The number of overseas students at Scottish universities dropped by almost 10,000 last year, new figures show.

The decline comes after foreign student numbers reached an all-time high in the previous year – their tuition fees provide an important source of funding for universities.

The latest figures from HESA (Higher Education Statistics Agency) show there were 73,915 students from outside the UK, down 12% from 83,795 the year before.

The statistics also show there were 173,795 students from Scotland at Scottish universities.

The number of European Union students in Scotland fell by half as Britain left the EU in 2019 and it has continued to fall in the current figures, to just 10,430.

Meanwhile, the share of foreign students had been rising from one in 20 in the 1990s to more than one in four in recent years.

The largest number of overseas students in Scotland is from China.

It fell from 19,000 in 2022/23 to 17,565 last year.

Students from India fell from 12,235 to 9,950 and Nigerian students dropped from 9,415 to 5,985.

The number of students from Pakistan increased from 5,075 to 5,540

Dundee University, which recently announced a £35m black hole in its finances, saw a 27% drop in international students – down from 4,570 to 3,335.

The University of Glasgow saw a 15% drop in overseas students, down from 15,200 to 12,935.

However, the University of Edinburgh, which has also announced financial shortfalls, managed to increase its number of overseas students from 16,625 to 17,020.

Scottish students get “free tuition” at Scottish universities which means undergraduates do not have to pay fees for their courses if they can secure one of the limited number of places.

However, universities have long claimed that the money it receives from the Scottish government has not kept pace with inflation and is less per student than similar institutions in England get from tuition fees.

Scottish universities, like most in the UK, have been on a recruitment drive to draw in students from other parts of the world, charging them much higher fees than UK students – from about £10,000 up to £40,000 per year.

For those with a prestigious reputation, including Scotland’s older universities, the share of foreign students has risen to close to 40%.

This has brought controversy – about the quality of learning, standards of English language ability, and the surge in demand for student accommodation.

It has also brought vulnerability if the demand for places falls away.

A growing concern about universities, including Glasgow and Edinburgh, becoming too dependent on Chinese students saw recruitment shift to other countries.

Nigeria was one new target, encouraged by the UK government.

But the market there depends on the strength of the Nigerian currency, which fell sharply and cut off the number of people who could afford to come to the UK.

Other factors, such as tighter visa restrictions and stronger competition from other countries, have led to further falls.