Adelaide’s International Education Landscape
Amid mounting public pressure induced by the housing crisis and stagnant economic growth, Australian government introduced acap on new international student enrolments setting the limit at 275,000 a year. On paper, this policy aims to address affordability concerns, however, it has raised serious concerns about the impact it will have on Adelaide’s education sector.
In 2023 alone, international education accounted for over $3.152 billion, with over 54,000 international students enrolled, making it one of the topmost export of South Australia.
The crackdown has already significantly reduced the number of international students throughout Australia resulting in reduced revenue for universities and educational institutions.

Impact on Education
With fewer international students, educational institutions have resorted to mitigation strategies like budget cuts, reduced course offerings, staff layovers and an increased switch to online class offerings. While not the sole reason, recent merger of University of South Australia with the University of Adelaide can also be attributed to this.
Impact on Local Economy
International students contribute significantly to Adelaide’s local economy through spending on accommodation, food, transportation and other services, in addition to paying higher tuition fees. Decrease in the number of international students could lead to reduced economy sectors that rely on their patronage.
More importantly, international students constitute the majority workers in the hospitality and Age care sector. Hospo sectors, in particular, have expressed serious concerns relating to this.
Potential Decline in Cultural Diversity
Australia prides itself on being a multicultural nation. International students bring cultural diversity to Adelaide, enriching the societal fabric of Adelaide. A drastic reduction in their numbers could lead to a less diverse and vibrant community affecting the cultural exchange and global perspectives that international students offer.
That said, as educational institutions continue to grapple with such drastic immigration changes, they could and should consider adopting the following mitigation strategies:
- Diversifying Revenue Sources: Institutions can seek alternative revenue strategies such as focus on increasing domestic student enrolments, offering online courses and expanding research partnerships.
- Strengthening industry Partnerships: Collaborating with industries to offer programs such as offering integrated learning opportunities , creating job ready programs, hosting annual job fairs in partnerships with local and corporate industry partners could enhance the attractiveness driving domestic enrolments.
- Advocating for Policy Adjustments: The disparity in the amount of tuition international students pay versus the domestic students and the institution’s reliance on these tuition fees means that ultimately even significant uptick in domestic student enrolment could still prove to be utterly insufficient. Therefore, educational institutions need to collectively advocate for adjustments to the international student cap or seek significant government subsidy/funding to balance the needs of the education sector with national priorities.
Conclusion
While the immigration crackdown seeks to address migration and housing concerns, the policy seems to have been implemented to mitigate and deviate the public pressure. International education accounts for a significant portion of Australia’s GDP and the crackdown’s impact will be felt multi-fold in regional centres like South Australia. The potential decline could, thus, have far-reaching and unintended effects on educational institutions, local economy and cultural diversity. Unchecked migration especially large influx of non-genuine international students and educational institutions have led to this situation. Therefore, effective resolution requires the government to engage in dialogue with the concerned stakeholders in order to navigate these challenges while ensuring the continues success of Adelaide’s education sector.