Earlier quoted context omitted.
Actually the opposite at many public universities. "Out of state" and international students subsidize in state students because they pay far greater tuition.
I have trouble believing students are paying less tuition because there is a greater demand from international students. If anything, the tuition would be higher. That international students are more profitable doesn't change the value of the degree or what everyone else is willing to pay for it.
I think this is even worsened by the fact that foreign students pay directly towards the university and become a primary source of revenue and the 'regular' students money is tertiary (state) or secondary (scholarship) which has conditions and delays attached.
I guess it is probably the same all over the world.