Many countries today are looking for smart ways to grow their economies, stay strong during tough times, and stay competitive around the world. And international students are certainly answer to this challenge.

Why International Students Matter

International students contribute significantly to national economies. In the UK, they accounted for 70% of the £25.6 billion education export revenue in 2020, underscoring their importance to the country’s economic landscape. Similarly, in Canada, international students contributed over $22 billion annually, supporting local labour markets and high-growth sectors. In Australia it is estimated that international education is AUD$40+ billion industry.

International students bring more than just diversity, they bring fresh ideas, different ways of thinking, and strong global connections. Some even start businesses and create new jobs. They pay tuition, rent homes, buy food, travel, and spend money in local businesses. This supports jobs in education, hospitality, real estate, and many other areas.

Beyond direct financial contributions, international students enrich the cultural fabric of host countries, bring diverse perspectives to classrooms, and often fill critical skill shortages in sectors like healthcare, engineering, and technology.

Recent Recognition of International Students’ Importance by Politicians

UK Universities Minister Michelle Donelan highlighted the global outlook of the UK’s education strategy, stating, “Our world-class education is a vital part of our economy and society”. In Canada, Immigration Minister Marc Miller acknowledged that “international students contribute to boosting Canada’s economy,” emphasising the need to support them for long-term success.

Despite the global acknowledgment of international students’ importance, Australia created its own challenges. The Australian government has announced plans to further increase the student visa application fee from AUD$1,600 to AUD$2,000 starting July 2025. This follows a previous 125% fee hike in July 2024, when the fee rose from AUD$710 to AUD$1,600. Australia has rapidly become one of the most expensive destinations for international students, with recent fee hikes and policy changes significantly affecting enrolment figures. The introduction of student enrolment “caps” has compounded the issue, leading to a sharp increase in visa refusal rates.

This growing trend is now evident in the mounting caseload faced by the Administrative Appeals Tribunal (AAT), which is experiencing a backlog of student visa reviews. However, experts warn that these figures represent only a fraction of the real impact, as offshore applicants have no access to such appeal mechanisms, leaving many without recourse.

The data points to a concerning pattern that could damage Australia’s reputation as a welcoming study destination and undermine its long-term economic and diplomatic interests.

The impact of the government policies is also already evident through the decline in the English Language Intensive Courses for Overseas Students (ELICOS) sector, whcih has reported a 50% drop in enrolments since the 2024 fee increase. 

IDP Education (ASX: IEL) has experienced a significant downturn in its financial performance and share price over the past year, primarily due to tightening immigration and visa policies in key international education markets. IDP Education’s share price plummeted by approximately 48%, reaching a near decade low of $3.88. This marks a staggering 75% decline over the past 12 months, erasing around $3 billion in market capitalisation.

Strategic Recommendations for Australia

To harness the full potential of international education, the Australian government should consider:

  • Reviewing Visa Fee Structures: Implement reduced visa fees for short-term courses, such as ELICOS and programs up to 12 months, to make them more accessible and competitive.
  • Streamlining Visa Processes: Providing clearer guidance for visa applicants to attract genuine students.
  • Enhancing Post-Study Opportunities: Guarantee pathways for international graduates to work and contribute to the economy.

In Conclusion

International students are more than just learners; they are contributors to economic growth, cultural diversity, and global collaboration. As other nations realising and act upon this. It is time for Australia to prioritise international education to ensure continued economic resilience and global competitiveness.

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