IMPORTANCE OF THE DIGITAL NOMADS IN THE MOBILITY SEGMENT FUTURE GROWTH TRENDS AND KEY FACTORS ABOUT DIGITAL NOMADS 06/2021 Maciej Piątkowski ID: 2020205567 Table of context Introduction ........................................................................................................................................3 1. Who are the digital nomads? .......................................................................................................5 1.1 Understanding the definition of the digital nomads. ...................................................................6 1.2 Digital nomads lifestyle .............................................................................................................7 1.3 Digital nomads challenges and barriers ......................................................................................7 2. Evidence of the phenomenon Digital Nomads .............................................................................8 2.1 . How the digital nomads are changing the mobility sector ...................................................8 2.2 . How does the countries reacts to the digital nomads? .........................................................9 3. Methods .................................................................................................................................... 12 4. Data .......................................................................................................................................... 12 5. Analysis and Interpretation of Results ........................................................................................... 17 5.1 What are the preferences for digital nomads? ........................................................................... 17 5.2 Why the sector is growing? ..................................................................................................... 18 5.3 How the COVID-19 change the digital nomads trends? ........................................................... 19 5.4 Global mobility trends in digital nomads world........................................................................ 20 6. Conclusion .................................................................................................................................... 21 References: ....................................................................................................................................... 22 Appendix 1. List of Digital Nomads websites, blogs and groups. ....................................................... 23 Introduction Migrating or changing the place of residence has always been a process in the history of human development. With the changes in social economy, economic development and innovation of technology, its nature is also changing. At present, it is related to the process of globalization. Which means, the migration process has become particularly important, as the abolition of barriers to the free movement of financial capital and goods, leads to the free movement of people. The scale of migration and the emergence of new factors that determine migration movements have led the literature to distinguish several criteria for the classification of migration flows: - - spatial - refers to the distance covered by migrants and the need to cross administrative borders, place of residence - migration takes place when the place of residence is changed, time - refers to the required minimum period of stay outside the place of residence; it allows us to omit short-term trips, e.g. tourist trips, from the research on migration processes, activities - related to the change of place of residence and attempts to take up employment. The most common reason for the immigration movement is economic factors - mainly the difference in wage levels between regions. However, it should be emphasized that this phenomenon is more complex and involves demographic, social, political, environmental and cultural issues1. Contemporary immigration research is interdisciplinary and a multidimensional process. In 2019, 271.6 million international migrations were recorded, accounting for about 3.5% of the world population. Europe is the continent where about 11% of the population migrates. Most migrants choose Germany, the United Kingdom, or France as their destination 2. The digital revolution brings in improvements in many aspects of life, but it also opens up new, opportunities. New technologies are becoming more integrated into daily lives, shortening distances, assisting growth, and taking on new challenges. Access to the network, fast data flow, cloud storage, efficient networking, videoconferencing tools, software and programs are only a few examples that are changing many areas of life, including work. An field that is changing in along with the globalization phenomena. Employees are trying to be more and more independent and free when it came to the culture of work, and it seems that classic work (working 8 hours at a desk) is giving way to alternative ways of jobs3. The teleworking is one of them, but the terms: remote working, teleworking or telecollaboration are not new terms. Already in 1962 in Great Britain, the company “F International”, in order to D. Miłaszewicz, R. Siedlikowski, Demographic Changes And Migration Processes Migration Processes And Their Impact On The Labour Market, Uniwerystet Ekonomiczny w Katowicach, s. 110 2 E. Kacperska, M. Kacprzak, D. Kmieć, A. Król, K. Łukasiewicz, Migrations International In Europe, SGGW, 2019, p. 7 3 Pa. Beer, R. Mulder, The Effects of Technological Developments on Work and Their Implications for Continuous Vocational Education and Training: A Systematic Review, University of Regensburg, Germany. 1 reduce staff turnover, the company employed women in programming services, who performed their work from home 4. Jack Nilles, who conducted the first experimental telework project in 1973, is credited as the originator of the concept. He defined it as work that allows its results to be transmitted through information technology, such as telecommunications and computers, instead of the physical movement of the people who are to do the work5. The pandemic has revealed a huge contrast in the universality of telecommuting among European Union member states. In a wide range of EU countries, most of the workers who have been telecommuting since the pandemic have no knowledge of telecommuting. Since the Covid-19 pandemic, telecommuting has become the standard for many employees in the European Union and around the world. Early statistics from the European Research Foundation show that due to the pandemic, nearly 40% of people currently working in the European Union begin to commute throughout the day. A new JRC study makes a best guess for about 25% of jobs in the EU telecommuting area. Considering that before the incident, only 15% of EU workers had telecommuting6. The development of new technology, the constant access to the Internet, information, and the growth of mobile device usage has quickly become a decisive factor for new trends in consumer behavior lifestyle and work. The combination of these elements mean that there is a new connection between technology and people's lives. One of the latest trends in new career development is the emergence of digital nomads. As the world stalled