One of Australia’s leading educators has called on the recently elected Labour Government to make a firm commitment to the country’s international education industry. Hospitality Training Association (HTA) CEO Phillip Charlton says the Australian economy could lose billions of dollars if Julia Gillard’s government fails to counteract immigration policy changes that have left the industry in turmoil.

International Student Visa applications and approvals in Australia have fallen sharply in 2010, with the Australian Department of Immigration and Citizenship (DIAC) reporting a 30 percent decline in international applications.

“International education is a massive global market and is Australia’s third largest export, contributing $16 billion directly into the economy, along with a further $14 billion in additional services, such as accommodation, tourism, hospitality, retail and transport,” says Mr Charlton.

“Australians have always prided themselves on giving everyone ‘a fair go’, however with this issue the “goal posts” have been suddenly moved.   In this environment, it’s harder for students and their families to make plans to study in Australia and there is concern that the rules and regulations will constantly change.”

Mr Charlton estimates that the cost to the Australian economy could be in the region of $10 billion per year. In addition, Access Economics forecasts that a 5 percent drop in international students would result in 6,000 Australian jobs being lost (in Education) – so potentially the education industry could be faced with job losses this year of at least 36,000. Other sectors, such as the hospitality and tourism industry, could face skills shortages because of the lower numbers of trained graduates going through the system.

So what is behind this sudden and dramatic drop in the number of student visa applications? Mr Charlton asserts that the root of the problem lies in the pre-election government’s attempts to introduce tougher immigration policies in a bid to woo voters. This resulted in tougher visa qualification requirements for prospective international students, leading many to consider their options in the US or the UK.

“As 2010 was a federal election year in Australia, issues such as Australian jobs, the economy and immigration have been top of the political agenda. A perceived weakness of the Labour Government was it’s inability to address border protection, boat people and it’s migration policies.  This resulted in the federal Labour Government wanting to be seen to be taking strong action to reduce the number of migrants,” said Mr Charlton.

“And as we have now seen the Australian election focused very heavily around immigration and border security which resulted in mixed messages and public confusion as there was no differentiation between migrants, boatpeople, refugees and international students.”

He identifies three specific policy changes that have contributed to the current situation: 

Visa processing times - Previously applications for student visas, on average, were processed in 4-6 weeks, but processing times in particular countries were extended to 6 months plus.

Changes to the student reserve fund requirements – All international students in Australia must prove that they have sufficient funds to support themselves while studying in Australia.  Previously this was set at $12,000 per year, but was increased to $18,000 with no consultation with the education industry.

Visa assessment levels - Inconsistent visa assessment levels mean that applicants from the same country face different requirements depending on whether they plan on studying at a school, VET college, ELICOS or university.

Of these, the changes to the student reserve fund requirements are likely to be the biggest deterrent to potential students. With living costs of $18,000 per year and annual university fees of at least $15,000, an international student embarking on a three-year degree would have to show at least $99,000 up front – a crippling amount for most families.

Now that the federal elections are out of the way, Mr Charlton hopes the new government will move quickly to address these policies and repair the damage done to the industry. To do this, he says the government must:

• Ensure there is policy consistency, transparency and consultation between all stakeholders.

• Address visa processing times. This could be achieved by a set of protocols that recognise the practicality of marketing to overseas students and offer transparency for visa application processing times.

• Ensure that international students applying for places in all sectors – VET, ELICOS, schools or university – from the same country have the same assessment level. 

• Review how DIAC assesses reserve funds student reserve funds.

• Ensure that any changes to student visas or immigration policies are done in consultation with all stakeholders and implemented in an agreed timeframe.

Australia has traditionally been the top international education destination for students from India, China and other Asian countries. With the rise of the middle class in these countries, the potential for Australia’s international education is huge and Mr Charlton believes it is vital to protect Australian education’s reputation, now more than ever.

“With this in mind, we need to ensure that the Australian international education industry is robust, accessible and delivering the quality, world-class education students and families are looking for,” he said.

“Australia should be proud of its quality education system and needs to continue to take all necessary steps to ensure all students receive a high quality education which is recognised around the world.”

Mr Charlton believes the government will need to take decisive action to restore the reputation of Australia as an education destination. He suggests the government take a cross-departmental approach to managing the international education industry where the trade, education and immigration departments work together, rather than in silos.

“Given the industry turmoil over the last 12 months, there is growing support for a rebranding of Australian education to international markets. Just as Australia promotes tourism, we believe Australia needs to promote it’s quality education system and the benefits of studying in Australia,” he added.

 

HTA CEO Phillip Charlton has held senior management positions in private enterprise, commerce and educational organisations in England, America and Australia. This is underpinned with a Masters degree in Hospitality Management, an Honours degree in Adult and Vocational Teaching, and practical educational and training experience. He has a broad range of skills in the management of satisfying customer, consumer and company needs through the effective development of people.