UPEI contributes $150.1 million to province's economy
Economic impact assessment highlights University's role in PEI's knowledge economy
UPEI's direct expenditures of $137.5 million boosted Prince Edward Island's gross domestic product by $150.1 million in 2013, representing nearly three per cent of the province's total GDP, according to a report released today.
'Most are already aware that UPEI is a major contributor to the Island's economy,' said President and Vice-Chancellor Alaa Abd-El-Aziz. 'But this report demonstrates how significant and far reaching its contributions are, and provides clear evidence that the University is a catalyst for PEI's knowledge economy. I look forward to continuing to collaborate with our community and government partners in order to pursue more opportunities to further expand this positive impact.'
The 'University of Prince Edward Island Economic Impact Assessment' illustrates that UPEI directly employed over 1,100 people and that there are 4,403 students enrolled in 2014, of which 1,636 were from outside the province. Its direct expenditures, including campus student spending, supply chain spending, and indirect impact effects supported more than 1,400 full time equivalent jobs across the Island. This economic activity produced $35.4 million in total tax revenue in 2013, including almost $20 million in provincial tax revenue.
The report was commissioned by UPEI, with support from the Atlantic Canada Opportunities Agency, to better understand the many ways in which the university impacts the provincial economy. It was prepared by David Campbell, President and principal consultant with Jupia Consultants Inc., based in Moncton, New Brunswick.
This study estimates the economic impact of UPEI arising from its operations including direct, indirect, and induced effects. The report illustrates that UPEI turns out skilled talent for the labour market, makes an important direct economic contribution, drives PEI's research and development activities, and supports PEI's efforts in attracting skilled immigrants by recruiting international students.
Highlights:
• In 2013, the direct GDP contribution of the university sector on PEI was the second highest among the 10 Canadian provinces as a percentage of total GDP.
• The University's economic footprint sustained 23 out of every 1,000 jobs on the Island in 2013. The employment supported by the university represents higher skilled and higher wage jobs. The average weekly wage for a worker associated with UPEI is 46 per cent higher than for an average worker across Prince Edward Island.
• Businesses large and small across the Island benefit from having a large university located in Charlottetown. In the fiscal year 2014, the University did business with over 930 local suppliers (one out of every nine business establishments on the Island). In total, these firms generated $24.8 million worth of revenue from the UPEI.
• Beyond the direct supply chain, the economic activity generated by UPEI led to an estimated $69 million worth of consumer spending on the Island including $9.9 million on food expenditures, $4.3 million on clothing and accessories and $15.7 million on transportation. An estimated $5.5 million was spent on recreation during 2013 as a result of UPEI's economic activity.
• The report also models the projected economic impact associated with the new School of Sustainable Design Engineering and Centre of Engineering Design and Industry Partnerships. The initial construction phase will boost provincial GDP by $17 million and support 251 FTE jobs. At full ramp up in 2021-22, the GDP impact rises to $20.6 million per year, 198 FTE jobs and $4.6 million worth of annual tax revenue to governments.
• A greater share of Prince Edward Island's overall research and development spending occurs in higher education sector compared to all but two other provinces in Canada. Based on Statistics Canada's input-output model, the university's direct spending on research lifted the province's research and development sector revenue by an estimated $29.5 million in 2013.
• UPEI provides good value for the provincial taxpayers' investment. On Prince Edward Island, provincial government funding makes up only 34 per cent of total university and college revenue ranking the province's post-secondary education system third lowest among the 10 provinces for reliance on provincial funding.
• UPEI is also a significant driver of export revenue for the province. The number of international students is up more than three fold over the past decade. In total, 37 per cent of all students are from outside the province. Statistics Canada tracks the value of interprovincial and international services revenue by selected industries. In 2011, the most recent year data is available, the education services sector on PEI generated $27.3 million worth of interprovincial and international export revenue. On a per capita basis, no other province in Canada generated more export revenue from education services than did Prince Edward Island.
• UPEI's primary role as a provider of skilled talent will be even more important in the years ahead. Most of the industries on PEI that are in growth mode-biosciences, IT, aerospace, and defence-require a higher percentage of post-secondary educated workers. These and other knowledge-intensive industries will need the talent UPEI will supply.
A full copy of the economic impact assessment is available online.