due to the outbreak of the COVID-19 pandemic, people all over the world began to experience the “new normal”, which popularized remote working and led a lot of organizations to adopting technologies that support virtual collaboration and communication. Although the COVID-19 pandemic has caused inconvenience in the mobility, due to border closures, airline grounding and daily commuting restrictions, the potential future of “remote living” are beginning to form. Even before COVID-19, there was a clear trend for remote work. The pandemic is from the future perspective may be the main accelerator of this trend. Almost everyone has become a remote worker this year, and the post-COVID workplace may look very different in the next few years. As professionals (and employers) around the world begin to realize that there are other possibilities about working not only from organization offices or workplaces, they can now start to think about the future of working remotely in a foreign country, usually using lower cost of living, instead of working from home. Companies around the world have extended their telecommuting policies implemented due to COVID-19 and are beginning to consider a broader shift to a remote (or mixed) workforce model as a way to reduce indirect costs while supporting employees’ productivity and well-being. 7 This work has two main purposes. The first one will introduce to the digital nomads as the new phenomenon about the new working lifestyle with the context of globality and migration. The second one will present the key behaviors in the digital nomad’s lifestyle world. The key is to A. Dolot, The influence of COVID-19 pandemic on the remote work – an employee perspective, e-Mentor 2020, p. 36 J. Nilles, Traffic Reduction By Telecommuting: A Status Review And Selected Bibliography, Elsevier Ltd. 1988, p. 87 6 European Commission, Telework in the EU before and after the COVID-19, Joint Researc Center, Retrived from: https://ec.europa.eu/jrc/sites/jrcsh/files/jrc120945_policy_brief_-_covid_and_telework_final.pdf 4 5 7 Hermann, Inge & Paris, Cody. (2020). Digital Nomadism: The Nexus Of Remote Working And Travel Mobility. Information Technology & Tourism, p 329-334. understand the trends and the key factors of the digital nomads. The methodology used in the paper is a comprehensive. The subject of the research presented in this paper is the difference between the real world of the digital nomads and the common perceptions about them. Based on the object of research thus defined, the following research questions have been formulated: 1. 2. 3. 4. 5. 6. Who are the digital nomads? What are the challenges and difficulties of digital nomads? How digital nomads are affecting the migration sector? What is important for digital nomads while choosing the place to live? What are the most popular places for digital nomads? What are the professions of digital nomads? 1. Who are the digital nomads? Nomadism is a phenomenon that is known and existed for centuries. There have always been groups with a strong need for independence, being in move, and constant wandering were for them one of the main values, which also emphasized their personal freedom. There are many definitions of traditional nomadism, but nomads and wanderers are the most common terms used in this context. Classical nomadism is a lifestyle of constant moving from place to place, characteristic for pastoral or hunting communities. Today, this lifestyle is still followed by the Rome, for example. However, the term nomadism nowadays is also used to describe people who are traveling through the country, who work remotely and live in many different places, often without a permanent address - hence the terms contemporary nomadism or digital nomadism. This is still a new phenomenon and its definition is still ambiguous. From the 2021 survey, it can be concluded that as many as 86% of the respondents admitted that they have never come across this concept (see Figure 1), and 14% declared that they know the meaning of this concept.8 No Yes 0% 10% 20% 30% 40% 50% Yes 60% 70% 80% 90% 100% No Figure. 1. “Awareness of the term “Digital Nomads” Source: N. Hatalska, Report About Digital Nomads, Retrieved from: https://hatalska.com/wp-content/uploads/2017/02/Wedrowcy_RaportOWspolczesnychNomadach.pdf 8 N. Hatalska, Report About Digital Nomads, Infuture Hatalska Foresight Institute 2016, p. 10 People that claim that they know who the digital nomads are, mostly associate them with technology and the Internet. Interestingly, when asked to define this phenomenon, these people include not only those who combine attributes as work, travel and teleworking, but also those working stationary in an office, who do not need mainly the Internet or the possibility of using new technologies to work. Therefore, it common to say that term digital nomads is usually understood in two ways - as possibility to move, travel, wandering (just like traditional nomads), and as mobility connected to the fact that today every owner of a smartphone or laptop with Internet access has the whole world at their glance, regardless of which part of the globe they are currently in. Such a broad understanding of what digital nomadism is indicates that this phenomenon is not very common and widely unknown, and the definition is still unclear and very capacious for the vast majority. Those who consider themselves as digital nomads also define the term very differently. Some of them focus on digitization and point to contemporary opportunities brought by technological development or access to cheap accommodation, as well as opportunities related to remote work, which are made possible by the emergence of careers that can be pursued anywhere in the world with the access of the Internet. Others believe that digital nomadism is more than just remote work and travel. It is a way of life, a possibility to realize dreams, develop passion and interest, keep learning, experience the world, meet new cultures, new people and make your own choices. Like traditional nomads, wandering is part of their lives, and their roots in travel are often so deep that they cannot imagine settling down in one place. They consider themselves mobile, independent and curious about the world and the people-modern nomads9. 1.1 Understanding the definition of the digital nomads. When it comes to the definition of the digital nomads it is common to say, that the digital nomads are people who primarily uses mobile technology to perform work, which can make their location independent. Digital nomads use this location independence to live in areas outside their regions or countries and change their location regularly. There are several nomads who have traveled for many years and regularly move between countries and continents. Others are nomads for a short period of time, with “industry” and workcations lasting weeks to months. Through a combination of passion for travel and new adventures, digital nomads enjoy the ability to work from anywhere that they can stay connected to the Internet. They live “assetlight” lives and invest in experience rather than things. This makes them an ever-growing and important part in the mobility industry. Travel operators and governments may start in the future to adjust their service, products to attract more and more mobile workers. Owner of the traveling destination ranking that specialized in the nomads favorite destinations said that the global population of nomads by the end of 2035 may reach even one billion globally. “Before the pandemic, we might have seen this as ideological dreaming […] But maybe now we might think that the reality would get somewhere closer to the one billion mark by 2035.”