The Headlines
At odds
What happens when national policies on higher education clash with city-level efforts?
By Seb Murray
“International students can be great ambassadors for our cities and our educational institutions. There’s no better champion than someone who has spent time studying in our city."
International education has long been a major driver of economic and cultural exchange, shaping the demographics and economies of host countries. However, while much of the focus tends to be on national policies, for example, Australia and Canada’s move of curbing the number of foreign students, many cities and regions are actively vying to attract more of them, often coming into conflict with broader national policies.
Cities like Sydney in Australia, Buenos Aires in Argentina and Montréal in Canada – and many more besides –recognise the manifold economic, cultural and educational benefits of hosting international students. This conflict between national and regional priorities culminates in a complex layer of negotiations happening across levels.
On one hand, national governments must consider the overall impact of international students on the country, including the apparent strain on housing, infrastructure and social services. On the other hand, local governments are acutely aware of the positive impacts these students have on their communities and economies.
Clover Moore, lord mayor of the city of Sydney, tells QS Insights Magazine: “International students add to our rich, multicultural city. I’m proud to welcome them at an official reception at Town Hall every year. International students bring new perspectives and make lifelong connections to Australia.”
Indeed, they often boost the local economy through spending and enrich the cultural fabric and academic environment with diverse traditions and perspectives. Longer-term benefits include talent retention and demographic balance, making cities more dynamic and globally connected.
However, many national governments around the world are clamping down on foreign students because of political pressures and public opinion on immigration, as well as low housing supply. Sydney, in particular, faces a housing crisis driven by immigration and an insufficient stock of homes.
"Cities need to think brand, just as institutions do. What is it that makes one city more attractive than another? Often this means collaborating and leveraging their international reputations. Even sports teams can help drive awareness.”
But the issue extends beyond that city. The South Australian Government is urging federal lawmakers to exempt the state from proposed caps on international student numbers, warning that such limits could harm the region’s economic prosperity. Education is South Australia’s largest export, generating more than AU$3 billion last year.
However, in May, the national government introduced new legislation that threatens that income stream. The law would give the education minister, Jason Clare, new powers to limit the number of new international students enrolled at universities.
That move followed a sharp rise in numbers of foreign scholars in the country, jumping from around 580,000 before the Covid-19 crisis to 700,000 by February last year.
And that rapid growth has stoked concerns around a rental housing crisis, even though Australia’s Student Accommodation Council has said foreign students were being “unfairly blamed”.
Susan Close, the deputy premier of South Australia (SA), said concerns were different in Adelaide, SA’s cosmopolitan coastal capital. “Unlike some eastern state capitals, Adelaide has a 10 percent vacancy rate for purpose-built student accommodation,” she said.
“Given the importance of international students to the state’s economy, and the adequacy of student accommodation at present, the SA government has recommended to the commonwealth to not impose limits that might be appropriate elsewhere, and which would unnecessarily risk SA’s economic prosperity,” she added.
Like Sydney and Adelaide, plenty of cities around the world have recognised the value of international students beyond their educational contributions. These scholars bring diversity, economic activity and long-term workforce potential.
Cities like Buenos Aires, capital of Argentina, have been proactive in creating environments that are welcoming and beneficial for international students. According to a report from the University of Buenos Aires, the 92,000 international students in 2019 accounted for 0.68 percent of the city’s GDP.
However, Argentina’s president Javier Milei has proposed legislation that would allow universities to charge tuition fees to international students for the first time, signalling a potential shift away from the country’s tradition of free education.
This clashes with city-level efforts to make Argentina a more popular destination for international students in Latin America. Francisco Resnicoff, the undersecretary for international relations for Buenos Aires City Government, said before the proposed legislation that “international students help contribute to the diversity, talent and creativity from which the city draws its identity”.
He added: “International students can be great ambassadors for our cities and our educational institutions. There’s no better champion than someone who has spent time studying in our city, fully integrating and soaking up the vibrant culture that Buenos Aires has to offer.”
Similarly, in Canada, while the national government has imposed caps on the number of international students, cities like Montréal and Vancouver, which heavily benefit from the economic and cultural contributions of these students, have found themselves at odds with national directives.
Canada is set to approve only 360,000 undergraduate study permits this year, marking a 35 percent drop. In 2022, the country welcomed more than 800,000 international students, a significant increase from 214,000 a decade ago.
“Housing has been widely documented as a pinch point, especially where student specific halls of residence are not available,” says Andrew Crisp, an international higher-education consultant. “A large influx of international students can squeeze availability in the private sector and push up rents, reducing supply for local people.”
But he adds: “Attracting international students goes beyond fees for universities. Money flows into the local economy, often supporting small businesses, especially in the hospitality and leisure sectors. Add on top of this a skilled and educated labour supply that can fill local gaps and help grow economies.”
Clearly, there is a need for more flexible approaches to policy on international students. National governments may indeed come to recognise the diverse needs of different regions and cities, and consider policies that allow for local variations.
In a positive sign, Clare, Australia’s national education minister, said the caps won’t be a “one size fits all approach”.
“For universities, the approach to a managed system will be negotiated through unique international student profiles, which will establish limits on enrolments for each university,” he said in a statement. “In considering options for sustainable growth, the government will consider where growth is distributed, and at which providers.”
At the same time, cities and states may work collaboratively with national authorities to ensure that their strategies align with broader national goals. A city of Sydney spokesperson tells QS Insights Magazine that one of the challenges facing cities in attracting international students is an ageing population, suggesting an area for greater collaboration.
“Several international studies point to a scarcity of skilled global workers as the baby boomer generation reaches retirement age, and the global competition for young skilled migration is intensifying,” the spokesperson says.
They add that Sydney has identified three key themes to best support the international students and the education sector more widely: being welcoming, and focusing on wellbeing as well as work-integrated learning.
Crisp adds: “Cities need to think brand, just as institutions do. What is it that makes one city more attractive than another? Often this means collaborating and leveraging their international reputations. Even sports teams can help drive awareness.”
These comments make it clear that the political pressures on international education extend far beyond national borders, encompassing an often-contentious relationship between local and national governments. The challenge moving forward in this new era of international student caps will be to bridge the gap between national policies and local ambitions.
