Is the delay in the return of international students impacting the economy?

Team Veye | 04-Jul-2021 return of international students

When the Covid-19 pandemic was playing havoc in many countries, Australia was one of the very few countries that kept the virus at bay. Early closure of borders and strict quarantine was mainly credited for this.

Australia’s economy is recovering fast from the Covid-19 pandemic and coming on track. The only notable exception, however, remained the country’s education sector with international students unable to return due to border restrictions.

The wait for the prospective foreign students set to pursue study in Australia is getting prolonged. The students who want to study at Australian Universities have been waiting impatiently for the border restrictions to lift. As many as, an estimated 30% of the student visa holders were still outside the country.

Australia has always been priding itself on its education system, with small class sizes, a high standard of facilities and a range of programs to support educational development. No wonder, twelve of the top universities in the world are here.

Ever since the closure of borders in March last year, Universities in different states have been making different plans to get international students back and then quietly shelving these,

The education sector has served as Australia’s largest single economic contributor in 2018-19, with year-on-year growth of AU$5 billion. International education was worth A$40.3 billion in 2019, making it the country’s fourth-biggest export.

According to The Australian Bureau of Statistics data, the impact of international students not returning soon can be gauged from the fact that for every AU$1 lost in university tuition fees, there is another AU$1.15 lost in the broader economy due to international student spending.


The budget delivered by Treasurer Josh Frydenberg in Parliament on May 1 outlined key initiatives to support the country’s worst-hit sectors which included the education sector. It also hinted that international students could return later this year. Small phased programmes for international students are expected to commence in late 2021 and gradually increase from 2022.


Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website, and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.

veye logo

Grab Your Free Report On 5 ASX Dividend Stocks To Buy In 2024