure allocated to Education fees adjusted to zero. Assume visitors to WA coming to see a friend or relative will not be undertaking any education courses themselves while in the state.

28 - Assumed that all VFR have the same average trip expenditure and expenditure profile, regardless of country of origin. Data has not been sourced that provides evidence of students from particular countries being more likely to have VFR coming to WA. This assumption has been applied in previous studies.

TABLE B.3 DATA SOURCES

No. Data category Source

1 2019 WA international student enrolment by education sub- Department of Education, sector and market source Skills and Employment – International Student Data 2 2018-19 International Trade in Services, Credits, State by ABS Financial Year – WA 3 2018-19 International Trade in Services, Credits, Education ABS Related Travel, by Educational Sector, by Type of Expenditure by Financial Year 4 2019 Expenditure Profile for International Visitors by Purpose Tourism Research Australia – of Visiting Australia International Visitor Survey

5 2019 Expenditure Profile for International Visitors by Country of Tourism Research Australia – Origin International Visitor Survey

6 2019 Proportion of international students with VFR in WA and StudyPerth (via Tourism average VFR trip expenditure Research Australia – International Visitor Survey)

C. Input-Output Modelling C. Input-Output Modelling I-O models capture the direct and indirect effects of expenditure by capturing, for each industry, the industries itI- Opurchases models capture inputs fromthe direct and also and theindirect industries effects it ofsells expenditure its outputs by to. capturing, For example, for each the I-O industry, model thefor Western Australiaindustries captures it purchases purchases inputs from from and and sales also tothe industries industries located it sells inits Western outputs Australia,to. For example, as well asthe imports I-O model from outsidefor Western of Western Australia Australia. captures purchases from and sales to industries located in Western Australia, as well as imports from outside of Western Australia.

29 FIGURE C.1 “TRACE THROUGH” OF TOURISM EXPENDITURE IN AN INPUT-OUTPUT MODEL

SOURCE: ACIL ALLEN CONSULTING

The figure above depicts how expenditure from a visitor traced through a (very simple) economy: The figure above depicts how expenditure from a visitor traced through a (very simple) economy: 1. A visitor directly spends money on tourism related products, such as airlines, cruise ships, food, 1. beveragesA visitor directly and accommodation. spends money on tourism related products, such as airlines, cruise ships, food, beverages and accommodation. 2. These tourism products are then indirectly supplied in part by other companies, these companies 2. provideThese tourism goods productsand services are thenthat indirectlygo into final supplied product in thatpart visitorsby other purchase. companies, For these example, companies a food manufacturingprovide goods andbusiness services as well that as go a intocatering final business product thatcould visitors provide purchase. inputs into For food example, and beverages a food thatmanufacturing a visitor purchases. business as well as a catering business could provide inputs into food and beverages that a visitor purchases. 3. This direct and indirect demand for goods and services requires labour, and the flow of money from 3. visitorThis direct to business and indirect and businessdemand forto business goods and allows services for wages requires and labour, salaries and to the be flowpaid toof employees,money from profitsvisitor to businessbe earned and and business taxes to to be business paid to government.allows for wages and salaries to be paid to employees, profits to be earned and taxes to be paid to government. 4. In turn, results in flow-on or induced economic activity.

4. In turn, results in flow-on or induced economic activity.

30 Results of I-O Modelling Results of I-O Modelling I-O tables are able to produce results for a range of key economic indicators. For example: I-O tables• Economic are able Outputto produce (as measured results for by a rangeGross ofProduct); key economic indicators. For example:

• • EconomicIndustry Gross Output Value (as measuredAdded; by Gross Product);

• • IndustryExports; Gross Value Added;

• • Exports;Incomes (as measured by Wages and Salaries earned); and

• • IncomesEmploymen (as tmeasured (on a Full Timeby Wages Equivalent and Salaries (FTE) basis). earned); and

Employment (on a Full Time Equivalent (FTE) basis). •ACIL Allen’s I-O modelling framework allows for results to be produced at a national, state, regional, Statistical Area Level 2 and Local Government Area level. ACIL Allen’s I-O modelling framework allows for results to be produced at a national, state, regional, Statistical Area Level 2 and Local Government Area level.

D. Summary Tables D. Summary Tables ACIL Allen has presented in the summary tables below the full set of I-O economic contribution modelling ACILresults Allen by educationhas presented sub-sector, in the bysummary source markettables belowand by the key full sectors set of of I-O the economic economy. contribution modelling results by education sub-sector, by source market and by key sectors of the economy.

