The epidemic of the new coronavirus could cost Australian universities billions of dollars, a large number of Chinese students unable to return to the country to study, economists warned on Thursday (February 6th).
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The most prestigious universities could thus lose around 3 billion Australian dollars (1.85 billion euros) in tuition fees, according to initial estimates made by analysts at Standard & Poor's.
Foreigners or permanent residents arriving from mainland China can no longer return to the country since February 1 due to measures to prevent the spread of this viral pneumonia. The epidemic appeared a few weeks before the annual school year in Australia, which takes place in February in universities. A large part of the country's approximately 165,000 Chinese students also took advantage of the Lunar New Year in late January to return to their families.
" Our calculation only covers costs related to higher education and excludes the wider economic contribution of students in terms of accommodation, tourism and consumption of goods and services, " S&P said in a report. Foreign students are a vital source of income for Australian universities, and their financial contributions have grown exponentially in recent years. Australia is one of the three most popular destinations in the world for foreign students.
Student representatives told AFP that many of these Chinese students had not been able to return in time for the start of the academic year. They would fear losing an entire year due to the way courses are organized. Australian universities have offered to postpone their academic year in Australia to 2021 to reimburse tuition fees. However, many of them are trying to save time. The University of Sydney has postponed the date by which students must be on campus to March 30, more than a month after the course start date, and is currently implementing a distance education system.
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Australian universities are expected to be disproportionately impacted but would be able to absorb the shock, at least temporarily. " We believe they have some leeway in terms of available liquidity, leverage and operating margins to absorb a temporary loss of revenue, " said S&P.
