Universities say 6500 Chinese students hit by travel ban

New Zealand’s universities say they face a massive financial hit from coronavirus, with more than 6500 Chinese students enrolled to study here this year stuck at home.

Sector group Universities New Zealand said just over half of the 12,700 Chinese students due to study at its eight members had been unable to come due to the travel ban.

Universities New Zealand’s chief executive Chris Whelan said the potential lost fees would be enough to almost wipe out the combined surplus of the entire sector.

Education Minister Chris Hipkins described the comments as “alarmist” but said the situation was being monitored closely and steps were being taken to lessen the impact.

New Zealand is one of a number of countries which has put a ban on travellers from mainland China to prevent the spread of coronavirus.

While the ban is being reviewed every 48 hours, it is not clear when it will end.

Whelan said the situation was a “perfect storm scenario” as the academic year was about to begin.

“Even if the travel ban was lifted, let’s say this weekend, there’s still a ton of flights that have been disrupted and a ton of students that will have a challenge making their way to New Zealand.”

In direct fees alone, Universities New Zealand said institutions could face the loss of $170 million in expected revenue, while the students would be expected to spend an additional $340m while living here.

Whelan said the $170m in fees was similar to the $175m in combined surpluses across the eight universities in 2019, which helped cover rising operational costs.

“International students contribute significantly to the overall quality of teaching and learning that we’re able to offer all students, international as well as domestic.

“If the travel ban extends for a long period of time, and the costs mount up, there will have to be conversations about how do we maintain the quality of the university system when it recovers.”

Hipkins said the Government was monitoring the situation closely. Steps were being taken to enable students in China to have their courses delivered online, shifting the start dates of study programmes and deferring enrolments to the second semester.

Meanwhile, Immigration New Zealand was “looking at being more flexible about entry dates and refunds” for student visas.

“The health of people in New Zealand has to be the top priority,” Hipkins said. “Alarmist comments are not helpful.”

Whelan said distance learning online was simple in the short term, but beyond one or two weeks universities needed to offer more complex services such as tutorial support and access to laboratories.

There have already been immediate hits for the tourism, seafood and logging industries. Trade experts have warned that China plays such a significant part in global supply chains that the extent of the disruption could last for some time.

“I think this does again underscore the importance of a diversified trade profile for New Zealand and our exporters,” Prime Minister Jacinda Ardern said at her post-Cabinet press conference.