Outcomes and Impacts of International Education ... - IDP Education

Outcomes and Impacts of
International Education: From
International Student
to Australian Graduate, the
Journey of a Lifetime
Edited by Melissa Banks and Alan Olsen

ISBN: 978-0-9758194-5-6
Copyright statement: © 2008 IDP Education Pty Ltd (ABN: 59 117 676 463)
All rights reserved. No part of this publication may be reproduced in any form or by any means,
without permission in writing from the publisher.

Table of Contents
Foreword
Introduction
Chapter 1: Impacts and Outcomes for Students
Chapter 2: Outcomes for Graduates
Chapter 3: Outcomes for Alumni
Chapter 4: Impacts and Outcomes for Providers
Chapter 5: Impacts and Outcomes on Communities
References List
1
3
6
23
49
62
96
110

Foreword
International education makes a positive difference on many levels and IDP Education’s major
publication for 2008, Outcomes and Impacts of International Education: From International
Student to Australian Graduate, the Journey of a Lifetime, spells this out with clarity and detail.
The book’s structure reflects the journey – from student, to graduate, to alumni – which an
international student might take when he or she decides to study in Australia.
Two important new pieces of research illuminate the journey. Firstly, there is yet more confirmation
that the academic performance of international students is virtually identical to Australian students.
This result comes from an analysis of the performance of nearly 200,000 students in Group of 8
universities in 2007.
Secondly, through a very detailed survey of nearly 2,000 alumni of the Australian Technology
Network of Universities, we find out what Australia’s international students do after they graduate –
where they live, what jobs they have, what they aspire to and what they think about their education.
What emerges is a picture of graduates who are part of the global workforce, who establish global
networks and who become part of Australia’s connectedness with Asian countries and beyond.
International education also has an impact on Australia, the scale of which is only now coming to be
appreciated. Two sections of the book examine this – one looking at the impact on Australian
education providers and the other looking at the impact on the Australian community as a whole.
It is my view that international education is a unique and valuable industry. Not only is it an activity
of immense economic worth and benefit to Australia, but it achieves business success by fulfilling
the aspirations of people who want better lives. Furthermore it generates influence and goodwill for
Australia internationally. Over one million international students – potential future leaders and
influencers – have returned to their home countries after completing courses in Australia.
It is particularly appropriate that this book is being launched at the 2008 Australian International
Education Conference in Brisbane, where the authors are presenting its findings. This year’s
conference theme, Global Citizens, Global Impact, very aptly sums up the book’s message.
Finally, I would like thank the Group of 8 universities and the Australian Technology Network of
Universities for facilitating the research which provided the main new findings in the book. And I
wish to commend the authors, Melissa Banks, Alan Olsen, Helen Cook, Rob Lawrence and Tim
Dodd for producing a well-researched, rigorous and thought provoking piece of work.
Anthony Pollock
Chief Executive
IDP Education Pty Ltd
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Foreword | IDP Education Pty Ltd

Introduction
Australia’s international student program has produced significant outcomes for international
students. As international graduates contribute to the global workforce, establish global diasporic
networks and join global brain circulation, it is apparent that Australia’s international student
program is a key driver of Australia’s connectedness with Asia and beyond. The impacts go global.
With an emphasis on these outcomes and impacts of international education, IDP Education Pty Ltd
has undertaken in 2008 a series of research studies for presentation at the Australian International
Education Conference and for publication as five papers in this book.
Research Papers
The five research papers commissioned by IDP Education Pty Ltd each form a chapter of this book.
In Chapter 1 Impacts and Outcomes for Students, Alan Olsen explores the comparative
academic performance of international and Australian students, using measures such as
progression and retention, including international comparisons. The editor wishes to acknowledge
the contribution of data regarding academic performance from the Group of 8 universities.
In Chapter 2 Outcomes for Graduates, Melissa Banks and Robert Lawrence present the results of
new market research quantifying the outcomes for international graduates including employment,
labour market and migration outcomes. The editor wishes to acknowledge the contribution of alumni
data from the Australian Technology Network group of universities.
In Chapter 3 Outcomes for Alumni, Melissa Banks asks “where are they now?”, looks at the extent
to which Australia’s international alumni contribute to Australia’s connectedness in Asia and beyond
and addresses issues such as brain circulation, global workforces and global diasporic networks.
The editor wishes to acknowledge the contribution of alumni data from the Australian Technology
Network group of universities.
In Chapter 4 Impacts and Outcomes for Providers, Helen Cook looks at the profound impact of a
high growth international student program on Australian education providers in the higher education,
vocational education and training (VET), English language training (ELT) and school sectors.
In Chapter 5 Impacts and Outcomes on Communities, Tim Dodd considers the impacts and
outcomes of international education on communities, looking at how international student programs
impact the wider community in Australia and at the communities which international students create
for themselves.
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Introduction | IDP Education Pty Ltd

About the Authors
This research was commissioned, and the results are published, by IDP Education Pty Ltd.
Melissa Banks, Head of Research Services at IDP Education Pty Ltd, is responsible for IDP’s
corporate and industry research. Melissa has over 18 years experience in Australia’s international
education industry encompassing roles across various sectors and education providers, and her
own successful consultancy business. Melissa is widely known for her practical insights about the
business of international education gained from her senior institutional and private industry roles in
marketing, recruitment and research. Melissa was a joint author in 2007 of Global Student Mobility:
An Australian Perspective Five Years On. She is a graduate of Deakin University and Monash
University.
Helen Cook has 20 years experience in Australia’s international education arena. Helen has held a
range of institutional management positions covering international admissions, policy development,
marketing communications, market strategy and planning and student recruitment. She is able to
draw on an extensive network of industry contacts both within Australia and overseas. Helen’s most
recent university role was as Executive Director, QUT International. She now works as a senior
researcher for Strategy Policy and Research in Education Limited and is a board member for the
International Education Association of Australia.
Tim Dodd is External Relations Manager for IDP Education Pty Ltd. Previously, Tim was a journalist
with the Australian Financial Review (AFR) where he established the weekly Education section in
the AFR in 2003, setting a new benchmark in Australia for reporting and analysing higher education
policy matters. From 1999 to 2003 Tim was the AFR South East Asia Correspondent based in
Jakarta. Tim spent seven years from 1988 to 1995 based in the Canberra Press Gallery writing on
economic policy for the AFR, and a year, 1984/1985, as a policy officer in the Department of the
Prime Minister and Cabinet. Tim is a graduate of The University of Adelaide.
Robert Lawrence is hailed as one of the world’s leading specialists in education market research,
market planning and brand building. His experience includes the development of destination
strategies for many national, state and provincial governments; over 60 universities across seven
countries; and numerous organisations ranging from multinationals to government agencies. With
extensive experience in market planning and communications, Robert is widely regarded as an
expert in forecasting education demand and industry trends, audience needs and expectations, and
key influencing factors. Robert is a graduate of Queen Mary, University of London.
Alan Olsen, an Australian living and working in Hong Kong, is Director of Strategy Policy and
Research in Education Limited www.spre.com.hk. Alan is a consultant in international education,
carrying out research, strategy and policy advice for client institutions and organisations on
international education, transnational education and international student programs. He has
published extensively, with 31 items on Australian Education International’s Database of Research
on International Education http://aei.dest.gov.au. He was joint author in 2007 of Global Student
Mobility: An Australian Perspective Five Years On. Alan is a graduate of The University of
Sydney and University of Technology Sydney.
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Introduction | IDP Education Pty Ltd

Acknowledgements
The editors also wish to acknowledge the contribution of data from the Group of 8 (Go8) universities
and the Australian Technology Network of Universities (ATN).
In Melbourne, Racquel Shroff, a graduate of University of Madras, and Paresh Kevat, a graduate of
Massey University in New Zealand, provided research assistance. In Hong Kong, Jen Spain, a
graduate of The Australian National University, and Rebecca Wright, a graduate of Queensland
University of Technology, provided research assistance.
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Introduction | IDP Education Pty Ltd

1
Impacts and Outcomes for Students
Alan Olsen explores the comparative academic performance of international and Australian
students, using measures such as progression and retention, including international comparisons.
The editors wish to acknowledge the contribution of data regarding academic performance from the
Group of 8 (Go8) universities.
Background
A study of the comparative academic performance in 2007 of the following three cohorts of students
in Go8 universities in Australia was undertaken in 2008
Australian students on campus in Australia
international students on campus in Australia
international students offshore, resident outside Australia but studying at a Go8 university,
including those at offshore campuses and those international students studying by distance or
online.
All Go8 universities participated: The Australian National University, Monash University, The
University of Adelaide, The University of Melbourne, The University of New South Wales, The
University of Queensland, The University of Sydney and The University of Western Australia.
The study used student progress rates to measure and compare academic performance. Student
progress rates are generated when students complete subjects successfully. The student progress
rate is the ratio of successfully completed student load to total assessed student load, simply the
ratio of subjects passed to subjects attempted. The study calculated mean student progress rates
for groups of students and compared these means between groups, allowing comparison of the
relative performance of groups of students.
The definitive Australian study in this area is the Dobson, Sharma and Calderon 1998 paper The
Comparative Performance of Overseas and Australian Undergraduates 1 , which provided an
extensive background on the use of the student progress rate methodology. In that study,
international bachelor degree students in 1996 passed 84.3% of what they attempted and
outperformed Australian bachelor degree students who passed 79.3% of what they attempted.
In 2006, Olsen, Burgess and Sharma published The Comparative Academic Performance of
International Students 2 , again using the student progress rate methodology. In that study of
338,445 full time students at all levels in 22 Australian universities in 2003, international students
performed as well as Australian students. The 73,929 international students passed 88.8% of what
they attempted; the 264,516 Australian students passed 89.4% of what they attempted.
1 Dobson I, Sharma R and Calderon A 1998
2 Olsen A, Burgess Z and Sharma R 2006
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In 2007 the then Australian Department of Education, Science and Training (DEST) published
Appendix 4. Attrition Progress and Retention Rates for commencing bachelor students as
part of Students 2006 [full year]: selected higher education statistics 3 . This put into the public
domain for the first time information for each university on the comparative academic performance
of international and Australian students, but specifically the population was commencing bachelor
degree students.
The DEST data enabled the comparison of student progress rates for international and Australian
commencing bachelor degree students in 2006 for each university, with the Go8 universities
highlighted in orange as in Chart 1.1 Student Progress Rates by Universities 2006.
Chart 1.1
Student Progress Rates by Universities 2006
100
95
90
International Student Progress Rate %
85
80
75
70
65
60
60 65 70 75 80 85 90 95 100
Domestic Student Progress Rate %
Like the 1998 and 2006 studies, this study uses the student progress rate methodology. It involves
two enhancements, in that it excludes postgraduate research students and adds a third cohort,
offshore students.
The study includes international and Australian full time students in undergraduate and
postgraduate coursework programs who were enrolled in 2007. Specifically it includes study abroad
and exchange students.
3 Department of Education, Science and Training 2007
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The study excludes part time students, because there are no international part time students with
which to compare Australian part time students, and excludes postgraduate research students on
the ground that student progress units for research students are just about meaningless.
The study compares student progress rates in 2007 for a total population of 195,694 students in the
eight Go8 universities.
Overall Student Progress Rate
In Go8 universities in Australia in 2007, 195,694 students passed 91.8% of what they attempted.
Their student progress rate was 91.8%.
Across the eight Go8 universities, student progress rates ranged from 89.6% to 94.4%. The average
was 91.8%, the median 91.8%. Overall, international students on campus in Australia passed 91.6%
of what they attempted, international students offshore 89.2% and Australian students 92.0%.
Specifically, in 2007 the 46,812 international students on campus in Australia passed 91.6% of what
they attempted, and did just as well as the 140,903 Australian students, who passed 92.0%. This is
consistent with the 2006 study where, across 22 universities, the 73,929 international students on
campus in Australia in 2003 passed 88.8% of what they attempted, and did just as well as the
264,516 Australian students, who passed 89.4%.
In this study, in terms of student progress rates
women did better than men
postgraduate coursework students did better than undergraduates
international students on campus in Australia did as well as Australian students and did better
than international students offshore.
Chart 1.2 Student Progress Rates by Groups compares the student progress rates for these
seven groups with the total population.
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Chart 1.2
Student Progress Rates by Groups
88% 90% 92% 94% 96% 98% 100%
Gender
The population included 105,987 female students and 89,707 male students, as in Table 1.1
Gender: Population.
Table 1.1
Gender: Population
Female Male Total
International Onshore 25,082 21,770 46,852
International Offshore 4,318 3,621 7,939
Australian 76,587 64,316 149,903
Total 105,987 89,707 195,694
In total, 54% of students in the study were women, consistent with the fact that 55% of students in
Australian universities in 2007 were women.
International female students onshore passed 93.1% of what they attempted and did better than
international male students onshore (89.9%). International female students offshore passed 90.9%
of what they attempted and did better than international male students offshore (87.2%). Australian
female students passed 93.5% of what they attempted and did better than Australian male students
(90.1%).
Overall, female students passed 93.3% of what they attempted and did better than male students
(89.9%), as in Table 1.2 Gender: Student Progress Rates.
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Table 1.2
Gender: Student Progress Rates
Female Male Total
International Onshore 93.1% 89.9% 91.6%
International Offshore 90.9% 87.2% 89.2%
Australian 93.5% 90.1% 92.0%
Total 93.3% 89.9% 91.8%
This gender difference was consistent with the 2006 study, where female students passed 91.6% of
what they attempted, and male students 86.5%.
Level of Study
The population in the study included 164,214 undergraduate students and 31,480 postgraduate
coursework students, as in Table 1.3 Level of Study: Population.
Table 1.3
Level of Study: Population
Undergraduate Postgraduate Coursework Total
International Onshore 31,133 15,719 46,852
International Offshore 6,711 1,228 7,939
Australian 126,370 14,533 140,903
Total 164,214 31,480 195,694
34% of international students onshore were postgraduate coursework students, 15% of international
students offshore were postgraduate coursework students and 10% of Australian students were
postgraduate coursework students. In total, 16% of students in the study were postgraduate
coursework students.
International postgraduate coursework students onshore passed 95.0% of what they attempted and
did better than international undergraduate students onshore (89.9%). International postgraduate
coursework students offshore passed 95.3% of what they attempted and did better than
international undergraduate students offshore (88.1%). Australian postgraduate coursework
students passed 94.8% of what they attempted and did better than Australian undergraduate
students (91.6%).
Overall, postgraduate coursework students passed 94.9% of what they attempted and did better
than undergraduate students (91.2%), as in Table 1.4 Level of Study: Student Progress Rates.
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Table 1.4
Level of Study: Student Progress Rates
Undergraduate Postgraduate Coursework Total
International Onshore 89.9% 95.0% 91.6%
International Offshore 88.1% 95.3% 89.2%
Australian 91.6% 94.8% 92.0%
Total 91.2% 94.9% 91.8%
International and Australian Students
Overall, international students on campus in Australia (91.6%) did as well as Australian students
(92.0%) and did better than international students offshore (89.2%), as in Table 1.5 International
and Australian Students: Student Progress Rates.
Table 1.5
International and Australian Students: Student Progress Rates
Population Student Progress Rate
International Onshore 46,852 91.6%
International Offshore 7,939 89.2%
Australian 140,903 92.0%
Total 195,694 91.8%
Broad Field of Education
Student progress rates were compared for students in Natural and Physical Sciences, Information
Technology, Engineering and Related Technologies, Architecture and Building, Agriculture,
Environmental and Related Studies, Health, Education, Management and Commerce, Society and
Culture and Creative Arts 4 .
Student progress rates varied across these ten Broad Fields of Education as in Table 1.6 and Chart
1.3 Broad Field of Education: Student Progress Rates.
4 There is an eleventh field, Food, Hospitality and Personal Services, but there were no students in
this field in Go8 in 2007
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Table 1.6
Broad Field of Education: Student Progress Rates
Field Population Student Progress Rate
Management/Commerce 44,365 91.1%
Society/Culture 43,627 90.7%
Health 28,006 96.4%
Science 21,998 90.7%
Engineering 21,349 90.0%
Creative Arts 11,160 93.8%
Education 7,779 94.8%
Architecture/Build 6,158 93.5%
IT 5,035 84.9%
Agriculture/Env 3,557 88.7%
Chart 1.3
Broad Field of Education: Student Progress Rates
84% 86% 88% 90% 92% 94% 96% 98% 100%
Overall, across all fields of education, Go8 students passed 91.8% of what they attempted. Students
in Health, Education, Creative Arts, and Architecture/Building did better than this, and did better
than students in Management/Commerce, Society/Culture, Science, Engineering,
Agriculture/Environment and IT.
Across these ten Broad Fields of Education, student progress rates were compared between
international students onshore, international students offshore and Australian students, as in Table
1.7 and Chart 1.4 Broad Fields of Education: International and Australian Students. The
performance of one international offshore student in Agriculture/Environment was not included in the
table or the chart.
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Table 1.7
Broad Fields of Education: International and Australian Students
Population
Student Progress Rate
Field
Int Int
Int Int
Onshore Offshore Australian Onshore Offshore Australian
Mgt/Com 19,090 3,039 22,236 91.0% 88.5% 91.5%
Soc/Culture 5,876 805 36,946 90.9% 89.3% 90.7%
Health 4,455 825 22,726 96.1% 93.6% 96.6%
Science 3,318 1,130 17,550 91.9% 91.7% 90.4%
Engineering 5,456 912 14,981 89.8% 91.0% 90.0%
Creative 1,782 282 9,096 94.8% 88.8% 93.8%
Education 857 358 6,564 96.8% 90.0% 94.8%
Arch/Build 1,473 51 4,634 92.2% 94.0% 94.0%
IT 2,125 426 2,484 88.0% 81.6% 82.9%
Ag/Env 512 3,044 91.6% 88.3%
Chart 1.4
Broad Fields of Education: International and Australian Students
IT
Ag/Env
Business
98%
96%
94%
92%
90%
88%
86%
84%
82%
80%
Arts
Health
International
Onshore
International
Offshore
Australian
Arch/Build
Sci
Education
Engineering
Creative Arts
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Home Countries
The Go8 universities reported international country codes for 46,438 international students on
campus in Australia. The students came from 179 countries, with 90 countries each the source of
fewer than 10 students.
There were 21 home countries with 200 students or more in Go8 universities, and these 21
countries made up 91% of the international student population, on campus in Australia, as in Table
1.8 Home Country of International Students Onshore: Student Progress Rates.
Table 1.8
Home Country of International Students Onshore: Student Progress Rates
Population Student Progress Rate
China 14,291 89.1%
Malaysia 5,724 94.2%
Singapore 4,231 94.7%
HK 3,515 90.1%
Indonesia 2,953 94.0%
US 2,211 96.4%
India 1,738 90.2%
Korea 1,427 85.9%
Vietnam 895 92.8%
Thailand 858 94.4%
Japan 739 90.6%
Taiwan 699 90.7%
Canada 637 97.5%
Germany 464 94.2%
Sri Lanka 395 89.4%
Brunei 284 90.9%
Pakistan 268 95.7%
Mauritius 258 92.4%
Norway 237 95.1%
Saudi Arabia 214 88.6%
Bangladesh 200 88.3%
Chart 1.5 Home Country of International Students Onshore: Student Progress Rates on the
following page displays the student progress rates for these 21 countries, with some colour coding
into regions.
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Chart 1.5
Home Country of International Students Onshore: Student Progress Rates
100%
98%
96%
94%
92%
90%
88%
86%
84%
82%
80%
Staying the Course
Forthcoming research on attrition and retention in Australian universities 5 also enables some
comparisons between academic outcomes of international and Australian students.
The nouns retention and attrition do not lend themselves readily to active verbs. In the forthcoming
report, students who are counted in retention figures stay the course, students who are counted in
attrition figures drop out. The expression staying the course, used in the title, is taken from the UK
National Audit Office 2007 report Staying the Course: The Retention of Students in Higher
Education 6 . The House of Commons Committee of Public Accounts kept this expression in its 2008
report Staying the Course: The Retention of Students on Higher Education Courses 7 .
The concepts of attrition and retention need some clarity.
5 Olsen A 2008a
6 National Audit Office 2007
7 House of Commons Committee of Public Accounts 2008
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In this forthcoming study, retention simply is the inverse of attrition, and 2006 is the base year, as
follows
Attrition = (T-C-G)/T (the proportion of students in year 2006 who neither completed nor returned
in year 2007)
Retention = Inverse of Attrition = (C+G)/T (the proportion of students in year 2006 who either
completed or returned in year 2007)
where
T is Total number of students enrolled in 2006
C is number of students in population T who continued in 2007
G is number of students in population T who completed in 2006
example
If, of 100 students in 2006, 30 graduated in 2006 and 60 continued in 2007
Attrition = (100-60-30)/100 = 10%
Retention = Inverse of Attrition = (60+30)/100 = 90%.
In this forthcoming study of 485,983 students in 32 Australian universities in 2006, the retention
figure was 89.5%; the attrition figure was 10.5%. 89.5% of students in 2006 stayed the course,
10.5% dropped out.
This study of retention and attrition of Australian and international students was carried out with the
cooperation of the Australian Universities International Directors’ Forum (AUIDF), the forum of the
International Directors in the 38 universities that are members of Universities Australia. 32
universities chose to participate in the study.
The base student population included both international and Australian students who were enrolled
in an award course in at least one reporting period in 2006, who were studying full time on campus
in Australia, and excluding postgraduate research students. The study excluded offshore students,
external students, part time students, postgraduate research students and non-award students.
Specifically, study abroad and exchange students were excluded as non-award students.
In 2007 the then DEST published Appendix 4. Attrition Progress and Retention Rates for
commencing bachelor students as part of Students 2006 [full year]: selected higher education
statistics 8 . This put into the public domain for the first time information for each university on the
comparative attrition rates of international and Australian students, but specifically the population
was commencing bachelor degree students.
The DEST data enabled the comparison of attrition rates for international and Australian
commencing bachelor degree students in 2005 for each university, as in Chart 1.6 Attrition Rates
by Universities 2005.
8
Department of Education, Science and Training 2007
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Chart 1.6
Attrition Rates by Universities 2005
40%
35%
30%
InternationalAttrition Rate
25%
20%
15%
10%
5%
0%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Domestic Attrition Rate
In the 2008 study of 485,983 students in 32 Australian universities in 2006
women stayed the course better than men
undergraduates did better than postgraduate coursework students
international students stayed the course better than Australian students.
