The number of international fee-paying school pupils studying in Otago and Southland is on the rise again, signalling an economic boost for the South.
Between 2004 and 2008, pupil numbers in Otago gradually declined from 4881 to 3595.
In Southland, numbers dropped from 264 in 2003 to as low as 138 in 2007.
However, this year pupil numbers have bounced back to 4185 in Otago and 333 in Southland.
Figures are based on the number of fee-paying international pupils who started a course of study in the period January 1 to August 31 each year.
The region's statistics reflected the nationwide trend.
This year there were 76,562 fee-paying international pupils in New Zealand compared with 72,540 last year - an increase of more than 4000.
Despite the trend, not all regions showed signs of recovery.
The number of international pupils in Waikato, Gisborne, Hawkes Bay, Marlborough, West Coast and Canterbury continued to decline.
Education Minister Anne Tolley said she was pleased with the fact overall national figures had risen.
Education was one of New Zealand's top three service exports, she said.
"Last year, it contributed $2.1 billion to our economy, supported more than 32,000 jobs, and provided our education institutions with nearly $600 million in fees.
"The fact that more international students are choosing New Zealand as a study destination is great news."
Otago Secondary Principals Association chairman and Kaikorai Valley College principal Philip Craigie said there had been noticeable growth in Otago, which would benefit the local economy.
"International students do spend when they come here. That must be good for local business. And those who take students on in homestay situations also benefit."
Mr Craigie was not certain what had caused the sudden resurgence in numbers, but suspected swine flu played a significant part.
He said the influx of pupils from China collapsed suddenly about three years ago, and many New Zealand schools were affected because they had relied solely on the Chinese market.
Swine flu was no longer considered a serious threat to travellers, and Chinese parents had returned to the practice of sending their children to New Zealand schools for an education in the English language, he said.
New Zealand schools had also learnt not to "put all their eggs in one basket".