D.1 EconomicD.1 Economic Contribution Contribution by Education by Education Sub-sector Sub- sector

TABLE D.1 ECONOMIC CONTRIBUTION FROM INTERNATIONAL STUDENTS BY EDUCATION SUB-SECTOR

Education sub- Direct Indirect Total Contribution per sector contribution contribution enrolment Value added Higher education $426.6 m $1104.1 m $1530.7 m $61,508 VET $67.5 m $303.2 m $370.7 m $24,063 Schools $14.0 m $37.6 m $51.5 m $59,646 ELICOS $20.0 m $73.9 m $93.9 m $9,513 Non-award $20.7 m $37.6 m $58.2 m $24,463 Total $548.7 m $1556.4 m $2105.0 m $39,417 Employment (FTE) Higher education 2989.4 5572.1 8561.5 0.34 VET 473.2 1475.2 1948.4 0.13 Schools 182.0 186.4 368.5 0.43 ELICOS 354.8 360.4 715.2 0.07 Non-award 144.8 196.4 341.1 0.14 Total 4144.2 7790.5 11934.7 0.22

31 D.2 EconomicD.2 Economic Contribution Contribution by Source by Source Market Market

TABLE D.2 ECONOMIC CONTRIBUTION FROM INTERNATIONAL STUDENTS BY SOURCE MARKET

Source Market Direct Indirect Total Contribution per contribution contribution enrolment Value added India $102.4 m $295.4 m $397.8 m $44,678 China $108.0 m $284.6 m $392.6 m $46,768 Malaysia $35.6 m $98.4 m $134.0 m $43,933 Brazil $9.2 m $33.3 m $42.5 m $18,408 Bhutan $24.3 m $70.7 m $95.0 m $42,766 Nepal $20.2 m $58.6 m $78.7 m $42,193 Pakistan $21.4 m $59.6 m $81.1 m $46,427 Colombia $6.3 m $22.0 m $28.3 m $16,561 Vietnam $17.2 m $49.5 m $66.7 m $42,050 Singapore $22.8 m $58.5 m $81.3 m $55,365 Taiwan $6.4 m $23.0 m $29.5 m $20,767 Hong Kong $15.5 m $42.7 m $58.3 m $41,950 Kenya $15.1 m $43.8 m $58.9 m $45,281 Indonesia $14.5 m $40.6 m $55.1 m $46,008 Philippines $10.2 m $32.8 m $43.0 m $35,928 Japan $6.5 m $17.6 m $24.2 m $20,541 South Korea $7.0 m $23.2 m $30.2 m $26,403 All Others $105.9 m $301.9 m $407.8 m $36,018 Total $548.7 m $1556.4 m $2105.0 m $39,417 Employment (FTE) India 773.4 1467.3 2240.7 0.25 China 815.6 1444.6 2260.2 0.27 Malaysia 269.1 497.8 766.9 0.25 Brazil 69.6 162.8 232.3 0.10 Bhutan 183.7 350.9 534.7 0.24 Nepal 152.3 290.7 443.0 0.24 Pakistan 161.9 297.1 458.9 0.26 Colombia 47.6 107.7 155.2 0.09 Vietnam 130.3 245.9 376.2 0.24 Singapore 172.1 297.5 469.6 0.32

32 Source Market Direct Indirect Total Contribution per contribution contribution enrolment Taiwan 48.7 114.5 163.2 0.12 Hong Kong 117.3 216.3 333.5 0.24 Kenya 114.4 217.4 331.7 0.25 Indonesia 109.6 202.2 311.8 0.26 Philippines 76.8 161.7 238.5 0.20 Japan 49.3 89.3 138.6 0.12 South Korea 52.8 116.1 168.9 0.15 All Others 799.9 1510.7 2310.6 0.20 Total 4144.2 7790.5 11934.7 0.22

D.3 DEconomic.3 Economic Contribution Contribution by Key bySectors Key Sectors

TABLE D.3 ECONOMIC CONTRIBUTION FROM INTERNATIONAL STUDENTS BY KEY SECTORS

Key Sector Direct Indirect Total contribution contribution Value added Agriculture, forestry and fishing - $44.8 m $44.8 m Mining - $16.5 m $16.5 m Manufacturing - $72.8 m $72.8 m Electricity, gas, water and waste services - $32.6 m $32.6 m

