Demand has been slow for the international student sector that was once worth $5 billion. Photo / 123rf
Demand has been slow for the international student sector that was once worth $5 billion. Photo / 123rf
Fewer than 10 per cent of 5000 spaces set aside for international students have been filled in what National is calling "yet another failed border policy".
But while admitting the process has been slow and New Zealand risks losing out to competitors, such as Canada and Australia that have fullyopened up their sectors, the industry is confident those spaces will be filled in the coming months.
At the end of March, the Government announced the border exemptions for the sector, which at its peak had been worth $5 billion to the economy but had been decimated since the start of the pandemic in 2020.
The Government and sector representatives said they expected little trouble in filling what was the largest intake of foreign students since the borders closed two years ago.
But data released to the Herald showed as of May 12, over a month after applications opened and a week after the first round closed, just 106 visas had been approved, or 2 per cent.
Education Minister Chris Hipkins. Photo / Marty Melville
After the Herald approached Immigration NZ for comment on Friday its response on Monday included an updated figure of 431 visas having been approved or just under 9 per cent.
The spaces had been allocated to different institutions based on 2019 enrolments, with universities allocated 1450 students, polytechnics 700, English language schools 1000, private institutions 850, and secondary schools 1000.
Students needed to be nominated by their education provider and the Ministry of Education, before making an expression of interest.
As of May 12, there had been 3921 expressions and 3850 subsequent invitations to apply for a visa.
But Immigration NZ had received just 958 applications from students and of 116 applications decided, 107 had been approved.
Border and visa general manager Nicola Hogg said it was intended most students would arrive in New Zealand in time for a mid-2022 study start.
"We are confident applications will be processed on time.
"Processing applications is straightforward when applications are decision-ready and applicants have provided all the information required."
Erica Stanford, National Party immigration and education spokeswoman. Photo / Mark Mitchell
Universities NZ chief executive Chris Whelan said their sector was on track to fill its 1400 spaces, largely as many international students had been stuck overseas through the pandemic and were "desperate to return".
But, more generally, he said the spaces had proven difficult to fill.
The normal intake was about 7000 to 8000 students.
Whelan said part of the issue here was likely a lack of longer-term signals and timing.
"Students need time to sort themselves out, sort their lives out."
He said demand was out there and counterparts in the UK and Canada - countries where the sector is fully open - have met 10-year growth targets in a year, and many international students had gone to Australia too.
"They've gone wherever they can that's open. Unfortunately, that hasn't been New Zealand this year."
He said another factor for further delays was likely the full border reopening from July 31.
But the timing of that opening, about two weeks after semester 2 begins, means few students are expected to arrive before semester 1, 2023.
Schools International Education Business Association chief executive John van der Zwan said he understood nearly all school invitations to apply had been sent, and he was confident the spaces would be filled by mid-year.
Part of the slow uptake had been around some schools not being able to fill their allocations, but these had been transferred in the second round.
"It has been a difficult process, but from our perspective, it has worked," he said.
"But I think the timing is an issue. And our main competitors, in Canada and Australia being open without cohorts, we are behind the eight ball there, we're the last cab off the rank."
While he didn't expect a flood of students to arrive this year after the July 31 reopening, it was a good signal to the market.
"There is no question we have lost market share. But I think the demand is still there, we are still a sought-after country for education, and we have got everything going for us. But it has been a tough couple of years."
National Party immigration and education spokeswoman Erica Stanford said the slow uptake showed there was little sense in putting a cap on applications in the first place.
"It was a good idea but poorly executed. Why the cap of 5000 students? Some schools were only allocated two or three students and said it wasn't worth their time.
"There was no health reason. And [Immigration Minister] Kris Faafoi says he's got 500 more staff, and millions more spent on processing, so why even cap numbers?
"The bureaucracy has just made it so much harder. It's just another failed border exemption policy."
Stanford said New Zealand was missing out to other countries.
"Australia looked at us and saw we are closed and is now reaping the rewards."
Immigration Minister Kris Faafoi referred questions to Education Minister Chris Hipkins.
Hipkins said applications opened on April 13 and by May 12 about 4000 students were nominated by education providers, approved by education agencies, and were working through the border exception process.
All universities, Te Pūkenga, many PTEs, English language providers and schools have nominated students, Hipkins said.
Students currently in the process are on track to enter for mid-2022.
"Demand for the cohort has been high and exceeded the supply of places so an application process for education providers has been completed to manage the demand within the 5,000 places," Hipkins said.
"Where education providers are unable to use some of the places they applied for, the places have been reallocated to other education providers who have students ready to travel."
From July 31, all international students who meet the entry criteria can enrol to study in New Zealand. Learners with a place in the cohort have an opportunity to arrive on a faster timeframe, and providers are targeting travel ready learners with the cohort.
"New Zealand is reopening for education and we are ready to welcome students back," Hipkins said.
