Finance and Economic Opportunities
- What is the current number of applications for remote-working or digital nomad visas in countries that have implemented this visa category, (b) what were the economic benefits of implementing remote-working or digital nomad visas in countries that have implemented this visa category, (c) how many remote workers or digital nomads are anticipated to apply for this visa category in order to stay in the province, (d)(i) which sectors in the province currently benefit from tourism in the Western Cape and (ii) how many jobs do each of these sectors currently provide and (e)(i) which sectors stand to benefit from the implementation of a remote working visa and (ii) how many jobs do each of these sectors currently provide?
- A total of 53 countries across the globe offer digital nomad VISAs. These include but are not limited to :
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As most countries that have introduced remote work or digital nomad VISAs have only done so recently, official statistics are not yet available as it relates to VISA type approvals. An unconfirmed report by an online publisher estimates that there were 35 million digital nomads globally in 2022 (see The Global Digital Nomad study conducted by ABrotherAbroad.com). Research has not been conducted to present a consolidated list but examples of countries that have issued remote working VISAs include Portugal which only issued the regulation in October 2022 and has approved more than 200 remote work VISAs to individuals who do not reside in the EU according to Portugal News, 2023.
- The benefits of implementing a remote work VISA include economic benefits (tax and local consumption), but also to boost innovation. Remote-work visas also diminish uncertainty and potential abuse of short-stay tourist visas by international remote workers.
Remote-work visas take various forms but allow a period of stay longer than usual tourist visas. Most of these schemes are extended to immediate family members. All of these schemes require minimum annual earnings or sufficient financial means, although thresholds vary widely. Importantly, the holder of a digital nomad VISA does not compete with the local jobs market, as the recipient of this VISA is already employed in another country.
Usually, digital nomads must pay taxes after a certain period in the country, although some Remote-work VISA schemes, mostly in non-OECD countries, impose no such requirement. Quantifiable impact data is currently not available as the majority of these Remote-work VISAs have only recently been approved globally.
(c)The Department will commission research in 2023 to quantify potential demand and would not want to speculate on this until the research has been completed.
(d)(e)Tourism is an industry and the economic impact of tourism expenditure is across multiple industries and sectors. The majority of the sectors that benefit from tourism are listed in the table below with the highest impact being on retail and accommodation followed by food and beverages. The employment profile below indicates the number of individuals employed in the Western Cape as of 2021 in tourism-related employment opportunities.
|
SECTORS THAT CONTRIBUTE TO TOURISM |
2021 Employment profile |
Percentage distribution |
|
Food, beverages and tobacco products |
113,130 |
23% |
|
Retail trade |
217,106 |
44% |
|
Hotels and restaurants |
95,676 |
19% |
|
Land and Water transport |
50,501 |
10% |
|
Air transport & transport-supporting activities |
16,998 |
3% |
|
TOTAL |
493,411 |
|
(Stats SA, 2023)
A remote work/ digital nomad VISA stands to potentially benefit all of these sectors based on the multiplier effect of tourism expenditure and job creation across industries in the numerous value chains and sectors.
