The increases, approved by the University Council yesterday, range from 2.9% for dental students to 5% for education courses, and average 4.3%.
Fees for about 40 students still paying their fees in US dollars, and for another group of undergraduate medical, dental and education students already partway through their studies, will increase by 5%.
In dollar terms, international students will be paying around $16,200 a year for arts courses, $16,800 for education courses, $20,000 to $23,000 for science courses and $28,000 for postgraduate studies.
A student entering medical school will pay $51,300 and beginning dental students $65,100.
The increases are much more modest than last year, when fees for new medical and dental students were bumped up by between 12.8% and 33.1% to reflect the true cost of offering those programmes.
Most of this year's increases were made to bring Otago's fees into line with other New Zealand universities, academic vice-chancellor Prof Gareth Jones said at yesterday's meeting.
A table of fees showed Otago's 2009 fees would still be the same as, or less than, charges set by comparable institutions.
Like other New Zealand universities, Otago's foreign student enrolments were declining, he said.
Statistics to the end of March showed a 14.9% decline in numbers, with total full-time equivalent numbers falling to just below 2000 levels.
The decline in first-year international enrolments was 9.4%.
Prof Jones said there was no evidence the level of fees was a significant factor in international students deciding to come to New Zealand.
Otago University Students Association president Simon Wilson, who sits on the council, said the fee increases would result in an education student paying an additional $800 a year.
"Have costs risen by $800? . . . Our approach is based around full cost recovery so that international students are not being subsidised by domestic students."
Fee setting was always a judgement call based on many factors, Prof Jones replied.
The major factor in deciding Otago's increases was Otago's fee relativity with other universities.
The council approved the fee increases, with Mr Wilson and fellow student representative Matt Tucker voting against.