Following a remarkable post-Covid recovery, New Zealand is set to fully recover its international student numbers to pre-pandemic levels by 2025. The resurgence is driven by affordability and high-quality student experiences. And while the surge in applications has presented challenges for universities, it reveals the country’s growing appeal as a top global study destination.
Rebound amid challenges
New Zealand has experienced a robust recovery in international student enrolments. Overseas commencements are expected to match or exceed pre-pandemic levels by 2024 or 2025. Over 16,000 first-time student visas were approved between January and August 2024. This marks an 8% increase from the same period in 2023.
This recovery follows a steep Covid-era decline, wherein enrolments fell from over 115,000 in 2019 to 40,000 in 2022. By 2023, enrolments had rebounded to nearly 70,000, with full recovery expected soon. Industry leaders note that universities are facing challenges to manage this growth due to limited resources for processing applications, which was also aggravated by financial pressures from the pandemic.
Sector-by-sector growth
Higher education has been the cornerstone of New Zealand’s recovery, with enrolment at 86% of pre-pandemic levels. Other sectors are also catching up. Schools have achieved a 60% recovery, private training establishments (PTEs) 58%, vocational education providers (Te Pūkenga) 52% and English-language programs 33%.
Pathway programs are showing promise as well. Growth in schools and vocational institutions suggest that universities will benefit from a steady pipeline of future students.
Notable growth was also seen in key markets. Geographically, China and Japan have reported modest growth in student numbers. Meanwhile, India and the United States, two of New Zealand’s key markets, have posted stronger gains. Visa approvals from Germany rose by 24%, Sri Lanka by 42% and Nepal by an extraordinary 94%.
Affordability and appeal as top study destination
New Zealand’s affordability remains a significant draw for international students. Undergraduate degrees are, on average, 12% less expensive than some other study destinations, while taught postgraduate courses cost 27% less.
Beyond cost, New Zealand’s natural beauty, welcoming people and high-quality institutions contribute to its status as a “magnificent study destination,” according to industry leaders. Students also praise their living experiences and the connections they build while studying in the country, with 86% of international students rating their experience positively.
Recovery rooted in value and its key drivers
While affordability and positive student satisfaction are central to New Zealand’s appeal, industry leaders emphasised that the country’s recovery is driven by its unique strengths. These include a variety of undergraduate and postgraduate enrolments and its competitive fee structure.
They reminded New Zealand to also prepare for increased competition from different study destinations as well during transnational education activities. Australian institutions are expanding offshore programs. Simultaneously, New Zealand is also developing its study-abroad recruitment efforts—a key part of its international education strategy.
Future outlook
New Zealand’s government aims to grow the international education sector to $4.4 billion by 2027. Achieving this goal will require not only maintaining the current momentum but also addressing challenges. These include resource shortages in universities and underutilisation of agents.
The challenges faced during the pandemic remain a reminder of the sector’s resilience. Universities, in particular, bore the brunt of closures and financial difficulties but have managed to rebound significantly by highlighting New Zealand’s distinct value proposition to international students.
Opportunity for agent engagement
An exciting opportunity for growth lies in enhancing engagement with education agents. Currently, 45% of international students in New Zealand use agents, compared to 73% in Australia. This puts priority for institutions to expand their recruitment reach by building stronger relationships with agents and leveraging their networks more effectively.
To stay updated on further industry insights and updates in New Zealand and other major study destinations, please visit our blog or contact our business development experts for more information.
