The University of Otago has raised fees for international students despite the ''relatively expensive'' cost of study being blamed as a reason for declining enrolments.
The university council yesterday voted to increase international fees by 5% for undergraduate students and 4% for postgraduate students in most subjects.
Among the exceptions were the majority of commerce papers, which were raised by 10%, and dental surgery, which was raised by 3.1%. The fee rises will come into force next year.
The decision to raise fees comes as full fee-paying equivalent-full-time international student numbers were down 10.1% as at the end of April compared with corresponding time last year.
''Demand for undergraduate education, in particular, remains flat, with little growth in key markets, and we continue to struggle with the effects of the high NZ dollar and depressed demand for the South Island, as a result of the 2011 Christchurch earthquake,'' university pro-vice-chancellor, international, Prof Sarah Todd said in a report tabled at yesterday's meeting.
A combination of factors meant New Zealand was ''a relatively expensive'' place to study at present compared with other alternatives.
Speaking to the Otago Daily Times after the meeting, Prof Todd said that despite price being an issue for international students, keeping fees the same was not an option.
''We could say that in a higher dollar environment then maybe there is an argument for not having any [fee increases], but then there is all these other factors that need to be taken into account.''
The other factors included the university council indicating last year that fee increases were expected and having to balance the university's budget.
The cost of studying at Otago University compared with other New Zealand universities had also been taken into account and it was expected other universities would also raise fees.
Prof Todd noted in the report there was evidence some Australian universities were ''heavily discounting tuition fees, no doubt as a reaction to their own high dollar''.
She also noted the drop in international student numbers at the university came as the Government targeted increasing international students numbers.
The decision to increase fees for commerce papers by 10% was made to bring the department in line with other institutions in Australasia.