= "A digital nomad is a “globally travelling” digital worker".

Description

Angtyasti Jiwasiddi et al. :

"Digital nomadism is an emerging lifestyle, a way of working and living that combines digital work with nomadic globetrotting. It has seen substantial growth in recent years, with a significant rise in individuals, especially in favoured locations such as Chiang Mai,1 as well as in businesses and facilities catering specifically to this mobile lifestyle (Descalsota, 2022; Schlagwein, 2018a). From the perspective of local communities visited, digital nomads present a novel type of visitor and, thus, part of their visitor economies—the focus of this special issue and our study.

A digital nomad is a “globally travelling” digital worker. Hence, prior studies in the information systems (IS) literature research on digital nomadism are within the wider context of “digital work” and “future of work” (Ahuja et al., 2023; Schlagwein, 2018b; Wang et al., 2020). Prior IS literature on digital work discusses how various forms of information technology (IT) enable the work of teleworkers, remote workers and mobile workers (O'Leary et al., 2014; Tarafdar & Saunders, 2022; Waizenegger et al., 2020). The central themes of prior research on digital work are organisational implications (Carillo et al., 2021; van der Meulen et al., 2019) and worker productivity (Chen, 2018; Tams et al., 2020). The nomadic travel lifestyle aspect, however, sets digital nomadism apart from other types of digital work. Further (readers and reviewers found this a striking point), digital nomadism as studied here provides an opportunity the reflect on the current, exclusive focus of this literature on digital workers and organisations only (Atasoy et al., 2021; Wang et al., 2020): we show that digital work also impacts third-parties, such as the local communities worldwide now hosting digital nomads (i.e., this is to suggest the current focus might be too narrow).

A digital nomad is also a “digitally-working” global traveller. As with other travellers, their impact is felt within local communities worldwide, including regions such as Asia and Latin America, with digital nomads integrating into their chosen destinations' visitor economies (Schlagwein, 2018a; 2018b). Given the existing classifications in the tourism and visitor economy literature, digital nomads can be seen as a subtype of “non-institutionalised” (independent) traveller (Cohen, 1972; Cohen, 1973; Plog, 1974). However, digital nomads' unique behaviours and interactions set them apart from other visitor types. Digital nomads uniquely leverage the digitalisation of work to enable their travels (Hong, 2021) and use unique facilities such as coliving spaces and coworking spaces (Jiwasiddi et al., 2022). Therefore, digital nomads may be best understood and regulated as a digitally-enabled novel part of the visitor economy of digital nomad destinations, as reflected in the growing trend of countries introducing “digital nomad visas” in 2022/23."

(https://onlinelibrary.wiley.com/doi/10.1111/isj.12496?af=R)

Case Study

Digital Nomadism and the Visitor Economy in Chiang Mai, Thailand

* Article: Digital nomadism as a new part of the visitor economy: The case of the “digital nomad capital” Chiang Mai, Thailand. Angtyasti Jiwasiddi, Daniel Schlagwein, et al. Information Systems Journal, Volume 34, Issue 5, Pages 1493-1535, September 2024

"Digital nomadism allows individuals to travel worldwide while using various forms of information technology (IT) to work digitally. Places like Chiang Mai, Thailand, and Canggu, Bali/Indonesia, have gained popularity among digital nomads in the past decade. In contributing to the economies of local communities, these nomads, with their unique characteristics, are an interesting, new visitor type. Governments worldwide are starting to recognise the potential of digital nomadism to improve local visitor economies. However, the impacts of digital nomadism on local communities, their culture and economies, are not without challenges and require further understanding. Almost all existing studies on digital nomadism focus on the nomads themselves, while, in this study, we take the perspective of the locals visited by digital nomads. Using the case study of Chiang Mai, the “digital nomad capital”, we answer the following research questions: What are the impacts of digital nomadism on local communities? How do digital nomads compare to other visitor types within the visitor economy of a local community? Our findings reveal diverse socio-cultural, economic and technological impacts and how locals in Chiang Mai evaluate digital nomads differently compared to other types of visitors. This research, grounded in an in-depth case study, contributes to a better understanding of digital nomadism by offering new knowledge about its ambivalent impacts on local communities. We also discuss contributions to the wider literature and implications for policy."