. The future of digital nomadism is very optimistic. Continuous improvements in mobile and cloud computing tools and technologies will lead to higher levels of remote work. More and more professional services and products make the formation and operation of digital nomads easier 10. 9 Ibidem, p. 11 S. Nitav, Could digital nomads be an important growth segment for student travel? Retrieved from: https://monitor.icef.com/2020/10/could-digital-nomads-be-an-important-growth-segment-for-student-travel/ 10 1.2 Digital nomads lifestyle For digital nomads, the criterion for deciding where to work is access to the Internet, which enables them to use services and goods. At the same time, they consume in a very rational way, thus promoting new economic modes, such as the described sharing economy. It is common to believe also that material objects do not play a key function in digital nomads lives 11. A research in 2017 conducted on a weighted sample of 1,022 Polish and 98 English-speaking internauts found that only 18% of digital nomads consider owning things or money to be important in life – 83% of them consider freedom to be most important. Digital nomads do not attach importance to the things they own – with the exception of technology, which for them are tools for work, communication and entertainment. Reducing the number of possessions is also dictated by practical considerations, such as airport restrictions and traveling inconveniences. However, cyber nomadism does not have to be synonymous with long-distance travel. Many authors believes that it is also possible to be a modern nomad while working within a single city – as distance is secondary to the possibility of using the web. Digital nomadism does not have to mean limited consumption either – however, researchers shows that it very often coexists with it. Digital nomads attach great importance to leisure time and physical fitness. They are mobile and open to new opportunities. And although this lifestyle is still considered a niche, it is expected that – thanks to the development of new technologies it will gain in importance. Available data on the scale of the digital nomadism phenomenon are contradictory. However, trends on the labor market (e.g. growing importance of freelance work and remote work0, will increase the popularity of digital nomadism in the next decade 12. 1.3 Digital nomads challenges and barriers Since the digital nomads concept it relatively new and seems to be interconnected with global migration concept, it is not possible fully describe direct findings about factors related to the limitation in digital nomads world. Since this concept is really close to the migration barriers that are already described in many research we can assume some of them are really similar for both concepts and include: political barriers, language barriers, cultural barriers and, infrastructural barriers13. The major challenge (see Table 1), that digital nomads are facing in their life are related to the inability of being disconnected from the world. 1 2 3 4 5 6 Not being able to unplug Uncertainty Loneliness Financial difficulties Collaborating Staying motivated Being constantly available and working too much Not always knowing what tomorrow will bring Missing connections with home, family, and friends Freelancing doesn’t always mean steady income Communicating with coworkers and clients Keeping on task with a positive attitude Table. 1. “Digital Nomads Challenges” Srouce: K. Heathe, D. Arelano, Work and Wander: Meet Today’s Digital Nomads, ATTA, 2021, p. 19 11 W. Przecherska, Less in the age of the internet? How New Technologies Catalase Minimalist Practices, Instytut Socjologii, Uniwersytet Warszawski, p. 104 12 The Economist, Nomads at last, Retrieved from: https://www.economist.com/special-report/2008/04/12/nomads-at-last 13 T. Homoncik, K. Pujer, I. Wolańska, Economic And Social Aspects Of Migration. Retrieved from: https://depot.ceon.pl/bitstream/handle/123456789/11603/migracje_1p.pdf?sequence=1&isAllowed=y Even if the digital nomad work concept seems to be giving a lot of freedom, it still requires a lot of time to involving in work. Although as digital nomads gain experience, they tend to find it easier to unplug. The second place in the research list “uncertainty” about not always knowing what tomorrow will bring. Recent event Covid-19 forced a lot of people to adapt to new reality. During the pandemic lot of countries (including all European Union countries), introduced a lot of restrictions, blocking at the same time the traveling movement sector. This lifestyle can also lead to loneliness, potential financial difficulties, challenges collaborating and communicating, and a hard time staying motivated. 2. Evidence of the phenomenon Digital Nomads The trend of the growing popularity of digital nomadism and remote working can be observed from the number of blogs, websites or community groups dedicated to new mobile forms of employment. The trend of the use of world “digital nomads” is also rising and it is possible to change the growth by using Google Trends (see Picture 1.). The first searchers occurred in 2006, but the continued trend for those key words started in 2008 – with the rising tendency till 2009. For the next years the traffic of in the Internet was relatively low, until 2014 when everything started to rise. Until now (2021) we can see that the interest of the searches are the most popular. Although Google Trends can give only the information about the tendency of the changes (not the number of searches) it is possible to see how the movement have been changing over time. Picture 1. “Digital nomads in Google Trends” Source: Google trends. 2.1 . How the digital nomads are changing the mobility sector It is difficult to precisely indicate statistics and the number of digital nomads as such, data can only be estimated on the basis of a few studies on remote workers, which is not synonymous with the concept of digital nomad, because it is often characterized by working from home, not exploring the world. In addition, the studies conducted and their results are not consistent, each research company is based on a different research group, defines the concept of remote working differently and focuses on a different area. The general conclusions of the research indicate that there are more and more remote workers and according to forecasts the trend will increase. Findings from an international study conducted by OWL Labs in 2018 14 indicate that 68% of employees worldwide worked remotely at least once a month, but only 18% of employees 14 2018 State of Remote Work Report (Global), Retrieved from: https://resources.owllabs.com/state-of-remote-work worldwide work remotely full-time. The highest number of full-time remote workers is in the US. Remote working is agreed by 56% of companies worldwide, with US companies again having the highest percentage (85%). The rest of the countries still do not have a