UK business schools loose out due to visa rules

UK visa policy has deterred international business students and caused an 8.6 per cent decline in non-EU intake last year, according to a report published today by the Chartered Association of Business Schools (CABS) which also highlights the integral role of agent-based recruitment in the sector. ?xml:namespace prefix = "o" ns = "urn:schemas-microsoft-com:office:office" /

The report, UK Business Schools and International Student Recruitment: Trends, challenges and the case for change, is based on data from the Higher Education Statistics Agency (HESA) and a survey of 44 members of CABS, which represents business colleges at UK universities. ?xml:namespace prefix = "o" ns = "urn:schemas-microsoft-com:office:office" /

Using HESA data, the authors said the number of first-year non-EU students on business and administration programmes in the UK declined 8.6 per cent to 60,190, the lowest level since 2009/10.

The overall number of non-EU students on business and administration degrees fell by 4.2 per cent to 101,160, the smallest total in the last five years.

Business and administration courses account for one third of all non-EU higher education students in the UK, CABS said, adding that business schools are net contributors to university finances.

Professor Simon Collinson, Chair of CABS, said, "In 2014/15, we experienced the sharpest decline of international students starting degree programmes in UK business schools. This report shows how this is damaging, not just for the business schools and the universities that rely on their income, but in terms of the jobs and communities beyond our universities that are supported by the income from international students."

The survey of CABS members showed that 90 per cent definitely agreed or mostly agreed that changes to post-study work availability had had a negative impact on recruitment, and an equal number agreed that reporting of government policy had had a similar effect.

Furthermore, 80 per cent of participating institutions stated that processing of visa applications by UK authorities had damaged recruitment, and more than two-thirds believed that support for business schools by government in other countries had made them more attractive to international students.

"Although our business schools remain competitive and our universities are amongst the best in the world, international students are choosing other countries for their education because our immigration regulations make this country difficult, or unattractive, to enter," said Professor Collinson.

The authors said that the drop of intake last year equated to a loss of UK£135.5 million (US$192.5 million) for universities and their local economies.

On top of the immediate loss of income, Professor Collinson commented that, "Not only are we turning away investment, we are turning away international talent. These skilled entrepreneurial and globally mobile students are the leaders of tomorrow and the UK's immigration policies should be designed to attract them so that our universities and our economy can benefit from the diversity and added value they bring."

Highlighting the volatility in the market, 15 institutions profiled selected China as one of the top three countries with the largest declines over the last three years, and an equal number cited India in the top three. Across all respondents, 21 countries were identified in the top three for declining numbers.

In a special StudyTravel Magazine report in 2014, Dr. Paul Chellakumar, Patron of Indian agency association AAAOE outlined the damage that the loss of PSW caused for UK recruitment of Indian students.

When asked to cite which country was the main competitor to the UK in recruiting international students for business programmes, 27 per cent selected the USA, followed by Australia (25 per cent) and Canada (15 per cent).

With regards to usage of agents by UK business schools, almost three quarters of schools definitely agreed or mostly agreed that 'agents have played an increasingly important role in helping us recruit international students'.

In other areas of recruitment, almost 80 per cent said that business schools were dependent on the effectiveness of central university marketing for international recruitment. A similar percentage agreed that partnerships with other institutions, including 2+2 or 3+1 programmes, were important sources of international students; and almost half concurred that partnerships with private providers, such as pathway colleges, brought a strong pipeline of students.

Nicola Dandridge, Chief Executive of Universities UK, said recent recruitment figures in the UK were in contrast to global demand for overseas education and growth in competitor countries.

"International students and staff make an enormous contribution to the UK, academically, culturally and economically. If the UK wants to fulfil its potential in this growth area, it must present a welcoming climate for genuine international students and academics and ensure that visa and immigration rules are proportionate and communicated appropriately."

The full report is available on the CABS website.

By Matthew Knott

News Editor