Amid changing government policy, Michael Anderson asks how universities can diversify their international recruitment, achieve sustainable growth and target emerging markets
Migration flow and the recruitment of international students have played a significant role in shaping the educational landscape and socio-economic makeup of countries across the world. They have contributed to our cultural diversity and fee income for higher education providers.
However, wider policy reform is set to influence the migration flow of international students to the UK from January 2024. Understanding these changes will allow higher education providers to devise effective strategies to attract, recruit, and retain international students.
What is the background?
Since 2018, the number of international students studying in the UK has increased by 45%. In late 2022, international recruitment peaked at 679,000 students, meeting one of the key targets set in the UK government's International Education Strategy.1 This evidenced the UK's reputation as the second most popular destination for higher education behind the USA.
International students should not create a story of immigration, which is often a misleading portrayal in the public consciousness. The UK education sector is a high value British service to overseas customers and is something we should want more of, not look to restrict. It creates jobs and revenue and should be something to be celebrated as it builds a global network of alumni who have emotional and commercial ties to us.
Indeed, the Office for Students (OfS) highlighted the significance of the fee income international students generate. However, a 2023 OfS report also addressed the potential overreliance on the income of overseas student fees as 'a material risk for many types of providers where a sudden decline or interruption to international fees could trigger sustainability concerns'.2
We will undoubtedly see a sharp reduction in applications from the majority of the top ten domiciles in 2024.3 Consequently, we may see a decrease in year-on-year enrolment and fee income conversion. International recruitment will be a highly competitive market, further compounded by the tightening of entry restrictions. The ongoing cost-of-living crisis, and low economic growth, in the UK could see more students from these domiciles making applications for practical reasons to other countries where freedom of movement and other restrictions aren't an issue.
Diversification of international recruitment will only safeguard higher education settings to a point. The rhetoric surrounding migration flow will continue to emerge prior to the upcoming general election, where current policy reform will be coupled with targets on student migration.
How should the risk be managed?
So, what should HE providers be doing to achieve sustainable growth? How can they diversify international recruitment, target emerging markets, and comply with tightening immigration rules?
A survey conducted in February 2023 by Universities UK polled 60 UUK members.4 The results highlight some of the measures institutions are considering to mitigate the risk of what is now a very different landscape for UK universities. Key findings from the report are outlined below.
It will be interesting to see how buoyant the market remains into 2024, and if the UK will retain its reputation as somewhere international students favour.
1. Application process
- 49% of respondents said their university had reformed application processes to reflect different application cycles and 'late' markets.
- Over half of respondents cited multiple, staged application rounds throughout the year as a notable change.
- 50% of respondents said their university had introduced new scholarships to support diversified international recruitment. A further 22% said they were considering doing this.
Other considerations for changes to the application process include:
- adapting Confirmation of Acceptance for Studies (CAS) issuance deadlines
- setting earlier deadlines for high demand courses
- setting deadlines for students' deposit payments
- introducing the ability to close programmes by applications by domicile.
2. Deposit schemes
The diversity of providers in the sector means that deposit schemes differ. However, deposit schemes help to identify how many applicants seriously intend to study at university. Universities that do not require deposits may want to review this practice internally.
- 96% of respondents said their university required deposits from at least some international students.
- 69% said deposits were for undergraduate and postgraduate students.
- 26% said deposits were only required of postgraduate students.
- 20% of those polled set a range of deposit amounts dependent on the student's domicile, level of study, or programme.
- 57% of respondents use pre-CAS interview for select domiciles.
- 67% said their university's deposits are set as a specific amount, ranging from £500 to the full cost of the first-year tuition fee.
- 17% said their university's deposits were set to a percentage of the tuition fee. Almost three quarters of respondents said their university requested 50% of the tuition fee as a deposit for international students.
3. Dependants
The survey also made recommendations for universities to consider changing their processes in response to the 'marked increase in the number of dependents on sponsored study visas over the last few years'.
Conclusions
In a society where people are increasingly mobile, it will be interesting to see how buoyant the market remains into 2024, and if the UK will retain its reputation as somewhere international students favour. The impact on those settings that do not partially rely on international fee income will be minimal. However, any reduction in the ability to market a product will stifle growth targets.
The OfS share a view that the risk of providers closing will be minimal, but it will certainly make it more of challenge for some to diversify their recruitment plans when the continued increase of recruitment from emerging markets seen over the last few years is abruptly restricted by policy.
Notes
- International Education Strategy: 2022 progress update, GOV.UK, 2022.
- Financial sustainability of higher education providers in England 2023 update, Office for Students, 2023.
- Where do HE students come from?, HESA, 2023.
- Diversification and strengthening international recruitment practices, Universities UK, 2023.
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