The number of international students arriving in New Zealand has continued to fall in the past year, down about 10,000 from the previous year.

The figures, released Wednesday in the Immigration Service's annual Migration Trends report, show there were 77,600 student permit holders for the 2004/2005 year, 11 percent down from 87,000 in the 03/04 year.

About 25 percent of those students would go on to become permanent New Zealand residents.

The number of students from China, the biggest source of international students, fell sharply from 40,700 in 03/04 to 34, 100 in the past year.

International education has been a pillar of New Zealand economy, bringing business to schools, universities, restaurants and traveling industries.

International education experienced a peak in 2002 and since has declined due to strong NZ currency, rise of education fees and negative reports like closing down of private language schools.

Authorities have been trying to boost the industries and the new Foreign Minister Winston Peters said he has talked with Chinese officials on how to attract more Chinese students to New Zealand.