A report from the International Education Association of Australia (IEAA) has found that the amount spent on fees, goods and services by foreign students in Oz dropped to A$15.8 billion (Rs.83,740 crore) in 2010-11 from A$18.5 billion (Rs.98,050 crore) in the previous year. According to figures taken from Australian Bureau of Statistics data, the states of Victoria and New South Wales — which together host just under half of the countrys universities — each lost more than A$1 billion (Rs.5,300 crore), accounting for most of the overall fall.Australia has seen overseas demand hit hard in the past two years thanks to factors including tight student-visa rules, a strong currency and attacks on Indian students in major cities such as Melbourne. The federal government is now trying to repair the damage following the landmark Knight review of visa policy by making it easier for institutions to recruit from abroad, as well as boosting post-study work opportunities for overseas students.
Education remains the countrys third most-lucrative export behind coal and iron, while in Victoria it remains the most lucrative, bringing in around twice as much revenue as the second-largest industry, tourism, despite a fall of almost 20 percent. Phil Honeywood, executive director of the IEAA, says the outlook for 2012 is gloomy and predicted more pain before the international education industry turns around.
According to Honeywood, the continuing strength of the Australian dollar and high accommodation costs would work against a recovery, as well as the fact that competitors such as Canada, the US and New Zealand are doing their best to lure international students.

(Excerpted and adapted from Times Higher Education)