Chart 1.7 Attrition Rates by Groups compares the attrition rates for these six groups with the total
population.
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Chart 1.7
Attrition Rates by Groups
7.0% 7.5% 8.0% 8.5% 9.0% 9.5% 10.0% 10.5% 11.0% 11.5% 12.0%
Overall, 7.6% of the 102,686 international students dropped out, staying the course better than the
383,297 Australian students, 11.3% dropped out, as in Table 1.9 International and Australian
Students: Attrition.
Table 1.9
International and Australian Students: Attrition
Population
Attrition
International 102,686 7.6%
Australian 383,297 11.3%
Total 485,983 10.5%
Across the population, 99.8% of students were aged between 17 and 60. Overall, 10.5% of students
dropped out.
In terms of staying the course, students aged 19 to 23, 57.5% of the overall student population, did
better than this.
15.8% of 17 year olds (6.1% of the student population) and 12.1% of 18 year olds (13.1% of the
student population) dropped out, suggesting that slightly older students stay the course better,
perhaps benefiting from experiences such as gap years. But this study did not distinguish between
freshers and sophomores.
From 23 years old on, attrition rates increase with age.
Attrition rates across age groups were compared between international and Australian students, as
in Chart 1.8 Age: International and Australian Students. At every age, international students
stayed the course better than Australian students.
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Chart 1.8
Age: International and Australian Students
80,000
70,000
60,000
Students in Age Group
Domestic Attrition
International Attrition
25%
20%
50,000
15%
40,000
30,000
10%
20,000
10,000
5%
0
0%
For the 32 universities, attrition rates for international students were compared with attrition rates for
Australian students. In 27 universities, international students stayed the course better than
Australian students and in five universities Australian students stayed the course better than
international students.
International Comparisons
International comparisons are more readily available for retention than for student progress.
The Organisation for Economic Cooperation and Development (OECD) defines survival rates for
university undergraduate students as representing the proportion of those who enter such a
program who go on to graduate from such a program.
OECD in Education at a Glance 2007: OECD Indicators 9 compared survival rates in 2004.
Against an OECD average of 71.0%, the figure for Australia was 67.3%, as in Chart 1.9 OECD
Survival Rates.
9 Organisation for Economic Cooperation and Development 2007
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Chart 1.9
OECD Survival Rates
50% 55% 60% 65% 70% 75% 80% 85% 90% 95%
Japan
Ireland
Korea
Greece
United Kingdom
Netherlands
Belgium (Fl.)
Spain
Turkey
Germany
OECD average
Finland
Mexico
Switzerland
Portugal
Australia
Iceland
Poland
Austria
Czech Republic
Hungary
Sweden
New Zealand
United States
67.3%
71.0%
The OECD survival rate for US in 2004 was 53.7%. In the Summer 2008 issue of International
Higher Education, Arthur M Hauptman 10 commented on participation and persistence in US
Another traditional means of comparing OECD countries is persistence rates—the proportion of
entering students who complete their programs. Periodic longitudinal surveys of students
entering universities in the United States suggest that about half of them receive a degree within
six years. For community college students, the degree completion rate in the United States is
much lower—certainly less than 20 percent and perhaps less than 10 percent, as many of the
students who enroll do not plan to receive a degree. The view is that the United States has
tended to be below the average of many other countries in terms of persistence, in part because
as one of the first of the mass or universal systems in the world, the United States has adhered
to the policy of letting more and more people try higher education and not worrying as much
about how many complete their programs.
The OECD survival rate for UK in 2004 was 77.7%. The UK National Audit Office 11 in 2007 reported
on two measures of retention
the completion rate, the proportion of starters in a year who continue their studies until they
obtain their qualification, with no more than one consecutive year out of higher education (As
10 Hauptman A M 2008
11 National Audit Office 2007
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higher education courses take years to complete, an expected completion rate is calculated by
the Higher Education Statistics Agency. Data to check whether the expected rates are close to
the actual completion rates has only recently become available.)
the continuation rate, the more immediate measure of retention, the proportion of an institution’s
intake which is enrolled in higher education in the year following their first entry to higher
education.
The National Audit Office concluded
From the published performance indicators, of the 256,000 full-time, first-degree students
starting higher education in 2004-05, 91.6 per cent continued into their second year. Also, the
projected outcomes table shows that 78.1 per cent are expected to qualify with a first degree,
with a further 2.2 per cent expected to obtain a lower qualification, and 5.8 per cent expected to
transfer to another institution to continue their studies.
The OECD survival rate for New Zealand in 2004 was 54.4%. In the March 2005 issue of the
Journal of Higher Education Policy and Management, David Scott 12 reported research on
completion rates for domestic undergraduates in New Zealand. Of domestic students commencing
bachelor degrees at public providers in 1998, 46% had completed successfully five years later, by
2002, and 7% were still studying.
The Gender Agenda
A comment on the extent to which girls do better than boys, and on the importance of taking gender
into account in research on outcomes of higher education, may be appropriate.
In Go8 in 2007, female students passed 93.3% of what they attempted and did better than male
students (89.9%). This gender difference was consistent with the 2006 study of 22 universities in
2003, where female students passed 91.6% of what they attempted; male students 86.5%.
In 32 universities in Australia in 2006, 9.9% of female students dropped out, staying the course
better than male students; 11.2% dropped out.
From the 2005 study in New Zealand 13
Women are more likely to complete a tertiary qualification successfully than men. For degreelevel
qualifications and below, the rate at which men complete is 6% to 9% lower than the rate
for women.
In terms of outgoing international student mobility, a study of 37 universities in Australia in 2007 14
found that women dominated all types of international study experiences. The 37 universities
reported that 57.5% of students with international study experiences in 2007 were women. This is
similar to the gender gap in US, where 65.5% of all study abroad students in 2005/06 were women.
12 Scott D 2005
13 Scott D 2005
14 Olsen A 2008b
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Girls do better than boys to the extent that, in any research on outcomes of higher education, it may
be that a cohort dominated by women will do better than a cohort dominated by men. For this
reason, gender needs to be on the agenda in any research on academic outcomes.
Outcomes
Go8 is a coalition of leading Australian universities, intensive in research and comprehensive in
general and professional education. In this elite group of Australian universities, 195,694 students in
2007 passed 91.8% of what they attempted.
Specifically, in 2007 the 46,812 international students on campus in Australia passed 91.6% of what
they attempted, and did just as well as the 140,903 Australian students, who passed 92.0%. This is
consistent with the 2006 study where, across 22 universities, the 73,929 international students on
campus in Australia in 2003 passed 88.8% of what they attempted, and did just as well as the
264,516 Australian students, who passed 89.4%.
In 2007, 7,939 international students offshore, resident outside Australia but studying at a Go8
university, including those at offshore campuses and those international students studying by
distance or online, passed 89.2% of what they attempted.
Go8 universities are attracting talented international students to Australia, are setting entry
standards at about the right levels and are achieving successful outcomes in educating these
international students. In Go8 universities, international students in Australia do just as well as
Australian students in key fields such as Management and Commerce, Society and Culture, Health
and Engineering, and do a little bit better in Science.
International students in Australia also have successful outcomes in terms of staying the course. Of
102,686 international students in 32 Australian universities in 2006, 92.4% completed or continued,
staying the course better than the 88.7% of 383,279 Australian students who completed or
continued.
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2
Outcomes for Graduates
Melissa Banks and Robert Lawrence present the results of new market research quantifying the
outcomes for international graduates including employment, labour market and migration outcomes.
The editors wish to acknowledge the contribution of alumni data from the Australian Technology
Network of Universities.
Introduction
The significance of Australia’s international student program is often measured in terms of scale, its
economic contribution and more recently its contribution to Australia’s labour market, yet little is
known about the outcomes for its graduates.
Immediate employment outcomes, four months post graduation, are measured by Graduate
Careers Australia through the Graduate Destination Survey. The Australian Bureau of Statistics
reports export earnings, universities report revenue from international student fees and international
student enrolments through Department of Education, Employment and Workplace Relations
(DEEWR) submissions, Australian Education International (AEI) reports international student
enrolments and commencing enrolments across all sectors, and the Department of Immigration and
Citizenship (DIAC) reports student visa and migration statistics.
We know that in 2007/08 international education contributed $13.7 billion to the Australian
economy 15 , and that revenue from international student fees contributed an average 14.9% of total
university revenues in 2006 16 . In July 2008 there were a total of 459,692 international students
enrolled in Australian education institutions across all sectors, 177,954 of these were in higher
education 17 and in 2007 international students represented 19.4% of all students studying onshore
in Australia’s universities 18 . There are many measures of Australia’s international student program
yet none measure the outcomes for our graduates.
Australia first accepted international students into its higher education system via the Colombo Plan
for Cooperative Economic Development in South and South East Asia in the 1950s. Australia’s
international student program has changed significantly since then in its scale, scope and intent. Yet
despite the scale and longevity of Australia’s international student program, little is known about our
graduates.
15 Australian Bureau of Statistics 2008c
16 Bradley et al 2008
17 Australian Education International 2008a
18 Department of Education, Employment and Workplace Relations 2007
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Some studies have traced the outcomes for international scholarship recipients who returned to
their home countries on completion of their studies. These studies have reported positive outcomes
in terms of graduates’ career and personal development but questioned the appropriateness of the
Australian education to local conditions to which graduates return 19 . But today, anecdotally, we
know that not all graduates return home and, as privately funded students, graduates will have
choices about their employment and career directions that will be very different from those of
scholarship recipients.
This chapter provides the results of new market research quantifying the many and various
outcomes for international graduates including employment, and labour market and migration
outcomes building on the prevailing measures of international education on Australia, the economy,
the labour market and on our providers.
The Study
In order to examine the journey of Australian tertiary educated international graduates, IDP
Education Pty Ltd (IDP) sought the collaborative support of the five university members of the
Australian Technology Network of Universities (ATN) (Curtin University of Technology, Queensland
University of Technology, RMIT University, University of South Australia, and University of
Technology Sydney) to explore the journeys of their international alumni.
To qualify for this study, graduates must have completed at least 12 months of study on campus in
Australia and must have been enrolled in an undergraduate or postgraduate coursework program.
Graduates from 2005 or earlier were specifically targeted in order to provide some insights as to
where they are now, where they have been, what they have been doing and what they are likely to
do next.
This is the only survey of its kind to build our knowledge of what actually happens to our graduates
after graduation. The objectives of this exercise were
where possible, to quantify the actual outcomes for a group of international graduates from
selected Australian universities in terms of their employment and career outcomes, and
residency outcomes including locating graduates: where they are now and where they have
been
to measure international graduate perceptions of the value of their Australian study experience
based on their experiences post graduation
to gain a better understanding of the ongoing benefits international graduates provide to
Australia after completion of their studies.
The research was commissioned by IDP in mid-2008 and was undertaken by Robert Lawrence of
Prospect Research. It is arguably the most in-depth Australian international alumni investigation yet
undertaken, not only because of the collaborative nature of the study, but also the breadth and
depth of the enquiry lines.
19 Cuthbert D, Smith W and Boey J 2008
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Methodology and Sample
The methodology for this research project consisted of an online survey distributed by each of the
ATN universities to their international alumni. Eligible alumni were invited to participate in the survey
prior to and during the survey going live over a four week period, with data collected online and in
real time.
In total, the survey was distributed to approximately 8,000 graduates with a validated return of 1,940,
a response rate of 25%.
The aggregate of responses is used in this paper together with several banners
age bands: up to 26 years of age, 27 to 30 years of age and 31 years of age and over
nationality bands: specifically, the six largest sample markets of Malaysia, Indonesia, Singapore,
Hong Kong, India and China; other represented nationalities, of which there were 49, are listed
under the heading ‘other’
by major field of study: Business, Accounting and Finance, Engineering, Information Technology,
Health and Medicine, Arts and Humanities, and Education; other fields of study have been
included under the heading ‘other’.
In interpreting the results there are several important skews which need to be taken into
consideration
under nationality, 139 students cited their nationality as Australian, even though they were most
definitely international students up to the point of graduation, a finding in itself
fields relating to Accountancy and Finance, such as economics and actuarial studies, have been
included under this heading
social sciences have been included under the heading Arts and Humanities
allied medical fields, such as psychology, pharmacy and optometry have been included under
Health and Medicine.
The final sample was 1,940.
Chart 2.1 Sample by Nationality shows the major nationality cohorts, with Malaysia (552),
Indonesia (263), Singapore (250), Hong Kong (139), India (101) and China (65) the six largest
nationality groups. This distribution of responses by nationality reflects the enrolment profile of
international students in Australian higher education in early to mid-2000 when China and India
were only emerging as key source markets.
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Chart 2.1
Sample by Nationality
Other Countries
UK
Norway
Thailand
China
India
Australia
HK
Singapore
Indonesia
Malaysia
0 100 200 300 400 500 600
Chart 2.2 Sample by Field of Study shows the sample segmented by field of study. Business has
been separated from Accounting and Finance. Business represents the largest sample group by
field of study at 474 participants. This is followed by Accounting and Finance (315), Engineering
(225), Information Technology (171), Health and Medicine (152), Arts and Humanities (124) and
Education (86). The remaining 388 participants are included under the heading ‘other’.
Chart 2.2
Sample by Field of Study
Others
Education
Arts / Humanities
Health / Medicine
IT
Engineering
Accounting / Finance
Business
0 50 100 150 200 250 300 350 400 450 500
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Chart 2.3 Sample by Age Cohort shows the sample by age band. It was deemed most appropriate
to have a minimum age cell of 300 in order to provide a comparative measure by age band. The
largest sample group is for those aged 31 or over at 982. This is followed by the age band 27 to 30
years of age (635) and up to 26 years of age (302). Twenty-one participants did not answer this
question.
Chart 2.3
Sample by Age Cohort
1,200
1,000
800
600
400
200
0
Up to 26 27 - 30 31 or more
Chart 2.4 Sample by Gender shows the sample by gender with male participants constituting 1,012
and female participants constituting 919. Nine participants did not answer this question.
Chart 2.4
Sample by Gender
Male
Female
919
1,012
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When evaluating the results there are several additional sample considerations to take into account
21.5% of the total sample (417 participants) currently reside in Australia
27.9% of the total sample (541 participants) are Australian permanent residents
the peak graduation years of the total sample are 2005 (15.9%), 2004 (14.5%), 2003 (11.7%),
2001 (10.0%) and 2002 (9.2%).
Scholarships
Of the total sample, 302 graduates (15.6%) received a scholarship to study in Australia with the
largest group being those in the 31 years and over cohort; 21.4% of this cohort had a scholarship to
study in Australia compared to 9% for the other two cohorts.
Across the total sample
5.3% were recipients of a scholarship from their home country
4.9% were recipients of an AusAid scholarship
3% were recipients of a university scholarship
scholarship recipients were most likely to be studying in the fields of Education (17.4% of the
Education sample), Science (12.5%) and Health and Medicine (9.2%).
Currently Studying
Across the total sample, 211 graduates (10.9% of the total sample) were studying at the time of
completing the survey. Of those currently studying
16.4% had graduated in Health and Medicine, followed by Arts and Humanities (15.3%) and
Accounting and Finance (14.3%)
14.9% of all aged 26 or less were studying, compared to 10% for the other two age cohorts
across each of the nationality groups the largest sample by nationality currently studying hail
from Hong Kong (20.9%) and China (15.4%); 12.9% of graduates who now cite their nationality
as Australian are currently studying and of those currently located in Australia 14.4% are
studying compared to 9.9% of those located offshore
38.9% of the sample who are currently studying are undertaking their program in Australia.
Duration of Study
This line of enquiry was to determine how long graduates studied in Australia and to determine
whether there were any patterns by nationality or field of study.
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Chart 2.5 Duration of Study by Nationality shows the shortest duration market is India, with 41%
of graduates having only studied in Australia for up to 18 months. Australian higher education
enrolments from India are mostly masters degrees by coursework.
In contrast the longest duration markets are Hong Kong, China and Indonesia, with 56.1% of
graduates from Hong Kong, 43.1% from China and 42.6% of graduates from Indonesia having
studied in Australia for four years or more.
Chart 2.5
Duration of Study by Nationality
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Malaysia Indonesia Singapore HK India China Thailand Others
4 years or more
3 years
2 years
Up to 18 months
Further
27.7% of graduates from India studied in Australia for three years or more, compared with
63.1% of graduates from China
Engineering graduates reported the longest period of duration in Australia.
39.1% of Thai graduates studied in Australia for two years.
Interestingly 43.2% of graduates who now cite their nationality as Australian studied in Australia for
five years or more.
Where Are They Now?
Australia, like many OECD countries, has developed migration policies and a skilled migration
program that aims to attract skilled workers. International graduates represent a valuable source of
skilled labour sought after by Australia’s labour market and the labour markets of other OECD
countries. Recent policy initiatives have transformed international graduates into a readily available
source of skilled labour. Australia’s international education program is becoming increasingly
enmeshed in Australia’s broader migration program.
When asked what respondents wanted to do on completion of their studies, 19% said they aspired
to live in Australia temporarily while 38% sought to stay permanently.
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At the time of the survey 21.5% were actually residing in Australia and 28% had gained residency.
This is consistent with other comparative data.
In Australia in 2005, 125,249 international students across all sectors finished studying, Of these
125,249 students, 56,842 were higher education students 20 . In 2005/06, 23,205 students on student
visas applied for migration, 15,767 of these were on higher education visas 21 . This tells us that in
2005/06 19% of all finishing international students across all sectors applied for skilled migration.
For international students finishing higher education the figure was higher at 28%.
But the settlement of international graduates is not necessarily permanent. Whilst 28% had gained
residency in our survey, a further 32% had a right to work in Australia. Amongst our respondents
temporary migration is more prevalent than permanent migration as in Chart 2.6 Residential Status
by Nationality.
Chart 2.6
Residential Status by Nationality
70%
60%
50%
% who reside in Australia
% who have an Australian working visa
% who have Australian permanent residency
40%
30%
20%
10%
0%
Malaysia Indonesia Singapore Hong Kong India China Thailand Norway UK Other
Countries
Contrary to popular perception, the proportion of international students in Australian universities is in
line with the proportion of people of overseas background in the Australian community. In Chapter 4
Impact on Providers we see that in 2006, 18% of students in onshore higher education in Australia
were international students and a further 12% of students were Australians who speak a language
other than English at home 22 . This compares with figures from the 2006 Australian census which
show that 22.2% of Australian residents were born overseas and that a further 21.5% spoke a
language other than English at home 23 .
20Australian Education International 2005
21 Department of Immigration and Citizenship 2008
22Department of Education, Employment and Workplace Relations 2007
23Australian Bureau of Statistics 2006
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Our study found that of the total sample 28% had gained permanent residency. Chart 2.7
Australian Permanent Residents by Nationality shows the proportion of graduates from our study
who have gained residency.
Chart 2.7
Australian Permanent Residents by Nationality
70%
60%
%who haveAustralian permanentresidency
50%
40%
30%
20%
10%
0%
Malaysia Indonesia Singapore Hong Kong India China Thailand Norway UK Other
Countries
When considering those who have working visas, those with permanent residence and those who
are actually living in Australia some patterns emerge by nationality, field of study and age cohort
graduates from China and India are more likely to have a working visa (66.2% and 58.4%,
respectively), to have permanent residency (60% and 44.6%, respectively) and actually live in
Australia (50.8% and 44.6%, respectively) compared to graduates from other nations
graduates in Information Technology and Engineering are more likely to have a working visa
(53.2% and 40%, respectively), to have permanent residency (47.4% and 36.9%, respectively)
and actually live in Australia (39.2% and 29.3%, respectively) compared to graduates from other
disciplines
graduates aged 26 years or less are more likely to have a working visa (44%), to have
permanent residency (36.8%) and actually live in Australia (34.1%) compared to other age
cohorts.
There are some exceptions
41.9% of graduates in Education have an Australian working visa
32.9% of graduates in Health and Medicine and 31.4% from Accounting and Finance have
permanent residency
45.5% of graduates from UK are living here.
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Graduates who had an Australian working visa were also asked whether they had used their
Australian working visa to secure employment in another country. Only 4.5% responded ‘yes’ to this
question.
The difference between numbers who have gained residency and those who are actually residing in
Australia suggests that graduates will move between Australia and their country of origin and
possibly other destinations. Chart 2.8 Where Graduates Currently Reside shows that most
graduates return home with the exception of those from China, India and UK. Despite being the four
largest nationality groups, Malaysian, Indonesian, Singaporean and Hong Kong graduates are
comparatively much less inclined to obtain Australian permanent residency than their Chinese and
Indian counterparts, with 21.4%, 24.3%, 18.8% and 18% of graduates, respectively from these four
countries having gained residency.
Chart 2.8
Where Graduates Currently Reside
90%
80%
70%
60%
Australia
Home Country
50%
40%
30%
20%
10%
0%
Malaysia Indonesia Singapore Hong Kong India China Thailand Norway UK Other
Countries
Destination Selection Variables
Empirical evidence shows that students select Australia for a wide variety of reasons, and whilst
there may be one or two dominant variables, a great many more selection factors are incorporated
into the mix. This line of enquiry asked graduates to retrospectively select the two most important
selection variables when they chose Australia as their international education destination, with the
aggregated responses shown in Chart 2.9 Reasons for Choosing Australia (Top Two) by Total
Sample.
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Chart 2.9
Reasons for Choosing Australia (Top Two) by Total Sample
High academic standards
To gain Australian Permanent Residency
Australian degrees valued by employers in home country
Friends and family had been before
Close to home country
More affordable than other countries
English speaking
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Australian higher education offers a number of attractiveness attributes for international students.
Retrospectively graduates identified the key selection variables from a supplied list as encapsulating
an affordable, quality education offered in English that is recognised by employers. Interestingly
graduates stated that the attraction of gaining permanent residency was not high in their
consideration of selection variables.
Specifically in response to this question 41.5% of the sample chose Australia as an English
speaking country and 41% chose Australia as a more affordable destination than other countries as
their top two variables. Australia’s comparative affordability was most important to graduates from
Hong Kong, 65.5% of whom ticked this variable, while Australia as an English speaking country was
a key variable for graduates from Thailand (71.7%) and China (61.5%).
The quality of education standards was cited by 31.5% of the total sample. ‘High academic
standards’ was most endorsed by graduates who now cite their nationality as Australian and
graduates in Health and Medicine (53.3%) and Education (50.0%).
Despite the fact that empirical evidence shows that up to 80% of international students in major
metropolitan centres have friends or family in Australia, this was a key selection variable for only
20.4% of the sample. This variable was most important for graduates from Thailand (71.7%) and
China (61.5%).