Construction - $31.3 m $31.3 m Wholesale trade - $66.8 m $66.8 m Retail trade - $228.0 m $228.0 m Accommodation and food services - $80.9 m $80.9 m Transport, postal and warehousing - $104.5 m $104.5 m Information media and telecommunications - $39.6 m $39.6 m

Financial and insurance services - $92.1 m $92.1 m Rental, hiring and real estate services - $451.4 m $451.4 m

Professional, scientific and technical - $63.2 m $63.2 m services Administrative and support services - $85.1 m $85.1 m

Public administration and safety - $11.7 m $11.7 m

33 Key Sector Direct Indirect Total contribution contribution Education and training $548.7 m $34.2 m $582.8 m Health care and social assistance - $47.6 m $47.6 m Arts and recreation services - $15.0 m $15.0 m Other services - $38.3 m $38.3 m Total $548.7 m $1556.4 m $2105.0 m Employment (FTE) Agriculture, forestry and fishing - 247.5 247.5 Mining - 22.5 22.5 Manufacturing - 498.6 498.6 Electricity, gas, water and waste services - 116.6 116.6

Construction - 200.1 200.1 Wholesale trade - 286.3 286.3 Retail trade - 1577.5 1577.5 Accommodation and food services - 1349.1 1349.1 Transport, postal and warehousing - 510.1 510.1 Information media and telecommunications - 134.1 134.1

Financial and insurance services - 209.9 209.9 Rental, hiring and real estate services - 183.0 183.0

Professional, scientific and technical - 402.3 402.3 services Administrative and support services - 375.6 375.6

Public administration and safety - 129.0 129.0 Education and training 4144.2 384.2 4528.5 Health care and social assistance - 396.9 396.9 Arts and recreation services - 277.2 277.2 Other services - 489.9 489.9 Total 4144.2 7790.5 11934.7

D.4 Economic Contribution from VFR by Key Sectors

TABLE D.4 ECONOMIC CONTRIBUTION FROM VFR BY KEY SECTORS

34 Key Sector Direct Indirect Total contribution contribution Education and training $548.7 m $34.2 m $582.8 m Health care and social assistance - $47.6 m $47.6 m Arts and recreation services - $15.0 m $15.0 m Other services - $38.3 m $38.3 m Total $548.7 m $1556.4 m $2105.0 m Employment (FTE) Agriculture, forestry and fishing - 247.5 247.5 Mining - 22.5 22.5 Manufacturing - 498.6 498.6 Electricity, gas, water and waste services - 116.6 116.6

Financial and insurance services - 209.9 209.9 Rental, hiring and real estate services - 183.0 183.0

Professional, scientific and technical - 402.3 402.3 services Administrative and support services - 375.6 375.6

D.4 Economic Contribution from VFR by Key Sectors D.4 Economic Contribution from VFR by Key Sectors

TABLE D.4 ECONOMIC CONTRIBUTION FROM VFR BY KEY SECTORS

Key Sector Direct contribution Indirect contribution Total

Value added Agriculture, forestry and fishing - $0.6 m $0.6 m Mining - $0.3 m $0.3 m Manufacturing - $0.9 m $0.9 m Electricity, gas, water and waste services - $0.4 m $0.4 m

Construction - $0.3 m $0.3 m Wholesale trade - $0.9 m $0.9 m Retail trade - $3.9 m $3.9 m Accommodation and food services - $1.0 m $1.0 m Transport, postal and warehousing - $1.4 m $1.4 m Information media and telecommunications - $0.3 m $0.3 m Financial and insurance services - $0.9 m $0.9 m Rental, hiring and real estate services - $5.8 m $5.8 m Professional, scientific and technical services - $0.6 m $0.6 m

Administrative and support services - $0.9 m $0.9 m Public administration and safety - $0.1 m $0.1 m Education and training - $0.2 m $0.2 m Health care and social assistance - $0.3 m $0.3 m Arts and recreation services - $0.2 m $0.2 m Other services - $0.4 m $0.4 m Total - $19.4 m $19.4 m Employment (FTE) Agriculture, forestry and fishing - 3.2 3.2 Mining - 0.3 0.3 Manufacturing - 6.4 6.4 Electricity, gas, water and waste services - 1.5 1.5

Construction - 2.2 2.2 Wholesale trade - 4.0 4.0 Retail trade - 24.3 24.3 Accommodation and food services - 17.3 17.3 Transport, postal and warehousing - 6.8 6.8 Information media and telecommunications - 1.1 1.1

