International university students have a £1.4bn impact on the Welsh economy, according to new research.
A costs and benefits analysis of nearly 15,000 students in Wales who started their degrees in the 2021-22 academic year calculated their impact over the duration of their studies and is contained in a report from the Universities UK International, the Higher Education Policy Institute and Kaplan International in collaboration with London Economics.
In total, the average net impact of international students per parliamentary constituency in Wales is estimated at £31m, which is equivalent to about £390 per resident.
Accounting for the impact on public services (estimated at £166m), the economic benefits of hosting international students significantly outweigh the costs.
To arrive at the £1.4bn figure, the report assessed the direct impact of international studies through tuition fees paid and the knock-on effect created from universities spending that income in areas like staff wages and goods and services.
The knock-on effect of student spending in the wider economy, like on living costs, was also included, as well as the impact – direct, indirect and induced – from the spending of family members and friends visiting students in Wales.
However, from January the UK Government, in a moved designed to reduce net migration, will not allow family members of postgraduate international students to stay in the UK during their studies.
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Dr Ben Calvert, chair of the Universities Wales International Network, said:“I very much welcome this important report which makes clear the vital contribution international students make to Welsh society and to our economy.
“What is particularly striking about the report’s findings is how international students generate benefits across the whole of Wales, demonstrating the way in which universities act as economic anchors in their local communities.
“We must also acknowledge the important role that international students play, not just through their economic contribution, but in diversifying and internationalising our campuses and communities at a time when retaining an international outlook is more important than ever.
“It is vital that we value their contribution to Welsh society and continue to provide a warm and inclusive welcome for all those choosing to study at Welsh universities.”
The report also shows that across the UK, the net economic impact of international students has seen a dramatic rise over the past few years – up 58% since 2015-16, (£23.6bn to £37.4bn).
One reason for this is the 68% rise in the number of students (now standing at 350,145) from non-EU countries since 2018-19.
Data from the report indicates that each non-EU student generates £96,000 of net economic impact for the UK economy.
The report, which was commissioned to explore the impact of international students to the UK economy, reveals economic benefits have risen from £31.3bn to £41.9bn between 2018-19 to 2021-22, an increase of 34%.
In total, 381,000 first year international students enrolled into UK universities in 2021-22, further highlighting the global appeal of the country’s higher education institutions and cementing our place as one of the leading destinations for both EU and non-EU students.
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