Digital nomads: The half-tourist, half-worker hybrid

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  Quantumrun Foresight
• January 25, 2023

The popularity of working as a digital nomad rose dramatically after the COVID-19 pandemic popularized telework as a viable and productive form of work. This development led to a surge in demand for properties conducive to remote working, especially in tourist hotspots worldwide. 

Digital nomads context

Digital nomads are attracted to the flexibility and freedom that comes with their remote lifestyle. They can choose to work from anywhere in the world, traveling and exploring different places while still earning an income. When pandemic lockdowns were first imposed in 2020, millions of office-based workers realized they didn’t have to stay in buildings to be productive. This realization has led to the rise of half-tourists, half-workers who want a change of environment. In 2022, Barbados issued digital nomad visas, while Estonia, Portugal, Germany, and Georgia implemented similar visas soon after.

Most digital nomad visas offer people up to one year of access to a country, depending on the monthly income and other requirements. Some can be a pathway to citizenship, like Portugal’s visa. However, these visas tend to be expensive, and the financial requirements can be fairly steep, like a monthly income of at least $3,570 USD for Estonia and $50,000 USD per year for Barbados. Most digital nomads prefer to stay for the short term (up to six months) and switch back and forth between their home countries and their intended destinations. 

Disruptive impact

Interestingly, as of 2022, the hospitality industry, particularly hotels and Airbnb, shifted from catering to guests to long-term visitors by providing discounted rates on rental properties. For some resorts, like those in Lisbon, there are special rates for families who want to relocate. Additional perks are also offered, like fast Internet services and restaurant coupons. For people who prefer to stay on the road, campervan rentals have experienced a surge. For example, in 2022, motorhome rental company Indie Campers reported a 66 percent increase in long-term subscriptions. While some challenges come with being a digital nomad, such as finding a reliable internet connection and dealing with time differences, they are becoming less of an issue as digital collaboration technologies improve.

Moreover, digital nomadism is making remote and flexible work more accessible and doable than ever. It challenges the idea of workers having to stay in one company and do the same jobs daily. Some of these digital nomads are seasonal workers for farms who want to earn some money while on a career break. There are many different profiles behind digital nomads that are beyond Bali’s typical backpackers and digital entrepreneurs. Digital nomadism has become a lifestyle and a choice more than a working environment, and as global travel continues to open up, there will be more of these types of workers in the future. However, there have been problems associated with the increasing number of foreigners working in local communities, such as rents and property prices increasing (e.g., Hawaii), over-tourism, and domestic culture being replaced by consumerism.

Implications of digital nomads

Wider implications of digital nomads may include: 

• More countries offering digital nomad visas to boost local economies and tourism.
• Rents, food, and necessary items increasing in cost in those communities set to become tourist traps for digital nomads.
• Increased investments and opportunities for Internet infrastructure and remote work tools for collaboration and project management.
• More office workers leaving their 9 to 5 jobs to start a freelance career or a personal business.
• Digital nomads boosting the travel and hospitality industries, infusing them with much-needed capital.

Questions to comment on

• How might insurance companies develop or manipulate coverage for digital nomads?
• What are the other potential challenges of being a digital nomad?