Source:
https://scmp.com/week-asia/economics/article/3082813/australias-economy-needs-international-students-can-it-do-more
This Week in Asia/ Economics

Calls mount for Australia to help international students facing financial hardship due to Covid-19

  • The state of Victoria has broken ranks with the federal government to offer US$29 million to international students facing money problems because of Covid-19
  • Chinese students are also affected, as they account for almost a third of Australian universities’ revenue from international students
Students from China pose for family photos after graduating from a University of Sydney course in 2017. Photo: AFP

Should the Australian government do more to support international students suffering economic hardship during the Covid-19 pandemic? That’s the debate that has arisen after the state of Victoria last week went against the federal government’s stance by pledging A$45 million (US$28.85 million) in relief payments to international students.

Victoria’s International Student Emergency Relief Fund will provide a payment of up to A$1,100 for “vulnerable international students who have lost their job or had a significant reduction to their employment and are facing financial hardship” as a result of Covid-19, according to the state’s education website.

The number of international students in the state has already dropped from 250,000 last year to about 150,000 last month, according to local media reports, with universities estimating a loss of close to A$6 billion in related revenue so far.

The federal government previously ruled out offering support to the 500,000 international students elsewhere in the country, with Australian Prime Minister Scott Morrison on April 4 saying “if international students are not in a position to be able to support themselves, then there is the alternative for them to return to their home countries”.

However, there are growing calls for the federal government to do more to shore up Australia’s international education sector, which contributed A$37.6 billion to its economy in the financial year ending June 2019, according to the country’s education ministry – an increase of A$5 billion from the previous financial year.

Prime Minister Scott Morrison has said international students can return home if they are unable to support themselves in Australia. Photo: Bloomberg
Prime Minister Scott Morrison has said international students can return home if they are unable to support themselves in Australia. Photo: Bloomberg

According to modelling by Victoria University’s Mitchell Institute, the Australian economy is expected to lose up to A$60 billion over the next three years if international students are unable to return to university.

“Supporting international students in tough times is not only about helping those in need, it is a longer-term investment in our economy,” said Catriona Jackson, CEO of peak higher education body Universities Australia, who pointed out that international education was Australia’s third-largest export.

“It sends a clear message overseas to potential students thinking about their post Covid-19 future that Australia remains a smart choice for a world-class education.”

Jackson welcomed support from state governments but said there needed to be a federal approach towards the issue to ensure consistent support for all students.

“A lot of international students have lost their jobs and there’s a massive economic downturn going on,” Jackson said. “It really shouldn’t be a case of whether you’re studying in Victoria, New South Wales or Queensland as to how much support you get.”

Australia’s states have varying amounts of help available for international students from one-off payments and free mental health support to help with food and shelter, according to a report on The Conversation website that said about half of international students in the country who are private renters rely on work to pay rent.

It said many international students are unable to return to their home countries during the pandemic, nor are they allowed to break their leases without penalty – and this uncertainty over their studies and living situation can significantly affect their mental health.

Salvatore Babones, China watcher and adjunct scholar at the Sydney-based Centre for Independent Studies, said it was not up to the Australian government to support international students. He said universities were to blame for accepting students who could not support themselves financially, a requirement for student visa holders.

“The impact on universities is staggering but they simply have not practised responsible risk management,” he said. “They have surfed the wave of increasing Chinese enrolments without a life jacket. Now that the wave has crashed, they have no plan.”

For 23-year-old University of Sydney student Susan Wang, going home might be her only option after losing both her part-time jobs due to the Covid-19 pandemic.

“I might have to go back to China, but that has to be my last option,” she said. “When Covid-19 ends and universities open again it’s not possible to just come back and start studying again. I can’t afford it.

“We want this taken seriously. Many of us have lost jobs and we still have to pay our tuition fees. We pay four times as much as local students but receive less support.”

Victorian minister for jobs, innovation and trade Martin Pakula has acknowledged the importance of international students to the state’s economy following the announcement of the A$45 million relief fund.

“International students are a vital part of our education system, our economy and our community. They give so much to Victoria – not just through the fees they pay but also through the economic activity they generate for our businesses,” he said on April 29.

Many international students worked in cafes, restaurants, bars and in retail – which were among the first businesses to close amid the coronavirus pandemic, rendering tens of thousands of international students jobless overnight.

According to Bowen Zhang, a student at Melbourne’s RMIT University, support from the Victorian fund is enough to cover his rent for two months – perhaps long enough for him to find work.

“A friend of mine has already had to go home to Japan and I was preparing to leave myself,” he said. “I was very concerned about what was going to happen but the support from the government will hopefully be enough until I can find a job again.”

Chinese students alone account for almost one-third of Australian universities’ revenue from international students, at about A$12 billion, according to Babones from the Centre for Independent Studies.

Potentially adding to the decline in international student revenue is the recent tit-for-tat between Canberra and Beijing over Australia’s calls for an independent inquiry into China’s handling of the coronavirus outbreak.

Cheng Jingye, China’s ambassador to Australia, last week said the Chinese public was “dismayed” over the push for an inquiry, and that parents of students would reconsider whether a country that was “not so friendly, even hostile” was the best place to send their children.

Australia’s ban on international travel is expected to be one of the last restrictions it lifts, most likely limiting the arrival of international students into 2021.

Babones said Australian universities should use this time to plan for a more sustainable international student scheme.

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