"Ghettos" of overseas students need to be broken up if UK universities are to lose a reputation for being "less friendly" than other nations.
A report from the Council for Industry and Higher Education has made recommendations for universities currently at risk of losing foreign income to rivals due to difficulties in ensuring integration.
The recommendations include ensuring international students are not "ghettoised" in specific halls of residence, encouraging tutors to mix students for group projects and suggesting that universities celebrate cultural events such as Chinese New Year and Hindu festivals.
The report also highlights a divergence between the declining number of UK students travelling abroad to study and employers' demands for graduates with a "global perspective".
The number of English students undertaking continental European study schemes has fallen from 9,500 to 5,500 in the past ten years, the report says, in contrast with rising numbers in Germany in France.