Committee Warns That Student Visa Cap Could Damage Australia’s Reputation and Economy
Experts have noted that education agents are increasingly steering prospective students towards countries like the US, New Zealand, and the UK, rather than Australia.
During a Parliamentary Committee on Education and Employment session on Aug. 26, CEO Ian Aird of English Australia raised concerns about Australia’s diminishing appeal as a top international student destination.
Aird highlighted a substantial increase of 125% in student visa application fees, making them almost double the cost of studying at Oxford University in the UK, triple the cost of studying at Harvard University in the US, and nearly ten times more expensive than Canada’s visa fee.
He also mentioned that there has been a significant rise in record levels of visa application refusals and delays since December of the previous year, with a 60% decrease in grants for offshore applicants seeking to study English between Jan. 1 and June 30.
Philip Honeywood, CEO of the International Education Association of Australia, testified that the government’s proposed legislation to cap international student numbers risks decreasing the $50 billion industry to $20 billion.
He noted a 37% decrease in visa grants by June 30, resulting in a substantial economic impact of $10 to $15 billion on the industry.
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Australian Retailers Association has consistently advocated for increased support for international student work as one of the solutions to the current labour crisis.
Representatives highlighted that the significant visa cuts are expected to result in a loss of an estimated 15,000 jobs over the year.
Impact on Tourism, Hospitality, Job Market
International students are vital contributors to the tourism and hospitality industries, bringing in revenue through travel, accommodations, and entertainment spending by themselves and their accompanying friends and family.
A decline in student numbers could lead to reduced occupancy rates in hotels and lower revenues for tour operators, restaurants, and related businesses.
For instance, students in New South Wales spend an average of $4,000 per month on hospitality and retail, providing a significant boost to various sectors within the economy, including labor, tourism, hospitality, retail, and international education.
Furthermore, international students also play a crucial role as part-time workers in the industry.
Post-pandemic, the absence of international students has affected the hospitality sector, particularly in university towns.
A report by the Australian Tourism Export Council indicated a 15% decrease in spending within the hospitality sector due to the drop in international student numbers.
Moreover, the reduced student workforce could create labor shortages in these sectors, resulting in increased labor costs and operational challenges for businesses relying on casual and part-time employees.
During the Senate committee proceedings, a member noted, “These students do jobs that other people are reluctant to.”
International Students: Pawns in Politics?
Green Senator Mehreen Faruqi questioned whether international students are being used as “cannon fodder” in a political struggle over migration.
She also inquired if representatives, given the widespread opposition to the bill, would prefer to shelve it and have the government revisit the proposal with effective solutions.
Executive Director Paul Harris of the Innovative Research Universities expressed concerns about the adverse impact of the current situation on universities and students, suggesting a more thoughtful approach to the legislation to avoid further destabilizing the sector.
