Economic Contributions of Int'l Students in New Zealand Plummet From Billions to Millions

A new study has found that New Zealand’s economic benefits from international student enrollment dropped drastically between 2019 and 2022 due to the COVID-19 pandemic and border closures.

An analysis conducted by the research firm EY for Education New Zealand (ENZ) - a government agency responsible for promoting New Zealand’s education internationally - found that the economic contribution of international students to NZ dropped from NZ$3.9 billion in 2019 (US$2.4 billion) to NZ$800 million in 2022, or US$488 million.

This decline has come as a result of the closure of New Zealand’s borders to all foreigners during the COVID pandemic, which lasted from March 2020 to the end of July 2022, Erudera.com reports.

In 2019, in addition to the massive income contribution, the presence of international students in the country also supported the creation of 6,000 jobs.

“This report confirms the tough time the sector has had over the past two years, highlights the contribution it made in the past, the contribution it makes beyond economic value, and tells us that it is possible to become a vibrant, sustainable and resilient sector in the future,” ENZ Chief Executive, Grant McPherson said.

Nonetheless, the new data shows that international student numbers started to recover in 2023, climbing from a low of 11,820 in May 2022 to 34,230 by August 2023. In February 2024, the number of international students stood at 28,725.

The three main source countries for international students in New Zealand continue to be the same ones as before the pandemic - China, India, and Japan. Data reveals that in 2019, a total of 15,000 Chinese and over 10,000 Japanese students studied in New Zealand. Over the past five years, New Zealand has issued student visas to over 41,000 Indian students.

EY’s research found that 75 percent of international students leave New Zealand after graduation, with 62 percent returning to their country of origin just after completing their education and 13 percent after gaining some work experience.

New Zealand’s popularity as a study destination among international students has grown over the past year, with the country’s immigration offices receiving a total of 7,265 student visa applications in December 2023, almost similar to 7,481 in 2022. According to EY projections, New Zealand could bounce back from its pandemic losses by 2030.

As of March 2023, the number of international students in New Zealand on study visas had increased by 98 percent since the borders reopened, totaling about 34,000 students.