The tourism industry fears plans to cap overseas students in Australia will stifle visitor numbers and worsen the skills shortage still hurting the sector, according to the Tourism & Transport Forum (TTF) Australia.

TTF CEO Margy Osmond warned the proposal to limit the number of overseas students allowed to study in Australia would have widespread ramifications for tourism and related industries.

“The Government should take overseas student caps off the table. We are currently in one of the most internationally competitive tourism markets we have ever seen. Any cap will jeopardise Australia’s ability to compete with other leading destinations,” she said.

Ms Osmond emphasized that the number of overseas visitors to Australia was still below 90% of pre-pandemic levels in May, according to the latest figures from the Australian Bureau of Statistics.

“International students help drive inbound tourism. Any cap will only make it harder to return international visitor numbers to pre-pandemic levels and strip billions of dollars from the Australian economy,” she said.

“The industry not only benefits from international students exploring Australia, but visits from their friends and family are also a key driver of inbound tourism, which is especially critical for regional areas across the country.”

Data from Tourism Research Australia shows inbound travellers visiting an international student, relative or friend studying in Australia stayed 23 nights on average in 2019, which was more than double the length of stay compared to the average visitor, and spent more than $1.1 billion in total.

Ms Osmond also warned that international students play a critical role in helping fill the skills shortage impacting the tourism and hospitality sectors.

“A lot of international students work while they study, filling some 250,000 jobs in our economy. Fewer international students, many who have been employed in tourism and hospitality, will no doubt hurt businesses nationwide,” she said.

“If we reduce international student numbers, we must consider what else we are sacrificing and the broader impacts for tourism in the long term.”

ENDS