New Zealand has followed in its neighbour’s footsteps by doubling visa fees for overseas students from NZ$375 (£177) to NZ$750, as part of sweeping increases affecting most visa categories.

Immigration minister Erica Stanford  the fee hikes would make the visa system “self-funding and more efficient”, saving her government some NZ$563 million over the next four years.

“Until now, our immigration system has been heavily subsidised by taxpayers. The changes we’re making are shifting the cost to those benefiting from the system,” she said.

The new fees, which apply from 1 October, include a hike in the costs of post-study work visas from NZ$700 to NZ$1,670.

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The changes are a rare black spot in an industry which has enjoyed a relatively benign policy environment in the aftermath of the coronavirus pandemic. New Zealand reopened its borders much later than its competitor countries, avoiding the surge of student arrivals and subsequent government crackdowns experienced in Australia, Britain and Canada.

New Zealand universities’ overseas enrolments swelled by 21 per cent last year to more than 29,000, and a survey in May and June this year found that satisfaction levels were rising among foreign students. Education New Zealand, the government’s promotional body for international education, has announced its aspiration to double the sector’s economic contribution to NZ$4.4 billion by 2027.

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���ܲ��ٰ�����������more than doubled its student visa fees to A$1,600 (£825) in changes announced without warning on 1 July. Unlike its trans-Tasman cousin, New Zealand’s increase was part of a wholesale overhaul of its fee schedule and the government gave almost two months’ notice of the change, which still leaves student visa charges lower than Australia’s even before last month’s hike.

New Zealand’s new student visa fee charge will also compare favourably to the £490 charged in the UK, but will be significantly higher than the current costs of C$150 (£86) in Canada and $185 (£145) in the US.

Christchurch-based immigration lawyer Michael Yoon  the government was portraying the October fee rise as “a necessary evil” to cover the costs of processing, compliance and risk management. “It’s hard not to feel like this is just another cash grab dressed up as fiscal responsibility, [but] our immigration system is in desperate need of an upgrade,” he said.

“Despite the hike in fees, we’re told visa processing times won’t be affected. Separate work is supposedly under way to boost online services and overall efficiency. We’ll see about that. Promises like these have a way of slipping through the cracks.”

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Tertiary education minister Penny Simmonds told a Wellington conference on 7 August that her government was “committed to the revitalisation and growth” of international education in New Zealand. “There will always be challenges to overcome,” she conceded.

Ms Simmonds said the processing of some student visas last summer had taken “longer than expected” and Immigration New Zealand had a “plan in place” for processing student visa applications in the upcoming peak period. 

john.ross@timeshighereducation.com