Key Sector Direct contribution Indirect contribution Total

Financial and insurance services - 1.9 1.9 Rental, hiring and real estate services - 2.4 2.4 Professional, scientific and technical services - 3.7 3.7

Administrative and support services - 3.4 3.4 Public administration and safety - 0.9 0.9 Education and training - 2.3 2.3 Health care and social assistance - 2.7 2.7 Arts and recreation services - 2.8 2.8 Other services - 4.9 4.9 Total - 92.2 92.2

E. Quotes E. Quotes The value of international education goes well beyond the factors taken into account in this report. TheStudyPerth value of has international spoken to educationindustry leaders goes well to get beyond their thecomments factors takenon the into importance account inof thisinternational report. StudyPertheducation in has Western spoken Australia. to industry leaders to get their comments on the importance of international education in Western Australia. Quite apart from its economic contribution, the international education sector has also been a major -catalyst - - for soft diplomacy which has benefited both the state and the nation. In the immediate aftermath of World War II, Australia shared with Western bloc powers a genuine concern that its Asian neighbours Quitewould apart succumb from toits the economic influence contribution, of communist the internationalideology. A direct education outcome sector of has these also concerns been a major was the catalyst for softcreation diplomacy of the whichColombo has Planbenefited which wasboth effectivelythe state anda tuition the nation.fee scholarship In the immediate program aftermath for future ofleaders World War II, Australiafrom countries shared in with our Westernregion. Manybloc powers of today’s a genuine leading concernAsian politicians, that its Asian scientists, neighbours academics would and succumb company to the influenceCEOs recall of wcommunistith gratitude ideology. the Australian A direct universityoutcome of education these concerns which waswas the provided creation to ofthem the viaColombo this program Plan which was(at various effectively times a tuitiontime up fee to scholarshipone third of program Indonesia for and future Malaysia’s leaders Cabinetfrom countries Ministers in haveour region. been educatedMany of today’s in leadingAustralia). Asian Ever politicians, since then, scientists, Australia academics has been andprovidi companyng world CEOs class recall qualifications with gratitude to our the neighbouring Australian university educationregion’s future which leaders. was provided to them via this program (at various times time up to one third of Indonesia and Malaysia’sWestern Australia’s Cabinet Ministers universities have and been its educated other education in Australia). providers Ever since (including then, Australiahigh schools, has been English providing Language world classColleges qualifications and TAFE) tocontinue our neighbouring to imbue overseas region’s future students leaders. with our western democracy inspired ideals, ethics and “can do” multicultural spirit. The pedagogical framework that our academics have put in place Westernencourages Australia’s critical universities thinking, creative and its other learning education and team providers based (including project work. high schools, Given that English many Language students Colleges from andAsian TAFE) countries continue have to beenimbue educated overseas in students systems with reliant our on western rote learning democracy our inspireduniversities ideals, are ethics often and opening “can do” multiculturaltheir eyes and spirit. minds The to pedagogical what is possible. framework that our academics have put in place encourages critical thinking, creativeThere is learning also, increasingly, and team baseda happy project juxtaposition work. Given between that many the studentsteaching from provided Asian bycountries our state’s have education been educated ininstitutions systems reliant and th one worldrote learning of work. our Global universities corporations are often are opening actively their seeking eyes outand young minds graduatesto what is possible. with the same above mentioned attributes. These corporations see Australian educated Therestudents is also, as having increasingly, global a citizenshiphappy juxtaposition attributes between which allow the teaching them to provided work effectively by our state’s in team educations across institutions anddifferent the world political of work. systems Global and corporations cultures. are actively seeking out young graduates with the same above mentioned attributes.- Hon. Phil These Honeywood corporations Chief see Australian Executive educated Officer students International as having global Education citizenship Association attributes which of allow them to work effectively in teams across different political systems and cultures. Australia - Hon. Phil Honeywood, Chief Executive Officer, International Education Association of Australia

- - -

36 As a medical researcher, and later as Chief Scientist of Western Australia, I travelled the world. It soon become very clear to me that international students who study here benefit Australia in ways far beyond the immediate gains during their time with us, real are they are. Studying in Australia leaves a lasting and almost always positive impression that results in tangible and intangible gains that are hard, if not impossible, to achieve in other ways.

