Plenty of regional areas could do with the business.
That is indeed correct, however therein lies a problem. International students generally don't want to be situated in remote areas, just like uni students in the major cities. They get the opposite of claustrophobia when you put them out in the country... but that being said, Mangalore does pretty well which is interesting. I'll bet they have a good set-up there under the covers, good food, entertainment or similar and a regular bus to Melbourne to keep them keen and feeling at home.