How Digital Nomad Visas Can Help the Global Economy
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After the global spread of COVID-19 in 2020, the travel industry was turned upside down. Country borders and air travel were shut down, and no sail orders were put in place for cruise ships.
Since then, we have seen various travel changes come and go, complicating many international trips. Travel restrictions have been lifted at times and reinstated at others, borders have opened and closed, and there is a need for carefully curated international travel plans.
Depending on the country or the severity of a COVID outbreak, some travelers have had to work out complicated ways to make it to their desired destinations. These travel uncertainties have hurt many countries that rely on international travelers to support their economies. Hospitality and tourism came to a standstill everywhere, causing unemployment, trade crises, and significant monetary losses in many tourism-dependent countries.
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A Solution That Works
The global tourism industry is worth more than $1.1 trillion, and although international travel activity has increased since 2020, there is still a long way to go for a full recovery. The pandemic ironically created one possible solution. Digital nomad visas are helping to bring in international visitors, who can support local economic needs while providing picturesque environments for their remote jobs.
Digital nomads are people who work remotely, only needing a computer and wi-fi to perform their jobs. These people live in a nomadic way, often keeping a permanent residence but traveling to various locations for short periods.
There are several different types of visas that allow you to conduct different activities internationally. Other countries, however, have additional requirements, rules, and lengths of time you can stay. Many previous digital nomads used tourist visas, which offered access to short-term residency for about 30 days to three months in their chosen countries. Early digital nomads were championed for creating their version of employment freedom, creating their work hours and workdays.
This fast-paced lifestyle was extremely attractive to those who could travel and try it out. Certain countries, such as Bali, became digital nomad hotspots, but the constant influx of new short-term visitors caused ethical concerns.
Downside of Digital Nomads
In Bali, the digital nomad movement led to a higher cost-of-living expenses for locals, and exploitation of the cheap labor available there because of gentrification. Most tourist visas do not permit visitors to benefit from business activities connected with work related to the country. Digital nomads benefit from their digital work abroad, usually doing freelance work, blogging, or entrepreneurship endeavors.
Also, while visitors would bring economic activity to the countries they visited, they did not pay citizen-related taxes becacuse they were not permanent residents. Lastly, there are ongoing concerns about frequent travel contributing to the spread of COVID.
Digital nomad visas are set to provide an answer to these problems for countries that want to benefit from bringing in more visitors. Digital nomad visas are offered through unique programs that governments have created to allow visitors to perform remote work while residing away from their country of permanent residence.
These visas also allow for lengthier stays for visitors as well. Current countries offering these programs include Antiqua and Barbuda, Bali, Barbados, Bermuda, Cayman Islands, Costa Rica, Croatia, Czech Republic, Dubai, Estonia, Georgia, Germany, Iceland, Malta, Mauritius, Mexico, Norway, Portugal, Spain, and Anguilla.
Adapting to the New Normal
Many of these locations have digital nomad villages, offering housing, workspace, and opportunities for socializing with other visitors. Digital nomad visas allow remote workers the flexibility for which they are looking, with the ability to settle in more and become a true part of the local community.
This also solves some of the COVID concerns surrounding frequent digital nomad travel. It alleviates any anxiety people may have about finding the next place to go during a pandemic. Most importantly, these visas bring in visitors for extended periods to benefit local economies and improve global trade.
COVID-19 has changed the workplace landscape in the United States. After the pandemic began, people were unable to physically go to their jobs unless they were deemed essential workers. This led to the rise we now see in remote work being performed, and many organizations offering remote work accommodations.
Remote work is not a new concept to the post-pandemic world, but it has never been so widespread in the United States. Remote work used to be available under the rarest of circumstances, and remote work positions were difficult to find. However, these positions are now a staple within most organizations.
Many companies feared that remote work would lead to a loss of productivity, but the shift has proven otherwise. Employees are more productive through remote work and the flexibility of working from home. This flexibility is a necessity for many U.S. families juggling changing home roles, the effects of COVID infections and symptoms among family and friends, and the varying school schedules of their kids. Still, a growing group of remote employees do not have those obligations and want to take full advantage of the nomadic work lifestyle.
The Digital Nomad worker is changing how remote work looks in the United States and abroad. Market research firm, MBO Partners, found that there are 15.5 million current U.S. digital nomads, up from 7.3 million in 2019. As these numbers grow, it seems that working abroad and remotely will become a common feature of the marketplace.
Photo by Alexandr Podvalny from Pexels
