Australia’s reputation as a top destination for international students is at “risk,” as education agents are increasingly directing prospective students to countries like the United States, New Zealand, and the UK, experts told the Parliamentary Committee on Education and Employment on Aug. 26.
Ian Aird, CEO of English Australia, stated that student visa application fees have increased by 125 percent, now nearly double those required to study at Oxford University in the UK, triple the cost of studying at Harvard University in the United States, and almost ten times Canada’s visa fee.
“Since December last year, student visa applications have been refused at record levels and delayed at record levels,” he added.
“Grants from Jan. 1 to June 30 for offshore applicants wanting to study English are down 60 percent on last year.”
Philip Honeywood, CEO of the International Education Association of Australia, testified before the Senate committee, stating that while the minister does not want to turn a $50 billion (US$34 billion) industry into a $20 billion industry, the impact of the proposed legislation to cap international students is already showing its repercussions.
“We are already on our way. There has been a 37 percent decrease in overall student visa grants by June 30,” he said. “This has already hit the industry by $10 to $15 billion.”
He further commented that it took Australia 30 years to build the entire international student industry.
“And it’s taken the government six months to dismantle it,” he said.
Stephen Nagle, CEO of the Holmes Institute, said the UK is now attracting a significant number of students, and the cap system has “already” failed in Canada.
“Why would we go down that path when there is evidence that it does not function and it ruins the industry, cutting off all of the students?” he said.
Impact on Tourism, Hospitality, Job Market
International students are a major source of revenue for the tourism and hospitality industries. They often travel within the country during breaks and holidays, bringing family and friends who also spend on travel, accommodations, and entertainment.A decline in student numbers could lead to reduced occupancy rates in hotels and lower revenues for tour operators, restaurants, and other related businesses.
Students in New South Wales, for example, have an average discretionary spending of $4,000 per month on hospitality and retail, said Anouk Darling, Chief Executive Officer of Scape Australia Management and the chair of the Student Accommodation Council.
“Removing this spending from the economy would significantly impact various sectors, including labor, tourism, hospitality, retail, and international education,” she said.
Besides, they are also a big contributor to the industry as part-time workers.
Post-pandemic, the shortage of international students impacted the hospitality industry, particularly in university towns in a big way.
A report by the Australian Tourism Export Council revealed that the drop in international students had resulted in a 15 percent decrease in spending within the hospitality sector.
Darling also argued that the move could also hit the retail market, as international students often work part-time in retail sector.
A decrease in the student workforce could create labor shortages in these areas, leading to increased labor costs and operational challenges for businesses that rely on casual and part-time employees.
While recording the evidence, a member of the Senate committee noted, “These students do jobs that other people are reluctant to.”
International Students: Pawns in Politics?
Greens Senator Mehreen Faruqi asked representatives if they agree that international students are essentially being used as “cannon fodder” in a political battle over migration.She further questioned whether, with almost unanimous opposition to this bill, representatives would like the bill to be shelved.
“And the government go back to the drawing board and come back with something that actually works?”
Innovative Research Universities Executive Director Paul Harris said the current situation is “hammering” universities and students alike.
He said that rather than rushing this bill through, the government should consider working on an amended version that allows for more comprehensive planning and avoids further destabilising the sector.
