New Zealand’s prolonged border closure during the pandemic offers a compelling case study of the economic impact on international education, with a recent analysis shedding light on the sector’s significant decline.
Between March 2020 and July 2022, New Zealand’s borders remained closed, surpassing the shutdown durations of key study destinations like Canada, the UK, the US, and even Australia. This extended closure led to waning enthusiasm among prospective international students, who opted for alternative destinations due to the prolonged uncertainty.
A recent analysis conducted by EY, commissioned by Education New Zealand (ENZ), reveals the stark economic consequences. In 2019, the direct value of New Zealand’s international education sector stood at NZ$3.9 billion (US$2.4 billion), supporting 6,000 jobs. By 2022, amidst the border closure, the sector’s value plummeted to NZ$800 million (US$488 million), marking a more than 50% decrease.
Despite being the country’s fourth-largest export sector, the pandemic-induced losses reverberated throughout the economy.
EY’s report also outlines the enrollment trends, indicating a steady recovery from 2022 onwards. The data aligns closely with recent figures reported by The Post, showcasing a gradual increase in enrollments throughout 2023.
China, India, and Japan remain the top source markets for New Zealand’s educators, with the majority of international students enrolled in universities. However, the pandemic’s impact was felt across various educational sectors, including private training establishments, polytechnics, and schools.
Looking ahead, EY projects that by 2030, New Zealand’s international education sector could regain its pre-pandemic strength in terms of enrollment and economic value. The government’s commitment to supporting sector recovery is underscored by ongoing efforts to streamline visa processing and stimulate international student enrollment.
In a survey conducted by ENZ in 2023, international students expressed overwhelmingly positive sentiments about their experience in New Zealand, with 84% reporting satisfaction and 83% expressing willingness to recommend New Zealand as a study destination. Additionally, separate research conducted among New Zealanders highlighted growing recognition of the benefits international students bring, including cultural exchange and economic contributions.
Despite the challenges posed by the pandemic, New Zealand’s international education sector remains poised for recovery, with concerted efforts underway to restore its vitality and resilience.
