As the international student cohort in Australian universities shrinks and border policy continues to turn prospective new students away, the sector may experience a heavier loss this year than last, a report says.
An analysis by S&P Global, which forecasts the future of the higher education sector, has said that the impact of the decreasing international enrolment numbers, political tensions, and more is causing a significant issue for the sector.
“Because tertiary degrees are usually at least two years in duration, a diminished cohort of commencements in one year will have a pipeline effect, depressing revenue in future years, too,” the report said.
Australian universities have a higher reliance on international students, as they make up a considerable portion of the tertiary student population compared to university sectors in the United Kingdom (UK), the U.S., and Canada.
The Group of Eight universities, which are considered Australia’s most prestigious, have significant numbers of international students.
“Strong reputations also mean that if student demand were to wane, they could tweak their fees or entry standards to cannibalise demand from lower-ranked peers,” S&P reported.
“Universities with big brands... can predate on other universities,” Craven said. “The very universities that have caused this crisis will get out by victimising other universities.”
“We see the escalating Australia-China quarrel as a downside risk, with potential to severely amplify the fallout from the pandemic,” the report wrote.
It found that interest in Australian and New Zealand universities had waned considerably compared to one year ago, where students considered both countries attractive study destinations due to the great handling of COVID-19.
“While Australia and New Zealand continue to be perceived as ‘safe and stable due to their elimination strategies and very low case numbers, this perception is increasingly irrelevant to a country’s reputation as a study destination,” Navitas head of strategic insights and analytics Jonathan Chew said.