Gaining Australian permanent residency was a key variable for only 11.1% of the total sample; a
result which is consistent with empirical evidence that shows permanent residency is an attribute
that increases in importance over time, and is a benefit but not necessarily a primary driver.
However when responses are analysed by nationality it is interesting to note that 36.6% of
graduates from India, and 26.2% of graduates from China ticked ‘to gain Australian permanent
residency’ as one of their two most important variables.
‘Australian degrees being valued by employers in home country’ received the highest endorsement
as a selection variable from graduates in Education (39.5%), Health and Medicine (36.2%) and
Architecture (32.8%).
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Languages Spoken
The most common languages spoken on a regular basis were English, Mandarin, Cantonese and
Malay. English is spoken regularly by 94.3% of the total sample, and by nationality groups most
recorded a figure of 90% or more with regards to regular use of English. Some notable exceptions
include graduates from Indonesia (89.4%), China (83.1%) and Thailand (69.6%).
Many respondents are multilingual using several languages on a regular basis
95.7% of the Hong Kong sample speak English on a regular basis; in addition 97.8% of the
Hong Kong sample speak Cantonese and 81.3% speak Mandarin
83.6% and 71.9% of the Singaporean and Malaysian sample respectively speak Mandarin
of the 139 graduates who now cite their nationality as Australian, 95.7% speak English, 25.2%
Mandarin, 20.9% Cantonese, 19.4% Hindi and 7.2% Punjabi.
By field of study, again the most common language spoken on a regular basis was English across
all disciplines. In addition
66.3% of graduates in Accounting and Finance speak Mandarin and 49.8% Cantonese
54% of Business graduates, 50% of Arts and Humanities graduates and 46.8% of Information
Technology graduates speak Mandarin
21.6% and 16% of the Information Technology and Engineering samples respectively, speak
Hindi
49.8% and 40.3% of the Accounting and Finance and Business samples respectively, speak
Cantonese
half of the Architecture and Design graduates speak Mandarin, 44.8% of this subset also speak
Cantonese.
Employment and Career Outcomes
International students continually assert that the most important criterion of success is securing a
prestigious job. But to what extent are the expectations of our graduates met?
Chart 2.10 Duration of Time Taken to Secure Their First Full Time Position shows how soon
after completion of their studies graduates secured their first full time position by age cohort.
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Chart 2.10
Duration of Time Taken to Secure Their First Full Time Position
60%
50%
Aged 31+
27-30
21-26
40%
30%
20%
10%
0%
Immediately
Within six months of
graduating
Six to twelve months after
graduating
Between 1 year and 2 years
after graduating
Of the total sample 33.7% said they secured their first full time position immediately on completion
of their studies, 75% were employed within six months and by 12 months 89% were in full time
employment. This is consistent with other data. According to Graduate Careers Australia (GCA)
data 24 since 1999 international students available for full time employment have experienced
employment levels between 67% and 83% per year when surveyed only four months after
completion of their studies.
However GCA data also tell us that international graduates experienced slightly lower full time
employment levels than their domestic counterparts as in Chart 2.11 Employment Status of
Domestic and International Graduates Available for Full Time Employment.
24 Graduate Careers Australia 2006
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Chart 2.11
Employment Status of Domestic and International Graduates Available for Full Time
Employment
100%
80%
60%
40%
20%
Not Work
Work PT
FT Emp
0%
Overseas
Aust
Overseas
Aust
Overseas
Aust
Overseas
Aust
Overseas
Aust
Overseas
Aust
Overseas
Aust
Overseas
Aust
Overseas
Aust
Overseas
Aust
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Source: Graduate Careers Australia
The differences in full time employment levels between domestic and international graduates could
be attributed to many factors. Domestic students often commence their job search process during
their final year of study, international students on the other hand may expect to return home to
secure employment and would need to commence their preparations remotely. GCA’s Graduate
Destination Survey has found that domestic students who have either part time or full time
employment during their final year have higher levels of employment after graduation than those
who have no employment. Not surprisingly those with full time employment during their final year
have the highest employment levels. Significantly, student visa regulations restrict international
students from working full time.
There also remain a number of barriers to entry to the Australian work place that will impact
international graduate employment levels, not the least being that many employers demand
permanent residency before recruiting international graduates or band scores in International
English Language Testing System (IELTS) that simply do not exist, demonstrating a lack of
awareness of the IELTS test and its band scoring system.
Other barriers include a lack of exposure to Australian business culture, speaking English as a
second language, lack of contacts with prospective employers, cultural differences, employer lack of
knowledge of temporary and permanent migration visas, and lower employer propensity to employ
international students (less than one in every four employers had recruited international graduates
as part of their graduate intake in 2007, up from 16% in 2005 25 ).
International students who wish to remain in Australia face uncertainty regarding their residential
status. It is interesting to note that employment levels for international students who returned home
were higher than for those who remained in Australia. In 2005 65% of all international graduates
available for full time employment were in full time employment, yet for those who were employed
25 Graduate Careers Australia 2007a
36
Chapter 2 | IDP Education Pty Ltd

outside Australia the figure was 75%. In 2007 67% of all international graduates were in full time
employment yet for those who were employed outside of Australia the figure was 77% 26 .
Prior to 2001 international students were generally not permitted to stay and work in Australia on
completion of their studies. The decline in employment levels after 2002 is clear. International
students who remain in Australia are not as successful as their domestic counterparts in securing
full time employment. Graduate Careers Australia 27 found that compared to domestic students the
confidence levels of international students in obtaining a job following graduation were much lower
with a difference of 22.6 percentage points between the two segments.
Our study found that 77.9% of those located offshore found their first full time job within six months
compared to 66% for those located in Australia. Further for Australian permanent residents 68.3%
gained their first full time job within six months compared to 78.1% for those without permanent
residence. There is a clear breakdown in the transition from university into the Australian workplace
that is worthy of further research.
Other observations from this line of enquiry include
those aged 31 or more were more successful in gaining their first full time position in a shorter
time frame than the other age cohorts
79.6% of graduates from Singapore received their first full time position within six months of
graduating (24% immediately); this was followed by Malaysia at 78.2% (28.6% immediately),
Hong Kong at 76.2% (27.3% immediately), China at 75.4% (30.8% immediately), and India at
74.3% (39.6% immediately)
59.3% of graduates in Education and 49.3% of graduates in Health and Medicine reported
receiving their first full time position immediately while 77.7% of graduates in Accounting and
Finance received their first full time position within six months of graduating (27.9% immediately);
followed by 72.3% of graduates in Business (27.6% immediately)
the lowest levels of immediacy were graduates in Communications, at 19.4% and Information
Technology at 25.1%; however 74.2% of Information Technology graduates reported receiving
their first full time position within six months of graduating
5.6% of graduates reported receiving their first full time position within one and two years of
graduating
47.5% of graduates who now report their nationality as Australian secured their first full time
position immediately following graduation, which would have assisted with their permanent
residency acquisition.
With 38% of graduates stating their original intention on completion of their studies as remaining in
Australia permanently and 36.3% as returning home, a key outcome is the extent to which these
intentions were achieved. Chart 2.12 Location of First Full Time Position shows the location of
the first full time position, segmented by Australia and home country. The vast majority of
international graduates gained their first position in their home countries, with India and China the
only exceptions.
26 Graduate Careers Australia 2006
27 Graduate Careers Australia 2007b
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Chart 2.12
Location of First Full Time Position
120%
100%
Home Country
Australia
80%
60%
40%
20%
0%
Malaysia Indonesia Singapore Hong Kong India China Thailand OTHER
When asked what graduates had hoped to do after graduation in terms of remaining in Australia
either temporarily or permanently or returning home, 36.3% across the total sample wanted to return
home, 38% wanted to remain in Australia permanently, 18.9% wanted to remain temporarily and
6.3% wanted to do something else. By nationality those who most wanted to remain either
permanently or temporarily in Australia included those who now identify themselves as Australian
(66.2%), graduates from India (72.3%), China (67.7%) and Indonesia (61.2%). In contrast 51.1% of
graduates from Hong Kong and 43.5% of graduates from Thailand wanted to return home.
In reality 87% of the graduates from Thailand and 86% from Hong Kong stated that their first
position of employment was at home. In contrast only 35% of graduates from India and 43% from
China gained their first position in their home countries.
When asked where most of their work had been undertaken, countries of home residence were the
most commonly cited locations followed by Australia. Some nationalities showed a high degree of
geographical dispersion compared to others with graduates from Malaysia, Indonesia, Singapore
and India slightly more dispersed around the globe, while graduates from China and Thailand were
relatively concentrated in a few countries. The most popular third destination countries included:
Singapore, China, US, Malaysia, Hong Kong and UK. There were clear patterns of association
between graduates’ choices of third destination countries and their home countries through cultural,
historical, religious and language ties as well as proximity.
The greatest employment challenge for graduates is gaining their first career role. Once achieved
graduates are able to accrue experience and workplace skills that provide them with more career
options. Today’s graduates are more mobile than their parents and with this in mind this line of
enquiry was designed to assess fluidity of career movements after securing their first role. Chart
2.13 How Long Graduates Remained in Their First Full Time Role shows the movement of
graduates by age cohort.
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Chart 2.13
How Long Graduates Remained in Their First Full Time Role
40%
35%
30%
25%
Aged 31+
27-30
21-26
20%
15%
10%
5%
0%
Less than 6 months Six months to a year Between one and two
years
Between two and five
years
More than five years
Across the total sample, 23% of graduates remained in their first full time position for one year or
less, a figure which is heavily influenced by 37.4% of graduates aged 21 to 26 reporting one year or
less. The older cohort, 31 years and over, reported a longer average period of employment. Across
the total sample, 52.6% of graduates remained within their first full time position for two years or
more, a figure which is significantly influenced by graduates aged 31 years and over (63.2% of
whom reported this length of employment).
Career Influences, Aspirations and Employers
Respondents were asked to consider key variables which most influence graduates’ career choices.
Participants awarded a score against seven key variables on the scale of one to ten, where one
indicated a very low level of influence and ten a very high level of influence. Chart 2.14 Level of
Influence When Choosing a Career shows the level of influence by mean score.
Overall, the most influential variable is ‘personal choice’ with a mean score of 8.4. The next most
influential variable on a scale of one to ten was ‘very high earning potential’ with a score of 7.5
followed by ‘Good job in home country’ at 7.0. Clearly international graduates’ career choices are
highly influenced by perceived outcomes measured in terms of job prestige, salary level and
location, preferably in their home country.
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Chart 2.14
Level of Influence When Choosing a Career
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Good job in
Australia
Australian
permanent
residency rules
Very high earning
potential
To secure a
prestigious job
Personal choice
Parent
expectation
Family tradition
Respondents were asked about the types of organisations, based on profile, employee numbers
and international diversity, they initially aspired to work in, the types of organisations graduates were
currently working in and then, with experience, the types of organisations they would like to work in
now. Interestingly, although half of the graduates initially aspired to work in a large multinational
company after some years of experience, smaller organisations became more desirable as in Chart
2.15 Type of Organisations Graduates Would Like to Work in Now.
Chart 2.15
Type of Organisations Graduates Would Like to Work in Now
60%
50%
40%
Originally
Now
30%
20%
10%
0%
Small business with 1 - 10
employees
Medium-sized business with 11 -
100 employees
Large business with more than
100 employees
Large multinational business
with more than 5,000 employees
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Across the total sample just under half of graduates (48.7%) originally aspired to work within a
multinational organisation, followed by a medium sized business (defined as 11 to 100 employees),
at 19.3%. With experience, fewer (35.6%) across the total sample now aspire to work in
multinational organisations while medium sized businesses had become more attractive to 30.7%.
Further
only 5.2% of graduates originally aspired to work within a small business (defined as less than
ten employees) yet with experience 8.8% wanted to work in a small business
61.6% of graduates from Singapore originally aspired to work within a multinational organisation,
followed by 58.3% of graduates from Malaysia, 57.6% from Hong Kong and 46% from China;
with experience, all nationalities were less inclined to aspire to work in a multinational company:
43.6% of graduates from Singapore, 34% from Malaysia, 53.2% from Hong Kong and 35.4%
from China
61% of graduates in Accounting and Finance and 58.9% of graduates in Business originally
aspired to work in a multinational organisation; with experience, 42.2% of graduates from
Accounting and Finance and 38% of graduates from Business now aspire to work in a
multinational company.
Graduates were asked to report the type of organisation in which they are currently employed as in
Chart 2.16 The Type of Organisations in Which Total Sample Currently Work, by Field of
Study.
Chart 2.16
The Type of Organisations in Which Total Sample Currently Work, by Field of Study
Self-employed Family business National company Multinational Government Other
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Business Accounting /
Finance
Engineering IT Health /
Medicine
Arts /
Humanities
Education
Other
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Across the total sample, 32.5% of graduates work in a multinational company, slightly lower than the
proportion who now aspire to work in a multinational company (35.6%), followed by national
company at 19.2% and government at 14.8%
40.0% of graduates from China reported that their employer was ‘local in Australia’, while
graduates from India and Hong Kong reported the highest level of multinational employment at
48.5% and 46.6% respectively
67.4% of graduates from Thailand reported that their employer is ‘local in home country’;
followed by Indonesia (43.0%) and Singapore (40.4%)
graduates from Accounting and Finance reported the highest level of multinational employment
at 46.3%, slightly higher than the proportion who wish to work in a multinational after gaining
work experience (42.2%); this was followed by graduates in Engineering at 44.9% and
Information Technology at 40.9%; graduates in Architecture reported the highest level of self
employment at 26.9%.
The major employment categories our graduates are currently employed in are Education and
Training (11.4%); Banking, Accounting and Finance (10.3%); Health (8.7%); Information Technology
(8.6%); Manufacturing and Production (7.4%); and Engineering and Technology (7.4%).
As with employment outcomes, a key measure of success is whether their studies are related to
their career. Chart 2.17 Whether Studies Were Related to Career indicates the level to which
graduates’ studies were related to their career by nationality.
Chart 2.17
Whether Studies Were Related to Career
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Malaysia Indonesia Singapore HK India China Thailand Others
No
Hardly
Moderately
Definitely
Across the total sample 55.5% of graduates stated that their studies were definitely related to their
careers, 12.5% reported their studies were not related to their career. The nationality sample which
most reported in the affirmative were graduates from Hong Kong, at 59%; followed by Indonesia at
54.4%, China at 53.8% and Malaysia at 51.6%, while 18.8% of graduates from India stated that their
career was not related to their studies.
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Not surprisingly, 86.8% of graduates in Health and Medicine, 82.6% of graduates from Education
and 74.6% of graduates from Architecture reported that their studies were related to their career.
54.6% of graduates from Accounting and Finance and 40.3% of graduates from Business reported
that their studies were related to their career; with these two cohorts both reporting 36% in response
to the option ‘sort of’.
When asked whether their Australian degree was recognised by their employer, 93% across the
whole sample said their Australian degree was recognised by their employer.
Interestingly for those located in Australia, the response in the affirmative was 89.7% while for those
located offshore 94.2% said their Australian degree was recognised by their employer. Consistent
with this were the responses of those with and without Australian residency: 90.0% of those who
had gained Australian residency said their degree was recognised while 94.2% of those without
residency said their degree was recognised.
Graduates from Hong Kong, China, Malaysia and Singapore reported the highest levels of
recognition at 97.1%, 95.4%, 97.3% and 96.8% respectively. By discipline, graduates from
Education, Information Technology, Accounting and Finance and Business had the highest levels of
recognition at 95.3%, 94.7%, 94.6% and 94.9%, respectively. Graduates from Communications and
Science reported the lowest levels of recognition at 83.9% and 85%, respectively.
Future Study Intentions
Graduates were asked about their future study intentions to further their career. When asked if more
qualifications were required to move ahead in their job 51% said ‘yes’, with 55.6% of the 26 years or
less age cohort in the affirmative compared to 49.8% of the 31years and over cohort. The
qualifications most sought after were an MBA (28% of all respondents), and a masters degree
(28%). Just over one in every five respondents (22%) would like to have a PhD, with 30.1% of those
aged 31 years or more wanting a PhD compared to only 13.9% for the other two age cohorts.
Responses by nationality for the sample who responded in the affirmative:
the MBA was the most sought after qualification for 44.6% of Indian and 31% of Malaysian
respondents
a masters degree was the most sought after qualification for 41.7% of Hong Kong and 41.6% of
Singapore respondents
PhD was the most sought after qualification for 27% of Indonesian respondents
professional accreditation was the most sought after qualification for 36.9% of Chinese and
28.3% Thai respondents.
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Chart 2.18
Future Study Intentions by Age Cohort
60%
50%
Aged 31+
27-30
21-26
40%
30%
20%
10%
0%
Percentage who need a
qualification for future
career progression
MBA Masters PhD Professional
Accreditation
When asked if further study was undertaken, where the further study would be undertaken, 35% of
the sample said at their Australian university, 22% said another Australian university, 22% said a
university in another country and 12% a university or college in their home country.
Satisfaction and Recommendation
Respondents were asked to rate their satisfaction on a scale of one to ten, where one is extremely
dissatisfied and ten is extremely satisfied, with elements related to their career and employment
outcomes to date. When asked about satisfaction with their current job, of the total sample 47% is
very satisfied (rating 8- 10), while 7% is very dissatisfied (rating 1-3).
Further
graduates from Education (64%), Information Technology (52%), Health and Medicine (52%)
and Engineering (51.6%) were the most satisfied along with respondents now identifying
themselves as Australian (60.4%), along with graduates from Thailand (52.2%) and India
(51.5%), while 10.9% of respondents from Thailand were very dissatisfied
the 31 years of age and over cohort was more satisfied (50.7%) than the under 26 years cohort
(39.1%).
When asked about their career to date:
43% of the total sample was very satisfied (rating 8- 10) while 7% were very dissatisfied (rating
1-3)
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graduates from Health and Medicine (53.9%), Education (66%) and Information Technology
(48%) were the most satisfied along with respondents from UK (59.1%), those identifying
themselves as Australian (51.8%) and India (49.5%)
the 31 years and over cohort was more satisfied (48.1%) than the under 26 years cohort
(32.1%).
When asked about opportunities in their current job:
41% of the total sample was very satisfied (rating 8- 10) while 9% were very dissatisfied (rating
1-3)
graduates from Health and Medicine (46.1%), Engineering (45.8%) and Information Technology
(45%) were the most satisfied
respondents from Australia (47.5%), Thailand (47.9%), India (46.5%) and Indonesia (44.9%)
were the most satisfied while respondents from Hong Kong (29.5%) were the most disappointed
the 31 years cohort and over was more satisfied (42%) than the under 26 years cohort (36.4%).
Chart 2.19
Satisfaction with Career Progress by Nationality
60%
50%
Current job
Career to date
Opportunities in current job
Opportunities to interact with potential employers
40%
30%
20%
10%
0%
Malaysia Indonesia Singapore HK India China Thailand Other Countries
When asked about their satisfaction with opportunities to interact with potential employers:
18.8% of the total sample was very satisfied (rating 8- 10) while 21.3% were very dissatisfied
(rating 1-3)
graduates from Education (39.5% rating 8-10) were more satisfied than graduates from Arts and
Humanities (32.3%) and Science (27.5%) who were very dissatisfied (rating 1-3)
respondents from Thailand were the most satisfied (32.6%) while those from UK (31.8%) and
India (31.7%) were very dissatisfied.
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Respondents were asked whether they would recommend their friends to study and work in
Australia and study at their same university as in Chart 2.20 Future Recommendation. Of the total
sample 88.1% said they would probably or definitely recommend studying in Australia, while 2.2%
would probably or definitely not recommend studying in Australia.
Further
respondents from other countries (70%) would definitely recommend studying in Australia;
67.4% of graduates from Thailand, 61.1% from Malaysia and 60.5% from Indonesia would also
definitely recommend while 5% from India and 4.3% from Hong Kong would definitely not
recommend
graduates from Health and Medicine (66.4%), Education (66.3%) and Science (60%) would
definitely recommend while 2.5% of Accounting and Finance graduates would definitely not
recommend studying in Australia.
When asked about recommending their friends study at the same university as they did 81% said
they would probably or definitely recommend studying at the same university, while 5% said
probably or definitely not recommend studying at the same university.
Further
68.2% of respondents from UK and 54.3% from Thailand would definitely recommend while
7.9% from India and 7.2% of those identifying themselves as Australian would definitely not
recommend studying at the same university
graduates from Health and Medicine (52.6%) and Education (54.7%) would definitely
recommend while graduates from Science (5%) and Education (3.5%) would definitely not
recommend studying at the same university.
When asked if respondents would recommend that their friends work in Australia 73% would
probably or definitely recommend working in Australia, while 5% said they would probably or
definitely not recommend working in Australia.
Further
59.1% of respondents from UK and 48.5% from India would definitely recommend working in
Australia, while 5% from Hong Kong would definitely not
48.4% of graduates from Communications, 47.7% from Education and 44.1% from Accounting
and Finance would definitely recommend working in Australia, while 3.5% from Accounting and
Finance would definitely not.
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Chart 2.20
Future Recommendation
100%
90%
80%
70%
60%
50%
40%
30%
20%
Definitely not recommend
Probably not recommend
Might or might not recommend
Probably recommend
Definitely recommend
10%
0%
Study in Australia
Study at the same
Australian university as
Work in Australia
The benefits of international education to Australia extend well beyond our international students’
duration of study. 88% said they would probably or definitely recommend their friends study in
Australia, and 73% said they would probably or definitely recommend working in Australia. In the
past year 65% of respondents said they had been asked about studying in Australia at least three or
more times by prospective students considering study in Australia. International graduates are great
ambassadors for Australian education.
Outcomes
There are many ways the impact of Australia’s international student program is currently measured
but few assess the outcomes for our international graduates. Our study contributes to the
establishment of some baseline measures of graduate outcomes for our international graduates. We
now know that a total of 28% had Australian residency and 33% had the right to work in Australia,
yet at the time of the survey 22% of our respondents were actually living in Australia. Graduates
from China and India are more likely to live and work in Australia on completion of their studies than
any other nationality as are graduates from Information Technology and Engineering.
Australia is an attractive destination to study, work and live with 88% of our graduates saying they
would recommend studying in Australia and 73% saying they would recommend working in
Australia. Our international graduates are great ambassadors for Australia.
Three out of every four graduates are employed within six months of completion of their studies.
