Plan to make Melbourne world’s best student city

Melbourne will look to become the world’s leading city for students under a new plan adopted by the City of Melbourne in July.

Councillors unanimously endorsed the new plan at their July 9 Future Melbourne Committee (FMC) meeting, which boosts existing efforts to support the CBD’s international student community through 2025.

Lord Mayor Nicholas Reece said international students were a “key part of modern Melbourne”. 

“They bring so much energy … and dynamism to our city,” Cr Reece said. 

The Lord Mayor said the City of Melbourne was “well placed” to accommodate more international students, and would engage with universities and accommodation providers to increase student housing in the years ahead.

Cr Reece also pledged to write to the federal government about the negative impact a proposed cap on international student numbers would have on the CBD.

Recent data from the Australian Bureau of Statistics found Victoria’s international education sector generated revenue amounting to $14.8 billion across 2023, making it the state’s most significant export.

More than 234,000 international students studied in Victoria in 2023, making up 38 and 39 per cent of the residential populations of postcode 3000 and Carlton respectively.

An economic report presented to the FMC by council management found the return of international students after the COVID pandemic had been instrumental in driving a rise in consumer spending in the CBD.

International Education Association of Australia CEO Phil Honeywood told councillors only four per cent of Australia’s rental market was used by international students.

Mr Honeywood said recent debate connecting international students to higher rents would be “a PR hit” for Australia and had tested local diaspora communities.

The council’s latest plan earmarks news marketing strategies in a bid to attract more students and top the QS Best Student cities ranking in coming years.

QS ranked Melbourne second only to Berlin for best global student experience in June of this year.

The council will also work with universities, local businesses and diasporas to encourage students to remain in Australia and fill local skills shortages.

Cr Phillip Le Liu paid tribute to former councillors Ken Ong and John So, both past international students turned Australian citizens, for inspiring current work to make Melbourne a world-class study destination.

“The fact that we are here now, with the funding and a team, is really a testament to where we have been,” Cr Le Liu said.

Cr Reece said while there was no deadline on plans to implement the motion, they should be treated as a priority by council management.