Economic Impact of Chinese Students in Canada
Executive Summary
In recent years, international education services have significantly influenced the economy of major study destination countries, including Canada's. In 2009, the total number of international students in Canada was nearly 200,000, and they have contributed more than $6.5 billion to the Canadian economy. <1>
The annual entries of Chinese students to Canada have continuously increased since 2007. Chinese students have been the largest group of international students in Canada and have played an important role in the Canadian economy. In 2008, a total of 42,154 Chinese students <2> spent more than $610 million on education, and they were estimated to contribute over $1.3 billion into the Canadian economy.<3> In the long term, the Canadian government can retain these Chinese students as immigrants to continue contributing to the Canadian economy, and they can also fulfill the future labour shortage as the population ages in Canada.
Economic Impact of Chinese Students in Canada
Chinese students have contributed significantly to the Canadian economy. In Canada, China has been the top international student source country and the population of Chinese students has increased continuously since 2002. Till December 2009, the total number of international students in Canada reached 196,138, and 49,905 of them were from China.<2> Chinese students took up to 25.44% of international education service market in Canada. Chinese students bring their RMB from China, convert RMB to Canadian dollar, to spend on education, living, and other related goods and services in Canada.
- Direct Impact to Regional Economy
The major expenditure of Chinese students is tuition fees. Chinese students, same as other international students in Canada, pay higher tuition fees than domestic students. In 2008/2009 academic year, Canadian full-time undergraduate students paid $4,724 on average, but international undergraduate students paid $14,487,<4> which is over three times the amount of what a domestic student would pay. Based on a total number of 42,154 Chinese students studied in Canada in 2008,<5> we can estimate that Chinese students spent over $610 million on tuition in total that year. The revenue from Chinese students' tuition not only helps colleges and universities to generate their financial income and it also contributes to the regional economy.
Chinese students not only spend their money on tuition but also on accommodations, living, and other related products and services in their provinces. The average spending of every Chinese student was about $30,860 in 2008.<3> The international education services for Chinese students help the provinces to raise their GDP, create more jobs, and generate government revenue. Although all economic values (total expenditure, GDP, employment, government revenue) of each Canadian province were based on the total number of international students in 2008, we can assume that about 23.65% of those values were made by Chinese students because they represented the same percentage of total international students in Canada at that time. Therefore, the customized table can be estimated as Table 2.
- Direct Impact to National Economy
Nationally, the total expenditure of Chinese students is a very huge amount because of the large population of Chinese students in Canada. In 2008, the total expenditure of 42,154 Chinese students was over $1.3 billion.<3> Comparing with other exported goods to China, the value of Canada's export in international education services to China was even higher than the value of any of top exported goods to China.<3>
Table 3 illustrates the importance of the Canadian international education services to China, with the number of Chinese students as the main contributor to this cause. In addition, Chinese students also influence other factors of Canada's national economy. In 2008, Chinese students contributed over $955 million to national GDP, created 15,358 jobs, and helped the Canadian government to generate about $58 million in revenue.
- Additional Benefits from Tourism Activities
Canada gains additional benefits from tourism activities due to family and friend visits while Chinese students study in Canada. According to the estimated data from Roslyn Kunin & Associates Inc., every 10 international students bring Canada additional two visitors.<3> Since there were a total of 49,905 Chinese students in Canada in 2009 <5> and the average spending of Chinese tourists was $1,648.51<6>, we can estimate that the total number of Chinese family and friend visitors could be nearly 10,000, and Canada could gain additional $16.48 million from the tourism activities by Chinese families and friends.
- Future Economic Impact to Canada
In recent years, Chinese students contribute greatly to the Canadian economy. However, more importantly, Chinese students can contribute to the economic health of Canada in the context of a work-force development policy. The report from Statistic Canada shows that most of the baby boomers which count as the largest population in Canada are part of the 45 to 64 age group. At the beginning of 2011, baby boomers will progressively leave the working-age population.<7> Due to the aging population and the low birth rate in Canada, Canada essentially needs more labours, especially high skilled labours.
Although the Canadian government can recruit immigrants from foreign countries, Chinese students who are well educated in Canada with Canadian work experience will be better than any other skilled immigrants from other countries. According to a survey conducted by Asia Pacific Foundation of Canada, about 51% of Chinese students plan to stay in Canada after graduation.<8> In the long term, the Canadian government retains those Chinese students as immigrants, and let them continue to contribute to the future Canadian economy.
Author Background and Related Information
This article is written by Xiaoyu Chen. A third year business student at Capilano University and currently is taking a marketing research course. Here are some related websites if you need to find out more about Business program in Capilano University and Marketing Research course.
Capilano School of Business Website:
Marketing Research Course Website:
Reference
<1> Citizenship and Immigration Canada (CIC). "Government of Canada works to welcome more Chinese students to Canadian colleges."September 14, 2010. <http://www.cic.gc.ca>
<2> Citizenship and Immigration Canada (CIC)."Facts and figures 2009 Canada – Total entries of foreign students by source country." August 01, 2010.<http://www.cic.gc.ca>
<3> Roslyn Kunin & Associates Inc.."Economic Impact of International Education in Canada Final Report" Foreign Affairs and International Trade Canada. July 2009.<http://www.international.gc.ca>
<4> Statistics Canada. "University tuition fees 2008/2009 (Correction)" October 9, 2008. <http://www.statcan.gc.ca>
<5> Citizenship and Immigration Canada (CIC). "Facts and figures 2008 Canada – Foreign students present on December 1st by source country." August 25, 2009. <http://www.cic.gc.ca>
<6> Prime Minister of Canada. "China grants Canada Approved Destination Status." December 03, 2009. <http://pm.gc.ca/eng>
<7> Statistics Canada. "Canada's population estimates: Age and sex." July 01, 2009. <http://www.statcan.gc.ca>
<8> Asia Pacific Foundation of Canada. "Intention after Graduation: A Survey of International Students in Canada from P.R. China." May 10, 2010.<http://www.asiapacific.ca>
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