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The South Australian decision to slash funding for a successful marketing organisation makes no financial sense, writes Malcolm King

The South Australian government will slash $3 million from Education Adelaide’s budget in 2015-16, ending the agency’s role in bringing international students to the state.

While SA’s international students fell from a peak of 34,000 in 2010 to 28,000 in 2012, due to the tightening of visa regulations and the high Australian dollar, last year international students still contributed $925 million to the state’s economy.

Education Adelaide was established in 1998 to promote the state’s international education industry, which under the leadership of chief executive Denise Von Wald, has seen a 23.5 per cent growth in international student numbers since 2005.

SA has a 5.6 percentage share of the Australian international student market. It punches well above its weight by offering student travel discounts on public transport, special events and a secure environment in which to study.
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I'm a little sceptical of state marketing bodies claiming direct linkage between international student numbers and their marketing activities.  

Most seem to follow in countries where institutions, agents, student word of mouth etc. have already developed the market.

Now with digital state bodies can market far more effectively with fewer resources from onshore.
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