Bay school leaders are "up in arms" about a Government proposal to prohibit enrolment of international students under Year 9.
Principals in the region say the move would have a "huge impact" on school culture and result in the loss of millions of dollars in revenue.
The Ministry of Education has proposed restricting enrolment of international fee-paying primary and intermediate aged students for state, state-integrated and private schools.
It applies to both individual and tour group students under Year 9.
The ministry's consultation document said 5225 primary and intermediate-aged international students contributed more than $29 million of revenue in 2019.
This figure did not include tour group students that stayed for up to three months.
Korean Times director Hyun Taek Yang said in 2019 there were about 300 primary and intermediate age Korean students living in Tauranga with a parent.
This equated to roughly $4 million in school tuition fees for the primary school sector.
Schools International Education Business Association executive director John van der Zwan said it would be "absolutely devastating" for the schools if the restrictions were implemented.
The Waihi-based organisation supports and advocates for schools across the country that host international students.
Van der Zwan said the consultation document citing "wider migration pressures" as an issue relating to enrolment of international students was "ridiculous".
"The impact those people coming into New Zealand have on our housing and infrastructure is so small it is ridiculous. There is a lack of any real credibility or evidence to support the claims being made."
Van der Zwan feared overseas families would start to seek education opportunities in Canada and Australia.
Oropi School principal Andrew King said restrictions would make it "so much harder" to bring the school's intercultural curriculum to life.
"It's so much harder to when you're only connecting with students from other cultures by email or Zoom."
Revenue from fee-paying students meant ESOL teachers were employed to support both
international and domestic students who needed language support.
Tauranga Intermediate principal Cameron Mitchell said any restrictions placed on enrolment would have a "huge impact" on the school culture.
Its international programme had been running for the last 20 years - with many students coming from Korea, China, Japan, Thailand and Germany.
"Schools are up in arms. There is a huge amount of concern, frustration and anger at the Government," he said.
Revenue from fee-paying students went towards "world-class pastoral care" and also helped fund English language support for both international and domestic students.
Counsellors and teacher aides for domestic and international students with additional learning needs were also employed.
Mitchell disagreed with the "perception" international students only went to high-decile schools.
"We were decile four when we set up our very strong international links 20 years ago. Cross-cultural connections happen regardless of whether you are a high or low decile school."
The school's international director Annemieke Hart said the school was fielding inquiries from "many" overseas families about the possibility of studying at the school.
Yang from Korean Times said Tauranga was the "most popular" New Zealand destination for Korean children.
Seventy per cent of Korean international students in Tauranga were aged between five and 12, he said.
A submission on the proposed changes written by Taek Yang said the agency saw firsthand "so much evidence" of the benefits of having international students under Year 9 in Tauranga.
About 70 to 80 international students under Year 9 were expected to come to Tauranga if the borders reopened.
He said tuition fees for students attending public schools cost about $15,000 yearly.
Another $60,000 was spent on living costs between a student and their caregiver.
Priority One chief executive Nigel Tutt said the proposed changes could be "detrimental" to the region's international education sector.
He described the proposal as a "solution looking for a problem" that had "come out of nowhere".
Education Tauranga regional relationship manager Melissa Gillingham said 23 of the organisation's 38 members were primary and intermediate schools in the region.
Gillingham felt "very strongly" the proposed restrictions were "not the right approach" for the recovery of international education.
International student Seohye Park moved from Korea to Tauranga about five years ago.
She previously attended Tauriko School and was now in Year 8 at Tauranga Intermediate.
The 11-year-old student felt children from other countries should continue to have the opportunity to study in New Zealand and enjoy the outdoors.
"It is really good to have international students who come to New Zealand. They get to play and be free."
Ministry group manager of policy Shelley Robertson said the review was requested by Education Minister Chris Hipkins and no decision had been made at this stage.
As part of the review it was looking at issues including diversion from domestic students, inequity between schools, resourcing and wider migration pressures.
The review was in line with the Government's Immigration Rebalance, which proposes change to visa and entry requirements.
Consultation had ended.
Robertson said international students under Year 9 contributed to "promotion of global citizenship and the economic contributions", but most were at high decile schools and in the Auckland region.
"This creates an inequitable distribution of the educational and immediate economic benefits across school deciles and regions."
Border closures had meant schools adjusted to "reduced international revenue" during the pandemic, she said.
And to mitigate further loss in revenue students already enrolled would be able to continue their education if changes were implemented, she said.
She acknowledged proposed restrictions may have a "minor pipeline impact" for international education enrolments at secondary level.
They allege the Crown ignored Treaty obligations by not engaging with them.