Economic Impact of International Education in Canada – 2016 Update

Appendix 2 - Scenario Analysis: Assuming Lower Student Expenditure

In this appendix 2, we provide an assessment of how total expenditure will change for a different scenario in which we assume that international students studying in Canada receive Canadian government and/or university financial support equivalent to the extent of such support offered to international students studying in the U.S. Further we have assumed that additional family and friends tourism activities of international students studying in Canada follow a similar pattern as that of non-U.K. students pursuing university education in the U.K. [36]

The assumptions underlying alternate government/university support to international students are as follows:

  • 10% of student expenditure of undergraduate students has been assumed to come from support by Canadian governments and/or universities;
  • 40% of student expenditure of students in Master’s and PhD’s programs, as well as those in medical residency and internship, has been assumed to come from support by Canadian governments and/or universities;
  • 30% of student expenditure for students in trade, college and Quebec programs has been assumed to come from support by Canadian governments and/or colleges and institutes;
  • For every 10 international students, there would have been one family and/or friend visiting them while they study in Canada in 2014.

The scenario can be interpreted as the minimal values of impacts in the current study.

Under these conditions, total annual student expenditure would become $9.826 billion, a decrease of 14%. Direct impacts, direct and indirect impacts combined, and total economic impacts (direct, indirect and induced) are summarized in the table below.

Table 20 - Scenario I: Direct, Direct and Indirect Combined, and Total (Direct, Indirect and Induced) Economic Impacts of International Students Assuming 14% Lower Expenditure (due to Higher Values of Government Support and Fewer Family/Friend Visits), Canada, 2014
Direct ImpactDirect and Indirect ImpactsDirect, Indirect & Induced Impacts
Annual Student Expenditure$9.826bn
Labour Income$3.485bn$4.837bn$5.933bn
Jobs - FTE64,50090,000111,900
Jobs (incl. f/t, p/t, temporary)77,800106,000132,000
Indirect Taxes - Federal$155.9m$286.6m
Indirect Taxes - Provincial$412.8m$674.5m
Indirect Taxes - Municipal$391.8m$518.0m
Indirect Taxes - Overall$960.5m$1.479bn
Personal Income Taxes$840.8m$1.032bn

[36] From Universities U.K.’s study in 2014: The Impact of Universities on the UK economy.