remote, mobile workforce. Referring to the frequency of remote working: 52% of employees work from home at least once a week and 68% of respondents work remotely at least once a month. The motivation for working remotely, according to respondents, is greater productivity and better concentration, followed by saving money or better work-life balance. Another US study conducted in 2020 “A State Of Independence In America Research Brief”15 indicates that 4.8 million US workers describe themselves as digital nomads. The estimates are that by 2035, 50% of all US workers will be remote workers. The majority of these are freelancers working independently for their own account, but there are also workers who complete assignments for their employer without being confined to their place of work. This is a clear signal to employers who, if they do not decide to open up the possibility of remote working, will in the long term have limited access to the best professionals. At the first DNX Global conference, bringing together digital nomads, it was estimated that there will be up to one billion of them by 2035. They already constitute an important group of travelers whose needs and expectations influence market trends and the tourist offer 16 2.2 . How does the countries reacts to the digital nomads? Since remote working has become an almost universal phenomenon, many countries have launched campaigns to promote longer stays, during which foreign visitors can combine work with leisure activities and at the same time support tourism, which is in the midst of a deep crisis. One of the examples include, The Portuguese island of Madeira. The authorities has gone one step further and created a "digital nomad village" – the first in the world, according to media reports. Digital Nomads Madeira, as the pilot project is called, will launch in Ponta do Sol. Its originators are the regional government and Startup Madeira, assisted by digital nomad and remote working consultant Gonçalo Hall. With a population of around 8,200, the town of Ponta do Sol on the south coast of Madeira offers nomads free workspace (chair and desk) in the coworking space at the John Dos Passos Cultural Centre, access to the Slack internet service for collaborative work and Wi-Fi every day from 8 am to 10 pm. Ponta do Sol can welcome 100 nomads who commit to staying for at least a month. They will have to provide their own accommodation, transport and visa. The project's creators have teamed up with local businesses, including accommodation and car rental companies, who want to provide services to the nomads. The nomads in turn can count on help in finding accommodation at a discount for a longer stay, for example in a hotel or a rented flat. According to euronews.com, 3 000 people have already registered via the website and applications are still coming in. The Madeira Digital Nomads project is intended to help local businesses, which have been hit hard by the pandemic (before the outbreak, tourism revenue accounted for around 20 per cent of Madeira's income). The authorities also hope to alleviate the problem of seasonality in tourism. And they have 15 MBO Partners, State of Independence In America 2018, Retrieved from: https://www.mbopartners.com/state-ofindependence/mbo-partners-state-of-independence-in-america-2018 16 P. Levers, There Will Be 1 Billion Digital Nomads By 2035, Retrieved from: https://levels.io/future-of-digital-nomads already announced that more such places will be built in Madeira and mainland Portugal in the future17. Italy is a popular country for digital nomads due to the unique charm of its cities and towns, cuisine, cultural attractions and high standard of living. A new tax break is already in place in Italy from 1 January 2020. It provides those who transfer their taxes to Italy with a 70 per cent discount for five years. In the central and southern regions of the country, this relief can be as high as 90 per cent. These incentives are valid for five years and can be extended for another five years (with 50 per cent relief on income) if the taxpayer has a minor child or buys a property within one year of moving to Italy. To work in Italy, EU citizens only need to register their stay of more than three months with the town hall. Non-EU citizens can obtain a Schengen visa. Importantly, however, a tourist visa cannot be converted into permanent immigration status and a work permit while in Italy. The best solution for non-European digital nomads is to apply for a self-employed visa at the Italian consulate before arrival 18. In addition, Italian authorities are planning to become even more open to digital nomads. The latest Government project involving small Italian abandoned, depopulated or at risk of depopulation smaller towns. The authorities plan to transform them into places for people planning to work remotely. The 1 billion euro project has been earmarked for investment, and the main goal is to provide small villages with access to high-speed Internet. According to several sources, the authorities plan to improve the lives of people living in smaller villages by attracting remote workers – including Italian citizens from biggest cities as wells as, digital nomads. Italy has around 5,500 villages, which often suffer from a small local population. The money is intended to attract potential employees looking for a quiet place for teleworking while traveling. At the same time, the authorities have launched an additional project allocating €600 million to renovate abandoned houses in places covered by the settlement program. The money will be used to build guest houses, and places that will provide accommodation for new members19. Iceland is one of the countries that are opening up to tourists. To encourage those who would like to stay longer, Iceland will be giving out special visas to digital nomads. Icelandic authorities claim that digital nomads will benefit society in terms of both knowledge and contacts, fostering an innovative environment and helping the local economy recover from the coronavirus pandemic. Country hands out special visas to digital nomads that will allow people to stay up to 6 months. Iceland has announced that it will distribute special visas to digital nomads. In doing so, it has extended its program for long-term residence visas also for outside the Schengen area. It now applies to any foreigner who is not required by Iceland to apply for a visa. Successful applicants must be employees of a foreign company and meet several requirements like owing private insurance. Those who receive a visa can also come with their family without having to obtain an Icelandic identification number 20. 