In 2012-13, Holland College’s total impact on P.E.I.’s economy was $220.7 million in added income, equal to 3.6 per cent of the province’s Gross Domestic Product, according to a recently-released study.
The study was commissioned by the Atlantic Provinces Community College Consortium and conducted by Economic Modeling Specialists International. (EMSI).
In the year 2012-2013, the college employed 617 full-time equivalent staff, amounting to a payroll of $34.9 million. The college spent another $24.2 million to support its day to day operations.
In any given year, upwards of 35 per cent of Holland College post-secondary students come from off-Island. In 2012-2013, gross sales generated by off-Island students on items such as food, accommodations, and transportation was $12.2 million, resulting in approximately $3.4 million in new income for the local economy.
In addition to showing the impact the college has on the province’s economy, the EMSI study provides information on the return on investment for students and taxpayers. On average, Holland College’s 2012-13 students will receive a cumulative $4.10 in higher future earnings for every dollar they invested in their education, the equivalent of a 22 per cent rate of return.
“The EMSI report shows that a Holland College education remains one of the best investments that students, their families, and the province can make,” said Holland College vice president Michael O’Grady.
Approximately 72 per cent of Holland College’s students remain in Prince Edward Island after completing their education. With their Holland College credential, students enjoy an increase in their earning potential. As students earn more, they pay higher taxes.
Over the students’ working lives, the provincial government will collect an additional $43.5 million in higher tax receipts. Society will also benefit from $6.4 million in savings related to a reduced crime rate, less demand for income assistance, and increased health and well-being across the province.
“Since its inception 45 years ago, Holland College has played a vital role in communities across Prince Edward Island,” O’Grady said. “Now, with more than a dozen campuses and centres tip to tip, our college continues to be a significant economic driver.”
Economic Modeling Specialists, International is a leading provider of socioeconomic impact and strategic planning tools to community and technical colleges throughout Canada and the United States.
To download a copy of the executive summary, visit www.hollandcollege.com/emsi2014.