Ottawa: The number of international students coming to Canadian universities this fall has dropped below the cap imposed by the federal government earlier this year. This decline is a significant blow to the country's post-secondary institutions, which rely heavily on international student tuition.
The decline in international student enrolment has significant consequences for universities and colleges. A 2020 report found that international student tuition made up 13% of the post-secondary system's income in 2019.
Cap on student visas
In January, the immigration minister announced a cap on the number of student visa applications the government would accept, aiming to address concerns about pressure on housing, healthcare, and other services. This policy was expected to result in a 35% drop in international student numbers for 2024.
Uncertainty and confusion
The cap created uncertainty for prospective students, and the Immigration Department's temporary pause in visa processing may have led many to seek opportunities elsewhere. Universities Canada president Gabriel Miller emphasized the confusion and uncertainty that the policy caused among potential students.
Impact on university budgets
The drop in international student enrolment is a significant hit to university budgets. Miller warned that the financial impact of this decline is unprecedented in recent memory.
According to The Council of Ontario Universities, at least 10 Ontario universities were already forecasting a combined operating deficit of $175 million this year, growing to $273 million next year.
The newly announced cap would likely increase these deficits without other measures to compensate for the revenue shortfall.
Steve Orsini, president and CEO of the organization said the federal government should take a more careful approach and go after institutions that are not taking in international students responsibly.
Government's response
The Immigration, Refugees and Citizenship Canada department acknowledged the decline in international student intake and approvals in 2024 but stated that it is too early to fully assess the impact of the cap. They noted that the busiest months for permit processing are August and September.
Temporary Cap and Future Plans
The temporary cap on student visas is expected to last two years, allowing the federal and provincial governments to ensure the sustainability and integrity of international student programs. The government has also introduced new limits on work permits for students, their spouses, and postgraduates.
Concerns about fraud and exploitation
There have been reports of fraud and exploitation targeting international students, with some offering dubious education in exchange for higher tuition. The government's measures aim to address these issues.
Need for a long-term strategy
Universities Canada is calling on the federal government to develop a long-term strategy for attracting international students. Miller emphasized the importance of avoiding further changes that could hinder student recruitment efforts and working with provinces and universities to ensure adequate services and infrastructure are in place.
The next few months will be crucial for Canada's post-secondary institutions. The government's actions will determine whether the country can continue to attract top international students and remain competitive in the global education market.