17 Madeira Authorities, Digital Nomads Madeira Islands, Retrieved from: https://digitalnomads.startupmadeira.eu A. Aayat, Offering Tax Incentives For Digital Nomads, Retrieved from: https://allwork.space/2021/04/italy-offering-taxincentives-for-digital-nomads 19 R. Hughes, Italy’s €1 Billion Project To Lure Digital Nomads To Remote Villages, Retrieved from: https://www.forbes.com/sites/rebeccahughes/2021/04/26/italys-1-billion-project-to-lure-digital-nomads-to-remotevillages/?sh=5006030a2a33 20 A. Smith, Work Remotely From Iceland For Six Months - If You Meet These Requirements, Retrieved from: https://www.lonelyplanet.com/articles/iceland-long-term-visa 18 Since last summer, Barbados has also been extremely open to digital nomads. At that time, this Caribbean island announced the implementation of the "Barbados Welcome Stamp" program. Thanks to this "stamp", digital nomads can easily spend a year on the island. The official Barbados websites encourage digital nomads with note: “Our new 12 month Barbados Welcome Stamp, is a visa that allows you to relocate and work from one of the world’s most beloved tourism destinations” With this initiative, Barbados intends to effectively combat the weak demand for short-term travel. It prefers to rely on long-term tourists, from whom it will receive regular revenue. As much as 40% of Barbados' GDP comes from tourism. No wonder, then, that in such a difficult period it is looking for ways to offset its losses. For digital nomads, it is the perfect alternative to lose themselves in the culture and unique climate of this Caribbean island. The condition for temporary installation on the island will be the presentation of a negative COVID-19 test result, as well as adherence to security restrictions during travel and, on site. The monthly cost of living in Barbados for digital nomads averages $2,00021. All places that already prepared for the digital nomads (see. Table 2) include 21 countries that have prepared for the digital nomad by adjusting the visa program targeting digital nomads. The Germany seems to giving the longest permission for digital nomads (up to 3 years). The second group of countries, include: Antigua and Barbuda, Cayman Islands, Costa Rica, Mauritius, Norway, Mexico and allows teleworkers to stay for up to 2 years. The majority of countries offers 12 months period for digital nomads (with exception of Iceland – 6 months, and previously mentioned countries). Length 2 years Digital Nomad Visa Countries 1. Antigua and Barbuda 12. Iceland Length 6 months 12 months 2. Barbados 13. Mauritius 12 months 12 months 3. Bermuda 14. Mexico 12 months 2 years 4. Cayman Islands 15. Norway 2 years 2 years 5. Costa Rica 16. Portugal 12 months 12 months 6. Croatia 17. Spain 12 months 12 months 7. Czech Republic 18. Anguilla 12 months 12 months 8. UAE (Dubai) 19. Argentina 12 Months 12 months 9. Estonia 20. Montserrat 12 months 12 months 10. Georgia 21. Aruba 12 Months 3 years 11. Germany Table. 1. “Visa Programs for Digital Nomads” Source: Carlos, 63 Surprising Digital Nomad Statistics in 2021, A Brother Abroad, Retrieved from: https://abrotherabroad.com/digital-nomad-statistics/#WHO-ARE-DIGITAL-NOMADS 21 Barbados Government, Barbados https://barbadoswelcomestamp.bb Welcome Stamp – Work remotely in Barbados, Retrieved from: 3. Methods The methodological framework of this work project is based on the use of data collected with the use of the Internet, with the help of a Netnography model based on the analysis of web materials. The methodology also includes online survey questionnaires covering surveys from the year: 2016 and two from 2021. The quantitative study from 2017 was carried out by the Mobile Institute using the CAWI method (Computer-Assisted Web Interview) - responsive electronic surveys emitted on websites, forums and in mailings. Two surveys were prepared. In the first one opinions were collected from 1022 Polish Internet users, in the second - English-speaking - 98 opinions of people from all over the world describing themselves as digital nomads. Both groups received dedicated research questionnaires. Only complete questionnaires were taken into account in the analysis22. A Brother Abroad has released a research report from 2021 to share findings about who these digital nomads are and what they are looking for when they travel. To gather responses from as many digital nomads as possible A Brother Abroad used a convenience sampling method. Company used the CAWI method (Computer-Assisted Web Interview) - posted links to the survey in digital nomad groups on Facebook, through social media, in emails to partners and members, and via personal outreach. Participation was entirely voluntary and no incentives were offered. To qualify for the survey, respondents only had to identify as a digital nomad. Due to this sampling method, no generalizations can be made about all digital nomads. The total completed surveys number count 4000 respondents 23. The ATTA used research team used a convenience sampling method and collected 61 answers by posting links to the survey in digital nomad groups on Facebook, through ATTA social media, in emails to partners and members, and via personal outreach. ATTA used the CAWI method (Computer-Assisted Web Interview) in which participation was entirely voluntary and no incentives were offered. To qualify for the survey, respondents only had to identify as a digital nomad24. The Netnography sources are included at Appendix 1. 4. Data In some sources the modern nomad is usually presented as a young man, single, without commitments, working in the IT industry. As it turns out, many of these statements are stereotypes. Research conducted in 2016 shows that yes, nomads are relatively young people (88% of the respondents were 25-44 years old), but in their case gender is no longer a differentiating element (51% men and 49% women). Research from 2021 confirms results contemporary with similar results (see Fig. 2.), showing almost the same amounts (50% men 22 N. Hatalska, Report About Digital Nomads, Infuture Hatalska Foresight Institute 2016. Carlos, 63 Surprising Digital Nomad Statistics in 2021, A Brother Abroad, https://abrotherabroad.com/digital-nomad-statistics/#WHO-ARE-DIGITAL-NOMADS 24 K. Heather, A. Diego, Work and Wander: Meet Today’s Digital Nomads, March 2021, ATTA. 23 Retrieved from: and 50% women) with the majority of young people (between 25-44 year old) equal to 78% of all respondents (see Fig. 3.). 2021 49% 50% 50% 51% 2016 FEMALE MALE Figure 2. “Digital Nomads Gender” Source: N. Hatalska, Report About Digital Nomads, Infuture Hatalska Foresight Institute 2016, p. 40, Carlos, 63 Surprising Digital Nomad Statistics in 2021, A Brother Abroad, Retrieved from: https://abrotherabroad.com/digital-nomad-statistics/#WHO-ARE-DIGITAL-NOMADS 18-24 0% 0% 7% 16% 27% 51% As an observation from 2021 research we can assume that group in age between 18-24% and 65+ was not registered or did not occur during the research. Second highest group based on the research was in a group between 45-54 age equal to 16% of all the respondents. 