New Zealand: How Policy Change Can Lead to Opportunity

Aotearoa New Zealand is a growing destination market. It is home to eight universities, as well as 25 Te Pūkenga (polytechnic and industry training institutions), and almost 400 private training establishments. It also hasn’t been impacted by sudden, disruptive policy changes like other Anglophone destinations abroad. However, New Zealand still faces challenges of its own. Its international education sector is still rebounding from the effects of the global pandemic, and it continues to struggle with being overshadowed by larger competitor markets, particularly nearby Australia.

Unlike Australia, however, New Zealand has seen few recent policy changes which could disrupt its international education sector rebound. So, how can New Zealand capitalise on current events, regain its pre-pandemic student intake volume, and chart a sustainable trajectory for further growth? In this article, we will use insights from those involved in New Zealand’s international education sector, as well as data from recent IDP research reports to explore how ‘The Land of the Long White Cloud’ can maximise its future growth.

According to research that IDP conducted in August 2023 (Emerging Futures 4), roughly 19% of all survey respondents said they considered New Zealand as a study destination. Unsurprisingly, almost 50% said the same for Australia, a much larger destination market.

That said, students who chose New Zealand as their first-choice study destination ranked it highly for student satisfaction. On a scale of 1-10, New Zealand had an average rating of 7.4, with just under 75% of respondents rating it 7 or above.

Respondents also highly rated their confidence in gaining post-graduation employment in New Zealand, with an average score of 8.0, as well as their overall learning experience and the value of their learning, with an average score of 7.6.

Further research conducted by IDP in March 2024 (Emerging Futures 5) gave similar results. Like EF4, 19% of EF5 respondents said they considered, or were considering New Zealand as a study destination. However, there was still a slight regression from the previous study. When it came to student satisfaction, 65% of respondents who chose New Zealand as their first-choice destination ranked it at 7 or above, with 6.9 being the average score.

When it came to Australia, EF5 respondents who chose it as their first-choice destination gave it an average satisfaction rating of 7.3, while the number of respondents who considered/were considering it as a destination was roughly the same as the preceding survey, at 49%. While this mightn't seem a cause for concern for Australia, the number of respondents who were considering it specifically as their first-choice destination actually dropped from 46% in EF4 to roughly 42% in EF5, placing Australia behind the USA. So, what cause this dip?

In December 2023, the Australian Government released a Migration Strategy in which the duration of the post-study work visa was reduced, and uncapped working hours for international students were scrapped. Judging by EF5 results, these announcements may have impacted Australia’s attractiveness to prospective students.

Since EF5, the Australian Government has announced further policy changes, including revising the age limit for graduate visa applicants from 50 to 35 years old, a 21% increase on the minimum savings requirement for student visas, and a 125% increase in the student visa application fee. Considering the competition between Australia and New Zealand in the APAC region, this all fares well for New Zealand, which currently has no age limit on its post-study work visa, has a visa minimum savings requirement that is $10,000 cheaper than that of Australia, and has a student visa application fee that is roughly a quarter of the cost of Australia’s.

“At this stage it is hard to judge if this will result in applications, but we’re certainly optimistic that as students look closely at what we have to offer they will make enquiries with New Zealand providers,” said Education New Zealand Manapou ki te Ao (ENZ) spokesperson Geoff Bilbrough.

According to data from IDP’s APAC Pulse Survey conducted in June this year, such optimism may be warranted. When asked if the lower cost of New Zealand’s student visa compared with that of Australia’s influenced their choice of where to study, 40% of respondents said it was either or medium or high influence (6 or above).

Furthermore, roughly 67% of prospective students said New Zealand’s recent expansion of its Green List (priority skills and occupations list) was highly influential to their study abroad plans.

Similarly, when asked if the New Zealand Skilled Migrant Category (SMC) no longer offering bonus points for studying in New Zealand influenced their decision to remain, most (just under 56%) said it didn’t.

The above results show potential increasing interest in New Zealand as a study destination. When it comes to Vietnamese students, IDP Vietnam Destination Manager, Phuong Truong, says New Zealand is indeed a growing destination market.

“This is due to its high-quality education system, favourable living conditions, and post-graduate work opportunities, especially as other countries tighten their student visa rules,” she explained.

IDP Director – Australia & New Zealand (South Asia), Pratibha Sen echoed this, adding that New Zealand was an attractive destination for many students from India because of its natural beauty and its reputation as a safe country.

Ms Sen said there was still room for improvement though. More aggressive promotion of their institutions is needed, as well as increased promotion of New Zealand’s student lifestyle, post-study career opportunities, student success stories, and scholarship options.

Ms Truong agreed that awareness of New Zealand remained relatively low compared with other markets.

“Targeted marketing strategies are essential. These include enhanced digital campaigns, active participation in local education fairs, offering more scholarships, and showcasing success stories of Vietnamese students who have thrived in New Zealand. Such efforts could significantly boost interest and enrolment,” she explained.

Geoff Bilbrough of ENZ agreed that it was important to highlight New Zealand’s non-educational benefits, particularly those relating to the current cost of living situation, a lingering concern for many international students.

“The expectation of interest rate cuts later this year, and to some extent the state of China’s economy (as our major trading partner the value of our currency is linked to China’s outlook) have seen the New Zealand dollar drop in value against the world’s major currencies,” he explained.

“While this doesn’t address all the cost-of-living challenges, and we know some markets are cost-conscious, it will help.”

According to Mr Bilbrough, New Zealand’s international education sector is “growing and prospering”.

“In 2023 international student enrolments topped 60,000 with all sectors experiencing growth. Given we have only had one full academic year since our borders reopened this is a significant achievement,” he added.

Kiwis themselves seem particularly keen for growth. A recent survey of 1100 New Zealanders found 75% believed international students benefited the country. This was a considerable increase from a 2017 survey in which only 57% of respondents believed students benefited their country.

While the challenges of geographical obscurity remain, the aforementioned data shows New Zealand is gradually growing in popularity while competitor markets grapple with policy changes. New Zealand’s expansion of its Green List, as well as its decision to allow accompanying dependents to apply for a Partner of Student Work Visa gives it further, unique advantages.

Adopting tactical marketing campaigns, which showcase the unique advantages of studying in New Zealand – its natural beauty, safety, cheap visa fees, favourable post-study work visa, and high quality education system – could help to capitalise on the current-sector challenges.

For ENZ, the mission is to keep “beating the drum”.

“Our most recent brand campaign, Learn New Every Day, along with the Study With New Zealand website, and the work of our in-market teams are a big part of raising awareness. New Zealand has a great story, and we’re working hard to have more people know it!” Mr Bilbrough said.