An immediate and as well as long term impact is that many international students undertake vital research here, often helping to form new or advancing established collaborations with leading overseas research teams. These links often continue to blossom long after the students’ study periods, with exchange visits and access to international funding agencies from which Australia would otherwise be excluded. More broadly, former students spread the good news about Australia, encouraging tourism and recommending the next generation in turn to study here; similarly, in the commercial world, senior executives tend to recommend their most promising staff to gain further education in their Australian alma mater. In other words, by encouraging international students to study here we gain life-long ‘informal ambassadors’ that enhance our cause across the globe, and help to made the world a better place for everyone.

- Professor Lyn Beazley AO FAA FTSE, Former Chief Scientist and Western Australian of the Year

- - -

- Evan Hall, Chief Executive Officer, Tourism Council of WA

- - -

The contribution of international students [to the West Australian property market] is well understood by developers and urban planners, and for the first time this report reveals the actual economic value to WA. Visiting international students who invest in our State are attracted by the lifestyle, safety, amenity and long term capital growth prospects. Beyond contributing to the thousands of direct and indirect jobs in the property sector, international students and temporary migrants add to the vibrancy and viability of the places they inhabit, filling cafes, restaurants, shops and gyms.

- Sandra Brewer, Executive Director, Property Council of WA

- - -

- Daniel High, Alliance Manager of Economic Development, City of Perth

37 - - -

- Rebecca Hall, Head of International Education Centre of Excellence, Australian Trade and Investment Commission (Austrade)

- - -

The positive educational, professional, social and cultural experiences of WA’s international students and alumni provide a valuable resource for promoting Perth and WA as a business events destination. International students are ambassadors for our state within Australia and internationally, not only as examples of the excellence of our educational institutions but also because they can provide authentic testimonials about the quality of the state as a destination in which to live, study and visit.

For Business Events Perth, the international student alumni that have studied in WA and now reside overseas, either in their home country or elsewhere, is an invaluable professional network that provides intelligence and connections into international business, industry and academia. This generates leads for business events that can be held in Perth, which, when secured, bring business visitors, trade and investment and global talent to the state, as well as stimulates knowledge exchange and innovation. In this way, international students have an important and enduring role in contributing to the economic and social development of WA.

- Gareth Martin, Chief Executive Officer, Business Events Perth

- - -

Western Australia’s international education export market is most definitely an economic success story, however the social and cultural benefits Western Australia enjoys from our international education activity, whilst harder to quantify is equally important. In today’s world we need to find ways for greater understanding of different cultures, traditions and languages and our international students provide us this opportunity. International students also bring different perspectives, points of view and approaches that enrich the research and learning environment for their local student counterparts, which ultimately enhances productivity, stimulates innovation and supports skills and preparedness for a changing global workforce.

I also see first-hand the engaged and active “citizenship” by international students within our local communities; be it playing in sporting teams, joining clubs, engaging in part-time work and giving back through volunteering. Their contribution is enormous and goes a long way in helping our communities to be more cohesive, more resilient and more inclusive.

- Morgan Lewis, Chief Executive Officer, Auspire

- - -

International Students are an important resource for the hospitality sector offering a range of language skills, diverse cultural understanding and the ability to be flexible with the demands of different customers from different countries. International Students are also great consumers in our economy both individually in their enjoyment of food, beverage and hospitality as well as in attracting visiting friends and relatives to Western Australia.

- Bradley Woods, Chief Executive Officer, Australian Hotels Association (WA)

38 - - -

The jobs created through international education extend beyond our universities and VET sector to sectors such as tourism, retail, hospitality and real estate.

- Chris Rodwell, Chief Executive Officer, Chamber of Commerce and Industry of Wesern Australia

- - -

Having my son study in a school with international students, to me, means that he can gain the advantages of learning the value of empathy and understanding for different cultures. Something that I feel a lot of teenage boys can struggle with these days. As we move into a new and dynamic world, it is very likely that global mobility and diversity will be an increasing part of everyday life. With him learning beside international students in the classroom and making friends with other students from all corners of the globe, he gains the awareness and understanding needed that will see him better skilled to successfully navigate his pathway through life.

- Parent of a Year 11 student at St Mark’s Anglican Community School

- - -

It is an absolute pleasure and honour to host international students over 16 years. The bond between our students, myself and my family is strong and we simply couldn’t imagine life without them. They bring with them culture, love, and an energy that we embrace. It has been a special privilege to host students from around the world and know we are part of their personal development and memories forever. To look back and know we have been part of a child’s educational and personal growth journey is something we are very proud to be part of. We simply wouldn’t have our family life any other way.

- Homestay Family

39 For more information contact Angela Beechey, Senior Manager, StudyPerth [email protected]