Overseas students: it's about balance

Performing a traditional Malaysian dance in the Octagon are Seenee Ng, Fang Juinn Yu, Barbara Nakan and Zaini Dhazam. They were among 20 dancers from the Otago Malaysian Student Association who celebrated Malaysia Day in Dunedin in July. A total of 483 students from Malaysia (the second highest number by nationality after 652 from the United States) studied at the University of Otago in 2011. Photo by Peter McIntosh.

The university of Otago is considering raising its cap on international student numbers. Prof Sarah Todd, pro-vice-chancellor (international) sees this as part of continuing efforts to recruit such students.

Mark Twain once famously noted, "facts are stubborn things, but statistics are pliable". Anybody trying to follow the recent discussions around international student numbers and the "cap" on the same at the University of Otago may understandably be confused, as different numbers, usually covering just a subset of our international student roll, have been thrown into the arena.

It may seem strange, but different definitions are used for different purposes to count the number of international students at a university. To name just three: a count of all individual international students; the full-time-equivalent that follows from this (so that two individuals, here for half a year each, are weighted the same as one here for a whole year); and the subset of international students who pay full cost fees.

This last definition of international excludes a large group of students, namely international PhD students.

The Government has partially funded this group in recent years to encourage them to study here.

Far from a trend of declining international student numbers, the University of Otago welcomed its largest cohort of international students yet in 2011. Last year's record international student roll - 2798 students in all followed three successive years of growth averaging around 6% a year.

Although international enrolments have declined this year, we are still on track to enrol our second largest number of international students.

Another fact that has received little attention in recent reports is that the University of Otago has the third-highest percentage of international students of New Zealand universities, and also earns the third-highest amount in international tuition fee income.

While it is true that we have a "cap" on international student numbers of 12% of the total student body, it is also true that we have never declined an application on the basis of that cap. In practice, the cap operates more as a guide than a quota, and can be adjusted at the University Council's discretion.

Indeed, in light of current Government ambitions to maximise the economic benefit that New Zealand earns from export education, and in recognition of ongoing financial constraints and limited opportunities to increase its funding, the University has been reviewing that 12% figure.

Some weeks ago, well before the recent flurry of comment, senior management agreed that a recommendation to raise the cap to 15% be made to the council.

Why do we have a cap on international enrolments and why has the number been set at 12%?

In the early years of this century, New Zealand's popularity as a study destination soared, partly in response to comparatively relaxed immigration and admission requirements. In particular, the number of Chinese students studying in New Zealand was at an all-time high, and hence this period is often referred to as the "Chinese bubble".

Unfortunately, following the collapse of a number of private providers that had sprung up to take advantage of this opportunity, the bubble burst, and New Zealand's reputation suffered significantly.

One clear lesson was that there are risks associated with export education. These include both the obvious financial risk (through over-reliance on an income source that can be turned off due to factors beyond an institution's control) and also the reputational risk that can result from bad student experiences.

To deal with some of these issues, responsible providers examined their own practices and strategies.

Otago's considerations included the number of international students that could be effectively integrated into its programmes and the wider community, remembering that Dunedin itself already plays host to a large influx of "out-of-town" New Zealand students, and that we are determined the presence of international students enriches the educational experience of all.

Hence the 12% cap, which came into force in 2003 (replacing the previous 10% cap) and with an accompanying requirement that no more than 25% of international students come from any one country, was born.

Under this capped system, Otago's international roll has more than doubled over the past decade, from 1235 students in 2001, to 2798 in 2011. It is interesting to observe that Otago's level of achievement - with caps and diversification strategies in place - has delivered almost exactly the quantum of growth over the past decade that Government is now seeking from export education over the next 15 years.

International growth has, inevitably, been lumpy in nature. But the manner in which Otago has approached such growth has enabled it to weather the two major storms of the past decade - the bursting of the Chinese bubble and the global economic crisis - better than most.

Our international student cohort is more diverse than before, whether measured by the number of countries represented (more than 100 in 2011), or the spread of international students across subject areas and between undergraduate and postgraduate study.

New Zealand universities now rate among the best in the world in terms of the experience that international students have, and Otago leads New Zealand on many of those indicators (source: International Student Barometer 2011/12).

We also have a strong alumni network around the world - more than 17,850 of our total 85,773 alumni live outside of New Zealand - and they express a positive commitment to both New Zealand as a country and the institution in which they studied.

The value of that word-of-mouth publicity and willingness to recommend New Zealand as a place to study cannot be underestimated. This is especially so as many other countries and institutions respond to funding constraints and economic issues similar to our own with ambitious targets around the recruitment of international students.

Many rivals can offer a quality education that is closer, both geographically and culturally, to students looking to study abroad. The so-called tyranny of distance is not the only challenge faced in recruiting students. Like all exporters, we also face the challenge of increasing our share of the international student market when the New Zealand dollar is at a high, and many parts of the world are facing the ongoing impact of the global financial crisis.

In the past, New Zealand was perceived, and indeed marketed, as a relatively cheap place to study. No longer being able to rely on that competitive advantage means we need to be even more strategic around both our recruitment of, and reliance on, international students and the income they bring.

What can we as an institution do to respond to both the targets in the minister's leadership statement on international education and our own goals and ambitions?

Increasing the cap from 12% to 15% would give Otago scope to increase its international student roll by more than 500 students. At the same time, it is vital that every student who comes here continues to feel welcomed and valued, and is not just seen as a cash cow.

International students add vibrancy and colour to our communities, as well as helping domestic students learn more about the world.

A quality education system and a welcoming environment are not enough on their own. We need to reconsider what programmes we offer, and it is encouraging to see significant moves have been made in recent months on course-work masters' degrees, an area where New Zealand lags behind competitors such as Australia and the UK. These changes should be welcomed both by international and domestic students seeking alternatives to traditional thesis-based programmes.

Far from ignoring or, indeed, being "anti" recruiting international students - as has been claimed - the University of Otago is fully committed to meeting and stretching its own targets in this area, and working with other New Zealand universities towards achieving national objectives.