A cap on international students at five institutions across the Netherlands’ Randstad region would have a detrimental impact on the overall Dutch economy – reducing GDP by approximately four to five billion euros, a new study has found.
The report highlights: “international students are of great value to the Dutch economy… graduates help reduce labour shortages in sectors with high demand for highly educated professionals” including business, government, healthcare and education.
“Regions, businesses and society as a whole will feel the substantial economic consequences,” it warns.
The results reveal the potential impact of declining international enrolments at Leiden University, Utrecht University, Erasmus University Rotterdam, the University of Amsterdam and Vrije Universiteit Amsterdam; the five institutions that commissioned the study by SEO Economic Research.
The universities are found in the country’s Randstad region, which accounts for half of the Dutch GDP and nearly half of its population, and will bear the brunt of 82% of the predicted financial losses, the research found.
The most affected sectors would be business services (39%), financial institutions (20%), and the public sector (10%), it revealed.
The researchers said the results highlight the need for a more measured internationalisation policy, pointing to Dutch universities’ joint self-regulation proposal put forward this year by UNL – a representative body of Dutch universities – as an alternative to the government’s controversial Internationalisation in Balance Act (WIB).
“The proposal allows universities to adjust recruitment and admissions at the program level, taking into account regional context, labour market needs and teaching capacity,” Femke van Zijst, UNL public affairs officer told The PIE News.
“This differentiated, data-informed approach prevents one-size-fits-all national caps and ensures that the Netherlands remains both attractive and sustainable as a study destination,” added van Zijst.
The report highlighted the cap imposed by the outgoing cabinet on international students at Randstad universities resulted in a short-term saving of 80-132 million euros across education funding, student finance and social provisions.
However, they said this relatively small amount would “come at the cost of broader economic damage”. “The impact on the labour market, business climate and GDP translates into a decline of 3.9 to 4.8 billion euros per year”.
The study highlighted the growing retention rate of international graduates, more than a quarter of whom still live in the Netherlands after five years and 80% of which are in paid employment.
It warned restrictions on international students would impact not only the state budget and labour market but also Dutch businesses that might consider relocating elsewhere if they couldn’t attract enough global talent in the Netherlands.
Van Zijst said international students were “vital to the Netherlands’ earning capacity and long-term prosperity”, highlighting the benefits of a diverse higher education system, and their role filling persistent labour market shortages across sectors from finance to healthcare and education.
The warnings come as the number of international students is already falling in the Netherlands, with government data predicting a 4% decline over the next decade. Meanwhile, domestic student enrolments have been decreasing since 2021, with the downward trend set to continue.
Regions, businesses and society as a whole will feel the substantial economic consequences
Randstad Universities
International students at Dutch institutions have been the source of much political scrutiny, largely driven by the far-right government’s attempts to reduce overseas enrolments and English-taught degrees.
University leaders have widely acknowledged the need to manage international enrolments, though they have opposed the government’s heavy-handed measures.
Van Zijst said several institutions planned to change some larger courses to be taught in Dutch, and many more had begun more strategic intake planning and offering language programs for staff to learn Dutch.
Currently, there is an agreement with the sector not to do any ‘general recruitment’ of international students, though recruiting for specific fields with labour shortages is allowed – a representative of Nuffic, the Dutch body for internationalisation in education, told The PIE.
Considering the potential financial losses facing the Netherlands, UNL is urging policy makers to develop a ‘National Talent Strategy’ that recognises international students as essential contributors to the country’s economic and societal vitality.
Earlier this year, universities welcomed the news that the government was walking back a flagship policy of its bill, the TAO, a mandatory non-Dutch-taught program assessment which aimed to reduce the number of English-taught degrees.
Speaking to The PIE at the time, Studyportals CEO Edwin Van Rest said the policy U-turn had come at a “critical moment” for the sector as international demand was slipping due to uncertainty and unwelcoming government messages.
But the WIB still contains several measures to steer the inflow of international students including stronger ministerial powers to intervene in university enrolments, increased reporting obligations and provisions to set conditions on English-taught programs where necessary.
As the Netherlands heads to the polls to elect a new parliament at the end of the month, the bill is now expected to be discussed in the house of representative in Q1 2026, with possible consideration in the senate later next year.
