• A
  • A
  • Foreign students to fix Euro crisis

    - International students contribute over €4 billion to the Canadian economy, a report shows. To boost this further, discriminating tuition fees for foreigners should be abandoned. This would generate job and tax revenues. Are there lessons to be learned for Europe?

    The Canadian government was presented with a new report recommending that universities should abandon their policy that foreign students are charged between two and six times as much for their studies.

    Tax revenues, jobs and a reputation

    Right now, 7% of Canadian GDP is generated by the education services sector. International students spend on average CDN$ 4.9billion (€4 billion) annually on tuition fees and basic living expenses. This created 86,570 jobs and generated CDN$ 455 million (€371 million) in tax revenues per year.

    Beyond that, the report also confirmed a phenomenon which was observed in Australia: international students bring more tourists into the country. In addition to the above expenses by foreign students, another CDN$ 336 million (€ 274 million) can be attributed to increased revenues from tourism related activities by international students as well as their family and friends.

    Opposite trend in Europe

    "Canada's educational expertise is a valuable export that can be measured in comparison to other goods and service exports. International students can also become a valuable source of highly skilled labor to our economy at a time when the western world is facing potential labor shortages, especially among top talent," the report states.

    The spokesman of Canada's Trade Minister Ed Fast commented that these findings will become part of a new policy to attract more foreign students. Meanwhile, European countries follow the opposite trend. Sweden introduced foreign student tuition fees ranging from €11,000 to €25,000 in 2011. Non-European students in the Netherlands pay between €9,000 and €25,000 annually. A similar policy is currently debated in Germany.