TTF warns proposed student caps will have serious impact on Australia’s tourism industry

Following announcements from the Coalition Government on proposed caps to international student numbers - alongside increasing visa fees - the Tourism & Transport Forum (TTF) is sounding the alarm on proposed student caps, warning they will have serious consequences for Australia’s tourism industry and broader economy.

TTF Chief Executive Margy Osmond stresses the Coalition’s plan to cut international student numbers will hinder visitor spending, worsen skills shortages, and hurt Australia’s global competitiveness. 

Osmond notes “the tourism industry has been working overtime to return visitor numbers to pre-pandemic standards. These caps will mark a significant backwards step. We continue to be in one of the most competitive global tourism markets ever seen, and any cap will jeopardise Australia’s ability to compete on the global stage.”

TTF warns that the caps will create more obstacles and discourage long-term visitation, particularly considering that student rates still fall below that of pre-COVID levels. According to the Australian Bureau of Statistics, January 2025 recorded 10.4% less international students than 2019.

Osmond added “International students and their families are some of Australia’s highest spending travellers. As the cost of living continues to increase, these visitors are more important than ever to help support the tourism industry and the Australian economy.”

Osmond also remarked that international students are critical to fill Australia’s skill and labour shortages, particularly in sectors like hospitality and healthcare.

“Students fill 250,000 jobs across the country, working while studying and alleviating skills shortages. It cannot be overlooked how critically important international students are to the Australian landscape. From tourism spend to filling labour gaps, we must consider the long-term impacts of these caps to industry and the economy.”

Universities Australia has also warned that the Coalition’s proposed cuts to international student numbers - alongside increasing visa fees - would damage the economy and Australia’s global reputation, without solving the housing crisis.

“International students contribute over $50 billion to the economy and support more than 250,000 jobs across the country,” said Universities Australia Chief Executive Luke Sheehy.

“Slashing student numbers by tens of thousands would take a sledgehammer to one of the nation’s biggest income generators.

“We urge all parties to base policy on facts, not finger pointing. We’re ready to work constructively on real solutions, but cuts like these will only harm the nation’s prosperity at a time we can least afford it.

“Australia’s world-class education system has taken decades to build and only moments to unravel. Once students go elsewhere, it’s incredibly hard to bring them back.

“We’re ready to work constructively on real solutions – but cuts like these will only hurt the nation’s prosperity at a time when we need to be investing in our future.”