Australia universities are projected to struggle financially due to the loss of revenue from international students. Staff layoffs and some universities collapsing are the worst-case scenarios projected to happen once the economy is reopened.
Coronavirus pandemic is projected to lead to a massive loss in the number of international students in Australia. Combined with the projected decline in the number of enrollment of these students, the universities will make a loss of between A$3(USD 1.9) billion to A$4.5(USD 2.9) billion.
Australia Universities struggle
The loss of revenue will be significant enough to cause these universities to downsize and others are projected to close down. A new report showed that, once the coronavirus lockdown is lifted, there is a possibility that over 21,000 university staff may end up losing their jobs.
International students’ education constitutes Austrias 41 percent of service exports revenue and 9 percent of all export revenue from Australia. Last year, international students contributed A$37 (USD 23.4) total revenue for the country. A reduction in these profits will lead to small universities that are dependent on international students collapsing.
Policies such as lack of access to the JobKeeper charity fund which limited access by universities will also contribute to financial struggle once the universities are reopened. Australia universities are, therefore, in a peculiar financial and will need assistance from the government for them to continue with their activities.
International student’s economic role.
Chinese students comprise the majority of the international students and with the pandemic limiting traveling from the country, universities are bracing for tough times. The economy is also reliant on international students who, besides paying fees, also buy in the country, rent and stay in the country contributing to the economy of the country.
To ease the financial struggle of these universities, access to JobKeeper funds will alleviate most of the financial problems. It will also help the universities to reopen in a strong footing and be able to provide quality services without the need for laying off staff.
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