Potential magnet for digital nomads

THE rise of digital nomads in the Philippines, in which Cebu tops the list of potential cities to host them, provides new growth opportunities, particularly in the area of tourism.

A digital nomad is an individual who travels and is able to work from almost anywhere in the world without being tied to a specific location. They can work from coffee shops, co-working spaces, or even from the beach.

The Philippines, according to Carlo Delantar, partner and head of ESG and Circular Economy of Gobi Partners, has the potential to be the next hotspot for digital nomads. They inject money into local economies by spending on food, transportation, accommodation, and other services.

Gobi Partners is a venture capital firm in emerging and underserved markets across Asia, with $1.6 billion in assets under management.

Delantar, in his presentation during the 1st Philippine Digital Nomad Summit in Del Carmen, Siargao Island, Surigao del Norte last Oct. 5, 2023, showed Cebu as the top potential city for digital nomads with a $1,381 cost of living per month and an internet speed of 5Mbps. Second on the list is Davao with a $1,256 cost of living and 5 Mbps of internet speed; followed by Manila ($1,544 and 5Mbps); Palawan ($1,432 and 6Mbps); and Makati ($1,712 and 5Mbps).

Completing the list, are General Santos ($1,186 and 5Mbps); Siargao ($1,770 and 6Mbps); La Union ($1,847 and 5Mbps); Baguio ($1,639 and 5 Mbps) and Boracay ($2,324 and 6Mbps).

Attractions

In an interview, Department of Trade and Industry 7 Director Ma. Elena Arbon said the inexpensive cost of living and fast internet speed are among the top considerations of digital nomads, which put Cebu on the top list. Cebu also has the resources such as the availability of co-working spaces and accommodation facilities.

In his opinion column in Manila Bulletin, former Department Information and Communications Technology (DICT) undersecretary Mon Ibrahim identified “Cebu City as a perfect base for digital nomads who want access to the amenities and conveniences of a big city while also being close to nature and adventure.” He also cited Siargao Island and El Nido as emerging sites.

Moreover, Delantar said the digital nomad trend has been rapidly increasing across the world, especially in Southeast Asia.

Pre-pandemic, Bangkok, Thailand logged the highest number of digital nomads at 40 million, followed by Kuala Lumpur, Malaysia, and Bali, Indonesia.

No danger to local jobs

In 2020, there was a 50 percent increase in the number of digital nomads during the Covid-19 pandemic due to remote work setups. This year, only 53 percent of digital nomads will continue their lifestyle due to back-to-office policies.

“Digital nomads — often foreigners, entrepreneurs, or remote workers for international companies — don’t compete for local jobs. Their migration benefits local communities and stimulates businesses like co-working spaces, hotels, cafes, and restaurants,” said Delantar.

Fifty-eight percent of the digital nomad population belong to Gen Z (those born between 1997 and 2013) and millennials (those born between 1981 and 1996). They are mostly in the IT business like software and web developers, startup founders, marketing, and creative, among others.

Citing a study by MBO Partners, Delantar said one in five digital nomad makes less than $25,000 annually. Forty-two percent said their household income is over $75,000. However other research claims the global median salary is $90,000.

At present, Surigao del Norte Rep. Francisco Jose Matures II filed House Bill 8165 for the Digital Nomads Act “to attract this group of tourists who have the capacity to spend.”

A key feature of the bill is the issuance of a digital nomad visa “that gives a visitor the right to stay in a country and work remotely for a foreign-based employer to business.”

Today, there are already about 54 countries that offer digital nomad visas including Argentina, Croatia, the Czech Republic, Georgia, Germany, Mexico, Portugal, and the Bahamas. (KOC)