25-34 35-44 45-54 55-64 65+ Figure 3. “Digital Nomads Age” K. Heather, A. Diego, Work and Wander: Meet Today’s Digital Nomads, 2021, ATTA, p. 11 When it comes to the digital nomads professions (see Fig. 4), the answers include 46 different professions. Figure 4.1 “Digital Nomads Jobs” Carlos, 63 Surprising Digital Nomad Statistics in 2021, A Brother Abroad, Retrieved from: https://abrotherabroad.com/digital-nomad-statistics/#WHO-ARE-DIGITAL-NOMADS However, it is possible to estimate that 51% of nomads worked in marketing, IT/Development, design, writing, and eCommerce and the 14% worked in traditional fields like architecture, medicine, law, urban planning, engineering, and more. Based on the research results it is also possible to say that, majority of digital nomads were self-employed (see Figure 4.2), with the rest of 14% being employed by other companies – working remotely. In a group of selfemployed workers 66% were having own business, while the rest 34% works as freelancers or gig workers25. Company employed Self-employed 17% 83% Figure 4.2 “Digital Nomads Employment Status” Carlos, 63 Surprising Digital Nomad Statistics in 2021, A Brother Abroad, Retrieved from: https://abrotherabroad.com/digital-nomad-statistics/#WHO-ARE-DIGITAL-NOMADS It looks like, modern nomads are a very heterogeneous group. However, on closer inspection, there are some common features that almost all respondents agree. The greatest value of modern nomadism is independence (see Figure 5) and was listed on top (in group between 75% to 60%) with freedom and ability to learn about new cultures. In the group of importance in the middle rank (between 54% to 45%), respondents has chosen self-realisation, no monotony, having good memories and fulfillment of dreams as a key values. In the last group of rank (from 7% to 27%), digital nomads put constant changes, relax, productivity, no commitments and others advantages. 25 Carlos, 63 Surprising Digital Nomad Statistics in 2021, A Brother https://abrotherabroad.com/digital-nomad-statistics/#WHO-ARE-DIGITAL-NOMADS Abroad, Retrieved from: Independence 75% Freedom 68% Learning about new cultures 63% Self-realisation 54% No monotony 52% Memories 51% Fulfilment of dreams 45% Constant changes 27% Relax 27% Productivity 22% No commitments Others 18% 7% Figure 5. “The advantages of digital nomadism” Soruce: N. Hatalska, Report About Digital Nomads, Infuture Hatalska Foresight Institute 2016, p. 42. Loneliness, keeping contact with family and the feeling of not having home are cited by respondents who consider themselves as nomads or who live this lifestyle as the main disadvantages of nomadic lifestyle (see Figure 6). One fifth and more people also specified disadvantages such as: lack of stability, sense of alienation, missing relatives and difficulties with having communication with others people. Also the study from 2021 is listing the loneliness, missing family and friends as the first reason that digital nomads are going back to their homes of origin 26. Loneliness 37% Difficult contact with relatives 35% No home 32% Lack of stability 27% Sense of alienation 26% Missing relatives 24% Difficulty communicating with people 22% Uncertainty 16% Inability to start a family 9% Others 9% Any of them 7% Figure 6. “The disadvantages of digital nomadism” Soruce: N. Hatalska, Report About Digital Nomads, Infuture Hatalska Foresight Institute 2016, p. 40. According to the countries experienced, digital nomads community seems to dispersed. However based on the graph (see Fig. 7), it is possible to say that almost one third of respondents has already been in 3 to 4 countries. It is possible to find the new digital nomads 26 Carlos, 63 Surprising Digital Nomad Statistics in 2021, A Brother https://abrotherabroad.com/digital-nomad-statistics/#WHO-ARE-DIGITAL-NOMADS Abroad, Retrieved from: one the graph, because from 13% of surveys people stated that they have been in at least one foreign country. There is also a big group of digital nomads (11%) that have visit even 10 and more countries. 16% 16% 13% 11% 8% 11% 7% 7% 5% 5% 0% Inside home country 1 2 3 4 5 6 7 8 9 10+ Figure 7. “Digital Nomads countries experienced” K. Heather, A. Diego, Work and Wander: Meet Today’s Digital Nomads, 2021, ATTA, p. 13 According to A Brother Abroad survey, the surveyed average period of traveling in life of digital nomads is 6,1 years on average, and 85% have been on the road longer than 1 year 27. The observation can be proved by also by the data from ATTA, in which we can observe (see Fig. 8) two fifths of respondents experienced the digital lifestyle for 5 and more years, and 80% of all respondents have been at least experiencing it for 1 year. The third group that experienced being digital nomads for less than one year is equal to of one fifth of those surveyed (20%). 40% 20% 18% 12% 7% 3% <1 year 1-2y years 2-3years 3-4years 4-5years 5+ years Figure 8. “Digital Nomads experience duration” K. Heather, A. Diego, Work and Wander: Meet Today’s Digital Nomads, 2021, ATTA, p. 14 27 Carlos, 63 Surprising Digital Nomad Statistics in 2021, A Brother https://abrotherabroad.com/digital-nomad-statistics/#WHO-ARE-DIGITAL-NOMADS Abroad, Retrieved from: 5. Analysis and Interpretation of Results 5.1 What are the preferences for digital nomads? The modern nomad is often, but not always, self-employment, freelancing which is are the most attractive type of work for digital nomads (83%), as shown by A Brother Abroad. According to data from report digital nomads often use coworking space (office shared with other nomads) as an office. The report on digital nomads states: "Coworking spaces are spaces where you can rent a place to work (usually a desk or a room) for hours, specific days or permanently. Coworking spaces provide all the amenities found in traditional offices, such as Internet access, scanners, printers, a shared kitchen, meeting spaces, conference rooms. People who do not have a common employer work there. They are united by the space they share" 28. Coworking has the following advantages compared to working from home, a restaurant or a café: stable and fast internet, office equipment (ergonomic table, printer, fax), meeting similar people, exchange of experience, conferences/training, organization of business meetings, possibility of separating work and free time. Speaking of disadvantages, the most important are the cost of rent and the time spent commuting to the office. An analysis of the popular website nomadlist.com (which enables people to search for their next (new) place of residence), has identified the following criteria for choosing this city: popular and less popular ones. Popular criteria include: cost of living (short-term rent, meals), Internet (cost, speed, stability), culture, language, weather/climate (distance to sea/mountains, cleanliness of air), visa (availability, cost, deadline) and insurance, entertainment (clubs, attractions), safety, cost of moving. Less popular criteria include: LGBT friendliness status, democratic countries, low number of tourists, humidity, noise/light pollution, and many more. Once you have specified your preferences, the result is a list of cities around the world that meet your criteria29. According to the research from 2021, the most rated countries by digital nomads are as follow: Mexico, Thailand, Indonesia, Colombia, Vietnam, Portugal, Turkey, Costa Rica, Brazil, Philippines. 28 N. Hatalska, Report About Digital Nomads, Infuture Hatalska Foresight Institute 2016, p. 26. 29 Community of 26,560 remote workers living around the world, Retrieved from: https://nomadlist.com Figure 9. “Digital Nomads Top Rated Destinations” Carlos, 63 Surprising Digital Nomad Statistics in 2021, A Brother Abroad, Retrieved from: https://abrotherabroad.com/digital-nomad-statistics/#WHO-ARE-DIGITAL-NOMADS Mexico was rated as the top destination for digital nomads by 13% of surveyed nomads, followed by Thailand (12% of surveyed nomads), Indonesia (9% of surveyed nomads), and Colombia (7% of surveyed nomads) and Vietnam (5 percent of nomads surveyed). In the Western Europe Portugal was often choose as best region. Turkey was choose as digital nomads are in the Middle East. Croatia is popular in Eastern Europe. Southeast Asia was chosen as the most popular region for Digital Nomads with 34% of all votes. Central America with 16% of the votes, followed by South America that collected all 13% of the votes30. 