Many return home to work, but just over a quarter (26.6%) gained their first position of employment
in Australia. A proportion gained their first position in a third destination country and throughout their
working lives to date a notable number have worked or travelled for business purposes in another
destination country. The impacts go global.
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One third currently work in a multinational company and their career choices are highly influenced
by perceived outcomes measured in terms of job prestige, salary level and location. Just under half
(47%) are highly satisfied with their current job and 43% are highly satisfied with their career to date.
The vast majority (93%) have experienced that their Australian qualification was recognised by their
employers.
The outcomes and impacts of Australia’s international student program go global. As our graduates
return home or stay in Australia they develop and maintain networks in Australia and in their country
of origin driving social, cultural, political and professional exchanges. The location of international
graduates in third destination countries extends their social, cultural and professional networks
globally, across borders and across cultures driving global exchanges.
The benefits of international education go beyond the tangible economic benefits that are generated
while students are studying and continue well beyond creating enduring and multifaceted outcomes
that permeate right throughout the Australian community and the communities to which our
graduates return. These benefits need to be protected and cultivated to ensure they are sustained.
Ensuring positive outcomes for our graduates is essential and should begin with some benchmark
measures.
We need to do more at the institutional and policy level to ensure that international graduates
secure the employment outcomes they seek. Recommendations include improved career
counselling and employment advice services for international students to help them make the best
choices in an unfamiliar environment and to master job-related skills such as preparing a CV and
attending an interview. Relevant work placements for international students and closer relationships
between universities, employers and professional bodies will provide students with invaluable
workplace experience and create relationships with prospective employers. Improved English
language support during students’ studies will further ensure international graduates develop
essential communication skills.
Raising the awareness of policies relating to residency visas amongst employers and improving
their understanding of English language proficiency as measured via standardised English language
tests, such as IELTS, could reduce some of the barriers our graduates encounter when seeking
employment in the Australian work place. A policy nexus spanning international student recruitment,
migration and employment will provide an end-to-end context for future policy development and
potentially further ensure positive outcomes for our graduates during their journey of a lifetime.
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3
Outcomes for Alumni
Melissa Banks asks “where are they now?”, looks at the extent to which Australia’s international
alumni contribute to Australia’s connectedness in Asia and beyond and addresses issues such as
brain circulation, global workforces and global diasporic networks. The editors wish to acknowledge
the contribution of alumni data from the Australian Technology Network group of universities.
Introduction
International students who come to study in Australia deliver direct real benefits to the Australian
economy. This is typically measured through export earnings, which is the sum of international
student expenditure on tuition fees, plus goods and services related to living in Australia. Chart 3.1
Australia’s Exports 2007/08 shows in 2007/08 this was worth $13.7 billion to the Australian
economy 28 . There are also associated flow on effects in increased economic activity generally
estimated to be worth 0.3% on real GDP 29 .
The economic value of education exports has grown at a rapid pace over the last decade. Australian
Education International (AEI) has reported that over the ten years to 2006/07 education exports
have grown at an average annual rate of 15% compared with an average annual rate of 6% across
all services exports 30 .
Chart 3.1
Australia’s Exports 2007/08
25,000
20,000
$ Billion
15,000
10,000
5,000
-
Other meat
Wool
Business travel
Alcoholic beverages
Wheat
Copper
Cars
Medicines
Petroleum
Copper ores
Other ores
Aluminium
Alumina
Commodity
Natural gas
Meat including beef
Transportation services
Crude oil
Tourism
Gold
Education
Iron ore
Coal
28 Australian Bureau of Statistics 2008
29 Centre for International Economics 2008
30 Australian Education International 2008
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The benefits of international education can flow to both the destination and source country
economies through the exchange of ideas, increased resources available for investment in
education, improvements in the quality of education provision, and through the less tangible benefits
of establishment of networks and improved cultural understanding 31 .
The benefits of international education go beyond the tangible economic benefits that are generated
while students are studying and continue well beyond creating enduring and multifaceted outcomes
that permeate right throughout the Australian community and the communities to which our
graduates return. Our international graduates are drivers of Australia’s connectedness with the
Asian economies from which they derive. Kenyon and Koshy in 2003 proposed that the additional
benefits international education provides to Australia could include: improved trade flows which
might result from the influence of international graduates as a result of networks developed during
their time in Australia, improved international investment that may flow from the influence of
international students and consequent networks, and increased tourism associated with the
influence of international students through their friends, families and associates 32 .
IDP Education Pty Ltd’s (IDP) Survey of International Graduates substantiates that these benefits
to Australia continue well beyond an international student’s period of study in Australia and
significantly drive Australia’s connectedness in Asia and globally.
The Survey
In July 2008 IDP in collaboration with the Australian Technology Network of Universities (ATN)
surveyed international graduates who had completed their studies in 2005 or earlier. Graduates
must have completed at least 12 months study on campus in Australia and must have been enrolled
in an undergraduate or postgraduate coursework program. Graduates from 2005 or earlier were
specifically targeted in order to provide some insights as to where they are, where they have been,
what they have been doing and what they are likely to do next. A total of 1,940 responses were
received. Details of the survey methodology and samples are provided in Chapter 2 Outcomes for
Graduates.
Chapter 2 Outcomes for Graduates also provided key outcomes for graduates in terms of:
where they are now: the proportions living in Australia, back in their home countries and in a
third destination country
employment and career outcomes: the types of organisations graduates previously and currently
work in, how soon after graduation graduates were employed, the location of their employment
and how long they remained in their first position
career influences and aspirations: what influenced their career choices, whether their studies
were related to their career and future study intentions
satisfaction and recommendation: career and employment satisfaction and their likelihood of
referral and recommendation.
31
Centre for International Economics 2008
32 Kenyon P and Koshy P 2003
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This Chapter 3 Outcomes for Alumni considers the extent to which international graduates
contribute to the global workforce, establish global diasporic networks and join global brain
circulation. The impacts of international education go global as our graduates distribute themselves
around the globe but keep active and enduring connections with Australia, driving our
connectedness with Asia and beyond. Our alumni continue to contribute positive benefits for
Australia well beyond their study period in Australia.
Graduate Labour Mobility
It is reasonable to consider that international students are a mobile cohort given that they ventured
outside their home countries to undertake their tertiary education. However, is it reasonable to
assume that their mobility continues beyond their international education experience? Graduates
were asked where most of their work had been undertaken to date.
Countries of home residence were the most commonly cited locations, followed by Australia. Across
the total sample, 31.5% of graduates have worked in Australia at some time during their career.
Most international students choose to return home on completion of their studies with China and
India the exceptions. These graduates prefer to stay in Australia either temporarily or permanently,
evidenced by 60.4% of Indian graduates and 56.9% of Chinese graduates who reported that they
have predominantly worked in Australia; a result which is very close to the location of their first full
time position These graduates will maintain links with their country of origin and drive bilateral social,
cultural, political and professional exchanges. This is significant given that these are emerging
global power house economies.
Chart 3.2
Countries Where Graduates Have Predominantly Worked
100%
90%
80%
70%
60%
50%
40%
30%
United States
Singapore
Malaysia
China
Home Country
Australia
Other
20%
10%
0%
Malaysia Indonesia Singapore Hong Kong India China Thailand Other
Countries
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Chapter 3 | IDP Education Pty Ltd

The nationalities who had undertaken most of their work in their home countries included graduates
from Hong Kong, Singapore and Thailand. Over 90% of respondents from these countries have
predominantly worked in their home countries.
By field of study, graduates from Information Technology (50.3%), Education (46.5%) and
Engineering (34.2%) had predominantly worked in Australia.
Apart from Australia and graduates’ home countries, other major destinations are: Singapore, with
15.4% of Malaysian graduates and 12.9% of Indonesian graduates reporting that they have
predominantly worked in Singapore, and China with 29.5% of Hong Kong graduates and 11.5% of
those now identifying themselves as Australian reporting that they have predominantly worked in
China. US was the third most popular work destination for graduates from India, after India and
Australia.
When asked the location of their first full time position, 26.6% of the total sample said Australia.
Some respondents gained their first full time position in a third destination indicating the propensity
of a proportion of graduates towards global labour mobility immediately after graduation.
Chart 3.3
Location of First Full Time Job
Home Country Australia Malaysia Singapore Indonesia Hong Kong India China Thailand Other
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Malaysia Indonesia Singapore HK India China Thailand Other
Countries
Of the total sample 13.8% of respondents from India, 11.8% from Indonesia and 9.9% of those from
Malaysia had gained their first full time position elsewhere.
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The mobility of our graduates is evidenced by the proportion who gained their first full time role in a
third destination country as in Chart 3.3 Location of First Full Time Job above and also by the
other countries in which our graduates have worked since graduation as in Chart 3.2 Countries
Where Graduates Have Predominantly Worked. This mobility requires portability of academic
qualifications. Graduates were asked if their qualifications have been recognised by their employers.
Across the total sample 93% responded ‘yes’.
Graduates were also asked the extent to which they agreed that their Australian education had led
to an international career. Across the total sample 56% agreed or strongly agreed (only 16%
disagreed or strongly disagreed).
The location of international graduates in third destination countries extends their social, cultural and
professional networks globally, across borders, and across cultures driving global exchanges.
Business and Trade Links
Australia’s international graduates are a key driver of Australia’s business and trade links in the
region and globally. One of the most effective means of determining whether graduates are actively
engaging in trade with Australia (other than determining whether they live, work or study in Australia)
is to identify whether they are now responsible for a supply chain involving Australian
business/industry. Chart 3.2 Percentage Responsible for Supply Chain shows a greater
proportion of graduates from Thailand, China and Indonesia is likely to manage or control a supply
chain in their current position of employment.
Chart 3.4
Percentage Responsible For Supply Chain
30%
25%
20%
15%
10%
5%
0%
Malaysia Indonesia Singapore Hong Kong India China Thailand Other Countries
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Chapter 3 | IDP Education Pty Ltd

Just over one fifth of international graduates manage or control an international supply chain.
According to their field of study, 31.5% of graduates in Arts and Humanities are responsible for
managing or controlling an international supply chain, followed by graduates in Business (26.2%),
and Engineering (24.9%).
China is the key source country for supply chain components. When asked which countries
respondents mostly sourced from, 20.0% of graduates from China, 18.0% from Hong Kong, 8.9%
from India and 8.3% from Malaysia reported that they sourced from China. Australia was a source
country for 10.8% of graduates from China, 6.5% of graduates from Thailand and 3.8% of graduates
from Indonesia. Key distribution countries include Australia, Malaysia and Singapore.
Opportunities to maintain existing networks and develop new relationships can be influenced by the
type of organisations in which our graduates work. Graduates were asked where the organisation in
which they work has locations, as in Chart 3.5 Descriptor of Organisation Graduates Currently
Work In. To this question 21.1% replied ‘multinational with many locations around the world’ best
described their organisation, 8.0% chose the descriptor ‘multinational with locations in several
countries and 9.6% in a company with ‘locations in a few countries’. A further 36.9% indicated ‘local
in home country’ as the best descriptor of their employer.
Chart 3.5
Descriptor of Organisation Graduates Currently Work In
Multinational - many locations
around the world
Multinational in several
countries
Locations in a few countries
National - many locations in
one country
Several locations in one
country
Local in Australia
Local in your home country
0% 5% 10% 15% 20% 25% 30% 35% 40%
Graduates were also asked to assign their organisation a profile according to five key measures:
self-employed; family business; national company; multinational; and government. Across the total
sample, 32.5% of graduates work in a multinational, followed by national company at 19.2% and
government at 14.8%.
Graduates from India and Hong Kong reported the highest level of multinational employment at
48.5% and 46.6% respectively. Graduates from Indonesia reported the highest percentage of selfemployment
and employment within a family business at 16.3% and 14.1% respectively. 40.0% of
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Chapter 3 | IDP Education Pty Ltd

graduates from China reported that their employer was ‘local in Australia’, which was significantly
higher than for any other nationality group.
Networks
During their studies in Australia international students develop networks with local students,
international students of their own nationality, other international students and with people in the
community in which they live. These networks sustain beyond the study period and develop into
social, cultural and professional networks providing opportunities for exchange and circulation of
knowledge across borders regardless of the physical location of our graduates. Chart 3.6
Frequency of Communications shows that the frequency of communications with all groups tends
to decline as each cohort matures; yet even so, approximately 48.6% of the cohort aged 31 years or
more maintains contact a few times a year or more with their international friends and 47% with
other people they met while studying in Australia.
Chart 3.6
Frequency of Communications
100%
Daily
80%
Weekly
60%
40%
Monthly
A few times
a year
Once a year
20%
Rarely
Never
0%
21-26
27-30
Aged
31+
21-26
27-30
Aged
31+
21-26
27-30
Aged
31+
21-26
27-30
Aged
31+
International student friends
from your Australian University
Australian university friends from
your Australian University
Other people you met while
studying in Australia
People you know who are
considering studying in Australia
Lasting networks are formed in the course of international students’ studies in Australia. Alumni
associations, professional associations and social networks can all provide opportunities for
sustained systematic brain and knowledge circulation.
Travel
The number and frequency of international visits by international graduates for business are shown
in Chart 3.7 International Travel for Business Purposes, and the number and frequency of
international visits by international graduates for holiday purposes, are shown in Chart 3.8
International Travel for Holiday Purposes. Again Australia is a key destination showing that clear
links exist between Australia’s international student program and induced future trade and tourism
benefits to Australia.
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Chart 3.7
International Travel for Business Purposes
None 1 trip 2 trips 3 trips 4-5 trips 6-10 trips 10+ trips
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Malaysia Indonesia Singapore HK India China Thailand Other
Countries
Graduates were asked how often they had travelled internationally in the last three years for the
purpose of business, holiday, to visit family and to visit friends.
Of the total sample just over one third of all respondents (34%) travelled three or more times over
the last three years for business purposes while 44.2% had not travelled at all. Of those aged 31
years or more 40.1% had travelled three or more times for business while of those aged 26 years or
less only 20.2% had travelled three or more times for business purposes.
When travel for holiday purposes is considered more than half (52.9%) travelled three or more times
over the last three years while 16.3% had not travelled at all. Of those aged 31 years or more 53.1%
had travelled three or more times for holidays while of those aged 26 years or less 46.7% had
travelled three or more times for holidays.
Of the total sample just over a quarter (27.2%) travelled three or more times over the last three
years for the purpose of visiting family, 42.8% had not travelled at all, and 21.8% travelled three or
more times over the last three years for the purpose of visiting friends while 49.2% had not travelled
at all.
Respondents from Hong Kong are the most likely graduates to travel for business (41.7%) and
holiday (61.9%) purposes yet the least likely to travel to visit family or friends. Graduates from India
are the least likely to travel for holidays, only 26.7% had travelled for holiday purposes three or more
times in the last three years. Graduates from China were the least likely to travel for business
purposes, 53.8% had not travelled at all in the last three years. 39.5% of graduates from Malaysia
had travelled three or more times in the last three years for business and 60.1% for holidays while,
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75.1% of graduates from Singapore had travelled three or more times in the last three years for
holidays.
Chart 3.8
International Travel for Holiday Purposes
None 1 trip 2 trips 3 trips 4-5 trips 6-10 trips 10+ trips
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Malaysia Indonesia Singapore HK India China Thailand Other
Countries
Graduates from Business (42.2%), and Engineering (40%) are the more regular travellers, travelling
three or more times in the last three years, for business purposes, while 64.2% of graduates from
Health and Medicine and 61.8% of graduates from Architecture and Design had not travelled at all.
Graduates from Business (58.4%), Accounting and Finance (56.7%) and Architecture and Design
(59.9%) travelled three times or more for the purpose of holidays.
Future Intentions
International graduates are mobile as evidenced through their propensity for travel. From Chapter 2
Outcomes for Graduates we know that 21.5% of our graduates are currently residing in Australia
while 28% of the total sample had gained permanent residency. Graduates were asked where they
anticipate most of their work, business or career would be undertaken five years from now. Our
international graduates anticipate their engagement with Australia to escalate over the next five
years.
Across the total sample, 44.2% of graduates anticipate that five years from now they will have spent
most of their career/work in Australia. This is particularly true for graduates in the up to 26 years of
age band, 54.6% of whom cited Australia. Other popular destination countries included Singapore,
for 25.1% of graduates, followed by Malaysia for 19.9% of the total sample and China for 15.1%.
US was the sixth most popular choice at 10.8%, followed by UK at 8.5%.
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The nationality of graduates who most anticipate spending most of their career in Australia over the
next five years, were those from China (63.1%), graduates who now cite their nationality as
Australian (59%) and graduates from India (56.4%) and Malaysia (47.6%).
According to field of study the most popular segment for Australia was graduates in Engineering,
with 57.8% reporting that they most anticipate spending most of their career in Australia over the
next five years; this was followed by graduates in Information Technology (54.8%), Accounting and
Finance (48.3%), Health and Medicine (42.1%) and Business (41.6%).
As an extension of this graduates were asked which country they would most like to live in and
which country they would most like to work in. Again Australia was far and away the most popular
destination for living and working, although living in Australia was considered to be a more attractive
option than working in Australia as in Chart 3.9 Proportion who Most Want to Live and Work in
Australia.
Chart 3.9
Proportion who Most Want to Live and Work in Australia
70%
60%
50%
40%
LIVE
WORK
30%
20%
10%
0%
Malaysia Indonesia Singapore Hong Kong India China Thailand Other
Countries
Across the total sample, 49.3% of graduates specified Australia as the country in which they would
most like to work; however, 58% of the total sample specified Australia as the country in which they
would most like to live. There was a negligible skew (less than 4%) according to age cohort,
indicating that the continuum of desirability to live and/or work in Australia sustains through time.
The graduates who would most like to work in Australia according to their nationality were graduates
from India (57.4%), Malaysia (51.6%) and Indonesia (50.2%) and graduates who now cite their
nationality as Australian (56.8%). In contrast graduates who would most like to work in their home
country were graduates from Thailand (50.0%), Hong Kong (46.8%) and China (35.4%). By field of
study 54.2% of graduates from Engineering specified that they would most like to work in Australia;
followed by graduates from Business (54.0%), Science (52.5%) and Accounting and Finance
(50.5%).
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The graduates who would most like to live in Australia according to their nationality were graduates
from India (62.4%), Malaysia (61.4%), Singapore (59.6%), Indonesia (58.9%) and graduates who
now cite their nationality as Australian (69.8%). In contrast graduates who would most like to live in
their home country were graduates from Thailand (47.8%) and Hong Kong (37.4%). By field of study
64.5% of graduates from Communications specified that they would most like to live in Australia;
followed by graduates in Engineering (63.1%), Business (62.7%), IT (60.2%), Science (60.0%) and
Accounting and Finance (56.2%).
US was also a popular choice with 6.2% of respondents saying they would like to work in US but
only 3.3% saying they would like to live there.
Ongoing Endorsement
In Chart 3.6 Frequency of Communications we saw that across the whole sample 37.6% of our
graduates have contact three times or more a year with people they know who are considering
study in Australia. This is as high as 52% for those aged 26 years or less. Our international
graduates are great ambassadors for Australian education and Australia. Further evidence is
provided through responses to questions that asked how likely graduates were to recommend their
friends study in Australia, study at the same Australian university and work in Australia.
In Chart 3.10 Future Recommendation 88% said they would probably or definitely recommend
their friends study in Australia, 80.5% would probably or definitely recommend a friend study at the
same university in Australia and 73% said they would probably or definitely recommend working in
Australia.
Chart 3.10
Future Recommendation
100%
90%
80%
70%
60%
50%
40%
30%
Don't know
Definitely not recommend
Probably not recommend
Might or might not recommend
Probably recommend
Definitely recommend
20%
10%
0%
Study in Australia
Study at the same Australian
university as you
Work in Australia
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The exchanges between graduates and their friends can drive new business into Australia’s
international student program, but equally unhappy graduates can drive business away.
Outcomes
International education has many benefits to offer Australia and is of major national significance.
Our students and graduates offer benefits to Australia that extend well beyond their period of study
in Australia.
It is estimated that well over 1 million international alumni (from all education sectors) have studied
in Australia and returned home 33 . Our international graduates project Australian influence overseas
and maintain preferences and linkages with Australia. In coming years the importance of linkages
established between Australia and international alumni will grow given that the two largest student
source countries, China and India, are future large economic powers in Asia.
International graduates have demonstrated a sustained preference towards Australia and this is
expressed in terms of induced trade and investment, continued engagement with Australia through
visits and networks, and promotion and recommendation of Australia as a study destination and a
location to live and work. These are benefits that sustain well beyond the known contribution to
Australia’s exports and university revenues contributed during their period of study in Australia. After
graduation the benefits expand and proliferate organically into induced trade and investment,
foreign relations, and contributions to labour markets in Australia, in source country economies, and
globally.
From Chapter 2 Graduate Outcomes we know that 21.5% of our graduates are currently living in
Australia and that 26.6% gained their first position of employment here. In Chapter 3 we learnt that
31.5% have worked in Australia at some time during their career, a third of our graduates work in
multinational companies, and 20.6% of all graduates manage or control an international supply
chain. Their mobility and ongoing preference for Australia is evidenced through their international
travels for the purpose of business, holidays and visiting family and friends, with Australia a key
destination. In addition our graduates maintain their exchanges with the networks they develop
during their studies in Australia and they anticipate their engagement with Australia to increase over
the next five years.
Australia’s international graduates are largely satisfied with their study experience evidenced
through their willingness to recommend Australia as a study, living and working destination.
However from Chapter 2 Graduate Outcomes we learnt that more needs to be done to ensure that
international graduates secure the employment outcomes they seek. We must monitor employment
and alumni outcomes on a regular and more formal basis across all sectors to ensure our
international graduates are gaining the outcomes they are seeking. The issue of long term
outcomes and impacts of international education for our international graduates requires a cross
sectoral, longitudinal approach.
33
Gillard J 2008
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Universities through their alumni have the opportunity to foster the networks developed by
international graduates with domestic and other international students, institutional staff and people
in the Australian community. But alumni engagement should not be limited to universities. All
sectors should develop the capacity to engage with their alumni.
Australia has developed an international student program that has national significance and is
supported and mediated by world’s best practice student recruitment strategies and ethics, quality
assurance and student support policy frameworks, and data capture and reporting regimes. As our
students graduate from our universities they become a valuable source of highly skilled labour
capable of contributing to Australia’s labour market now and in the future, as well as the needs of
source country economies.
Australia has the opportunity to maximise the short and long term benefits our graduates can
contribute to the nation by mediating the transition from international student to Australian graduate.
