Dwindling numbers of international students have cost the University of Otago almost $40 million of expected revenue since the Covid-19 pandemic began, causing ongoing budget cutbacks.
While the university expects some bounce-back in numbers next year, vice-chancellor Prof David Murdoch said it would take several years for the figure to approach pre-Covid levels.
The loss of international student fees had caused "significant impact", he said.
In 2019, the university had 1733 full-fee paying equivalent full-time international students.
Numbers have fallen each year since then; this year was the lowest yet at 858.
New Zealand’s borders had only reopened recently, and it had been too late to have a positive impact on international enrolments in 2022, Prof Murdoch said.
There were steps those wishing to gain entry to the country needed to take, and these took time.
"Immigration New Zealand ... conditions have changed significantly since borders were closed in 2020 and this has made it challenging to support new and current offshore students who are trying to get to New Zealand to study."
About 13% of students were international students in 2019, slightly below the university’s 15% cap.
"In recent years we have missed the vibrancy, diversity and energy that comes with having a significant international student cohort on campus," Prof Murdoch said.
However, the university had maintained a "reasonable number" of offshore international students by providing online options.
"Many of these students have started transitioning to campus since offshore student visa processing recommenced on August 1, 2022."
Full-fee international students are charged several times more than those who pay domestic rates.
For example, the university’s 2022 domestic and international tuition fees document shows the domestic fee to take the first-year paper principles of accounting is $888, the international fee is $5066.
"While our historic prudency in capping international numbers has insulated us from a more severe impact, the cumulative impact since Covid struck is close to $40 million.
"This obviously has a significant impact on the university and its planning for the future."
Since 2020, the university had implemented a range of measures to reduce expenditure, he said.
This included "significant" restrictions on work-related travel and a revised capital works programme.
A voluntary redundancy programme was undertaken in 2021, considered the fairest way to manage the challenging financial situation.
By January of this year, 103 redundancy applications had been accepted under the scheme.
All areas of the university had been asked to trim budgets and expenditure this year, and ongoing cost savings were being budgeted for in 2023.
However, the university’s international office has not had any staffing cuts or redundancies.
"We remain committed to supporting our current and new incoming international students."
