International students studying business contribute £2.4bn to the UK economy, but figures published today by the Chartered ABS reveal that numbers are in decline.
Business school leaders say the Government's post-study visa regime is putting off valuable international students and encouraging them to study in other countries.
One third of all international students here are studying in a business school. However, last year’s intake on business courses from outside the EU fell sharply by 8.6% - this poses a risk to universities as business schools' income often subsidises other subjects and faculties which universities run at a loss.
The issue is even more acute on postgraduate taught programmes, such as the MBA, where 52% of students are international. These talented students help to create a diverse global experience on campus and as future entrepreneurs and business leaders they provide immeasurable value to the UK.
Business and administration courses are hugely popular in the UK, business schools teach nearly one-fifth of all university students. The UK has excellent business schools, with 15 ranked in the world’s top 100 by the FT Global MBA rankings.
Professor Simon Collinson, the chair of the Chartered Association of Business Schools. said the Government's immigration policies were making the UK "difficult" and "unattractive" for international students.
“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.”
One business school dean said the UK had "become less attractive than the US, Canada or Australia - this is largely the consequence of post-study work visa issues.”
Another commented that “increased forecasts for student recruitment to the UK is la la land.”
The report has also received support from key university and business bodies including Universities UK and the CBI.
The CBI's director of employment, skills and public services, Neil Carberry said: “Educating the world’s top talent is a growth opportunity for the UK that we must capitalise on. Encouraging international students to study at our leading business schools and universities has benefits for local economies and in building our global links.
"It is also in our national interest to encourage the brightest and best to stay and work here where they have skills that are not readily available within the domestic labour market. We must ensure we harness the strengths of international students, including by developing a robust visa system which is not a barrier to studying at our great business schools.”
The chief executive of Universities UK, Nicola Dandridge, said the decline in numbers has "not done justice to the world-class reputation of the UK’s universities and business schools".
She called on ministers to present a "welcoming climate for genuine international students and academics and ensure that visa and immigration rules are proportionate and communicated appropriately”.