Being a digital nomad – someone who earns a living online in different locations – isn’t a new lifestyle, but it is an increasingly popular one. There are expected to be one billion digital nomads worldwide by 2035, and Google searches for the term ‘digital nomad’ exploded from 1.3 million in 2019 to more than 45.9 million early this year. There are two main reasons – the COVID-19 pandemic accelerated remote working, and much professional work can now be done solely on computers and phones – meaning that more than 35 million people worldwide describe themselves as digital nomads.

As a result of this growing trend, destinations that cater for remote workers have seen a surge in popularity. The Madeira archipelago off the coast of Africa (an autonomous region of Portugal) launched a pilot scheme in 2021 called Digital Nomads Madeira Islands, which aims to attract remote workers by offering them a village in which to live, work and hang out. Bali, no longer just for hippies, surfers and artists, is also cashing in. Good infrastructure means that other longer-term travelers are descending because they can live cheaply and well, and hit the beach after work. What’s not to like?

For tourism and service sectors, it’s a win-win, as digital nomads spend money on accommodation, food, transport, experiences and other services that boost the local economy. Here’s the latest on this exciting travel trend.

1. Who’s globetrotting while they work?
Most research comes from the USA, which has the largest number of people adopting this lifestyle. It shows that 52% of digital nomads are American, followed by the UK (8%), Russia (5%), Canada (4%) and Germany (3%). The age range varies – most are millennials (people born between the early 1980s and mid-1990s), but 23% are the generally well-off Gen X (people born between the mid-1960s and late 1970s). The growth has been swift – in 2019, there were 7.3 million Americans identifying as digital nomads, but by the end of 2022, that number had more than doubled to 16.9 million.

2. Working vacations are evolving

Hotels and travel agents are increasingly catering for so-called workcationers who want to enjoy the local culture and attractions when they’re not working. This is one area where the luxury market is developing. Some Croatian hotels on the Adriatic coast, for example, are targeting remote workers with amenities and comforts that enable them to both vacation and work in style.

3. What are the pros?
The desire to experience different cultures, see new places, and work how and when we want is driving the trend. Saving money is another advantage for many – some travelers stay six months of the year in Playa del Carmen in Mexico, for example, where rents are typically 500% cheaper than in New York City.

4. And the cons?
Slow and unreliable wi-fi makes working remotely frustrating and almost impossible. Other concerns are personal safety, obtaining work visas and the problems posed by different time zones. Advice about overcoming these challenges can be found on websites such as Nomad List and from travel agents who know about essentials like safe destinations, visas, co-working spaces and fast wi-fi.

5. Favourite hotspots
The most in-demand locations offer affordable living, good infrastructure, work visas, things to see and do, and easy access to an international airport. Popular destinations include Thailand, Columbia, Mexico, Indonesia, Portugal and, perhaps surprisingly, Romania. In Western Europe, Lisbon, Portugal’s capital, and Madrid, Spain’s capital and an emerging tech hub, are favourites – and Spain recently launched a digital nomad visa. For Americans, Mexico is the place to go due to the low cost of living, beautiful beaches and its proximity to the USA.

6. Visas are vastly improving
Many governments, keen to attract home-working visitors, have eased the rules and introduced digital-nomad/freelance/self-employed/remote-working visas. These visas allow people to temporarily live and work for typically six to 12 months, much longer than the usual 30 to 90-day tourist visa. Be aware, though, that the visa can take a month or more to be approved, and proof of earnings to be self-sufficient is usually required. As a guide, Spain requires $2,600 a month, while in Portugal, it’s only $838. Expect to pay an application fee, too, the cost of which varies considerably from country to country. With more than 60 countries now offering remote-working visas, there’s sure to be a shift in favoured destinations.   

7. No place like home (away from home)

Although co-working spaces are popping up everywhere, research shows that most people prefer to work from their hotel room or rented self-catering accommodation. On Airbnb, longer stays (more than 28 days) made up 22% of bookings worldwide for Q4 in 2022.

8. Technology is key
The shift to remote working has resulted in and benefited from major improvements in the technologies that facilitate it. Developments include faster internet speeds, teaming software and the ‘Anything as a Service’ (XaaS) model of cloud computing that provides services over the internet.

9. eSims make things much easier
One of the biggest challenges has been staying connected while on the go. This is where eSIMs – virtual SIM cards that connect to the internet without the need for a physical SIM – for smartphones are invaluable. Because an eSIM lets you store multiple mobile services in a single device, you can switch quickly between them, which is handy in poor or no-signal areas and when you want better roaming rates. 

10. What’s the future?  
As remote-working vacations increase, the tourism industry will adapt. Flexible-booking policies, digital check-ins, alternative forms of accommodation (such as serviced apartments) and more technological solutions are needed. Sustainable tourism, too, will be important because digital nomads often prioritize eco-friendly destinations. Governments and tourist boards also need policies that support remote working and tourism. In some places, the future is already here – the Vietnamese authorities, not wanting to miss out on this lucrative market, are introducing a three-month multiple-entry visa from 15 August this year. This is likely to be a game-changer in the Southeast-Asian market – better watch out Bali!