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13 August 2013

News Release

Australia most expensive country for international study, but the tide may turn

Australia is the most expensive country for overseas students, according to recent research by HSBC, with a combined average cost of university fees and living costs totalling more than US$38,000 per year. Despite this, Australia has remained one of the most popular destinations for international students with its stocks likely to be further boosted by the continuing fall in the Australian dollar and improved visa processing.

The HSBC research reviewed data on higher education in 13 countries and territories around the world1.

According to the research, Australia's average annual cost of US$38,000 was followed closely by the US, with total costs over US$35,000, and the UK, third with $30,000 (see full table overleaf). Graham Heunis, Head of Retail Banking and Wealth Management for HSBC in Australia, said the strength of the Australian economy and the Australian currency has kept the cost of studying in Australia high relative to other markets. "While Australia has continued to enjoy higher economic growth than other western markets over the past five years, this has also led to a higher Australian dollar which has placed a strain on the price competitiveness of our export sectors, including education."

The Australian education sector suffered a 12% drop in international enrolments between 2009 and 20122 but nevertheless has remained a popular destination for international students with a 2011 study showing 21% of Australia's entire student population was from overseas, proportionately higher than Canada, UK, and the US (13%, 18% and 3 % respectively).3

Heunis continued: "While Australia's education sector has taken a hit in terms of overseas student numbers, the proportion of international students in Australia remains strong, indicating many are looking past the cost impact to other factors such as quality of life and education and proximity to home. Having withstood the cost pressure of the high Australian dollar for the past three years, Australia's tertiary institutions could see international student numbers swing back with the falling Australian dollar."

HSBC forecast the Australian dollar against the US dollar to drop to $0.86 in Q4 2014 compared to a high of $1.09 in mid-20124 in its recent research report, 'HSBC Currency Outlook', published in July 2013.4

Heunis continued: "In addition, changes implemented by the Australian Government to streamline international student visa processing, introduced in 2012, should also help increase the influx of international students to Australia."

"While Australian universities may have seen a dip in international enrollments in recent years, the falling Aussie dollar and simplified visa process should spark a resurgence in overseas students placing Australia on top of their destination lists."

 

Table 1: Annual cost of studying abroad for international students in US$ per year

Country
Annual Fees
Annual Cost of living
Annual Total
Australia
$25,375
$13,140
$38,516
United States
$25,226
$10,479
$35,705
United Kingdom
$19,291
$11,034
$30,325
United Arab Emirates
$21,371
$6,004
$27,375
Canada
$18,474
$7,537
$26,011
Singapore
$14,885
$9,363
$24,248
Hong Kong
$13,182
$9,261
$22,443
Japan
$6,522
$12,642
$19,164
Russia
$3,131
$6,310
$9,441
China
$3,983
$4,783
$8,766
Taiwan
$3,270
$4,987
$8,257
Spain
$1,002
$6,004
$7,006
Germany
$635
$5,650
$6,285

 

Footnotes

1 The research was conducted in thirteen countries and territories around the world. Fees represent the average tuition cost for international students based on the top 10 largest institutions in each relevant country (sourced from individual institution data). Cost of living sourced from HESA Global Education Rankings 2010 where possible and adjusted to account for inflation and from Expatitsan.co.uk and HSBC Studying Abroad Research (Oct 2012) otherwise. Ivy League costs based on total average costs for attending a top ranked US University according to Forbes. Source: http://www.forbes.com/top-colleages/list/ US Dollar conversion exchange rate as at 17th July 2013 - 1.51 USD to GBP.
2 Australian Education International, "International student enrolments data", 2013
3 Institute of International Education, "Open Doors" project, 2011
4 HSBC Global Currency Outlook, July 2013 - the full report is available upon request . The report should be read in full including all disclosures and disclaimers. No consideration has been given to the particular investment objectives, financial situation or particular needs of any recipient and HSBC accepts no liability for damages arising out of any persons reliance upon the information contained in the report.

HSBC Bank Australia

In Australia, the HSBC Group offers an extensive range of financial services through a network of 37 branches and offices. These services include retail and commercial banking, financial planning, trade finance, treasury and financial markets, payments and cash management and securities custody. Principal HSBC Group members operating in Australia include HSBC Bank Australia Limited (ABN 48 006 434 162 and AFSL/Australian Credit Licence 232595) and The Hongkong and Shanghai Banking Corporation Limited (ABN 65 117 925 970 and AFSL 301737).

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