This requires the co-operation and contribution of providers, employers, professional bodies and
several cross functional government departments to develop an end-to-end policy perspective. This
whole of government and industry approach will assist in the development of co-ordinated and
visionary policy development to ensure the ongoing benefits of Australia’s international student
program identified in this study are more comprehensively quantified and exploited whilst providing
graduates with positive employment, career and life outcomes.
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4
Impacts and Outcomes for Providers
Helen Cook looks at the profound impact of a high growth international student program on
Australian education providers in the higher education, vocational education and training (VET),
English language training (ELT) and school sectors.
Introduction
This chapter examines the impact of the international education program on providers across
Australia. Australian education institutions today would scarcely recognise themselves 20 or 30
years ago and many smaller providers have only recently emerged. Government policy has
supported the development of a vibrant public and private international education industry, ensuring
the ongoing ability of institutions to respond to global forces and benefiting the Australian export
economy. Australia’s multicultural history, its reputation for education and its lifestyle have
encouraged students to choose this country as a study destination. An export focus has brought
accountability, sophisticated business intelligence and quality assurance. Innovative programs have
allowed seamless transfer across education sectors, through clear English language and academic
pathways. Regulatory regimes, both government and sectoral, along with clear visa legislation have
brought assurance and protection to international students. Extensive institutional partnerships and
networks have been established overseas to provide the basis for ongoing international activity
including research collaboration and transnational programs. While much remains to be done, the
international student program now forms part of a conceptual framework for internationalisation of
providers, with Australian institutions teaching with diversity, training for a global workforce and
providing international study experiences for Australian students. Some points of comparison from
international examples will serve as reference points for Australia’s performance in the development
of its international student program.
Numbers of Institutions
Australian Education International (AEI) shows over 1,200 state-based registered providers in the
2008 Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS) 34 .
Victoria, New South Wales and Queensland each have over 300 providers listed. However exact
numbers of institutions offering places to international students will be lower when multi-state
institutions are taken into account. The sizes of institutions vary, from large publicly funded
universities to small specialist private providers. While early international enrolments were
dominated by universities, and the picture was largely of a powerful public provider environment, a
succession of policy changes has led to the development of significant private sector provision to
the extent that private providers now account for around half of all international enrolments in
Vocational Education and Training (VET), English Language Training (ELT) and schools in
Australia.
34 Department of Education, Employment and Workplace Relations 2008f
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The global picture is described in Public Funding and Private Universities: Models and Plans 35
The most significant area of growth in the recent global expansion in higher education has been
in privately provided higher education. It has expanded not only in areas where it has existed for
some time, but has also shown huge growth in countries new to private provision.
In Australia in 2007, 80.6% of VET students, 73.6% of ELT, 60.5% in Schools and 21.2% of Other
students were enrolled in non-government institutions as in Table 4.1 Public/Private: Trends in
International Student Enrolments 36 . Enrolments remain comparatively small in private tertiary
provision, however numbers are growing 37 .
Table 4.1
Public/Private: Trends in International Student Enrolments
Public Enrolments Private Enrolments % Private
2002 2007 2002 2007 2002 2007
Higher Education 111,938 169,745 3,406 4,984 3.0% 2.9%
VET 14,703 23,234 38,966 96,318 72.6% 80.6%
ELT 19,398 26,871 38,029 74,858 66.2% 73.6%
Schools 8,274 10,643 14,929 16,319 64.3% 60.5%
Other 19,320 21,569 4,612 5,809 19.3% 21.2%
Total 173,633 252,062 99,942 198,288 36.5% 44.0%
Government Policy Frameworks for International Education
Australian government policy has provided the framework for the expansion of the international
student program. Prior to World War II there was no concept of internationalisation for Australian
providers. The international dimension was largely a one-way outward flow – higher degree study by
Australian scholars was undertaken in UK or North America. Little reciprocity was evident. The need
for international scholarly contact was given high priority, due to Australia's geographical
remoteness from traditional centres of learning, and the recognition that its academic work must
meet international standards 38 .
The immediate post-war years saw dramatic changes in the foreign policies of the developed world.
Australia was a key player when the Colombo Plan for Cooperative Development in South and
South-East Asia was launched in July 1951. The Colombo Plan marked the first formal entry of the
Australian Government into the direct sponsorship of overseas students for study in Australian
institutions. Australia became host to a steadily increasing number of sponsored overseas students.
Following the release of reports from two major reviews in 1984, the Policy on the Export of
Education Services was introduced. Fee paying overseas students were able to enrol if meeting the
35 King R 2008
36 Australian Education International 2008a
37 Lane B 2008
38 Back K, Davis D and Olsen A 1996
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full cost of their courses. Australian government policy prevented subsidisation of international
students, the only exceptions being those who were studying on Australian scholarships or under
formal exchange arrangements.
Thus, government intervention created a market-led approach in which universities could set
their own fee levels and make their own decisions on how they invested in marketing and
recruiting, infrastructure, student support, and teaching 39 .
Bipartisan support for the export of education and its broader benefits are evidenced by public
statements of Education Ministers since 1985. In 1992, Australian Education Minister Kim Beazley
acknowledged the power of the broader agenda of internationalisation
It uniquely spans the cultural, economic and interpersonal dimensions of international relations. It
assists cultural understanding for all parties involved. It enriches Australia's education and
training systems and the wider Australian society by encouraging a more international outlook 40 .
The international education program continued to expand rapidly in Australian institutions across the
1990s and the early 21 st century. In 2003, following the 2002 Review of Higher Education, the then
Minister for Education, Brendan Nelson stated
Globalisation, massification of higher education, a revolution in communications and the need for
lifelong learning, leave Australian universities nowhere to hide from the winds of change. We
must appreciate that these changes are driven by a world of higher education in which
increasingly the only benchmarks that count are international ones 41 .
After the election in Australia of the Rudd government in late 2007, Deputy Prime Minister Julia
Gillard, in a speech to an Australian Education International Forum in April 2008 declared
International education’s significance is much broader than economics. It reaches into every
sphere of our lives. And it reflects the intrinsic values of education itself – the spread of
knowledge, skills, understanding and cross-cultural dialogue. It’s a central part of our
international diplomatic efforts and contributes to the development of good relations 42 .
The Pattern of Demand for International Education
Increased competition and changing patterns of international student demand have increased the
diversity of our student body and driven program innovation. The attractiveness of a country and
therefore of its institutions as a study destination develops according to its global power, both
economic and political, the dominance of its language internationally, its educational culture and
systems and its size and geographic locality. Student perceptions of cost benefit and quality,
graduate employment prospects, migration opportunities and perceptions of safety and security all
compete to affect parent and student decision making.
39 Adams T 2007
40 Beazley K 1992
41 Nelson B 2003
42 Gillard J 2008
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The global demand for education continues to rise, as was shown in the 2007 study Global Student
Mobility: An Australian Perspective Five years On 43 . Student enrolment data reported by AEI for
2007 shows that in Australia, 455,000 students studied on student visas, up from 380,000 a year
earlier, across all education sectors from schools and English language to vocational training and
higher education. Chart 4.1 Sector Enrolment Growth 2002 to 2007 shows that the fastest
growing sectors were ELT and VET while the school sector, although smaller, has also seen growth
in recent intakes 44 . There are now significant numbers of international students in all sectors,
changing the internal dynamics for those providers.
Chart 4.1
Sector Enrolment Growth 2002 to 2007
200,000
180,000
Number of Enrolments
160,000
140,000
120,000
100,000
80,000
60,000
40,000
Higher Education
VET
ELICOS
Schools
Other
20,000
0
2002 2003 2004 2005 2006 2007
Year
English Language Training
English language provision is an important component of Australia’s international offerings.
Prior to the establishment of student visas for English language students, ELT providers were few in
number and catered to the local migrant population with government funded programs known as the
Adult Migrant English Program (AMEP). AMEP began in 1948 and still provides basic tuition in the
English language to help eligible adult migrants and refugees settle successfully in Australia. In an
April 2008 speech Laurie Ferguson, Australia’s Parliamentary Secretary for Multicultural Affairs and
43 Banks M, Olsen A and Pearce D 2007
44 Australian Education International 2008a
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Settlement Services, traced the history of the AMEP to its 60 th anniversary in 2008 and its
contribution to six million migrants settling in Australia 45 .
ELICOS – How Did We Get Here? 46 outlines the history of provision of ELT in Australia.
The first ELT centre for private students was established in Sydney in 1965, with the ELT
accreditation framework established in 1981. English Australia reports that from the ‘cottage
industry’ with 46 colleges in 1986 when full fees for overseas students were introduced, 250
colleges were CRICOS registered in 2007. Student numbers over the same period grew to 120,000
per annum. The changes to skilled migration regulations along with extended study options on
visitor and working holiday maker visas have ensured continued growth 47 .
The global market for ELT now has an estimated value of almost US$9 billion in 2006. The UK has
traditionally enjoyed the greatest share of the ELT market however increased cost and competition
has now reduced this share. Australia is now the fourth largest source country for ELT after UK, US
and Canada with 137,019 students and 13.3% of ELT weeks globally, weeks of student study being
the common global ELT measure 48 . Trends in ELT provision are changing, introducing different
types of students into the Australian ELT Centre. Students on visitor visas and working holidaymaker
visas comprised 51% of ELT enrolments in 2006. However in 2007, there was strong ELT
growth in student visas especially from China and India. Student visa enrolments increased by 25%
over the 12 month period to 59% of total ELT enrolment weeks in 2007. The institutional mix of ELT
students with their diverse cultural and language backgrounds influences provider dynamics and
structure.
Experience has shown that strong growth in ELT will flow to growth in other sectors at a later date
with 51% of ELT students in 2007 moving into other sectors 49 . However ELT pathway programs to
other sectors are only one aspect of ELT provision. Providers have developed new products for
short term study. They host study tours and familiarisation tours, building on tourism, hospitality and
lifestyle options. Development of sophisticated online learning tools, delivery of offshore programs
and provision of teachers for offshore projects and partners are important contributions to the
reputation of Australia for international education. English language testing, both validated and
informal, is a growth industry. It is calculated that the successful Australian ELT sector generated
$1.515 billion in export earnings in 2007 50 .
45 Ferguson L 2008
46 Blundell S 2008b
47 Blundell S 2008b
48 Blundell S 2008c
49 Australian Education International 2008a
50 Blundell S 2008a
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Vocational Education and Training
VET was the fastest growing sector for international students on campus in Australia in 2007, with
enrolments growing 46% from 83,405 to 121,422. India, China and Korea were the three largest
VET markets 51 . 57.5% of international students studied Business Administration and Management,
13.6%, Food Hospitality and Services, and 8.8% Society and Culture, with these three fields
accounting for 79.9% of all international student enrolments in VET 52 .
International students have been studying in Australian Technical and Further Education (TAFE)
institutions since the 1930s. Early students were from countries as diverse as Nauru, Japan and
Malaysia. Students, usually from Asian countries, enrolled in commerce, secretarial and
dressmaking courses, as well as architecture, chemistry and textiles.
These courses were so popular that at one time before World War II; a quarter of the Gordon
Institute of TAFE’s full time enrolment was made up of international students 53 . The institutes took
students under the Colombo Plan until the 1980s.
Along with the higher education sector, VET institutes benefited from the change to legislation in
1986 allowing the entry of full fee students to Australian providers. International students come to
VET studies for a variety of reasons: to return home with new skills; to use those skills and
competencies to remain in Australia as permanent residents; as a stepping stone to university entry
(3.4% use their VET course for entry to university) 54 . As in the ELT sector, VET educators work in a
very different environment from that of 20 years ago, with increasing numbers of international
students in class, especially in private colleges. Within the framework of training packages, teachers
develop online learning, run offshore programs, seek international placements for students and
undertake overseas projects.
Schools
In 2007, 428 schools courses were registered for international students, with an average enrolment
of 13 students. A diverse group of providers, from large state education departments to a range of
independent and Catholic school providers and private colleges, operates in this area. Given that
fewer than 1% of school students in Australia are on student visas, the learning environment for
international students is predominantly local.
In the Schools sector the proportion of international students enrolled in private providers stands at
around two thirds, 80% of whom are in independent schools and the remainder in the Catholic
51 Australian Education International 2008e
52 Australian Education International 2008d
53 Gordon Institute of TAFE 2008
54 Australian Education International 2008f
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sector 55 . This contrasts with the overall enrolment pattern in Australian schools where two thirds of
all students are enrolled in government schools.
Some of the earliest international school students were the beneficiaries of aid programs for Papua
New Guinea which brought students to selected private boarding schools in Australia. Sister school
relationships, primarily for the benefit of language students, were another early development, with
study tours an early feature of the school sector.
International student enrolments in schools in 2007 showed strong growth of 11% from 24,606 to
27,426 56 . From International Student Enrolments in Schools in 2007, growth in international
school enrolments is mainly at the Senior Secondary Certificate 57 . However there are a significant
number of international students in Australian schools who do not intend to complete senior high
school qualifications.
In 2007 only 59% of international secondary school students continued further education within the
Australian education system. Of that group, 62% moved to higher education, 29% to VET and 9% to
other visa categories. Students from Queensland had the lowest transition rates to another sector
with 37%. Students from countries with low transition rates such as Korea (30%), Japan (20%) and
Germany (3%) are concentrated in Queensland schools, suggesting that these students are looking
for a different educational experience 58 .
In addition to traditional school programs, English language training, Foundation Programs and
International Baccalaureate courses are offered. Less publicised school internationalisation
activities include teacher exchanges, offshore programs, internationalised curricula and quality
assurance accreditation.
A decline in international student enrolments in the school sector and concern from providers led to
a report commissioned by AEI Meeting the World Half Way: Towards an Australian School
Sector Strategy. The report considered schooling in key competitor countries such as US, UK and
New Zealand. It also considered emerging market opportunities in Asia 59 . The AEI Strategic
Framework for International Engagement by the Australian School Sector 2008-2011 outlined
a way forward for schools. Diversification of markets, promotion of the quality offered by schools
and focus on internationalisation not recruitment were recommended 60 .
55 Miller C 2006
56 Australian Education International 2008g
57 ibid
58 Australian Education International 2008h
59 Skillbeck M and Connell H 2006
60 Australian Education International 2008i
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Higher Education
Chart 4.2 Distribution of International Students by Country of Destination 2005 shows that
Australia has the fifth largest number of tertiary international students globally. Australia’s share was
177,000 or 6.5% 61 .
Chart 4.2
Distribution of International Students by Country of Destination 2005
Other non-OECD,
10.6%
Other OECD, 7.2%
Austria, 1.3%
Switzerland, 1.4%
Sweden, 1.4%
Italy, 1.6%
Belgium, 1.7%
Spain, 1.7%
South Africa, 1.9%
New Zealand, 2.5%
US, 21.6%
Canada, 2.8%
Russian Federation,
3.3%
Japan, 4.6%
Australia, 6.5%
UK11.7%
Germany, 9.5%
France, 8.7%
Globally, the growth in student mobility from 1999 and 2004 was 43% from 1.75 million students to
2.5 million. From IDP’s own data, it is estimated that on campus numbers of international students in
Australia’s universities, grew 95% over that period 62 .
Chart 4.3 OECD Student Mobility in Tertiary Education 2005 shows that Australia has the
highest percentage of international students in university 63 .
61 OECD 2007
62 Banks M, Olsen A and Pearce D 2007
63 ibid
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Chart 4.3
OECD Student Mobility in Tertiary Education
20
%
18
16
14
12
10
8
6
4
2
0
Australia
New Zealand
United Kingdom
Switzerland
Austria
France
Ireland
Belgium
Netherlands
Sweden
Denmark
Finland
United States
Japan
Hungary
Norway
Estonia
Spain
Slovenia
Slovak Republic
Greece
Brazil
The representation of international students in Australian higher education programs by field of
study is not even. Increasing the diversity of disciplines taught to international students is regarded
as an important step in broadening the internationalisation agenda in the sector.
A Welcoming Environment
Why have Australian educational institutions been so successful at recruiting international students
over the past 20 years in the face of strong international competition?
Global Liveability Rankings such as that by The Economist have placed major Australian cities
high on their lists of attractive destinations 64 .
Another underlying factor consistently reported as facilitating growth of an international education
program is the availability of migrant populations and services in the community which provide
religious, cultural, lifestyle and social support. Australia as a nation has been open and welcoming
to international influences. The most recent census statistics show Australia to be a very
multicultural environment and that multicultural influence is increasing. 22.2% of those living in
Australia were born overseas in 2006 compared with 21.9% in the Australian census of 2001. 21.5%
of Australians in 2006 spoke a language other than English at home compared with 20% in 2001 65 .
In cities such as Sydney and Melbourne, the percentage of those speaking other languages and/or
born overseas is much higher. This openness to new migrants has been confirmed by a recent
64 Economist Intelligence Unit 2007
65 Australian Bureau of Statistics 2006
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study Mapping Australia’s Social Cohesion 66 , a major longitudinal survey of attitudes to social
cohesion in Australia. The survey found a strong sense of belonging, pride and happiness among
those surveyed. In comparison, in the most popular English speaking study destinations at the last
census, a multicultural environment is not so obvious. People and Migration showed 8.3% of the
UK population were born overseas 67 . In the US, which has a strong migrant tradition, the most
recent US Census showed 11.7% of the population were foreign born 68 .
Autonomy and Resources
Educational researchers provide definitions of globalisation and internationalisation and examine
their impact on both national education systems and institutions. In The Internationalization of
Higher Education: Motivations and Realities, globalisation includes
The integration of research, the use of English as the lingua franca for scientific communication,
the growing international labor market for scholars and scientists, the growth of communications
firms and of multinational and technology publishing, and the use of information technology 69
In Internationalization Remodeled: Definition, Approaches, and Rationales, Knight provides a
widely used definition of internationalisation
Internationalization is the process of integrating an international, intercultural or global dimension
into the purpose, functions or delivery of post-secondary education 70 .
The OECD has taken a particular interest in this discussion with key chapters of its recent
publications such as Tertiary Education for the Knowledge Society 71 and Globalization and
Higher Education exploring the effect on national governance of education and the varied
responses by institutions to these forces of change 72 . Globalisation affects all organisations but in
different ways, thus creating different classes of competition.
Meny contends that the global option is more easily introduced to an environment when academic
institutions are already used to some form of competition at the national or regional level. Autonomy
and resources are key factors for success in ensuring responsiveness of education systems to the
changing global situation 73 .
Autonomy in decision making facilitates internationalisation of Australian universities which selfaccredit
their academic programs and set their own admission standards. Other sectors have similar
levels of autonomy in many of their development decisions, while operating within a broad national
66 Markus A 2008
67 UK Statistics Authority 2005
68 US Census Board 2004
69 Altbach P and Knight J 2007
70 Knight J 2004
71 OECD 2008
72 Marginson S and van der Wende M 2007
73 Meny Y 2008
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framework. This contrasts with other country models such as in Europe where central bureaucratic
control of curriculum is dominant 74 .
Australian institutions can respond to new opportunities with some speed and flexibility. The
introduction of mid year entry to degree programs is a specific example of Australian universities’
processes being adjusted to meet market needs. The structure of academic programs, the
sequencing of units and prerequisite study requirements were revised to enable mid-year start dates
to be implemented without disadvantaging commencing students. A significant proportion of
international students now commence degree and VET programs in the second half of an Australian
academic year. Similarly, several universities have pursued trimester programs with a substantial
summer term so students can complete degrees in a shorter period of time, thus cutting living costs
in Australia. In other education sectors, courses commence continuously.
Admission processes and procedures for international students in Australian institutions have long
ensured that artificial closing dates used to manage large cohorts of domestic entrants at one or two
key periods in the year were not enforced to disadvantage international applicants. Providers
acknowledged very early that the fee paying international cohort might receive results from prior
academic study or English language tests at a date closer to semester commencement. Other
students might need long pathway preparation prior to degree commencement, so needed early
advice about their eligibility for future semester entry. International applications are processed with
an emphasis on fast turnaround to facilitate student decision making.
Mature age, second chance and special entry have historically been offered to non Year 12
Australians to facilitate wider participation in the higher education sector. For international students,
innovative pathway programs have developed in English language, schools, foundation, diploma,
bridging and VET programs, based on clear inter-sectoral study links. Study Pathways of
International Students in Australia reports that 35.5% of the 2005 cohort entering Australia on
student visas chose a pathway program prior to undertaking their principal course. Seven of the top
ten multi-sectoral pathways in that year began with ELT commencements. Five of those top ten
multi-sectoral pathways ended in higher education 75 . This data does not take into account students
who complete a pathway program in their home country prior to study in Australia or entered
Australia on student visas.
The first foundation programs were developed at University of New South Wales (UNSW) and
Brisbane College of Advanced Education (BCAE0, now Queensland University of Technology) in
1988. These programs remain today outside the Australian Qualifications Framework (AQF), having
been devised to bridge the gap between foreign secondary school programs and entry to an
Australian tertiary program. These tailored programs build the students’ English language ability in
an academic setting to meet future degree entry requirements. Purpose designed bridging and
diploma programs have emerged from both public and private providers. These programs often
replicate some or all first year units of a degree program or VET qualification while accepting
students with lower English proficiency into smaller, personalised classes. Students come to their
principal course having faced cultural and academic adjustment issues during their preparatory
programs.
74 Cemmell J and Bekhradnia B 2008
75 AEI 2008f
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Recognition of prior learning (RPL) has a strong tradition in Australian higher education with entry,
sometimes with credit, for VET and other post secondary study into university. The AQF and
agreements on credit recognition support such practice. The precedence of RPL has facilitated
entry with credit into Australian degree programs for international students with Diploma
qualifications from countries such as Singapore and Hong Kong, thus providing a major channel of
competent students to Australian universities during the 1990s.These advanced standing initiatives
were a major boost to international students with aspirations to study at degree level .The growth in
student flows from these initiatives has slowed in recent years as more options become available in
the students’ home countries. Another important channel to degree study offered early in the
development of Australia’s international student program was through transnational twinning
arrangements delivered in the students’ home country. McBurnie and Pollock 76 comment that
twinning programs
are similar to the concept of locally supported distance education programs, except that they are
fully taught programs following the same syllabus and timetable as the relevant home campus
program. Students have the same materials, lectures and examinations as their peers in the
provider institution.
