NZ Launches Major Push to Grow Global Education Sector to $7.2 Billion by 2034

The New Zealand Government is ramping up efforts to rebuild and expand the country’s international education industry, unveiling new support measures aimed at helping schools attract more overseas students and drive billions of dollars in future economic growth.

Education Minister Erica Stanford today announced new funding for a dedicated support function designed to strengthen schools’ capability to recruit, support and manage international students as part of the Government’s broader “Going for Growth” economic strategy.

The initiative comes as international student enrolments continue recovering strongly following the severe disruption caused by the COVID-19 pandemic.

Government Targets Doubling International Education Sector

The Government says international education remains a critical export industry and has set an ambitious target of doubling the sector’s economic value to:

• $7.2 billion by 2034

According to Stanford, the recovery is already gaining momentum.

“Through the Government’s Going for Growth plan, we are focused on doubling the sector’s value to $7.2 billion by 2034. We are already well on our way with enrolments growing 11 per cent in 2025,” she said.

Before the pandemic, international education was one of New Zealand’s largest export sectors, contributing billions annually through:

• Tuition fees

• Accommodation

• Tourism spending

• Local economic activity

The border closures during COVID-19 caused a dramatic collapse in enrolments, placing financial strain on schools, tertiary institutions and local communities dependent on international students.

New Specialist Support System for Schools

Under the new initiative, the Government will fund a specialised support service delivered by an external organisation selected through a competitive tender process.

The chosen provider is expected to offer expertise in:

• International student recruitment

• Marketing support

• Homestay coordination

• Compliance guidance

• Student wellbeing systems

• School capability building

The service is intended to support both:

• Schools already hosting international students

• Schools seeking to enter the international education market for the first time

“Today’s commitment will see specialist support provided by a tendered organisation with deep knowledge and experience in school-based international education,” Stanford said.

Focus on Student Welfare and Quality Assurance

Officials say the programme will place strong emphasis on ensuring schools understand their obligations around:

• Student safety

• Wellbeing

• Accommodation standards

• Pastoral care responsibilities

The Government says maintaining New Zealand’s international reputation as a safe, high-quality education destination remains essential to sustaining long-term sector growth.

The support package will include resources to help schools:

• Navigate regulatory requirements

• Improve international student experiences

• Develop sustainable programmes

• Strengthen operational systems

“This will support schools with marketing, resourcing, finding homestays, and with resources to understand their obligations to ensure student wellbeing and safety,” Stanford said.

Recovery in International Enrolments Accelerating

The Government says school-level international enrolments have continued recovering steadily throughout 2025, approaching pre-pandemic levels.

Analysts say rising enrolments reflect:

• Reopened borders

• Strong demand from Asian markets

• New Zealand’s international education reputation

• Increased global mobility

Competition for international students, however, remains intense globally as countries including:

• Australia

• Canada

• the United Kingdom

• the United States

all continue expanding recruitment efforts.

Officials believe additional support for schools could help New Zealand remain competitive while ensuring growth remains manageable and high quality.

“The sector has already made strong progress in 2025, with school enrolments continuing to recover toward pre-pandemic levels,” Stanford said.

“This investment will help schools build on that momentum and grow their international programmes with confidence.”

Economic Importance of International Students

International students generate significant economic spillover effects beyond education institutions themselves.

The sector supports:

• Local businesses

• Tourism operators

• Accommodation providers

• Retail activity

• Employment in regional communities

Many smaller schools also rely on international student fees to help fund:

• Specialist programmes

• Staffing

• Infrastructure improvements

• Educational resources

The Government says strengthening school participation in international education can contribute to broader economic growth while diversifying school revenue streams.

“International education is a large contributor to New Zealand’s economy,” Stanford said.

“Enabling schools to support more international students will allow this economic growth to continue in a way that is high quality and sustainable.”

Tender Process Opens Later This Year

The Government confirmed the tender for the new support service will be released through the Government Electronic Tender Service (GETS) by the end of June 2026.

Officials expect the selected organisation to work closely with schools nationwide to strengthen international education capability and improve coordination across the sector.

Education Sector Seen as Key Export Growth Area

The announcement reflects the Government’s broader strategy of positioning international education as a major long-term export growth industry alongside tourism, technology and primary exports.

Industry experts say successful recovery will depend not only on increasing student numbers but also on:

• Maintaining educational quality

• Protecting student welfare

• Ensuring sustainable growth

• Managing housing and infrastructure pressures

New Zealand’s education system has historically marketed itself internationally based on:

• Safety

• Academic quality

• Lifestyle appeal

• English-language learning opportunities

The Government hopes stronger institutional support and coordinated sector development will help New Zealand capture growing global demand for international education over the next decade.