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Sri Lanka as a ‘home’ for digital nomads

14 Jul 2021

  • Ranked 2nd in global Digital Nomad Index
  • Can tourism cash in on interest created by ranking?
BY Sumudu Chamara It would not be wrong to say that the future of several Covid-19-affected industries, such as those dealing with event management, live concerts, and vehicle sales, see little hope when it comes to resuming their operations, mainly due to the nature of the pandemic’s spread, and therefore, their future remains rather uncertain. Sri Lanka’s tourism industry is also one such industry that is struggling to get back on its feet despite the authorities’ attempts and plans to keep the country’s borders opened to attract tourists. The Sri Lanka Tourism Development Authority (SLTDA) recently stated that it was planning several programmes to attract tourists, emphasising that making plans to adapt to the new normal, instead of waiting for the pandemic to come to an end, was a key concern. This week saw new plans in this regard, with a focus on attracting “digital nomads”, a type of traveller Sri Lanka is not very familiar with. In this instance, the term digital nomads does not refer to the traditional sense of the word denoting those who travel for livelihood and survival purposes with no fixed abode, but those who embody aspects of the nomadic life and lifestyle. Today’s Spotlight looks into this new initiative by Sri Lanka and whether the available statistics show any promising signs in this regard. Promoting digital tourism in Sri Lanka In a novel step, Sri Lanka’s tourism authorities said they were looking into promoting “digital tourism” to earn more foreign exchange, in a bid to uplift the tourism industry and strengthen the national economy. Minister of Tourism Prasanna Ranatunga stated that the attraction of digital tourists can be introduced as one of the major promotion initiatives that can be implemented in accordance with the health regulations in the face of the Covid-19 pandemic. Steps in this regard will be taken after the assessment and recommendation of the SLTDA, while the Department of Immigration and Emigration will take steps to issue long-term visas and grant tax reliefs for the tourists, according to the Minister. Meanwhile, this week, the Cabinet of Ministers said that facilitating such tourists has been a growing trend in the tourism industry and that it had approved a proposal presented by Ranatunga to launch a promotional programme by the Sri Lanka Tourism Promotion Bureau (SLTPB) in a bid to attract digital tourists to the country and to introduce a long-term visa category for digital tourists. They identified the availability of high-speed internet connections for communication, long-term visas, affordable accommodation, and tax exemptions for earnings, among others, as the main factors needed to attract them. Meanwhile, SLTDA Chairperson Kimarli Fernando, in a press release, said that Sri Lanka is poised to be the perfect post-pandemic destination with its wide-open spaces and nature-based attractions, and that after experiencing prolonged lockdowns and travel restrictions, people are embracing the “work from anywhere” concept with the requirements being a picturesque setting, cultural experiences, adventure, and a good Wi-Fi connection. She added that the SLTDA is currently working on securing the necessary framework to support the expansion of this market and is looking at the possibility of long-term visas for digital nomads, which is essential to secure this segment. The press release issued by the SLTDA further said that Sri Lanka was recently recognised as one of the top destinations for digital nomads, emerging second in the French travel and tourism operator Club Med’s index of the best places and countries to become a digital nomad. “Digital nomadism is the ultimate work-travel lifestyle many digital nomads aspire to, which allows them to explore exciting destinations while working remotely, a lifestyle that is increasingly becoming the ‘new normal’,” it added. According to foreign media, Club Med collected and assessed data in line with the growing demand for the nomadic lifestyle which enables travellers to escape to picturesque locations where they can work remotely. This emerging segment of digital nomads travel independently, using information researched online through organic sources, and the free and independent nature of their travel combined with their long travel stay patterns in one destination makes this segment a lucrative market to pursue. In the Club Med Travel Index 2021, Sri Lanka ranked second, with 238 points out of 320 in what is called the “digital nomad score”, bested only by Thailand which topped the list with 285 points. Other countries in the South Asian region that were included in the index were the Maldives (187 points) and India (169). Sri Lanka’s ranking was better than some of the popular tourist destinations such as Singapore, Indonesia, Malaysia, and the Philippines, which had received 232, 182, 180, and 147, respectively. Club Med has ranked the said tourist destinations taking into account several factors such as the cost of living, safety, average internet speed, the presence of nature, wellness spots and the number of both relaxing, and adventurous activities. “This recognition comes just as Sri Lanka Tourism is charting a new path and offers yet another avenue to market the island in a bid to boost tourism. Digital nomads are a growing segment within the tourism industry, of people who choose to embrace a location and enjoy a technology-driven lifestyle which enables them to travel and work remotely anywhere in the world,” the SLTDA noted, expressing confidence that the positive impact this segment of independent long-stay travellers will have on industry stakeholders is tremendous and that with the multitude of immersive experiences the destination has to offer, the small and medium-scale enterprise (SME) segment will also experience growth by providing support services and curated experiences to this high-yielding emerging market. While Sri Lanka is making plans to attract digital nomads, a number of other countries have already taken steps to ease their travelling activities. Among them are Estonia, Croatia, Georgia, Mexico, Costa Rica, and Portugal. While Estonia has