For foreign students, it's now more expensive to study in Australia than it is to study in America or in Great Britain, according to pro-bono work undertaken by Boston Consulting Group.
The Group estimates that the cost to study and live in Australia for one year is now US$44,000, an increase of 166% over 2002 levels. The cost to study and live in America is estimated at US$37,000, while the cost in Britain runs to US$30,000. This leaves Australia in the coming decade in a "less favourable strategic context," says BCG.
As reported in The Australian:
Monash University researcher Bob Birrell said the dramatic estimate from the Boston Consulting Group showed the "headwinds" now confronting an export industry such as education.
"The evidence we've seen from students – especially Chinese and Indian – is that all other things being equal they'd like to go to America," Dr Birrell said.
"We had a cost advantage through the boom period (2002-09) – now that's reversed with a vengeance."
In 2012, Mercer's Cost of Living survey ranked three Australian cities — Sydney, Melbourne and Perth — among the 20 most expensive cities for expatriates worldwide, while Canberra and Brisbane also figured among the top 25.
Much of the cost rise in the Australian market can be attributed to the comparative strength of the Aussie dollar and, in turn, the strength of Australian banks. Australia's Westpac (ASX: WBC) and Commonwealth Bank (ASX: CBA) are the biggest publicly traded banks — across the globe — to enjoy a AA- or higher credit score from Standard & Poor's.
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