By Professor Ren Yi, Pro Vice-Chancellor (International), University of Southern Queensland

International students bring enormous benefits to Australia, including $48 billion per year to the economy. These students accounted for more than half of Australia’s GDP growth in 2023 and support around 250,000 jobs across Australia.

The release of the Draft International Education and Skills Strategic Framework and Education Services for Overseas Students Amendment (Quality and Integrity) Bill 2024 has created uncertainty within our international student markets and across the international education sector. Analysis from Universities Australia estimates that since the federal government started implementing reforms to slow international enrolments last year, the economy has been negatively impacted by $4.3 billion and 14,000 jobs have been lost.

Australia’s relationships with Asia Pacific countries are diverse, with some defined by security partnerships, others by trade ties, and still others by development cooperation. Education, however, remains a key pillar of these relationships, whether through the growing presence of Australian university campuses in the region or the outbound flow of Australian students to the Asia Pacific through the New Colombo Plan. Importantly, the long-term relationships forged by educating students from the Asia Pacific in Australia have enhanced Australia's access and influence in political, economic, and other institutions across the region.

In recent times, international students have been linked to the national housing crisis. The Property Council of Australia has released a report which maintains that international students are not to blame for the housing crisis. Rather, the report finds that a complex web of supply and demand drivers are all contributing to Australia’s over-heated rental market. While the return of international students to Australia post-Covid has been strong, the increase in rents do not align with their return.

Rents began rising in 2020, when there was no international student migration and most students had returned home. Hence, the challenges are not with demand, but with supply. The solutions for the supply shortage are complex, including elevated construction and labour costs, planning difficulties, limited land availability and high financing costs. Additional support measures are required to assist the sector to meet the projected future demand.

Australia's international education strategy has traditionally focused on the Asia Pacific as an education export market, rather than on fostering human capacity development and bilateral relationships. To address this, it is crucial to allocate sufficient resources to develop new initiatives and pathways that align with the interests of regional countries in human capacity-building. Transnational education offers opportunities to engage with Asian students and alumni.  Southeast Asia and China have become international education hubs, providing significant potential for innovative educational models, such as dual-degree programs and articulation agreements that leverage the strengths of both educational systems.

Furthermore, more efforts are needed to encourage international students to study in regional areas. Currently, 85 per cent of foreign students live in the three largest capital cities. Attracting students from the Asia Pacific to regional locations not only boosts local economic development but also brings essential skills to the workforce. Additionally, it enriches the cultural fabric of these areas, as Asian community diasporas contribute to the social, cultural, and economic landscape of regional communities.

This cultural diversity enhances the campus experience for all students, fostering cross-cultural understanding and broadening perspectives. At the University of Southern Queensland, our vibrant Asian student and migrant communities have been instrumental in building and strengthening international connections. These communities act as bridges between Australia and their home countries, facilitating academic partnerships, research collaborations, and student exchange programs.

These connections are vital for enhancing the global reputation of regional universities and Australia as a whole. We must look beyond the short-term tuition fee gain towards a long-term true partnership approach with our students, institutional partners and Asian diasporas.

Professor Ren Yi is Pro Vice-Chancellor (International) at University of Southern Queensland.

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