Vic Uni predicts $12m hit
Coronavirus could cost Victoria University of Wellington $12 million, a letter to its staff has stated.
The letter, sent by vicechancellor Grant Guilford, said time was running out to bring international students from China to New Zealand, and there could be a long-term financial impact.
An estimated 6000 international students attending New Zealand universities are unable to enter the country because of a travel ban put in place to prevent the spread of Covid-19.
Universities and the Chinese ambassador have put pressure on the Government to lift the ban for Chinese students before classes start. ‘‘While it is essential not to reduce this issue to an economic matter, it is important that I ensure all of you are aware of the gravity of the situation we and other tertiary education organisations face,’’ the letter said. ‘‘Preliminary estimates suggest we can expect losses here of as much as $12m this year.’’
Globally, there are more than 82,000 cases of the virus, which has killed 2800 people. Most cases have been in mainland China but outbreaks have occurred in South Korea, Italy, Japan and Iran.
Guilford said the financial impact
Coronavirus will have a ‘‘serious impact’’ on the economy in the short term but the effects could drag on for longer if a worst-case scenario plays out, Finance Minister Grant Robertson says.
Speaking at Auckland business event Finance 2020, Robertson said there was ‘‘a high probability’’ New Zealand would have a case
of the virus and border closures could have long-term ramifications. ‘‘The last time New Zealand lost the trust of Chinese parents (as a result of the collapse of two private training establishments during the mid-2000s), it took a decade for our tertiary education sector to regain that trust.’’
He, along with vice-chancellors of other universities, had been in discussions with the Government,
Finance Minister Grant Robertson yesterday said the world was facing a ‘‘rapidly changing situation’’ with the coronavirus outbreak. of Covid-19 coronavirus at some point and urged businesses to talk to their banks and staff and plan for managing the impacts.
‘‘We are meeting in the shadow of one of the biggest uncertainties that the global economy has seen in recent times,’’ he said in his first major economic speech of the year.
to emphasise the impact the travel ban was having.
Guilford, who is also chairman of Universities New Zealand’s committee on international policy, told Stuff the ban had been a ‘‘huge worry’’ for both students and their families.
‘‘Where their son or daughter goes to study is a major decision for Chinese families. As such, this is a matter of trust that goes to the
The screening process for ships entering New Zealand has been stepped up. A Health Ministry spokesman said that, from February 19, three new healthclearance questions regarding mainland China and any suspected coronavirus contacts had been asked of all vessels arriving from overseas. A CentrePort Wellington spokesperson said if a notifiable illness was reported ‘‘appropriate quarantine protocols would be put into action’’.
heart of the relationship between New Zealand and China.’’
The ban was having a major effect on universities, he said. An enormous amount of work was going into setting up online study options, and dealing with students anxious about their future.
The Health Ministry previously said it was looking at options for creating an exception to the travel ban for Chinese students studying in New Zealand but no such plans have been announced.
A spokesperson for Massey University said they were aware of the potential financial impact and were monitoring the situation.
RNZ reported the University of Auckland had told staff it had frozen all new appointments, and was expecting a $30m hit.