Access to resources and independence in spending decisions were noted by Meny as the other key
ingredient for institutional success in international education 77 . International education contributed
$13.7 billion in export income to the Australian economy in 2007/08 78 . Education is Australia’s third
largest export and its largest services export. According to the Reserve Bank of Australia
assessment the share of total Australian exports from education related services has increased from
1% in 1982 to almost 6% in 2007 79 . In addition, international education adds 0.5% to employment in
Australia.
In comparison, US Open Doors 2007, in its Economic Impact Statement, estimated that the net
contribution in 2006/07 from tuition and fees and living expenses to the US economy by
international students and their families was US$14.5 billion. Overall revenue from all international
education related activity was over US$20 billion. However US institutions and foundations, and to a
small extent the US Government, contributed over US$ 6 billion of this 80 . A UK study found that in
2005, international students contributed £1.68 billion but when an estimated scholarship funding of
17% from within UK was excluded, it left international education contributing £1.39 billion to the UK
economy 81 .
Chart 4.4 Export Income from International Education by State shows export income per
Australian state from international education in calendar year 2007 82 .
76 McBurnie G and Pollock A 1998
77 Meny Y 2008
78
Australian Bureau of Statistics 2008c
79 Reserve Bank 2008
80 Institute of International Education 2007a
81 Vickers P and Behkradnia B 2007
82 Australian Education International 2008c
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In the global context, Cemmell and Behhradnia suggest that the inability to charge international
students fees may inhibit development of a marketing strategy of the kind which has been so
successful in US, UK and Australia and may limit funding for high quality provision 83 .
Chart 4.4
Export Income from International Education by State
Income from international students is frequently devoted to strategic projects such as the building of
research capacity, improving infrastructure, financing scholarships and in improving the quality of
educational provision for all. This strategic use of this international income is reinforced in a 2005
review of three universities in International Education: Financial and Organizational Impacts in
Australian Universities. A key point made by university interviewees in this study was that there
was little transparency in the expenditure of funds generated from international tuition fees.
However benefits were noted. In one university, it was reported by interviewees that the Engineering
faculty in the university might have closed if international students were not attracted to study that
discipline 84 . Concerns about excessive institutional exposure to volatile sources of revenue continue
to be aired. However the Reserve Bank Economic Analysis Department predicts that despite Asian
countries’ investment in more domestic education capacity and other factors, in the medium term,
education exports are expected to outpace aggregate export growth such that the education share
of Australia’s exports is likely to increase over coming years 85 .
83 Cemmell J and Bekhradnia B 2008
84 Marginson S and Eijkman H 2007
85 Reserve Bank 2008
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Codes of Practice and Legislation
Public policy which has no standards for delivery can claim little credibility. It is only by identifying
quality and measuring success that its effectiveness can be assessed. In 1990 Education Ministers
from federal and state departments endorsed National Minimum Standards for the Marketing of
Education Overseas at the Australian Education Council (later the Ministerial Council on
Education, Employment, Training and Youth Affairs or MCEETYA). These standards which applied
to all sectors were reviewed and replaced by a new Code of Practice in the Provision of
International Education and Training Services by MCEETYA meeting in 1994. This broad code
included seven standards including marketing of education and training services, providers’ financial
standards, student recruitment and placement and student support services 86 . The Australian Vice-
Chancellors’ Committee (AVCC), now Universities Australia, drafted its first code of practice to
cover onshore international students in 1990 and revised it in December 1994 and in 1995 to cover
offshore education. In March 1998, the two Codes were combined into one document. In 2001 the
Code was again revised. The Code is now part of a broader statement relating to universities and
their students entitled Provision of Education to International Students: Code of Practice and
Guidelines for Australian Universities. All AVCC member universities were signatories to the
Code 87 . However, these codes of practice contained no legislative powers.
The first Education Services for Overseas Students (ESOS) Act was introduced in the early
1990s with the Commonwealth Register of Institutions and Courses for Overseas Students
(CRICOS). The Act had three objectives including the protection of Australia’s reputation in
international education, measures to support students through consumer focused provisions and
support for the integrity of Australia’s migration program. In the late 1990s, the outcomes from
political events in China, the dramatic increase in enrolled international student numbers and
economic events such as the Asian financial crisis in 1997 led to a rethinking of roles and
responsibilities of government and institutions in international education. Comprehensive revision of
the legislation followed, with the introduction of the new ESOS Act (2000) and its accompanying
National Code of Practice. Responsibility for monitoring of compliance was largely devolved to
institutions, parents and students, where it remains today. The CRICOS list required all institutions
seeking to enroll international students to provide evidence of their financial status and credibility,
with state governments given a major role in a framework of shared responsibility for quality
assurance. After a major review by government, the ESOS Act was amended in 2007 to clarify a
range of issues and requirements and increase the monitoring responsibilities of institutions over
international students 88 . During this period, student visa requirements were clarified, modified and
strengthened to ensure a transparent and more efficient visa regime operates alongside the ESOS
legislation.
86 MCEETYA 1994
87 Australian Vice-Chancellors Committee 2005
88 Department of Education, Employment and Workplace Relations 2008b
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Quality Assurance
Tertiary Education in a Knowledge Society argues that increased market pressures have
fostered a growing focus on accountability 89 . Perceptions of quality in provision are a key driver of
enrolment growth. Business practice usually gives a certain power to the ‘customer’ of a service.
However for students in an education system, the balance shifts. In a presentation to an OECD
International Management in Higher Education conference, Michael Gallagher noted the
problematic nature of ‘entrepreneurial’ initiatives in Australian higher education
The notion of public universities becoming entrepreneurial is an ambiguous one … Australia’s
public universities … are commonly driven by a mission to advance the public good through the
generation and transmission of knowledge. Making money has not become their core business;
revenue generation is a means to sustaining the university’s broader purposes 90 .
In this environment, the issue for the fee paying student becomes one of value or cost/benefit, while
the provider largely decides quality standards for educational excellence and seeks to have those
standards and rankings verified. Australia has one of the more rigorous quality assurance processes
for its educational systems in the world. The National Protocols for Higher Education provide
common principles, criteria and processes for quality assurance of higher education recognition and
accreditation arrangements. Every course in the AQF has to meet various levels of national quality
assurance through a mix of Commonwealth, state and sector specific requirements 91 . Quality
assurance measures apply to both public and private providers.
The Australian Universities Quality Assurance Agency (AUQA), owned by state and federal
Education Ministers is an independent, not-for-profit agency that promotes, audits, and reports on
quality assurance in Australian higher education. In a recent news article, AUQA cited the growth in
international students as a key impetus for the birth of AUQA in 1999
Through the 1990s, the number of national quality assurance bodies around the world grew
apace and Australia was increasingly out of step not having one. This was particularly noticeable
because of the rapid growth in full-fee-paying overseas student numbers 92 .
AUQA audits all activities carried out in the name of the audited university whether conducted in
Australia or overseas. Over 90 overseas operations of Australian universities were visited by panel
members during the first five year cycle. Some overseas programs were terminated as a result of
this audit activity. In AUQA’s second cycle audits from 2008, internationalisation is a mandatory
theme of all audits. AUQA’s Audit Manual outlined the items required for institutions responding to
the internationalisation theme including teaching and learning of international students both in
Australia and offshore, internationalisation of the curriculum and overall student experience
including student mobility and staffing arrangements along with other international activities, such as
research collaboration 93 .
89 Organisation for Economic Cooperation and Development 2008
90 Gallagher M 2000
91 Australian Qualifications Framework 2008
92 Woodhouse 2008
93 Australian Universities Quality Agency 2008
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AUQA’s interest in the overseas operations of Australian universities coincided with an uptake of
global accreditation bodies to address issues around quality assurance at the broader level such as
offered by the Association to Advance Collegiate Schools of Business (AACSB) and the European
Quality Improvement System (EQUIS) after 2000. Accreditation with either EQUIS or AACSB
provides a globally recognised declaration of quality and is highly prized by faculties in Australia’s
universities.
The National Training System for Vocational Education and Training is an industry-led system that
sets out the requirements for quality and national consistency in terms of qualifications and the
delivery of training 94 . The National Audit and Registration Agency (NARA) has been created to
assist with VET level quality assurance, especially for multi state Registered Training Organisations
which enroll international students 95 .
Schools have a national framework for public accountability in Australia’s states and territories,
committing to the National Goals for Schooling for the Twenty-First Century and reporting
achievements against them. Quality assurance measures include curriculum development, a
process of registration and accreditation and moderation procedures to achieve comparability of
student results. There are additional legal requirements relating to child protection obligations 96 .
In the schools sector, the Council of International Schools (CIS) has developed an international
accreditation process to provide quality assurance for parents of prospective school students
intending an international education 97 . Thirty-six schools are registered on its website as meeting
requirements or in the process of doing so.
Most ELT colleges and their courses are accredited by NEAS which sets standards for class sizes,
the professional qualifications of teachers, curriculum, teaching methods and materials. All teachers
have specialist qualifications for teaching English. Accreditation also requires colleges to assist
students with welfare support 98 .
Leading and Managing for a Global Future
Implementation of an internationalisation agenda in an educational institution needs leadership,
targeted skills and knowledge to succeed.
In the early days of the international student program, the financial outcomes were a focus. It quickly
became apparent that new approaches to marketing, recruitment and relationship building would be
important for success in generating financial outcomes for the institution.
Just as Australians changed the way Europeans made and marketed wine, they are changing
the international market in higher education. Their share of the global market for international
students increased by 58% between 2000 and 2006. Although the US and UK occupy the top
94 Department of Education, Employment and Workplace Relations 2008c
95 National Audit and Registration Agency (NARA) 2008
96 Department of Education, Employment and Workplace Relations 2008d
97 Council of International Schools (CIS) 2008
98 National ELT Accreditation Scheme (NEAS)
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two positions in terms of the number of international students recruited, Australia easily
outperforms both in per capita terms 99 .
Twenty years ago, international relations were a marginal activity for senior leaders of educational
institutions. The significance of the international agenda has determined a paradigm shift in the daily
agenda of a Vice-Chancellor or Principal. Major decisions that leaders must take include investment
in overseas’ campuses or centres, focus on collaboration with private sector partners, the
development of overseas’ collaborative provision for transnational education with international
partners or investment in and development of international consortia to deliver educational and
research benefits 100 . Successful leadership involves not only strategy creation but ensuring
institutional buy-in and outcome delivery in the longer term. Becoming a truly international institution
is a long term process involving integration of international, global and intercultural elements into
many, if not all, aspects of institutional activity. A summary of outcomes from the 2006 UK
conference Leadership and Development: Challenges of Globalization and
Internationalisation estimated that it took five to ten years to develop a broad based international
agenda, and that not only staff but the governing body should be involved, as the international
strategy involved both institutional reputation and risk 101 . As the demands for outcomes have grown,
leadership roles such as Pro Vice-Chancellor (International) and International Director have
developed. Today most institutions in Australia boast multiple international roles, with internationally
focused specialist admissions, recruitment and student support staff to deliver results for both
students and the institutions. New international strategies have resulted in new structures, both
substantive and symbolic, which will drive the next stage of development. Advice about
development of an institution’s internationalisation framework 102 , along with internationalisation
indicators 103 and tools to guide leaders have emerged.
Leadership has external as well as internal dimensions. Development of strategic alliances with
other Australian partners has seen groupings of providers work together simultaneously in the
international context 104 . To be competitive in a growing global economy and multi-national workforce
environment, institutions which forge deeper international partnerships present a more competitive
profile to both faculty and students.
Collaborative leadership across industry and government has been a defining feature of the
Australian international education scene. Key Australia-wide organisations represent education
sectors, both public and private. State based groups are also active in industry/government
consultations to represent provider concerns and perspectives. Universities Australia (UA), the
national body representing all universities, has long supported international activity 105 . The Deputy
Vice-Chancellor/Pro Vice-Chancellor International group frequently represents UA in consultation
forums. The Australian International Directors Forum (AUIDF) with membership from International
Directors of Australian universities undertakes benchmarking studies and responds to policy and
operational issues and initiatives. The Australian Council for Private Education and Training
99 Universities UK 2008c
100 Middlehurst R and Woodfield S 2007
101 Leadership Foundation for Higher Education 2006
102 Adams T 2007
103 Brandenburg U and Federkeil G 2007
104 Middlehurst R 2008
105 Universities Australia 2008
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(ACPET), established in 1990, is the national industry association for independent providers of postcompulsory
education and training, for Australian and international students, across all sectors 106 .
TAFE Directors Australia (TDA) is the national body representing all state based Technical and
Further Education institutions in Australia. It provides leadership in international issues for its public
providers 107 . English Australia (EA) is the national association for accredited public and private
English language colleges in Australia. It first began in 1982 and was initially known as the ELICOS
Association. It was incorporated in 1990 and is a major advisory group to government on policy,
market and legislative matters 108 .
Professional associations play a leadership role. The International Education Association of
Australia (IEAA) is Australia’s major international education professional body. It was founded five
years ago and provides leadership, professional development and project management services
across all sectors 109 . ISANA represents professionals in Australia and New Zealand who work in
international student services, advocacy, teaching and policy development in international education.
ISANA focuses on welfare, accommodation, student service and support, country groups and social
inclusion 110 . The National Liaison Committee for International Students (NLC) was formed in 1986.
Today, NLC's focus is on academic and welfare issues which concern international students in
Australia. The NLC contributes to Federal and State Government inquiries into improving
international education in Australia 111 .
The provision of research based commentary and business intelligence about student flows and
market strategies has allowed institutions to manage their activities with a sophisticated approach.
Industry and sector research and benchmarking activity is supplemented by major research
undertaken by AEI. AEI provides the world’s most comprehensive and timely statistics of
commencing and enrolled student visa data from immigration databases of any nation. This visa
data and AEI research snapshots cover all provider sectors and country markets. The National
Centre for Vocational Education Research (NCVER) is the main provider of research and statistics
for the vocational education and training sector in Australia 112 . NCVER also provides statistics and
information on specific policy issues around the international agenda. IDP Education Pty Ltd, as the
major Australian agency recruiting international students, has provided major funded research to the
industry for 20 years. Institutions employ the skills of private market consultants for targeted
research for institutional purposes. The wealth of data and market information ensures that
Australian institutions can make informed decisions.
The report UK Leadership and Development: Challenges of Globalization and
Internationalisation noted that strands of internationalisation have different attractions
Very few institutions turn away from importing international students to their own campus: most
will shrink from the investment and risk involved in establishing offshore enterprises …and many
106 Australian Council for Private Education and Training (ACPET) 2008
107 TAFE Directors Australia 2008
108 English Australia 2008
109 International Education Association of Australia 2008
110 ISANA 2008
111 National Liaison Committee 2008
112 National Centre for Vocational Education Research 2008
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will be uncertain what benefits a strategy of internationalizing all elements of a domestic campus
will bring 113 .
The paper identified ‘internationalisation at home’ as the issue requiring most leadership attention
as local students should have a chance to learn from and with students from other cultures and from
other parts of the world.
At the institutional level, many positive initiatives have occurred in education over the last 15 years,
some of which are documented in research papers, university submissions to AUQA audits, in
reports and in conference papers at sector level. However a major concern remains that the practice
of internationalisation has not matched the rhetoric of institutional strategic plans. Leadership issues
in the internationalisation of schools were canvassed in Internationalisation – an Optional Extra?
The author quotes interviews from international school students who found
The institution in which they studied was blissfully unaware of how that had been taught
previously, what they had been taught, and how this had some bearing on how well or otherwise
they settled into study and subsequent achievement.
Howarth concludes that courageous and knowledge-rich leadership is required to ensure that the
institution invests time and infrastructure to develop students who can claim to be ‘world citizens’
and build a global context which focuses on peace, values and cultural inclusiveness. A framework
for school leaders to construct an internationalisation program for their environment is provided as is
the staff skills base needed to develop this program 114 .
A number of expert practioners have developed templates for guidance on course development to
ensure student focused outcomes for all students both local and international. Bridging the Gap:
Internationalizing University Curricula provides a practical guide to educators on implementation
of an internationalised curriculum, with detailed tables of indicators and checklists for action. Staff
are encouraged to model effective, inclusive communication strategies and teach to promote cross
cultural and international understanding 115 . The personal implications for academic staff in
internationalising their professional practice are outlined in A Foundation for the
Internationalization of the Academic Self. Sanderson proposes some updated philosophical
observations to underpin this personal growth strategy. He examines Knight’s work on a
sophisticated understanding internationalisation at the organisational level but notes that theory is
limited in dealing with how staff might ‘become internationalised’. The author states that
being accepting of cultural difference and knowing something of other cultures have a pivotal
place in internationalisation at the level of the individual teachers...A foundation for this however
is for them to appreciate how their home culture produces and support their personal and social
worldviews 116 .
113 Luker P 2008
114 Howarth D 2007
115 Leask B 2001
116 Sanderson G 2008
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Worth more than Gold: The Unexpected Benefits Associated with Internationalisation of
Tertiary Education reported that the majority of local students found that
the opportunity to study with overseas students was of benefit to their academic experience. It
both enriched their learning experience and broadened their outlook on life … the gains
discussed are mainly of a personal and academic level and the problems identified are of a
structural nature.
The report traces earlier times when many institutions increased their enrolments without fully
understanding the special academic and personal needs of their new international students.
Mismatched teaching and learning styles from varying cultural and intellectual traditions created
problems for all. This UNSW study of mainly undergraduate local students showed that studying
with international students forced local students to question their own perspectives and cultural bias.
Local students valued the opportunity to learn about the cultures and backgrounds of people with
whom they may work in the future and they obtained a new perspective on professional issues
which helped prepare them for work in a multicultural society. Concerns raised by local students
were around communication difficulties, especially in group work, students’ perceptions of the
inability of some staff to cope with the additional demands made by international students and even
that international students were very competitive, creating stress for local students 117 .
In International Education and Internationalisation Are Not the Same as Globalisation:
Emerging Issues for Secondary Schools Matthews raises concerns about issues of equity, social
justice and brain drain resulting from international education programs. She notes that there is
virtually no literature that looks specifically at the internationalisation of government schools and full
fee paying international students and that specific measures must be put in place to encourage local
and international students to communicate 118 . Dunstan’s study of the planned introduction of an
international student program into a private school in Victoria outlines how a successful program
can be implemented with strategy and foresight. Cultural Diversity for Life: A Case Study from
Australia notes that both local and international students face a dilemma between maintaining
cultural traditions and facing the necessity of adapting to global cultural change. The author found
the school was able to address the challenges by implementing various strategies that ensured that
the school community was involved. Echoing Matthews’ concerns, Dunstan notes that productive
intercultural learning does not happen by direct contact alone but must involve a series of strategies
including buddies, mentoring, active development of cross cultural learning and overseas visits so
that both staff and the whole student body learn and grow 119 .
Provision of student support services is an integral part of an institution’s international student
program. Students seek a range of services from pre-arrival assistance to post arrival orientation,
pastoral care, accommodation and academic support. Loneliness and International Students: An
Australian Study was based on responses of 200 international students from 30 countries enrolled
in nine Victorian universities. 65% of interviewees stated that they had experienced loneliness.
Students experienced both personal loneliness due to lack of contact with families and social
loneliness due to loss of their networks. A third kind of loneliness, cultural loneliness, triggered by
the lack of the usual cultural and linguistic environment, was also identified. The role of the
117 Pittaway E, Ferguson B and Breen C 1998
118 Matthews J 2002
119 Dunstan P 2003
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institution in assisting with resolution of students’ feeling of isolation and the creation of stronger
bonds with local students in the education setting is explored. The author quotes Hofstede’s
analysis of cultural differences, especially individualism/collectivism to provide insights into the
issues. Initiatives were designed to assist international students to
remake their own cultural maps on their own terms...key to a forward move on loneliness.
The study found that students should be better informed about the services available, especially
assistance with English language. Sawir points out that adjustment should not just be on the side of
the international student, especially where local practices may offend their cultural or religious
beliefs. The single most important element in institutional strategies to provide a better environment
for international students is to improve the quality of their relations with local students. This can be
achieved through providing specific targeted opportunities to learn more about each other in both
academic and social settings and more broadly, through enabling international students to join
community-based sporting clubs, activity or religious groups 120 . The findings from this study reflect
one of the key findings from AEI’s International Student Survey where social inclusion was a
concern of international students in all sectors. Research for AEI in 2006 sought student satisfaction
in four sectors across a range of issues, with high satisfaction ratings reported for studying and
living in Australia. However the research alerted institutions to the gap between expectations and
actual experiences of international students. Local students who responded to the survey showed
less interest in international students than the reverse, indicating there was an opportunity for
institutions to engage local students more fully in meaningful networks with international
classmates 121 .
Transnational Education
Not all revenue from the international program comes from spending in Australia. The World Trade
Organisation (WTO) provides a typology of four modes of supply of education services for exports,
three of which are forms of transnational offerings through commercial presence, cross-border
supply and presence of natural persons. AEI estimates there are 100,000 students in transnational
education (TNE), about 75,000 in higher education and about 25,000 in vocational education and
training. From AEI ‘s research, the spending on fees and goods and services by modes (other than
onshore international student enrolments), including fees from offshore students and
correspondence courses, education consultancy services and royalties on education services
accounted for 3.2% of the value of education exports 122 .
Table 4.2 IDP Semester Enrolments in Transnational Courses 2007, a semester based selfreporting
survey of universities, provided information on transnational enrolments in each semester.
120 Sawir E 2008
121 Australian Education International 2007
122 Australian Education International 2008c
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Table 4.2
IDP Semester Enrolments in Transnational Courses 2007
Semester of
enrolment Distance/Online Offshore/Campus Grand Total
Semester 1 2007 11,876 49,461 61337
Semester 2 2007 8,936 49,876 55812
In the 2007 Universities Australia report, Offshore Programs of Australian Universities, compiled
from information reported by institutions, Singapore, Malaysia and Hong Kong had the largest
number of offshore students. Malaysia, with around 140 Australian programs, had the greatest
number of courses in country, followed by Singapore, China and Hong Kong 123 . Some institutions
have developed full campus operations in Dubai (University of Wollongong), Malaysia (Monash
University, Swinburne University and Curtin University), Vietnam (RMIT), Singapore (James Cook
University) and South Africa (Monash University). Just as Australia has embraced transnational
education, a large UK survey of 135 higher education institutions (HEIs) found that 65% offered
transnational education programs. There were 1,536 current programs and 276,765 students or
12% of the total number of students in the UK for the same year 124 .
At the VET level in Australia, NCVER has provided advice that in 2006, 56% of Australian public
TAFE providers delivered offshore to 32 countries. There was an increase of 11% in offshore
students to 31,000 in 2006. China remained the most dominant market with over 70% of all VET
offshore students 125 .
