Education Replaces Tourism as Australia's No. 1 Services Export
Released 5 February 2008
The value of Australia’s education exports grew 21 per cent in
2007 to replace tourism as the top services export and become
Australia’s third largest export overall.
Figures released by the Australian Bureau of Statistics
yesterday valued education exports in 2007 at $12.5 billion
compared to $11.5 billion for tourism. Education was worth more
than all other Australian export industries in 2007 except coal
($20.8 billion) and iron ore ($16.0 billion).
The chief executive of IDP Education, Tony Pollock said
“education is a bigger drawcard for visitors to Australia than
Uluru, the Great Barrier Reef and all other tourist attractions put
together.”
He said the rapid growth of education exports showed that
Australia was able to develop large-scale,
internationally-competitive industries which were based on
brainpower.
“Education is our only top export which is not based on our good
fortune in having a large country, well-endowed with natural
resources and great scenery,” Mr Pollock said.
“Education is the export success story which proves we can be
competitive as a clever country.”
The ABS figures calculate the value of education and tourism
exports by assessing the dollars spent in Australia by
international students and tourists. In the case of education it
includes students’ course fees, accommodation costs, travel costs
and other living expenses.
According to Australian Government statistics there were over
450,000 international student enrolments in Australia in 2007, 18
per cent above the previous year. Last year the largest group of
students (nearly 180,000) was studying in universities but the
fastest growing study areas were vocational education and training
(VET) courses and English language courses.
Australia’s top five source countries for international students
are (in order): China, India, South Korea, Malaysia and Hong
Kong.
Mr Pollock said that education’s status as Australia’s top
services export underlined the major economic contribution being
made by the international education industry.
“Nearly half a million people are living in Australia who would
not be here if we stopped educating international students,” he
said.
“All these people and their dependents are living in Australia
and purchasing their food, transport, accommodation and other daily
needs in Australia. The flow-on effect through the economy is
enormous.”
Mr Pollock said that international education was also an
investment in Australia’s future.
“Millions of international students have studied in Australia
and gained an important qualification which has made a large
difference to their lives,” he said.
“These alumni will take highly-skilled jobs and be influential
in their own countries in coming years. Their connection with
Australia at such a key period in their lives will help us build
trade, cultural and people-to-people ties with the countries of our
region in the future.”
Mr Pollock said that the international students who stayed in
Australia and became permanent residents were also having a
positive impact on this country.
“Many international students are deciding to remain in
Australia, which they can do if they have the right qualifications
and experience. These skilled people make a major contribution to
Australia by filling skill shortages in key areas.”
The ABS figures also show that education generates a large
balance of payments surplus for Australia because, while many
overseas students study in Australia, few Australian students study
overseas.
In 2007 the education services trade surplus was $11.8 billion.
In contrast, tourism generated a balance of payments deficit of
$1.9 billion in 2007 because Australians spent more money
travelling overseas than international tourists spent in
Australia.
Mr Pollock said that Australia’s education exports had grown
strongly in the last few years even though the Australian dollar
had appreciated during this period from around US50c to around
US90c today.
“This demonstrates the underlying strength of demand
internationally for Australian education services,” he said.
About IDP Education
IDP Education Pty Ltd is the largest placement service for
international students enrolling in Australian courses. It has over
75 student offices in 29 countries.
IDP Education is also a partner in IELTS, one of the world’s
leading English language proficiency tests.
IDP Education is half-owned by Australian universities and
half-owned by SEEK Ltd, Australia’s leading online employment and
training company.
For further information:
Tim Dodd, Manager, Communications and Corporate Affairs, 0407
440160
tim.dodd@idp.com