5.2 Why the sector is growing? There is no denying that nomadism as a lifestyle is a growing trend. It is influenced by both social and technological changes, among which it is worth mentioning especially 31: 1. Universal access to the Internet, the so-called networked society and the development of technologies. It can be clearly observed in the statistics of the Internet connectivity development, that more and more place are becoming connected to the Internet. With the development of the Internet numerous of places are becoming more friendly for all travelers, including Digital Nomads. Also the improvement of the quality of the Internet is luring the travelers, since all teleworkers need it to be able to work. 30 Carlos, 63 Surprising Digital Nomad Statistics in 2021, A Brother Abroad, https://abrotherabroad.com/digital-nomad-statistics/#WHO-ARE-DIGITAL-NOMADS 31 N. Hatalska, Report About Digital Nomads, Infuture Hatalska Foresight Institute 2017, p. 23 Retrieved from: 50% 2016 54% 56% 59% 2017 2018 2019 64% 66% 2020 2021 Figure 10. “Percentage Of People Having Access To The Internet” Internet Growth Statistics, Retrieved from: https://www.internetworldstats.com/emarketing.htm 2. Knowledge-based economy and the growing role in it of professions from the STEM category (science, technology, engineering and mathematics), which can be performed remotely, especially based on the statistic before and after Covid-19 started. 3. Dynamic development of low-cost airlines, widespread availability and increasingly competitive prices of flights; 4. Increasing urbanization, which means that small cities in Asia now offer the same amenities as cities in Europe or America; 5. Generational changes and expectations of generation Y and Z towards work - instead of working full-time in companies and corporations they choose to run their own business or work freelancing (the so-called gig economy); 6. Social changes and expectations of young people towards life - generation Y, the most strongly represented among contemporary nomads, has a much greater need for experiences than previous generations; they do not want to regret that they missed something in life, that they did not realized a dream; the combination of their passions, desire for experiences and experiences with the possibility of gainful employment is very tempting for them. 5.3 How the COVID-19 change the digital nomads trends? 2020 has changed the way we work, impacting every individual and organization around the world. Now we are on the verge of a disruption of equal magnitude - a widespread shift to a hybrid model, with some workers returning to offices and others continuing to work from home. According to experts, flexible, hybrid work will stay on the marketplace permanently. The authors believe that flexible working will define the post-pandemic workplace. Employees want the best. And more than 70% of them expect flexible forms of remote working to continue. At the same time, over 65% of them want to spend more time in person with their teams. To prepare for this, 66% of business decision makers are considering redesigning their office space to better accommodate hybrid working environments32. Setting trends during a global pandemic that are sure to prevail can be difficult, but there are still clues as to where the world of travel is heading, at least in the near future. Some observation about digital nomads based on before and after Covid-19 changes can be observed (see Fig. 32 Microsoft, The Next Great Disruption Is Hybrid Work—Are We Ready, Retrieved from: https://www.microsoft.com/enus/worklab/work-trend-index/hybrid-work 11), especially in America, since lot of IT companies are located there. The number of employees described as digital nomads before in 2019 was estimated as 7,3 million. After the pandemic occurred we can observed increase of 49% in number of digital nomads in 2020. This is a sufficient increase to indicate that there is a partial correlation between the two phenomena. 2019 2020 7,3 10,9 Figure 11. “Number of American Digital Nomads” (in millions) COVID-19 and the Rise of the Digital Nomad, Retrieved from: https://www.mbopartners.com/state-of-independence/2020-digital-nomads-report/ According to Airbnb, people have completely changed their approach to where, when and for how long they go away. Nearly 25% of bookings in the first quarter of 2021 were made for stays of 28 days or more. Most likely, many are combining remote work with the leisure opportunities offered by the places they are staying. The CEO of Airbnb stated: "I think people have now what they didn't have a year or two ago. A lot of people now rely on flexibility. They want flexibility in travel, life and work – and they're starting to put it all together." - Airbnb CEO Brian Chesky33 According to the Airbnb CEO, people will not give up on the new opportunities that the pandemic has brought them. 5.4 Global mobility trends in digital nomads world. Contemporary nomads are relatively young people (88% of respondents were aged 25-44 in the Infuture Hatalska study, and 78% in A Brother Abroad), but gender is not a differentiating factor in their case (51% of Infuture Hatalska respondents were men and 49% women, and in ATTA, 50% women and 50% men). The contemporary nomad is often, a self-employed person, a freelancer. There are also people who are employed by an employer but work remotely from anywhere in the world. The most attractive type of work for digital nomads is self-employment, self-employment and freelancing. As many as 83% of respondents describing themselves as digital nomads or leading such a lifestyle declared that the most important value in life for them is freedom. In second place - with 78% - was independence. Despite the casual treatment of the concept of family in the traditional sense (parents, siblings, etc.), it is very important to modern 33 J. Bursztynsky, Airbnb announces a big new update focused on flexibility, Retrieved from: https://www.cnbc.com/2021/05/24/airbnbs-big-new-update-is-focused-on-flexibility-heres-whats-new.html nomads. 45% of respondents declared that they agree with the statement "family is very important to me". Loneliness and difficult contact with family are mentioned by respondents considering themselves nomads or leading such a lifestyle as the main disadvantages of nomadism. In the research showed that one of the most popular profession that digital nomads work in is marketing, followed by IT/Development. The average time that digital nomad spend during his visit in foreign country is equal 6,1 years. Countries are trying to adapt their visa requirements and options for the new needs for digital nomads including. Most rated countries by digital nomads are as follow: Mexico, Thailand, Indonesia, Colombia, Vietnam, Portugal, Turkey, Costa Rica, Brazil, Philippines. 