In 2005, Australian Education and Training Ministers agreed to a Transnational Quality Strategy
(TQS) framework to protect and promote the quality of Australian education and training from all
sectors delivered in other countries 126 . Ministers agreed that the delivery of Australian TNE which is
recognised as equivalent to that delivered within Australia is vital for Australia’s international
education reputation. The Department of Education, Employment and Workplace Relations
(DEEWR) actively promotes transnational quality initiatives and funds professional development and
good practice projects for transnational practitioners across the various sectors. Staff from higher
education, VET and ELT sectors have documented and published best practice examples for the
benefit of industry.
Nowhere has AUQA’s impact on Australian universities been seen more than in transnational
education courses. AUQA’s TNE Quality Framework includes 17 audit points for consideration and
resolution 127 .
In the ELT sector, the National ELT Accreditation Scheme has expanded its accreditation processes
to include a small number of audits of offshore programs of ELT provision. The most recent DEEWR
123 Universities Australia 2007b
124 UK HEI transnational survey
125 National Centre for Vocational Education Research 2006
126 Department of Education, Employment and Workplace Relations 2008e
127 Australian Universities Quality Agency 2008
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initiative is the launch of AusLIST, an authorised catalogue of courses offered offshore by Australian
providers 128 .
In addition to concerns about reputational damage from poorly executed transnational offerings for
both the institution and Australian education and concerns about student outcomes, the failure of
prominent transnational programs and offshore campuses can prove expensive for the home
institution. In 2008 the NSW Auditor-General’s Report to Parliament noted
Following the closure of UNSW Asia, the University signed a settlement agreement in December
2007…This resulted in the University assuming $47.6 million of UNSW Asia’s liabilities and
closure costs in 2007 129 .
Pedagogical implications in the delivery of transnational education have been complex for academic
staff to consider. Early research in 1998 from academic staff at a Victorian regional campus,
provided the following commentary on their research findings
The research supports a view that the school’s overseas programs have broadened the
experiences of its academic staff. In the area of professional development, both travellers and
non-travellers alluded to a better informed, more professional, more valued faculty…Overall
there seemed to be a clear view that teaching overseas made teachers better-informed, more
professional and more valued as academics 130 .
Studies done with staff of a South Australian university provide further issues for consideration of
traveling academic staff. The research was based on a case study of staff and students of a
business program which was taught in two locations—Hong Kong and Adelaide. The paper argues
that such programs provide a unique opportunity for teachers to become intercultural learners,
learning which has the potential to enhance their teaching onshore. The role of local tutors was also
considered 131 . A 2005 AVCC sponsored research project documented key professional
development requirements for academic staff teaching overseas 132 . The role of offshore operations
in promoting an institution’s research collaboration is a newer development, with Monash University
using multi-modal research for major projects at its offshore locations. The Monash Malaysian
campus has received Malaysian government support for its research while the Indian Institute of
Technology Bombay, a joint research academy is being built, with strong support from both
governments and from industry. According to the Vice-Chancellor
The academy is seen as a fast way to set up a very research active campus targeting
postgraduate students from India’s intellectual capital, which was attractive to industry 133
128 Department of Education, Employment and Workplace Relations 2008e
129 NSW Auditor-General 2008
130 Griffith J, Wehsack G and Watson A 1998
131 Leask B 2004
132 Leask B 2005
133 The Diplomat Analytic Unit Sept/Oct 2008
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Building a Mobility Culture
Australia’s international programs and providers are frequently criticised for focusing on one
directional student traffic. However improved outcomes for higher education and more recently for
VET providers are being recorded, largely funded and supported through the fee-paying activities of
the export income derived from the international program.
Universities Australia’s survey in 2007 summarised in Table 4.3 International Links of Australian
Universities showed steady growth since 1991 with now 5,168 formal agreements with overseas
higher education institutions a growth of over 15% in the four years since the survey was
undertaken 134 Table 4.3
International Links of Australian Universities
Geographic Area Number of
Agreements
Geographic Area Number of
Agreements
North-West Europe 1,514 Southern and 124
Central Asia
Americas 1,190 North Africa and the 78
Middle East
North-East Asia 1,068 Oceania and 44
Antarctica
South-East Asia 837 Sub-Saharan Africa 30
Southern and
Eastern Europe
282
Study abroad and exchange programs are an integral part of internationalisation of an institution
and its students. Editors of Students, Staff and Academic Mobility in Higher Education noted
Student and staff mobility creates complex international groups who … become a unique and
temporary social group which has an impact on the host university. And then, months later, they
return to their place of origin, changed in various ways, and bringing change to their own
university 135 .
Successful mobility programs are integrated into academic programs, broaden student experiences
in diverse language environments and cross cultural settings while managing the risks associated
with dispatching cohorts of enrolled students around the world. One of the early Australian university
mobility initiatives was the University Mobility for the Asia Pacific (UMAP) scheme. Then Federal
Education Minister Kim Beazley formally supported the UMAP scheme at an APEC Ministers’ of
Education meeting in Washington in 1992. UMAP was born following consideration of the new
134 Universities Australia 2007a
135 Byram B and Dervin F 2008
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ERASMUS scheme in Europe to facilitate regional mobility 136 . The DEEWR has provided $1.618
million to 32 higher education Australian providers for student mobility projects in 2007/08 137 .
US sets the benchmark in university level outbound mobility globally. In US in 2005/06, an
estimated 13.1% of undergraduate completions in US were reported in Open Doors 2007 to have
had study abroad experiences 138 . In 2005, the US Lincoln Commission recommended that within
the next decade, one million American students should study abroad annually to improve
international understanding and build global connections for America’s future leaders and
managers. In early 2008, NAFSA released the results of a Task Force on Institutional Management
of Study Abroad Strengthening Study Abroad. Fourteen criteria were identified for institutions to
better manage this proposed increase in outbound mobility of American students 139 .
Current Trends in US Study Abroad & the Impact of Strategic Diversity Initiatives 140 assessed
unmet demand for studying abroad and examined supply side host capacity issues for taking
greater numbers of mobile students. Exploring Host Country Capacity for Increasing U.S. Study
Abroad sought information on host countries’ ability to receive and absorb a significantly larger
number of US students, along with their challenges, motivations and strategic plans 141 . Demand for
short term programs, including internships, is growing in US as it is in Australia. A recently
completed AEI study, Demand for Short-term Study Abroad Programs in the United States
seeks to assist Australian institutions to prepare suitable programs to attract increasing numbers of
US students 142 .
In a study just released, in 37 Australian universities for 2007, 10,718 students at all levels were
reported as undertaking international study experiences. The participation rate of those students
was equivalent to 4.7% of degree completions at all levels. Six categories of mobility experience
were catalogued covering formal exchanges, short term programs, placements and research. Two
cohorts account for 92% of international experiences: 8,354 undergraduates undertook an
international experience and 1,454 postgraduate research students undertook research experiences
overseas. Undergraduate student mobility in 2007 was equivalent to 5.8% of undergraduate
completions in 2007. The proportion of short term programs and placements or practical training
increased from 32.6% in 2005 to 35.1%. The number of international research experiences
undertaken by postgraduate research students in 2007, was equivalent to 36.9% of postgraduate
completions in 2007, a growth of 69.3%. Only 16.3% of all students undertaking international study
experiences in 2007 were international students. 57.5% of students were women and 96.1% of
experiences were for credit.
As in the US, funding to support overseas mobility remains somewhat challenging. Government
funding from UMAP, Endeavour and targeted bilateral scholarships has continued to attract small
numbers of students to mobility options. Take up by Australian students of the OS HELP student
loan has not been strong. Given the cost of both study and living, equity considerations would
136 Beazley 1992
137 Department of Education, Employment and Workplace Relations 2008a
138 Institute of International Education 2007a
139 NAFSA 2008
140 IIE 2007
141 IIE 2008
142 AEI 2008a
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suggest that there are many students who will never afford such an experience without further
funding supplementation to travel. Some universities with a strong commitment to mobility have put
millions of dollars towards this strategy. The 37 participating universities reported in aggregate
$16.6 million in funding for international study experiences in 2007, up from $7.9 million in 2005 in a
smaller number of 33 universities.
The destinations of 10,759 international study experiences include 38.6% to Europe, 24.7% to the
Americas and 31.1% to Asia. Australia as a destination for international student mobility from
offshore campuses made up 0.7% 143 .
Australian VET sector mobility brings increased challenges with many students unable to participate
due to funding, course or work requirements. An Outward Mobility Audit 2007, funded by
Queensland Education and Training International (QETI) and the Queensland Department of
Education, Training and the Arts (DETA) surveyed over 700 Registered Training Organisations
(RTOs) along with desk research and interviews. Only nine of the 48 respondents placed mobility on
their future agenda. The most common mobility experience for students was an overseas
placement 144 . In US, the Community Colleges for International Development (CCID) network has
emerged from selected community colleges with an outward perspective. CCID provides an avenue
for VET providers to link into a broader network of interested institutions through its Troika Study
Abroad Programs 145 .
The Impact of Skilled Migration
Since 2001, with skills shortages looming, international students completing qualifications in
Australia have been permitted to apply for permanent residence in Australia as skilled migrants,
without having to leave Australia. Policy-makers thought that persons who had been trained in
Australia, in English, would be more attractive to Australian employers than their counterparts
trained overseas. Changes to General Skilled Migration (GSM) in 2001 listed 26 ICT occupations on
the Migration Occupations on Demand List (MODL). Subsequent changes increased MODL points,
introduced bonus points for ‘regional’ areas and outlined the two year study rule.
In September 2007, the Australian Government announced new skilled migration reforms
essentially increasing the skills, work experience and English language requirements for
international graduates seeking to gain permanent residency as skilled migrants. Saunders quotes
research that shows that since 2004, skilled migrants form a much larger percentage of 15 to 34
year olds (56%) in the community than in the general population (28%). This could partly be
attributed to education as a migration mechanism 146 .
However these changes to regulations have led to some unplanned outcomes, with impacts on
institutions which enrol this group of students. Chart 4.5 VET Commencements from India by
Field of Study shows the direct impact that policies have had on choice of discipline over a time
143 Olsen A 2008b
144 Biazos R 2007
145 Community Colleges for International Development 2008
146 Saunders J 2007
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series. Growth in VET commencing enrolments has been strong with growth of 154% in 2006 to
2007. Using India as an example, the chart shows the extent to which the opportunity for skilled
migration is a driver of demand for international education places in Australia.
Chart 4.5
VET Commencements from India by Field of Study
Number of VET Commencements
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
Other
Physical Sciences
Architecture, Building
Science
Multi-Field Education
Education
Arts, Humanities and Social
Sciences
Language Studies
Visual and Performing Arts
Nursing
Land and Marine Resources,
Animal Husbandry
Engineering, Surveying
2,000
-
2002 2003 2004 2005 2006 2007
Year
Computer Science, Information
Systems
Health, Community Services
Business Administration,
Management
Services, Hospitality, Transport
International Doctoral Enrolments and Academic Mobility
The Bradley led Review of Australian Higher Education raised concerns about the ability of
Australia to compete for academic staff in a global environment where better career opportunities,
rates of pay and research funding support are to be found in other countries 147 . This theme echoes
concerns in Universities UK’s The Talent Wars: the International Market for Academic Staff 148 .
After studying data from 16 countries, the study Academic Salaries in a Comparative Context
concluded that Canadian academics earned on average 5.1 times more than their Chinese
counterparts. This study provided some insight into the value attributed to the academic enterprise
and explains in part the problem of brain drain and brain gain 149 .
The 1996 study Qualifications of Australian Academics: Sources and Levels 1978-1996
reported that 39% of academic staff in Australian universities had obtained their first, or their highest,
147 Bradley D et al 2008
148 Unoversities UK 2007
149 Pacheco I and Rumbley L 2008
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or both, qualifications overseas. Table 4.4 First and Highest Qualification of Australian
Academic Staff 150 provide a useful typology of the sources of first and highest qualifications of
Australian academics in 1996, and applied some interesting labels.
Table 4.4
First and Highest Qualification of Australian Academic Staff
Location of First Degree
Location of Highest Degree
Australia Overseas
Australia 61.1%
True Blues
Overseas 7.7%
Migrants
9.8%
Venturers
21.4%
Foreign Recruits
Changes in the international flow of over 300,000 doctoral students globally are an early indicator of
likely changes in the international mobility of the highly skilled. A key pull factor identified to attract
the highly skilled student from abroad is world-class universities. This necessitates a change in mind
set for countries that tend to view their universities as being a purely national resource and not part
of an increasingly competitive, international sector. Countries which aspire to success in the global
economy have now moved innovation and research to the centre of government policy development.
Over the last decade, significant recent investments in higher education and research development
have been witnessed in countries with higher education systems as diverse as China 151 , France 152
and Germany 153 154 .
In Australia, the new Rudd’s government’s Review of the National Innovation System, the
Review of Export Policies and Programs, the Review of Research Training and debates around
the Research Quality Framework are examples of this trend. Recent research in US, Canada and
UK has identified the numbers of international doctoral students, their ‘stay rates’ and the push and
pull factors that govern this movement. The focus in these studies on international doctoral students
is almost solely on science, engineering and technology (SET) graduates. In the contested space
surrounding the ‘knowledge society’, the generally accepted view is that increased innovation and
developments in SET drive economic growth globally and nationally. For those governments and
institutions with an eye to improved institutional rankings on the Shanghai Jiaotong University index
of world class universities, the methodology focuses on outputs from the hard sciences.
Contrary to the accepted view, numbers of international postgraduate research students in Australia
have grown more quickly than universities’ overall student programs. 19.7% of all postgraduate
research students in Australian universities are international students 155 . International postgraduate
research students in Australia have grown 67% from 2002 to 2007, while numbers of international
150 Anderson et al 1997
151 Arumachalam S 2008
152 Marshall J 2008
153 Gardiner M 2008
154 Fallon D 2008
155 Australian Education International 2008a
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students in higher education have grown 52%. Chart 4.6 Numbers of International Students and
International Research Students compares the growth patterns.
25%
Chart 4.6
Numbers of International Students and International Research Students
20%
% Onshore International Students
% International Research Students
15%
10%
5%
0%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Table 4.5 Source Countries: Trends in Australian Doctoral Commencements shows the top
countries from which doctoral students have come where China has the largest number 156 .
156 Australian Education International 2008a
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Table 4.5
Source Countries: Trends in Australian doctoral commencements
Growth
2002 to 2007
Growth
2006 to 2007
Growth
1/2007 to 1/2008
China 76.0% 35.5% 29.9%
Malaysia 188.2% 44.8% 44.4%
India 84.1% -19.1% -7.9%
Thailand -23.7% -5.4% 0.0%
Iran 44.4% 11.0% 12.1%
Germany 96.4% 3.8% -24.3%
US 71.7% 31.9% -23.4%
Vietnam 33.3% -30.4% 41.5%
Singapore 28.8% -5.6% -6.4%
Taiwan 10.5% 8.6% 0.0%
Aggregate 47.1% 13.0% 15.9%
Chart 4.7 International Students in Advanced Research Programs 2005 shows that Australia
has the fifth largest concentration of doctoral students.
Chart 4.7
International Students in Advanced Research Programs 2005
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Switzerland
United Kingdom
France
United States
Belgium
Australia
New Zealand
OECD average
Japan
Austria
Hungary
Spain
Finland
Denmark
Norway
Slovak Republic
16.5%
17.8%
Table 4.6 Source Countries for PhD graduates provides a comparative study of the absolute
numbers of graduates in US and UK with those in Australian universities.
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Table 4.6
Source Countries for PhD graduates
Australia PhD 2007 US Graduate 2006/07 UK PGR 2006/07
China 1,144 47,968 5,160
Malaysia 861 1,288 1,875
India 644 59,570 1,975
Thailand 514 5,149 1,155
Iran 394 1,866 750
Germany 373 3,702 2,520
US 366 3,475
Vietnam 350 1,344 195
Singapore 277 1,305 495
Taiwan 260 16,679 1,265
Aggregate 8,888 266,336 50,460
Chart 4.8 Dependence of Fields on International Research Students shows that 31.2% of
Engineering research students and 22.9% of IT research students in Australia are international.
Chart 4.8
Dependence of Fields on International Research Students
35%
31.2%
30%
25%
20%
15%
16.3%
12.9%
22.9%
26.5%
19.1%
13.5%
20.6% 21.5% 7.9%
10%
5%
0%
Australian universities’ dependence on international doctoral enrolments in key disciplines does not
show the high rates reported in countries such as US and UK. The Economist of 14 June 2008
carried a heading What crisis? Worries that America is Losing its Edge in Science and
Technology are Overblown. The article carried a summary of the report from the RAND
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Corporation’s National Defence Research Institute, US Competitiveness in Science and
Technology, acknowledging what other data have shown. US schooling practices around maths
and science might not lead the world. It is the flow of international students, as well as scientists and
engineers, from outside US that has allowed US to remain in a leadership position. In the National
Science Foundation Report 2005 the number of science and engineering students on temporary
visas earned 36% of all science and engineering doctorates awarded in US in 2005. Temporary
residents earned half or more of all US doctorates in engineering, maths, computer sciences,
physics, and economics in 2005. In the US Survey of Earned Doctorates, 74% of foreign science
and engineering doctorate recipients with known plans reported they planned to stay in US and 49%
had accepted firm offers of employment. More than 90% of 2002 to 2005 US science and
engineering doctoral graduates from China and 88% of those from India reported plans to stay in
US.
Finn’s Stay Rates of Foreign Doctorate Recipients from US Universities 2005 157 used tax
records to identify stay rates of science and engineering doctoral students in US. Finn’s data also
shows those who gained doctorates in physical and life science, engineering and IT tended to stay
in US to contribute to research and academia. This reliance makes US more vulnerable to changes
in doctoral student flows.
A recent report, part of The PhD Completion Project, looked at completion data submitted by 24
US and Canadian universities. It found that not only do international doctoral students complete at a
higher rate than domestic students, but also do it in five broad fields of study. Overall, the
completion rate for international students, over ten years, is 67%, compared with 54% for domestic
students 158 . Doctoral Graduates in Canada: Findings from the Survey of Earned Doctorates
2004/2005 showed that approximately 23% of all Canadian doctoral graduates were international
students. Over 42% of engineering graduates and more than 32% of physical science graduates
were international students. 42% of international engineering graduates intended to stay in Canada.
In a recent report The UK’s Competitive Advantage: The Market for International Research
Students, 59% of law, 58% of engineering and technology, 58% of business and management,
53% of social studies and 51% of mathematics and computing doctoral students were international.
This supports outcomes of a previous UK report Patterns of Higher Education Institutions in the
UK Seventh Report which noted UK dependence on international students in ‘strategic subjects’.
‘Strategic subjects’ are those of national importance - economic, social or geopolitical - where
fluctuations in the supply of graduates cause concern. The report noted that one third of
international doctoral students already studied in UK prior to commencing their research program.
The influence of staff and information available through university websites were found to be the two
most important factors informing the final decision on an institution. 40% of international PGR
students want to remain in the UK, either temporarily or permanently.
International Research Collaboration: Opportunities for the UK Higher Education Sector has
provided an insight into the health of research collaboration in the UK and comparable countries.
The UK’s fastest growing international partnerships are with researchers in China, where there has
been a doubling in the output of international research papers between the 1990s and 2005. This
report noted that UK universities are particularly focused on improvements in international standings
157 Finn M 2007
158 Fine P 2008
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and rankings, from very visible and successful international research collaborations, from a good
supply of researchers of the right standard, and from improvements in recruitment for prospective
research students 159 . Most of these institution-level relationships began with educational programs,
ranging from double masters degrees to summer schools and from major recruitment campaigns
from their international enrolments. If the number of mobile Chinese doctoral students declines, the
impact will be noticeable. The Chinese government since 1999, has greatly expanded the enrolment
of students in its own universities. Its huge investment in 211 and 985 universities has changed the
landscape of higher education and research. Changes in India, the second largest source country
for the highly skilled, will have repercussions for the global market. Internal factors in India, a direct
outcome of outbound skilled migration may hamper growth. Khadria notes in Migration in South
and South-West Asia the skilled shortage in higher education institutions
India’s biggest global brand, the publicly subsidised Indian Institutes of Technology (IITs), is
starved of qualified teaching staff. By next year India will need 38,957 PhDs to man academic
positions, but only 12,772 would have earned their doctorates 160 .
The Changing Dynamics of the Global Market for the Highly Skilled finds the evolution of the
market for the highly skilled could have profound impact on universities, national innovation systems,
macroeconomic policy, the generation and flows of knowledge and correspondingly the shape and
operation of the network through which knowledge is shared. Immigration based countries such as
Australia and Canada as well as UK may take advantage of these changes in the global market.
This will require investments to ensure that research capabilities in a few select areas are
internationally recognised 161 .
In Brain Drain and the Potential of Professional Diasporic Networks Rizvi poses that migration
may no longer be an accurate term to understand the mobility of skilled workers
their identity now depends on how they view, maintain, activate and reproduce their relationship
with their country of origin, conditioned by their use of new information and communication
technologies and their transnational networks.
People create and circulate in ‘diasporic spaces’. The author believes that there is a high possibility
for potential return migration or ‘brain circulation’ rather than ‘brain drain’, underpinned by a range of
support mechanisms in which education plays a role in preparing people to develop the capacity for
working in transnational spaces effectively 162 . In Policy Options for Managing International
Student Migration: the Sending Country’s Perspective Gribble also believes an increasing
proportion of migratory movement following study overseas is temporary. Sending countries benefit
from temporary migration via financial remittances, technology transfer, entrepreneurial partnering
and the development of personal networks 163 . Thus international education contributes to ‘brain
circulation’ in the longer term.
159 Universities UK 2008
160 Khadria B 2005
161 Wychoff A and Schaaper M 2005
162 Rizvi F 2006
163 Gribble C 2008
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Outcomes
The importance of an internationalised education system, international research and knowledge
transfer is well recognised now by both government and institutions across Australia. However in
reality, much innovation has been driven from within Australian institutions, both public and private,
and across all sectors. Tertiary Education for the Knowledge Society noted
While the national/sector level has an important influence on the international dimension of
tertiary education … internationalisation activities are pursued at the institutional level and with
tertiary education institutions at the discipline level 164
The focus on the commercial aspects of the program, while of concern to some, has brought a
business focus to delivering outcomes and measuring success. Indeed, the presence of a potential
international client base compels institutions to offer programs that stand out among competitors, a
factor that may contribute to the development of a highly reactive, client-driven quality education. As
the program has matured, collaboration with partners around the world for exchanges, joint degrees
and research initiatives has accelerated, thus placing Australian institutions in a strong position to
embrace emerging global challenges.
