Passage of digital nomad visa could boost Cebu tourism

STAKEHOLDERS in the digital nomad community are urging lawmakers to fast track the passage of the ‘digital nomad visa’ to grow the country’s tourist arrivals and lure them to stay longer in destinations such as Cebu.

House Bill 8165 or the proposed Digital Nomad Act has been filed in Congress seeking to grant a 12-month visa to digital nomads or foreigners employed abroad but work remotely using digital technologies.

This bill, authored by Congressman Francisco Jose “Bingo” Matugas II is currently pending with the Committee of Justice since May 22, 2023.

A digital nomad is someone who uses technology, particularly the internet, to work remotely while traveling and living in different locations. Digital nomads often have jobs or businesses that allow them to perform their tasks from anywhere in the world, as long as they have a reliable internet connection. This lifestyle enables them to explore new places and cultures while maintaining their careers.

Common professions for digital nomads include freelance writing, graphic design, web development, online marketing and consulting. They are also business owners who own e-commerce sites, property owners, or investors in tech or crypto.

According to a report, President Ferdinand Marcos Jr. already ordered the drafting of an executive order for the immediate implementation of “nomad visas” without tax incentives.

“[President Marcos] supports this interim solution and has directed the Office of the Executive Secretary to draft the EO and select a pilot country for the initiative,” Private Sector Advisory Council for Tourism said in a statement.

According to Katrina Umandap-Howe, chief executive officer of Umandap Global Enterprises LLC UAE, there are about 60 countries that enjoy high tourist arrivals by offering digital nomad visas.

In Asean in particular, the top digital nomad destinations are Bangkok, Kuala Lumpur, Bali, Chiang Mai, Ho Chi Minh City, Hanoi, Da Nang and Penang.

She believes Cebu is well-equipped to host this growing community due to its easy access, improved internet infrastructure, and proximity to beaches and mountains, along with other natural resources.

“We are not your cheap backpackers or holidaymakers. We are a movement, a community that believes ‘why work from home, when we can work anywhere’,” said Howe, who is a co-founder of Montenegro Digital Nomads Collective. She is one of the speakers during the Cebu Tourism Forum organized by Cebu Business Months 2024 of the Cebu Chamber of Commerce and Industry.

The average salary of digital nomads ranges from $3,000 to $10,000 a month, making them a potential tourism market. Howe said they stay in a destination for at least a month.

Howe suggested that if Cebu aims to capture a significant share of this market, it should benchmark against Bangkok, which has become the connecting hub for digital nomads across Asean.

Impact

Frederick DC Amores, regional director of the Department of Information and Communications Technology in Central Visayas, said they are pushing for the passage of the digital nomad visa to entice more of them to come to the Philippines.

“We are here to support (the bill) because we want to encourage digital jobs,” said Amores, citing the immense opportunities that this community can bring to a locality.

“I asked a digital nomad about how much is the ideal money they spend each month. He said the reasonable spending is at least $20,000 or P1 million. Imagine if you have 100 of those in your barangay spending at least P1 million a month, you will have P100 million worth of economic activities happening,” he said.

Digital nomads contribute to the local economy by spending on accommodation, food, transportation and other services. Their presence can create jobs in hospitality, co-working spaces, and other service sectors catering to their needs.

Amores believes that the number of digital nomads in Cebu is increasing, but they cannot yet be accurately quantified due to policy issues such as the absence of a special visa.

Besides a special visa issuance, Howe urged business owners to invest in co-living spaces, co-working spaces, fast and reliable internet connection and a collaborative community to attract this market.

She also suggested holding festivals, summits and other activities that could compel them to lengthen their stay in a destination. (KOC)