Limiting the number of international students coming to the Netherlands for a degree course could cost the Dutch economy up to €4.8 billion, five major universities have warned.

Erasmus University in Rotterdam together with Leiden, Utrecht, and Amsterdam’s two universities (UvA and VU), commissioned research from the SEO institute into the economic impact of restricting international enrolments.

The study found that limiting English language teaching and setting a cap on the number of students on some courses could lead to a 75% reduction in foreign bachelor’s students and 25% drop in master’s students, the Financieele Dagblad reported.

Although this will cut government spending, it will eventually reduce the workforce, lower tax revenues and shrink demand for goods and services, the SEO researchers say.

The resulting loss, estimated at between €3.9 billion and €4.8 billion, equals around 0.3% to 0.4% of GDP, with the biggest impact in the business and financial sectors. The researchers said the real damage could be even greater if universities struggle to recruit foreign staff or if quality declines as institutions downsize.

Erasmus University president Annelien Bredenoord said that while fewer foreign students might slightly ease housing shortages, the economic consequences would far outweigh the benefits. “We have to do everything we can to attract talent — this is about the future strength of the Dutch economy,” she told the Financieele Dagblad.

The universities’ warning comes as the government prepares new legislation to limit internationalisation, including rules requiring most degrees to be taught in Dutch. The universities have proposed their own plan to cut some English-language courses and set caps for others, which have been backed by MPs.

“We’re not ignoring the political debate,” Bredenoord said. “But the Netherlands cannot afford to close the door to global talent.”

She said that universities should indeed focus more on language and integration. “We’re working on improving Dutch language skills and making sure international students engage with Dutch society,” she said. “But we also need to recognise that our future prosperity depends on keeping these people here.”

According to Bredenoord, other countries that tightened their student policies, such as Denmark, have since reversed course. “We shouldn’t make the same mistake,” she said. “We need to fight to attract international talent, not drive it away.”

The number of new international students starting a university bachelor’s degree in the Netherlands fell by 5.2% this academic year, according to figures from international education body Nuffic.

Earlier this week it emerged that most of the Netherlands’ 13 universities have fallen again on the latest Times Higher Education ranking.