Business students turn away from ‘big four’ destinations

A recent poll of business schools across 27 countries has revealed the damaging impact of policy and legal challenges gripping many of the world’s traditional study locations, with students quick to turn to alternative destinations rising across Asia.  

“One of the most surprising findings is how dramatically student flows respond to national policy shifts, with enrolment rising in welcoming environments and declining where restrictions are imposed,” said Lily Bi, president of AACSB business school association.  

At a time of widespread global volatility, 67% of business schools reported recent legal or policy changes affecting international students in their countries, with those impacted predicting an average enrolment decline of 16% in the upcoming year. On average, institutions expect a 10% enrolment decline for 2025/26.  

The Americas have been hardest hit by policy and legal changes, with 84% reporting disruption, compared to 40% in Asia Pacific and 33% in Europe, the Middle East and Africa.  

Among schools located in countries with policy turbulence, nearly all cited that new or restrictive visa policies were dampening international student demand, followed by concerns about the political climate and post-graduation work opportunities. 

Faced with widespread policy volatility, students are increasingly turning away from traditional destinations like the US, UK, Canada and Australia, and towards emerging education hubs across Asia, the report revealed.  

“Asia is no longer just a source of international students; it is rapidly emerging as a competitive destination for global learners,” said Bi. 

“Countries such as China, India, Malaysia, Japan, South Korea, and Singapore are actively expanding internationalisation strategies, streamlining visas, increasing English-taught programs, and offering scholarships,” she noted.  

What’s more, greater value-for-money propositions and the lower cost of living in most Asian destinations are further fuelling the trend, with stakeholders noting the rapid rise of the “Asian decade” in higher education.  

“Business schools in traditional markets must recognise that their competitive advantages can no longer be taken for granted in an increasingly multipolar global education landscape,” warns the report.  

Asia is no longer just a source of international students; it is rapidly emerging as a competitive destination for global learners

Lily Bi, AACSB

As well as diversifying internationally and strengthening partnerships abroad, the largest proportion of respondents (56%) said that international policies were causing them to focus on domestic student markets. 

This was followed by strengthening partnerships with institutions abroad and investing more in transnational education (TNE).  

The shift illustrates that “student mobility is not a luxury but a strategic asset,” said Bi, noting the speed with which business schools have recalibrated, highlighting the development of “scalable and sustainable” student recruitment models in Europe.  

In particular, “Germany demonstrates the most comprehensive approach to international student integration through its Skilled Labour Initiative and Campus Initiative for International Talents”, states the report. 

It highlights Germany’s recent actions, allocating €120 million to support international students transitioning into skilled work, and increasing working allowances for current international students, with the country set to grow overseas enrolment by 7% this year.  

“These systems reflect an understanding of and appreciation for the broader economic, social, and educational value international students bring, extending well beyond tuition revenue,” said Bi.