allowed long-term stays for workers with a minimum monthly income of $ 3,500, Croatia has decided to require proof of their health insurance, employment, and a minimum income of at least 16,142 Kuna per month. Georgia, on the other hand, requires proof of a stable income and health insurance and is ready to grant a 12-month renewable visa. Mexico offers a six months tourist visa for digital nomads and requires remote workers with a monthly income of at least $ 1,620 in the preceding six months or a bank account balance of at least $ 27,000. To attract digital nomads, Costa Rica offers a two-year renewable visa; however, to be eligible for it, remote workers are required to present proof of health insurance and a minimum monthly income of $ 2,500 or a $ 60,000 deposit in a national bank. Portugal grants worker visas to digital nomads with a monthly income of € 600 or above. The one-year permit granted initially can be renewed for up to five years. Furthermore, according to foreign media, countries such as Vietnam, Colombia, and Indonesia are also considering promoting their tourism sectors by taking steps to encourage digital nomad-friendly visas and other travel requirements. The present and future of digital nomadism The term digital nomad refers to people who travel on a continuous basis, usually from country to country, while building online businesses or working online and living a nomadic lifestyle. The term “digital nomad” was introduced in the 1990s, and this lifestyle became popular towards the late 1990s and in the early 2000s, with the growing popularity of online jobs and concepts such as “working from home” as well as technological advancements such as faster computers and better and widely available internet facilities, which allowed people to work from remote locations while being connected through the internet. The 1997 book titled Digital Nomad, authored by computer scientist and engineer Dr. Tsugio Makimoto and writer David Manners, is believed by many as the origin of the term “digital nomad” and describes factors that would enable and encourage mobile lifestyles in the following few years. Among them are affordable and portable work devices readily available to the average consumer, a massive increase in the bandwidth that would allow video sharing and conferencing, and the ubiquity of wireless internet. When it comes to digital nomadism in the context of tourism, digital nomads are different from traditional tourists; whereas traditional tourists travel to various destinations as a part of their trip with the main intention of seeing and experiencing different settings and lifestyles for a brief period of time, digital nomads stay in those places for a prolonged period of time and take into account the conditions that would allow them to work from such destinations. According to a 2020 study, there are around 10.9 million digital nomads in the US alone, while around 19 million more Americans had said that they were considering a digital nomad lifestyle. According to the statistics, 38% of American digital nomads earn over $ 75,000 per year. According to the data from MBO Partners, a job-related platform that connects and enables independent professionals and microbusiness owners to do businesses safely and effectively with enterprise organisations, in 2019, there have been around 7.3 million Americans who identified themselves as digital nomads, and between 2019 and 2020, this figure had risen by 49% owing to the pandemic. The average age of a digital nomad, as per 2021 statistics, is 32 years, and 49% of digital nomads earn the same salary or more than their prior office job. Over the past few years, the number of digital nomads in the US has more than doubled – from 4.8 million in 2018 to 10.9 million in 2020. Statistics also show that approximately 34% of people are planning to be digital nomads for a year or less, while many expect to return to the office after the prevailing pandemic. Also, only around 24% of location independent remote workers mix work and travel simultaneously. Statistics also show that most digital nomads travel slow, with only 17% visiting more than five countries per year. Around 85% of business owners have said that their businesses are more productive when people work remotely, and about 52% of digital nomads have rated finding reliable WiFi as one of the top challenges of the nomadic lifestyle. Only 30% of digital nomads report working over 40 hours per week, and van lifers (those living out of their vehicles, either full or part time) constitute 17% of American digital nomads. According to a study that took into account 12,000 publicly available Instagram images tagged #digitalnomads, the top 10 destinations famous among digital nomads are Bali in Indonesia, London in the UK, Chiang Mai in Thailand, Lisbon in Portugal, Barcelona in Spain, New York in the US, Bangkok in Thailand, Los Angeles in the US, Paris in France, and Berlin in Germany. Owing to the Covid-19 pandemic, some aspects of digital nomadism such as working online have developed, while aspects such as travelling to various places and living at a minimum expense have been disrupted. According to the MBO Partners report, only around 24% of digital nomads had reported holding onto their international travel plans, and around 76% had said that they would travel within their home country. However, despite the pandemic, statistics predict that around 17 million people aspire to be digital nomads in the near future. The impacts the pandemic had on the tourism sector are manifold, and as far as digital tourism and digital nomadism are concerned, the impacts are largely positive. However, more and more people tending to work from home, or work outside the office and traditional office hours, is a trend that can be used for the benefit of the tourism sector. Studies and statistics show that the Sri Lankan tourism authorities initiatives with regard to attracting digital nomads could actually bear fruit. However, now that many countries have initiated and are considering initiating relaxed requirements for digital nomads, Sri Lanka will have some competition. But with the proper planning, strategies, and timing, Sri Lanka can emerge at the top of the competition and become a true global hub for digital nomads.

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