Cap on foreign student permits costing Atlantic Canada $163M: report

Atlantic Canadian universities say Ottawa’s cap on foreign student permits has cost the region an estimated $163 million, according to a consultant’s report.

The report, conducted by Halifax-based Gardner Pinfold Consulting on behalf of the Association of Atlantic Universities, found the federal cap has resulted in a decline of nearly 3,000 international graduate and undergraduate students in the region.

Last month, the Liberal government said it would slash the number of international student permits it issues by another 10 per cent. That followed news in January of plans to reduce the number of new student permits by more than a third this year.

Peter Halpern, executive director of the Association of Atlantic Universities, said post-secondary institutions were surprised by the lower targets.

“If we hadn’t had these [federal] policy changes … international students probably would have accounted for about $1.3 billion of total spend in the region this year,” he said.

Int’l students make ‘big contribution,’ says association

Among its other findings, the consultant’s study said 86 per cent of foreign students take on jobs while they attend school. About 75 per cent of international students live off campus.

“That makes a big contribution economically to a community and to a province and to the region,” said Halpern.

Immigration, Refugees and Citizenship Canada (IRCC) capped the number of student permits in part due to concerns about the impact of international students on the housing market.

The federal government said the new target for 2025 and 2026 will be 437,000 permits. In 2024, the target was 485,000 permits.

Halpern said, from his point of view, international students aren’t causing the crisis in housing.

“I can only speak from our sector’s point of view,” he said. “But I know that in many of our institutions there is capacity in our student residences for students. They’re not at full capacity. Some are, but some aren’t.”

Universities say Canada’s reputation at risk

Rob Summerby-Murray, president of Saint Mary’s University in Halifax, said IRCC doesn’t recognize the “incredibly negative implications” a further reduction in student permits will have on the country as a whole.

“Our universities are deeply concerned that recent IRCC policies have severely damaged Canada’s reputation as a great destination for young talent from all over the world,” he said.

“The IRCC policies are negatively affecting Canada’s brand as a welcoming country for international students, threatening the future financial sustainability of our universities and undermining an important and growing stream of new immigrants.”