The Ambitious 'Going for Growth' Plan Unveiled
New Zealand's government launched the International Education: Going for Growth plan in July 2025, setting a bold vision to transform the sector into a key economic pillar. This strategy aims to double the export revenue from international education from NZ$3.6 billion in 2024 to NZ$7.2 billion by 2034. To achieve this, international student enrolments are targeted to rise from 83,400 in 2024 to 105,000 by 2027 and 119,000 by 2034, with a strong emphasis on high-value programmes at universities and polytechnics. The plan positions New Zealand as a premier destination for quality education, leveraging its safe environment, innovative teaching, and post-study opportunities to attract genuine students worldwide.
Central to the initiative is a Government Policy Statement committing to stable, predictable settings for sustainable growth. This includes promoting New Zealand's collective higher education offerings through collaborations with the eight public universities, such as the University of Auckland and University of Otago. By focusing on master's and doctoral levels, where enrolments have surged 68% from 2023 to 2024, the strategy seeks higher revenue per student while enhancing research and global connections.
For universities, this growth is vital amid domestic funding pressures. International fees, which totalled around NZ$1 billion last year, subsidise research and infrastructure that benefit all students. Explore opportunities in university jobs as institutions gear up for expansion.
Recent Surge in University Enrolments Signals Strong Momentum
International student numbers in New Zealand universities have rebounded impressively post-COVID. From January to August 2025, universities enrolled 36,045 international students, a 15% increase over the same period in 2024. Overall sector enrolments hit 83,535 in the same timeframe, up 14%, pushing full-year 2025 figures beyond 85,000 and approaching pre-pandemic peaks of 131,800 in 2016. Master's programmes led the charge, with 14,695 students in 2024 alone.
China remains the top source market at 35% of enrolments, followed by India at 14%, but diversification efforts are gaining traction with growth from Southeast Asia and Europe. Universities like the University of Auckland, hosting the largest share, report vibrant campuses enriched by global perspectives, boosting research collaborations and cultural exchange. As enrolments climb into 2026, early indicators suggest continued upward trends, with public support at 77% favouring more or stable numbers.
This momentum underscores New Zealand's appeal, but sustained growth hinges on addressing capacity. Prospective students can check professor ratings on Rate My Professor to select top programmes.
Economic Impact: A $4.5 Billion Boost Powering University Finances
International education contributed NZ$4.52 billion to exports in the year ended September 2025, ranking among New Zealand's top 10 exports and comprising 13.6% of services exports. For universities, this translates to critical revenue streams funding scholarships, facilities, and faculty hires. Foreign students' spending on tuition, living costs, and leisure adds $3-4 billion annually, generating GST and income tax while supporting local jobs.
Amid Budget 2025 cuts of $45 million to university research funding and no new Endeavour Fund grants for 2026, international fees provide a lifeline. Institutions are investing in high-demand fields like AI, engineering, and health sciences to attract premium-paying postgraduates. This economic multiplier effect strengthens university resilience, but over-reliance risks exposure to market fluctuations. Career seekers in higher ed can find roles via higher ed jobs.
Download the full Going for Growth Plan (PDF) for detailed economic projections.
🚀 Key Strategies to Fuel University-Led Expansion
The plan outlines multifaceted actions tailored for higher education. Expanded in-study work rights to 25 hours weekly (from 20) help students manage costs, while new 6-month post-study work visas for sub-degree graduates bridge to employer-sponsored roles. Streamlined visas, including multi-year options for pathway programmes, reduce barriers.
- Global branding campaigns highlighting NZ's quality providers and student experiences.
- AI-driven platforms for 24/7 student support and agent training networks.
- Tailored market plans for priority countries and subsectors like university postgrad.
- Quality assurance monitoring to maintain high standards.
Universities are diversifying delivery via transnational education (TNE) and online hybrids, partnering with overseas institutions. These steps aim to build sector capability and capacity proactively.
Housing Shortages: The Primary Capacity Constraint
University towns face acute accommodation pressures. In Dunedin (University of Otago), median rents rose 12% mid-2025 despite more listings, driven by student demand. Auckland, Wellington, and Christchurch report similar strains, with cold, damp rentals exacerbating health issues and academic performance. One bed per 33 students in some areas highlights shortages.
Government plans monitor rentals and align growth with local capacity, but experts urge faster purpose-built student accommodation (PBSA) development. Current PBSA market: NZ$2.24B, 24,866 beds for 182k students nationwide. Universities like Otago are expanding halls, but fees ($15k-$30k/year) burden families.
Read career advice on balancing studies and work at how to excel in academia.
Infrastructure and Campus Capacity Under Pressure
Beyond housing, universities grapple with lab space, lecture theatres, and support services for growing cohorts. Rapid postgrad surges strain research facilities, while domestic funding shortfalls limit upgrades. The Tertiary Education Commission (TEC) strategy 2025-2030 prioritises infrastructure aligned with growth, but execution lags.
Lessons from neighbours: Australia's enrolment caps and Canada's 50% permit cuts stemmed infrastructure overload. NZ's plan includes safeguards like graduate outcomes reporting by field, but systematic tracking is nascent. Universities advocate for investment in digital infrastructure for hybrid learning to ease physical limits.
Staffing, Quality, and Declining Rankings Risks
Maintaining teaching excellence requires more academic staff, but visa hurdles and domestic shortages hinder hiring. Universities report faculty vacancies amid intl growth. Quality assurance is ramped up, with transparent rankings vital—NZ's slipping positions in global assessments could deter top students if unaddressed.
Stakeholders stress diversifying beyond China/India to buffer diplomatic risks, as seen pre-pandemic. The India-NZ FTA locks in uncapped Indian visas, amplifying diversification needs.
Stakeholder Perspectives: Balanced Optimism
ENZ CEO Amanda Malu hails steady recovery, with 81% public support for intl contributions. University leaders welcome stable policies but caution on housing. Experts like Infometrics warn of domestic graduate competition from post-study rights. Students praise experiences (87% satisfaction), seeking better living supports.
Infometrics: 'Growth targets easy; protecting housing, labour markets key.' Unis push against levies, fearing enrolment drops.
Photo by jameson wu on Unsplash
Outlook: Sustainable Pathways to 2034 Success
Achieving targets demands integrated action: PBSA investments, infrastructure bonds, staff visas, and market diversification. Guardrails like rental monitoring and outcomes data can prevent Australia/Canada pitfalls. With proactive measures, NZ universities can double revenue, enriching campuses and economy.
Prospective faculty: Check faculty positions. Students: Rate My Professor and career advice. Employers: higher ed jobs and recruitment. Explore NZ unis via NZ education hub.
For more, visit university jobs and post a job.
