The number of international students entering Canada has increased by 60 percent from 2004, to over 100,000 last year.

Canada admitted over 100,000 international students in 2012 according to an announcement by Citizenship and Immigration Canada (CIC) on Tuesday. The number marks a 60 percent increase over the number of foreign students hosted by Canada 2004, and demonstrates the growing significance of international education to the country, a release from the government said.

CIC promoted the milestone by noting that the Department of Foreign Affairs and International Trade (DFAIT)’s report on international students in Canada, titled International Education: A Key Driver of Canada’s Future Prosperity, estimates that the annual economic contribution of international students is more than $8 billion.

In another report, commissioned by the Canadian Council of Chief Executives and released last summer, the author of the report, University of British Columbia President Stephen Toope, argued that in addition to the direct economic contribution foreign students make to Canada through their spending on tuition, rent and other living expenses, they also benefit the country by creating economic and cultural links between it and other countries.

Toope wrote that those links would enable Canada to conduct more international trade and investment with rapidly growing economies in the future, particularly in Asia where many of the international students originate.

In a statement, Citizenship and Immigration Minister Jason Kenney extolled the trend of an increasing international student population in Canada: “Attracting and retaining the best and brightest immigrants from around the world is part of the government’s commitment to grow Canada’s economy and ensure long-term prosperity.

The steady growth in numbers confirms that Canada remains a destination of choice for international students because of the remarkable educational opportunities that exist in our world class institutions.”

CIC has attempted to make it easier for international students to transition into permanent residence in Canada with new immigration programs like the PhD stream of the Federal Skilled Worker Program, and the Canadian Experience Class, which allows those with one year of work experience in Canada to become permanent residents.

“Canada’s universities are pleased to see increasing numbers of international students attracted by our reputation for excellence in education,” said Paul Davidson, President of the Association of Universities and Colleges of Canada. “In addition to making a significant contribution to our economy, international students bring new perspectives and cultures to our campuses, enriching the learning experience of all students.”

International students are also a future source of skilled labour, as they may be eligible upon graduation for permanent residency through immigration programs, such as the Canadian Experience Class which the Government introduced in 2008. International students are well-prepared to immigrate to Canada as they have obtained Canadian credentials, are proficient in at least one of our official languages and often have relevant Canadian work experience.

“Canadian colleges and institutes, with a focus on applied higher education and unparalleled placement rates, are magnets for international students,” said Association of Canadian Community Colleges President and CEO, James Knight. “Canadian college credentials are a passport to employment success not only in the students’ country of origin, but also in Canada where their skills are in high demand.”

Recently proposed changes to the International Student Program would streamline work permit access to international students attending designated institutions, and provide certain study permit holders with the authority to work part-time off-campus.

The proposed changes would also better protect international students as provinces and territories designate the institutions qualified to receive them and Citizenship and Immigration Canada eliminates abuse of the program by ensuring program participants are genuine students. These changes would safeguard the world-class reputation of Canada’s post-secondary education system, as it strives to become ever more competitive in the global search for talent.

“Canada competes globally for the best and brightest minds, so we are continually working to make studying in Canada an attractive choice,” added Minister Kenney. “Through our proposed improvements to the International Student Program, we will further improve Canada’s already strong reputation.”

The number of U.S. students studying in Canada has grown approximately 50 percent since 2000, according to the Association of Universities and Colleges of Canada. Many of Canada’s universities are respected academically and college there may cost less on average. For example, annual tuition cost for an international student attending college in Canada ranges between $4,050 to $25,820, according to the Association of Universities and Colleges of Canada, while the average 2012-13 tuition cost in the United States is $22,261, according to the College Board. Room and board costs may be also lower at a Canadian university.