164 OECD 2008
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5
Impacts and Outcomes on Communities
Tim Dodd considers the impacts and outcomes of international education on communities, looking
at how international student programs impact the wider community in Australia and at the
communities which international students create for themselves.
Introduction
Australia’s international student program has grown rapidly in the past two decades. Until the mid-
1980s the number of fee paying international students in Australia was negligible. This stands in
sharp contrast to the present time when about 500,000 people from overseas are living, studying
and, in many cases, working in Australia because they are international students or have come as
members of an international student’s immediate family.
The number of international students and their dependents amount to over 2% of the Australian
population and, although they are temporary visitors, their impact is not transient. Their period of
stay in Australia ranges from as little as three months, for English language students, to up to
several years, particularly for students who undertake a sequence of courses.
During this time they must establish themselves in Australian life. They have an economic impact –
as well as their tuition they must purchase at least the staple items of food, accommodation and
transport – they establish social networks, many of them get jobs, and they also have a cultural
impact on Australian society.
Due to the number of students involved the effect which they have is significant. To put the size, and
the potential community impact, of the international student program in perspective it should be
noted that for the last 15 years the number of international students arriving in Australia each year
has been larger than the number of permanent settlers, or migrants. For the last eight years the
number of arriving students has been more than double the number of new settlers – even though
the migration program itself has grown sharply in recent years, as in Chart 5.1 Arrivals in Australia:
Students and Permanent Residents 165 on the following page.
The impact of newly arrived migrants on the Australian community has been well-studied through
the extensive literature on post-war migration. Less thoroughly understood is the community impact
of international student arrivals. However it is likely there are similarities between the two –
complicated by the fact that many international students become migrants – and there is great
opportunity for further investigation in this field.
165 Australian Bureau of Statistics 2008a, Australian Bureau of Statistics 2008b
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Chart 5.1
Arrivals in Australia: Students and Permanent Settlers
350,000
300,000
Students
Permanent settlers
250,000
200,000
150,000
100,000
50,000
0
91-92
92-93
93-94
94-95
95-96
96-97
97-98
98-99
99-00
00-01
01-02
02-03
03-04
04-05
05-06
06-07
The purpose of this paper is to use new and existing data, both quantitative and qualitative, to
analyse the community impacts which result from Australia accommodating large numbers of
international students. We do not address the impact of international students using their
qualifications to become skilled migrants as this is a major topic which stands by itself.
In this paper we are using a broad definition of community. It includes
sectors of Australian society which are not directly involved in education including other
business sectors, ethnic groups, cultural groups and other groups of people with common
interests
networks established by international students with their peers and with Australians.
Economic Outcomes
International education is a major business which has a positive economic impact for the broad
Australian community.
Education is a major export industry for Australia, making a very significant contribution to the
nation’s balance of trade. In 2007/08 exports of education services earned $13.7 billion in export
revenue 166 . This figure represents the total spending by international students in Australia including
their tuition fees and living expenses.
Education services is Australia’s third largest export after coal and iron ore. It is the only services
export to have a strong, consistent history of growth and the only one of Australia’s top exports
which fully utilises Australia’s knowledge capacities.
166 Australian Bureau of Statistics 2008c
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As noted by the Reserve Bank of Australia
Since 1982, education services exports have grown at an average annual rate of around 14% in
volume terms, with their share in the value of total exports increasing from less than 1% to
almost 6% in 2007 167 .
Unlike tourism, the other major services export, education makes a major contribution to Australia’s
trade balance because relatively few Australians study overseas. In 2007/08, with education exports
worth $13.7 billion and education imports (generated by Australians studying overseas) worth only
$0.8 billion, education services generated a trade surplus of $12.9 billion.
In contrast tourism exports (generated by overseas residents travelling to Australia) were worth
$12.0 billion while tourism imports (generated by Australians travelling overseas) were worth $14.2
billion. Thus tourism recorded a trade deficit of $2.2 billion 168 .
There are no recent estimates of the employment and GDP impact of international education on
Australia as a whole. However a 2004 study estimated that expenditure on international education,
and the resulting economic activity which stemmed from it, had an employment impact of 42,650
jobs in 2002, which amounts to nearly 0.5% of Australian employment. The modelling used in this
study also indicated a real impact on GDP in 2002 of $1.96 billion, or 0.268% of GDP, from
international education 169 .
The economic impact of international education is not limited to the education sector. The Reserve
Bank of Australia notes
In 2007, tuition fees accounted for 39% of overseas student expenditure in Australia, with the
balance representing spending by foreign students on goods and services, such as food,
accommodation, transport and entertainment 170 .
The proportional impact on other sectors of the Australian economy is indicated in Table 5.2
Average Weekly Expenditure by International Students in 2004 171 . As would be expected,
international students spend on staple items such as food, clothing, health, transport and utilities. By
virtue of the large number of international students in Australia, there are major benefits for these
sectors.
167 Reserve Bank of Australia 2008
168 Australian Bureau of Statistics 2008c
169 Kenyon and Koshy 2004
170 Reserve Bank of Australia 2008
171 Western, Boreham, Laffan, Haynes, Chesters, Tighe and Arts 2005
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Table 5.1
Average Weekly Expenditure by International Students in 2004
The economic effect of international education is not limited to directly measurable outcomes.
A report 172 by Oxford Economics on the economic impact of international students on London, one
of the world’s major study destinations, also identifies ‘catalytic effects’ which benefit the London
economy but are not easily estimated. We summarise these as
the injection into the workforce of additional well-educated and dynamic workers; even if
students return home rather than staying to work in London, some will end up working for UK
companies later on in their careers
Item $
Food and groceries 129
Housing 122
Other major expenses 52
Telephone costs 35
Entertainment and recreation 34
Course related expenses 34
Car costs 25
Transport 18
Clothing 17
Health costs 15
Household goods 15
Alcohol and cigarettes 13
Travel 11
Utility costs 10
Other expenses 8
Children’s course fees 0
Total average weekly expenditure $539 539
international students who study in London are likely to develop a predilection for UK products
both in their personal and professional lives
many international students will return home to eventually play important roles in their country;
so a predilection for anything British will potentially have a considerable impact on the UK
economy.
It is reasonable to believe that Australia also benefits from these ‘catalytic’ effects of international
education.
172 Oxford Economics 2007
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Outcomes for Cities
Because of the concentration of international students in Australia’s major cities the economic
impact is not uniform across the country. Sydney, Melbourne, and to a lesser extent Brisbane, Perth
and Adelaide are the major beneficiaries.
A number of published reports examine the impacts of international education on particular
Australian cities. These include quantifiable economic impacts, as well as less measurable ‘quality
of life’ impacts.
A report for the City of Melbourne estimated that 48,600 international higher education students
attending Melbourne’s eight universities each spent about $30,000 a year on housing, food and
other living expenses 173 .
The report notes that Melbourne has a high concentration of international students living and
studying in the inner city area and credits them for making a significant contribution to the lifestyle,
culture and vitality of the city, as well as generating substantial demand for housing and food, retail
and entertainment services.
Melbourne’s Lord Mayor, John So, said recently that Melbourne’s cultural scene offered students an
outstanding quality of life, but that the city’s culture was also partly created by the students 174 . He
said
In the city centre a potent mix of diverse multicultural heritage and student creativity has resulted
in an explosion of music, theatre, fashion and nightlife.
He also noted that students interacted positively with the city’s ethnic groups – a topic which is
further addressed below – saying
Our heritage also sees ethnic community groups provide support to international students who
have recently arrived.
A report from Brisbane City Council says that international education had a direct economic impact
of $1.3 billion in spending in Brisbane in 2006 175 .
Education Adelaide reports that international education brought revenue of $673 million to South
Australia in 2007/08, 17% higher than the previous year. It also generated 3,250 jobs in the state 176 .
Education Adelaide also noted a benefit to the South Australia tourism industry from international
education saying that
The families of overseas students also generate a huge amount of tourism income. Bureau of
Tourism Research (BTR) figures suggest that Australia receives an average of one visitor per
173 City of Melbourne 2007
174 So 2008
175 Brisbane City Council 2007
176 Education Adelaide 2008a
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year (usually a parent) for every three international students. Education Adelaide estimates that
these visitors stay an average of just under five days, generating more than 93,700 bed nights
per annum and about $7.2 million in tourism dollars for the local economy.
According to Adelaide’s Lord Mayor, Michael Harbison, international students also contribute to the
general well-being of the city 177 . He said
They are helping to restore tired areas of the city and, because they often study and work at odd
times, they are increasing foot traffic and making the city streets safer.
International education has also changed the dynamic of the commercial property market in CBD
areas throughout Australia, as well as in New Zealand which has a similar international student
profile.
A 2003 report on international students commissioned by Auckland City, said that education-related
activities were the biggest users of office space in the city’s CBD area. In 1996 education (not
including student housing) used only 3% of CBD office space but by 2003 education was the largest
user of office space in the city, occupying between 11% and 14% 178 . The report said:
Without the influx of education institutions, vacancy rates in Auckland’s CBD would have been
much higher, creating downward pressure on rents and therefore undermining the ability of
developers to erect new buildings. The image and dynamics of the city would have suffered
without the influx of education institutions.
While most international students study in major Australian cities with relatively few going to
campuses in regional Australia, the small size of regional cities means that international education
can have a major impact.
The International Office Director at Southern Cross University, Viv Carter said recently that the
international students at the university enriched the local community by adding to the cultural life in
the northern NSW city of Lismore and deepening its citizens' understanding of other cultures. He
added that, due to Lismore's relatively small population of about 40,000, it was also more likely that
students from overseas would spend time interacting and socialising with Australians rather than
with people from their own ethnic group 179 .
Ethnic Community Outcomes
Australia is a very diverse multicultural country with well established ethnic communities. This
means that nearly all international students in Australia have the opportunity to mix with people of
their own nationality or ethnicity.
We investigated whether international students coming to Australia showed a preference to be
located near a community of their own nationality or ethnicity.
177 Education Adelaide 2008b
178 Infometrics Consulting 2003
179 O’Neill 2008
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Seven nationalities were selected for this study. China and India, because of the size of their
international student market, and South Korea, Thailand, Singapore, Sri Lanka and the Philippines
because Australian residents born in these countries are not distributed evenly around Australia.
They are concentrated in particular states and we planned to test whether international students
from these countries showed any preference for the state in which people of their nationality were
concentrated.
Five states (New South Wales (NSW), Victoria, Queensland, South Australia (SA) and Western
Australia (WA)) were used in the study because they each have significant numbers of international
students.
The main problem was how to determine the size of a particular national community. It was decided
to use the number of non-visitor, overseas-born people (over the age of 15) from a particular
country, whom we will call migrants, as a proxy for the size of that particular national community.
The methodology employed was simple. The distribution of migrants living in these five states was
determined from 2006 census data 180 and expressed as a percentage of the total number of
migrants living in Australia. Then the distribution of international students enrolled in 2007 across
these five states was determined using data from Australian Education International and expressed
as a percentage of the total number of international students in Australia 181 . The results are shown
in Chart 5.2 Destination of International Students and Migrants by State on the following page.
It does appear that the distribution of international student enrolments is influenced by the size of
national communities. The effect is most clear when looking at NSW and Victoria. The results show
that
the Chinese community in NSW is very large with 55.3% of Chinese migrants living in NSW
compared to 35.2% of all migrants living in NSW. Accordingly the number of Chinese students
is also high in NSW – 46.1% of all Chinese students are in that state compared to 40.1% of all
international students who live in NSW
the Indian community is over-represented in Victoria with 36.1% of Indian migrants living in that
state compared to 26.2% of all migrants living in Victoria. Victoria is also the main centre for
Indian students with 53.4% of the total compared to 29.1% of all international students who live
in Victoria. (However India is not the best example for demonstrating tight linkage between the
size of a national community and the number of students of that nationality. NSW has slightly
larger share of Indian migrants than it has of all migrants but has a significantly lower share of
Indian students than its share of all international students.)
the South Korean community is very large in NSW (65%) and very small in Victoria (11.4%).
The large number of South Korean students in NSW (45.3%) and the small number in Victoria
(16.8%) appears influenced by this
the Thai community shows a similar pattern, being skewed toward NSW (41.1%) and away from
Victoria (23.1%), when compared to the distribution of all migrants between NSW and Victoria.
180 Australian Bureau of Statistics 2007
181 Australian Education International 2008a
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Similarly the distribution of Thai international students is skewed toward NSW (59.1%) and
away from Victoria (21.8%)
Singapore is an interesting case with only 24.1% of Singaporean migrants in NSW (compared
to 35.2% of all migrants in that state). The fact that Singaporean students are also under
represented in NSW (18.5%) may be influenced by this. Interestingly, WA is strong in both
Singaporean migrants people (29.8%) and Singaporean students (23.5%) which is attributable
to proximity to Singapore
the Sri Lankan community is biased toward Victoria (50.7%) and away from NSW (30.7%). The
distribution of Sri Lankan students follows suit and is even more extreme with 71.1% in Victoria
and only 11.7% in NSW
the Filipino community is skewed toward NSW with 48.2% of Filipino migrants in that state and
only 22.4% in Victoria. Filipino students show the same pattern with 59.9% in NSW and only
12.8% in Victoria.
Chart 5.2
Destination of International Students and Migrants by State
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Migrants
Students
Migrants
Students
Migrants
Students
Migrants
Students
Migrants
Students
Migrants
Students
Migrants
Students
Migrants
Students
From All
countries
From
China (Not
HK)
From
India
From
South
Korea
From
Thailand
From
Singapore
From Sri
Lanka
From
Philippines
NSW VIC QLD SA WA Other
Although this analysis is indicative rather than conclusive it does offer evidence that the size of a
national community in a particular state can influence a student’s choice of study destination. More
investigation using more rigorous and sophisticated techniques is needed.
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Social Network Outcomes
It has become generally accepted that international students in Australia are unable to build as
many friendships with Australian students as they would like and, furthermore, that they would
benefit from developing more links with Australian students and the wider community. A number of
benefits are seen to flow from more such links including
more rapid improvement in international students’ English language skills
establishment of more, and longer lasting, linkages between Australians and international
students
more exposure to other cultures for Australians.
For example the 2006 International Student Survey by Australian Education International 182 found
that 80% of international student respondents in higher education wanted more Australian students
as friends. It said
Significantly, respondents particularly from China and other North-East Asian countries felt that
their English ability stopped them from making friends with Australian students.
The survey also found that
In the classroom, international students were more likely to think that they were treated with
respect and courtesy by other international students than by Australian students.
Similarly in New Zealand a 2007 government study found that 61% of international students in that
country would like to have more New Zealand friends 183 . It also said that Chinese students were
less likely than other Asian students to try their best to make New Zealand friends, and
Furthermore, Chinese students were more likely to have fewer New Zealand friends than
students from other depth markets.
Another report from Australian Education International, 2007 Follow-up International Student
Survey: Higher Education 184 , surveyed international students who had graduated in 2006 (who
had been previously surveyed in the 2006 International Student Survey) and found that 57% of
them were satisfied with the way they had made close friends with Australians (not necessarily
students).
The new results presented here on social networks of international students come from a survey of
alumni of the five universities in the Australian Technology Network of Universities (Curtin, QUT,
RMIT, University of South Australia, UTS). A survey of these graduates included questions on the
networks and friendships they established in Australia.
182 Australian Education International 2007
183 Ministry of Education 2008
184 Australian Education International 2008b
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Details about the survey are given in Chapter 2. But it is particularly valuable because of its large
sample size of 1,940 graduates. The sample of graduates is restricted to those who graduated in
2005 or earlier. As a consequence the questions about graduates’ networks and friendships are
answered with the benefit of several years’ hindsight.
As shown in Chart 5.3 International Student Networking the graduates were, during the period
they studied in Australia, more likely to have formed networks with people of their nationality or of
other nationalities rather than with Australians.
Chart 5.3
International Student Networking
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
I formed networks
with Australians
I formed networks
with people of my
nationality
I formed networks
with people of other
nationalities
I used my network to
gain access to
career/business
opportunities in
other countries
Don't know
Strongly
disagree
Disagree
Neither agree
nor disagree
Agree
Strongly agree
In all, 44.8% of graduates affirmed that they had formed networks with Australians. Another 29.8%
neither agreed nor disagreed that they had formed networks with Australians. Less than one-quarter
(22.6%) indicated that they had not formed networks with Australians.
In contrast, 63.9% of graduates reported that they had formed networks with people of their own
nationality and a total of 65.7% said they had formed networks with people of other nationalities.
These results help assure us that international students do not generally suffer from isolation. Most
of them build networks. They also highlight the fact that international students do not limit their
relationships to other students of their own nationality. They network among other nationalities
(except Australians) as much as their own.
The graduates were also asked, with the benefit of three years post-graduation experience, how
useful their networking had been in creating business and career opportunities in other countries.
Over one third (34.2%) agreed or strongly agreed that it had helped them. About the same number
(34.6%) neither agreed nor disagreed with the statement while 28.2% of respondents rejected it.
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The survey questioned graduates across ten nationalities. Leaving out those with very small sample
sizes (Thailand, UK and Norway) and also leaving out those with Australian nationality (which they
presumably received post-graduation) an analysis of the remaining nationalities is made in Chart 5.4
International Student Networking by Country. The chart reveals that
Indonesians (48.3%), Indians (45.5%), Chinese (44.6%) and Singaporeans (44.4%) were most
likely to form networks with Australians.
Indonesians (74.9%), Singaporeans (70.4%), Chinese (69.2%) and Malaysians (68.7%) were
most likely to form networks with people of their own nationality
Indonesians (74.1%), Singaporeans (69.6%), Malaysians (66.3%) and Hong Kong citizens
(63.3%) were most likely to form networks with people of other nationalities (not including
Australians)
nearly half of Chinese (47.7%) and Indonesians (47.5%) had used their Australian network to
access career or business opportunities in other countries.
Chart 5.4
International Student Networking by Country
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
India
Indonesia
China
Malaysia
Singapore
HK
India
Indonesia
China
Malaysia
Singapore
HK
India
Indonesia
China
Malaysia
Singapore
HK
India
Indonesia
China
Malaysia
Singapore
HK
I formed networks
with Australians
I formed networks
with people of my
nationality
I formed networks
with people of other
nationalities
I used my network to
gain access to
career/business
Agree or strongly agree
Disagree or strongly disagree
One seeming oddity of the survey is that the responses from Chinese (65) and Indians (101) are
outnumbered by graduates from Hong Kong (139), Singapore (250), Malaysia (552) and Indonesia
(263). This is a consequence of targeting alumni who graduated in 2005 or earlier, which means the
large recent growth in numbers of Indian and Chinese students is not reflected in the data.
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Another key question examined in the study is whether friendships made by international students
while they are in Australia are enduring. The graduates in the study report that they continue to be in
contact with friends whom they made in Australia, including other international students, Australians
on campus and people whom they met off campus.
This is, intuitively, a result which one would expect given that students come to Australia at a
formative stage of their lives when they would be expected to build some relationships which last for
the long term.
As is seen in Chart 5.5 International Student Communication Patterns the graduates are more
likely to be in frequent contact with international student friends (56.4% more than once a year) and
people whom they met off campus (55.9% more than once a year) rather than with Australian
university friends (41.7% more than once a year).
Chart 5.5
International Student Communication Patterns
100%
90%
80%
70%
60%
50%
40%
30%
20%
Never
Rarely
Once a year
A few times a year
Monthly
Weekly
Daily
10%
0%
I contact International student
friends from my Australian
stay
I contact Australian student
friends from my Australian
stay
I contact other people I met
while studying in Australia
Overall, the results on communication patterns and the results on network building indicate that
international students network and build friendships more with other international students, including
those of other nationalities, than with Australians. It also suggests that off campus Australians are
more receptive to building relationships with international students than are Australian students on
campus.
But we know that international students say that they want more friendships with Australian students.
So it is probably Australian students, comfortable in their existing networks, who are the main barrier
to establishing more ties between international and Australian students. It is an area in which
universities need to continue, and expand, their efforts.
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The government surveys from Australia and New Zealand cited above both identified particular
problems faced by Chinese students in making friends with domestic students. However this study
of ATN graduates shows that Chinese students had more enduring contact with friends made in
Australia than students from other nations.
As is seen in Chart 5.6 International Student Communication Patterns by Country the Chinese
graduates were more frequent communicators with international student friends, with Australian
university friends and with other people they met in Australia. It may indicate that Chinese students
value these friendships more highly and that the problems reported by Chinese students in making
friends stem from the greater emphasis which they place on them. In contrast, Malaysian students
had the least frequent communication with friends made in Australia. However the disparity in
sample size between Chinese graduates (69) and Malaysian graduates (552) should be noted.
It is also evident that both Chinese and Malaysians communicated less with Australian university
friends than with international student friends and with other friends whom they met in Australia.
Chart 5.6
International Student Communication Patterns by Country
120%
100%
80%
60%
40%
20%
Monthly or more
Few times a year
Once a year
Rarely or never
0%
All
students
China
Malaysia
I contact International student friends
from my Australian stay
All
students
China
Malaysia
I contact Australian university friends
from my Australian stay
All
students
China
Malaysia
I contact other people I met while
studying in Australia
108
Chapter 5 | IDP Education Pty Ltd

Outcomes
The community impact of international students in Australia is sizable and growing. International
education as an industry is becoming increasingly important in supporting economic and cultural
activity in areas, such as city CBDs, where international students are concentrated.
International education also has a major effect on the streetscapes of areas near educational
institutions where the mix of businesses, and the cultural life, has changed to meet the needs of
international students.
It is not only major cities which are affected. Regional universities often have enough international
students to make a significant impact on the smaller regional cities where they are situated. The
sheer weight of numbers of international students would also appear to be making an impact on
ethnic communities in Australia although more research is needed in this area.
But, given that change always brings resistance, the magnitude of the change in Australian
communities caused by international students will attract criticism. So if international education is to
continue to enjoy wide public support there needs to be more study of the community outcomes,
and more public discussion about them, so that the beneficial results are more readily appreciated.
It is also clear that international students, while far from isolated from the Australian community,
would welcome more contact with it. This offers Australians an opportunity to develop deeper
relationships with international students which will, in turn, create lasting and meaningful people-topeople
ties with other countries.
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