Report suggests student drop from coronavirus to hurt local economy

A drop in international students as a result of coronavirus will hurt the Illawarra economy, the University of Wollongong said.

Vice-chancellor of the University of Wollongong Paul Wellings. Picture: Paul Jones

A drop in international student numbers as a result of the novel coronavirus crisis will hurt the local Illawarra economy, the University of Wollongong says following the release of a new report on the institution’s economic impact.

The Leading Locally, Competing Globally: Economic Impact Report 2020 is largely upbeat, showing a $1.4bn total economic impact of the university in 2018, up from $1.3bn in 2015.

However, the university noted that the travel ban imposed because of COVID-19 meant a loss of student spending on accommodation, health insurance, travel, transport, retail, entertain­ment and hospitality.

It did not quantify the expected losses but noted the short-term impact of the 2003 severe acute respiratory syndrome outbreak was followed by “rapid recovery and steady growth over the medium term once the virus was contained” and that the university had pursued a deliberate strategy of diversification of onshore international enrolments and offshore markets.

The university’s largest cohort of international students is from India and it has expanded its presence in Hong Kong, Malaysia and Dubai. “These operations are largely unaffected by the current limitations in Chinese student mob­ility,” vice-chancellor Paul Well­ings said.

The diverse student cohort, offshore operations and “strong economic and financial position” would help shield the university from significant longer-term impacts, Professor Wellings said.

The report was written by the University of Wollongong’s SMART Infrastructure Facility and services firm EY. It says the university sustained nearly 11,000 jobs nationally.

Jill Rowbotham