6. Conclusion The occurrence of the phenomenon of digital nomads proves that there is a market demand for development in this direction. At the moment there are 10.9 million digital nomads only in America alone. The change in many countries as a result of the current situation has caused many workers all around the world to change as a result of pandemics. The flexibility that comes with remote working is certainly a factor that is increasing the number of digital nomads. The majority of employees are not only happy to work remotely, but also cannot imagine going back to their old ways of working. Such a large number of potential in still not completely discovered group, creates a huge potential for the migration sector. Changes can already be seen in many countries that are adapting their visa plans to the fulfill the needs of teleworkers. Most of the digital nomads declare that they have already visited more than one country. Among the growing trends, there is also an increase in those, who have been living this lifestyle for less than one year. These in turn can be attributed to people who have switched to remote working during their pandemic, leaving their office workplace. One tenth of nomads also reported that they had already visited more than 10 countries. Some countries, in response to the growing expectations of nomads, have gone a step further by investing in future projects focused on attracting this target group. For example, the first digital nomad village in Madeira. This is definitely the right direction that countries should take, especially those living mainly on earrings based on tourism and those most threatened by depopulation. Accepting digital nomads into a country can also significantly reduce the budget deficit caused by a pandemic. Changes in the expectations of younger generations are also a strong sign of a changing labor market that should not be ignored. The present work is necessarily incomplete, as it is only an introduction to a more thorough analysis of the phenomenon of digital nomadism, which has recently become extremely popular due to, among pandemic and the strong influence of the media. Undoubtedly, this issue deserves more in-depth studies, the more so that only a few studies on the chosen topic have been written so far. References: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. D. Miłaszewicz, R. Siedlikowski, Demographic Changes And Migration Processes Migration Processes And Their Impact On The Labour Market, Uniwerystet Ekonomiczny w Katowicach, s. 110 E. Kacperska, M. Kacprzak, D. Kmieć, A. Król, K. Łukasiewicz, Migrations International In Europe, SGGW, 2019, p. 7 Beer, R. Mulder, The Effects of Technological Developments on Work and Their Implications for Continuous Vocational Education and Training: A Systematic Review, University of Regensburg, Germany. A. Dolot, The influence of COVID-19 pandemic on the remote work – an employee perspective, e-Mentor 2020, p. 36 J. Nilles, Traffic Reduction By Telecommuting: A Status Review And Selected Bibliography, Elsevier Ltd. 1988, p. 87 European Commission, Telework in the EU before and after the COVID-19, Joint Researc Center, Retrived from: https://ec.europa.eu/jrc/sites/jrcsh/files/jrc120945_policy_brief__covid_and_telework_final.pdf Hermann, Inge & Paris, Cody. (2020). Digital Nomadism: The Nexus Of Remote Working And Travel Mobility. Information Technology & Tourism, p 329-334. N. Hatalska, Report About Digital Nomads, Infuture Hatalska Foresight Institute 2016, p. 10 Ibidem, p. 11 S. Nitav, Could digital nomads be an important growth segment for student travel? Retrieved from: https://monitor.icef.com/2020/10/could-digital-nomads-be-an-important-growth-segment-for-student-travel/ W. Przecherska, Less in the age of the internet? How New Technologies Catalase Minimalist Practices, Instytut Socjologii, Uniwersytet Warszawski, p. 104 The Economist, Nomads at last, Retrieved from: https://www.economist.com/special-report/2008/04/12/nomadsat-last T. Homoncik, K. Pujer, I. Wolańska, Economic And Social Aspects Of Migration. Retrieved from: https://depot.ceon.pl/bitstream/handle/123456789/11603/migracje_1p.pdf?sequence=1&isAllowed=y 2018 State of Remote Work Report (Global), Retrieved from: https://resources.owllabs.com/state-of-remote-work MBO Partners, State of Independence In America 2018, Retrieved from: https://www.mbopartners.com/state-ofindependence/mbo-partners-state-of-independence-in-america-2018 P. Levers, There Will Be 1 Billion Digital Nomads By 2035, Retrieved from: https://levels.io/future-of-digitalnomads Madeira Authorities, Digital Nomads Madeira Islands, Retrieved from: https://digitalnomads.startupmadeira.eu A. Aayat, Offering Tax Incentives For Digital Nomads, Retrieved from: https://allwork.space/2021/04/italyoffering-tax-incentives-for-digital-nomads R. Hughes, Italy’s €1 Billion Project To Lure Digital Nomads To Remote Villages, Retrieved from: https://www.forbes.com/sites/rebeccahughes/2021/04/26/italys-1-billion-project-to-lure-digital-nomads-to-remotevillages/?sh=5006030a2a33 A. Smith, Work Remotely From Iceland For Six Months - If You Meet These Requirements, Retrieved from: https://www.lonelyplanet.com/articles/iceland-long-term-visa Barbados Government, Barbados Welcome Stamp – Work remotely in Barbados, Retrieved from: https://barbadoswelcomestamp.bb N. Hatalska, Report About Digital Nomads, Infuture Hatalska Foresight Institute 2016. Carlos, 63 Surprising Digital Nomad Statistics in 2021, A Brother Abroad, Retrieved from: https://abrotherabroad.com/digital-nomad-statistics/#WHO-ARE-DIGITAL-NOMADS K. Heather, A. Diego, Work and Wander: Meet Today’s Digital Nomads, March 2021, ATTA. Carlos, 63 Surprising Digital Nomad Statistics in 2021, A Brother Abroad, Retrieved from: https://abrotherabroad.com/digital-nomad-statistics/#WHO-ARE-DIGITAL-NOMADS Carlos, 63 Surprising Digital Nomad Statistics in 2021, A Brother Abroad, Retrieved from: https://abrotherabroad.com/digital-nomad-statistics/#WHO-ARE-DIGITAL-NOMADS Carlos, 63 Surprising Digital Nomad Statistics in 2021, A Brother Abroad, Retrieved from: https://abrotherabroad.com/digital-nomad-statistics/#WHO-ARE-DIGITAL-NOMADS N. Hatalska, Report About Digital Nomads, Infuture Hatalska Foresight Institute 2016, p. 26. Community of 26,560 remote workers living around the world, Retrieved from: https://nomadlist.com Carlos, 63 Surprising Digital Nomad Statistics in 2021, A Brother Abroad, Retrieved from: https://abrotherabroad.com/digital-nomad-statistics/#WHO-ARE-DIGITAL-NOMADS N. Hatalska, Report About Digital Nomads, Infuture Hatalska Foresight Institute 2017, p. 23 Microsoft, The Next Great Disruption Is Hybrid Work—Are We Ready, Retrieved from: https://www.microsoft.com/en-us/worklab/work-trend-index/hybrid-work 33. J. Bursztynsky, Airbnb announces a big new update focused on flexibility, Retrieved from: https://www.cnbc.com/2021/05/24/airbnbs-big-new-update-is-focused-on-flexibility-heres-whats-new.html Appendix 1. List of Digital Nomads websites, blogs and groups. The materials presented on the websites proved to be the most relevant for the work: • • • • • • • • • Digital Nomad (reddit.com) 63 Surprising Digital Nomad Statistics in 2021 | A BROTHER ABROAD ATTA-Digital-Nomads-Research-Report-2021-12941205.pdf (adventuretravel.biz) Madera przyjmie cyfrowych nomadów. Stworzyła dla nich wioskę - turystyka.rp.pl Wedrowcy_RaportOWspolczesnychNomadach.pdf (hatalska.com) Cyfrowi Nomadzi — Żyj tak, jak chcesz Cyfrowi nomadzi (Digital Nomads) - nowy wymiar pracy zdalnej. - Dzień Szefa (dzienszefa.pl) Digital Nomad (reddit.com) Nomad List — Best Places to Live for a Digital Nomad