International student spending contributed $30.9 billion to Canada's GDP in 2022, according to new government statistics. This amounted to 1.2% of the country's GDP for the year, as per a recent update from the Canadian government on the economic impact of international education in 2022.

The findings indicated that international students spent approximately $37.3 billion on tuition, accommodation, and discretionary items, even after considering Canadian scholarships and bursaries. This expenditure supported around 246,310 jobs in Canada and generated an impressive $7.4 billion in tax revenue in 2022, according to the report by Roslyn Kunin and Associates.

The report highlights that both long-term and short-term international students contribute significantly to the Canadian economy, stating that international education is crucial for its globalisation and competitiveness. It also reveals that the number of international students in Canada increased dramatically by 61% from 2016, when there were 523,971 students, to 2022, when that number rose to 844,444, The Pie News reports.

“The year 2022 saw the highest ever number of long-term students in Canada, after a dip in 2020 and 2021 due to travel restrictions brought on by the Covid-19 pandemic,” the report states. “Our analysis clearly indicates that the contributions that international students make to Canada’s economy are continuing to grow. In line with an increasing number of international students, overall spending more than doubled between 2016 and 2022, from $15.5 billion to $37.3 billion, representing an increase of 15.7% per year.”

Study locations by popularity

In 2022, Canada hosted a total of 844,444 international students, with the majority (769,515) classified as long-term students. The report indicates that the number of overseas students has been steadily increasing, with earlier reports published in 2008, 2010, 2014, 2015, and 2016 also showing consistent growth. Ontario had the highest number of international students, totalling 432,272, which accounted for 51% of Canada's total. British Columbia followed with 186,886 students, representing 22% of the international student population in 2022. Although Prince Edward Island had only 4,491 international students in 2022, the report showed that it recorded the highest percentage increase in study permit holders, with an over 1,800% rise from 2000 to 2022. In contrast, Nunavut and the Northwest Territories were the least popular destinations for international students, with just five and 35 students, respectively, in 2022.

What’s behind the rise?

The report states that India is Canada’s leading source of international students, with 319,130 study permit holders in 2022—an impressive 47% increase from the previous year. The Philippines followed, with 32,455 study permit holders, reflecting a significant 112% rise between 2021 and 2022. Hong Kong, Nigeria, and Colombia also saw increases in study permit holders of 73%, 60%, and 54% year on year, respectively. However, these numbers may soon change, as a significant drop in study permits was observed in March this year, shortly after Canada implemented a cap on study permits for international students. Furthermore, recent findings indicate that African students are “consistently” less likely to have their visa applications approved compared to their peers from other regions.