Why international education matters: A driver of the Canadian economy

A 2011 report commissioned by Foreign Affairs and International Canada (DFAIT) indicated that in 2010, international students in Canada spent in excess of $7.7 billion on tuition, accommodation and discretionary spending (up from $6.5 billion in 2008). More than $6.9 billion of this revenue was generated by the 218,200 long-term international students in Canada. In addition, short-term (staying for less than six months) language students contributed $788 million to the Canadian economy. When accounting for additional tourism benefits from international students, the report finds that the expenditure resulting from international students in 2010 was $8.0 billion, which translates to 86,570 jobs and $455 million in government tax revenue.

In addition, there is tremendous scope for economic contributions from the direct export of Canadian education services abroad. Canadian schools, colleges, polytechnics and universities generate millions of dollars in tuition revenue from programs of study offered abroad. For instance, education services are now Canada’s 11th largest export, and its single largest export to China. The spending of international students in Canada is greater than Canada’s export of unwrought aluminum, and even greater than the export value of helicopters, airplanes and spacecraft.

The education sector is a future economic growth sector that brings economic benefits to every region of Canada from coast to coast to coast and to communities large and small. Educating international students in Canada also has the potential for a significant impact on Canada’s future trade and foreign policy relationships in foreign countries. Likewise, the strategy should ensure that Canadian students have the opportunity to add value to their quality Canadian education with the opportunity for an international exchange or internship. Recruitment and retention of international talent is an essential and increasingly important component of building a modern society and an innovation economy.

International education: A pipeline to the Canadian labour market

Numerous studies warn that Canada will suffer a severe shortage of skilled labour within as little as a decade. Canada’s talent shortfall will span all occupations: managerial, professional, technical and skilled trades, as well as highly accomplished researchers and scientists. The demographic pressure of an aging workforce will affect occupations in all sectors. In some domains, Canada is already being challenged by talent shortages.

Seventy-five percent of Canada’s workforce growth now comes from immigration. It is expected to reach 100 percent by the end of the decade. International recruitment strategies targeting both the quantity and quality of talent are needed to address Canada’s future shortfalls in the human capital necessary for building a world-class knowledge economy. International students provide an excellent source of highly qualified and skilled persons to meet our current and future labour market needs, although Canada faces strong global competition with industrialized countries to attract the same pool of young international talent.

International students choosing to remain in Canada after their studies constitute a desirable source of qualified immigrants who are capable of integrating well into Canadian economy and society. Those who return to their home country will become allies with Canada by fostering successful commercial and political relations, given their understanding of Canadian values and society.

Our value proposition: Consistent quality at a reasonable cost

Canada's brand is based on consistently high quality and a reputation for excellence across the entire education sector. Canada offers international students a safe and multicultural learning environment in which they can choose to study in English or French. Compared to other countries such as the United Kingdom or the United States, Canadian tuition fees and the cost of living are quite affordable. Further, international students have the option to work during their studies and can also apply to work in Canada upon completion of their studies.

Given the growth in global demand for international education and challenges being experienced by some of our main competitors (Australia, New Zealand, the United Kingdom and the United States), Canada is well positioned to capitalize on this window of opportunity with the value proposition of consistently high quality at a reasonable cost. We firmly believe that maintaining high quality is paramount.

Currently, this value proposition is reinforced by the co-managed Imagine Education au/in Canada global brand and Canada's visa approval processes, but the Government of Canada must work in partnership with the provinces and territories, via the Council of Ministers of Education, Canada (CMEC), to reach a better understanding of existing quality-assurance mechanisms. Subsequently, a communications strategy must be developed to better convey Canada's robust approaches to quality assurance to prospective international students.

The education brand for Canada is characterized by a broad spectrum of possibilities for international students and researchers with across-the-sector quality at its core.

Building on solid foundations: What has Canada achieved thus far?

The Edu-Canada initiative, a pilot launched in 2007 by DFAIT as part of the Global Commerce Strategy, has been successful in achieving all of its program objectives. The Imagine Education au/in Canada brand was created in partnership with the provinces and territories.

Edu-Canada’s main achievement has been to bring greater coordination of recruitment and marketing efforts.

To build effectively on the partnerships with the provinces and territories, it is important to consider CMEC’s response to the Council of the Federation’s plan, Bringing Education in Canada to the World, Bringing the World to Canada: An International Education Marketing Action Plan for Provinces and Territories (view/download PDF - 3.11MB) . The plan, released in June 2011, emphasizes better coordination between provinces and territories, and closer collaboration with the federal government (DFAIT and Citizenship and Immigration Canada [CIC]) to attract a larger number of international students to Canada and to create more opportunities for Canadian students to study abroad.

Numerous provinces currently contribute significant marketing funds to international education and are developing more fulsome international education strategies, including British Columbia’s International Education Strategy. In addition, associations such as the Association of Universities and Colleges of Canada (AUCC), Association of Canadian Community Colleges (ACCC) and Canadian Bureau for International Education (CBIE) have been actively supporting their member institutions to prepare them for the international market and assist them in developing relationships with institutions in priority markets. But it is the institutions themselves that have shown the greatest investment, by maintaining long-term marketing initiatives, foreign representatives and offices, and by developing partnerships with foreign institutions that support joint research and education.

Of particular note is the contribution of the Canadian Consortium for International Education Marketing (CCIEM). The CCIEM has managed to unify most major associations that represent the full spectrum of the education systems in Canada to speak with one voice. The CCIEM has been active and vocal in its advocacy for international education in Canada, including leading research into establishing pathways between the respective sectors. We encourage the CCIEM to continue its efforts to unify all major Canadian voices in education.

Source:
http://www.international.gc.ca/education/report-rapport/strategy-strategie/index.aspx?view=d#why