New Zealand has a reputation for a welcoming environment and excellent education, making it an ideal destination for international students. By 2023, more than 69,000 international students will be enrolled in New Zealand universities, showing a promised recovery from the Covid-19 days.
However, this number is only about 60 per cent of the pre pandemic level, indicating fierce competition in other countries. If New Zealand is to remain the dominant choice, it must address the rising cost of living, especially housing and food.
China, India, Japan, South Korea and Thailand send a chunk of New Zealand’s international students. Students from these countries know studying abroad can be expensive.
Starting October 1, 2024, new visa fees will be introduced for international students, and these additional costs may further burden them. To counteract this, universities might need to enhance financial aid and offer discounted housing, while policymakers could focus on maintaining affordability.
Australia and Canada’s strategic shifts
Australia’s recent move to cap international student enrolments at 270,000 by 2025 highlights the impact of migration on housing and infrastructure. The University of Melbourne has cautioned that this cap, while addressing immediate concerns, might harm education and the economy in the long run. International education contributes AUD36.4 billion to Australia’s economy.
Similarly, Canada’s restrictions on international student numbers, driven by housing affordability issues, are causing concerns. If these limitations become stringent, Canada’s economy and job market could suffer, given its reliance on international students.
The Implications for New Zealand
Zealand faces similar challenges with rising living costs and global competition. Cities like Auckland and Wellington are experiencing increased prices for essentials, which could deter international students. As other countries, like Australia and Canada, make it harder for students to enroll, New Zealand must remain affordable and appealing to attract students.
Students from regions such as South Asia, Iran, and Nigeria are increasingly considering the US, Germany, Italy, and Austria due to more accessible policies compared to Australia, Canada, and the UK.
New Zealand’s ambitious goal to expand its international student base by 2027 is achievable but hinges on addressing rising living costs. With Australia and Canada imposing enrollment restrictions, New Zealand has an opportunity to stand out as a top destination.
However, achieving this will require a focus on maintaining affordability and creating a supportive environment for international students.
To secure its position as a leading educational destination, New Zealand must balance growing its international student population with providing a stable and affordable experience, despite the challenges of rising living costs and global competition.
(The writer has years of work experience in the international education sector in sales, marketing and student support.)
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