Case Study: Unintentional Harm Through Wage Distortion

Suzanne (Polis Labs):

"Since we’ve examined a few integration challenges specific to each type of foreigner, let’s look at a more generalized example of unintentional harm to a local community that a startup society could cause.

One of the most common yet unintended consequences of a foreign presence is wage distortion — where foreigners overpay local workers, unintentionally disrupting the local economy.

How Foreigners Drive Wage Inflation in Service & Domestic Work

Wealthy expats, diplomats, and foreign professionals often pay significantly higher wages to attract workers, creating a dual-wage economy where locals working for foreign employers earn much more than those working for fellow locals. This leads to labor shortages in traditional sectors, as workers prioritize foreign jobs over domestic employment. Even relatively wealthy locals struggle to hire domestic workers because they cannot match expat-level wages. This could create an artificial "foreigners' market" for labor, where local businesses lose workers to the higher-paying expatriate economy. Even foreigners’ practice of overtipping can exacerbate this issue.

Consequences for the Local Community

Wage inflation can distort local service pricing, making everyday necessities like domestic help, taxis, and restaurant meals unaffordable for middle-class locals. Price expectations rise, disproportionately impacting lower-income residents. Locals who do not work for foreigners may feel left behind, potentially leading to resentment and community divisions.

Tips to Avoid Wage Distortion

The primary solution is to research local wage standards and respect existing wage norms, following local government regulations and guidelines such as minimum wage, etc. Excessive over-tipping or overpaying should be avoided or at least done thoughtfully, ensuring that it does not create an unsustainable cycle of inflated wages."

(https://polislabs.substack.com/p/expat-immigrant-missionary-guest)

Typology

Suzanne (Polis Labs):

"Foreigners in a host country take on different roles, each with its own pros, cons, and responsibilities. Understanding these roles can help a startup society anticipate how its presence will be perceived and how to engage ethically and productively with the local population. Below is a brief outline of four types of foreigners likely to be attracted to a startup society.

1. The Expatriate (Expat)

An expatriate is a person who temporarily or permanently resides in a foreign country, usually for work, business, or diplomatic assignments. Expats often bring high skills and investments, which can benefit the local economy. They can contribute to job creation by establishing businesses or working for multinational corporations that employ locals. Expats may also introduce new business practices, education systems, and global perspectives, leading to beneficial cultural exchange with the host country.

However, expats can also contribute to economic and social inequality by receiving higher salaries than locals, distorting local economies, and making local living expenses unaffordable. Many expats live in wealthy enclaves and interact mainly with their communities, limiting integration and creating cultural barriers. This, combined with the economic effects on the local population, can lead to resentment.

Some best practices for better integration include learning the local language and customs, engaging with local communities rather than forming exclusive expat circles, respecting cultural norms, and supporting local businesses instead of relying on imports.

2. The Immigrant

An immigrant is a person who moves to a foreign country intending to reside there permanently or for an extended period. Immigrants typically relocate for economic opportunities, education, family reunification, or escaping conflict and persecution. Unlike expats, who often maintain a strong connection to their home country and may intend to return, immigrants integrate into the new society and seek citizenship or long-term residency.

Immigrants may struggle with cultural and legal differences, as many countries have strict social norms, bureaucratic complexities, and different work permit systems. Unlike expats, who often live in temporary bubbles with a clear return plan, an immigrant must navigate deep integration into the host society, which may involve challenges such as language barriers, different legal rights for foreigners, and social acceptance. In some regions, immigrants may be viewed with suspicion due to historical influences, economic disparities, or political tensions.

Another major hurdle is employment and economic stability. While some immigrants arrive with jobs lined up, those who seek independent employment or entrepreneurship may encounter restrictive business regulations, lack of access to financial institutions, and biases in hiring processes.

Social integration can also be difficult. Many find building close friendships with locals challenging, as relationships may be prefaced on long-term trust rather than perfunctory networking.

Ideally, for successful integration, immigrants would learn the local language and gain a deep understanding of cultural norms. Respect for local traditions and active participation in the broader community—not just expat circles—are key to long-term success.

3. The Missionary

A missionary moves to another country for religious, political, or economic work, often intending to spread a faith, ideology, or specific economic model. Missionaries can provide valuable investment and development to the host community, especially in healthcare, education, and infrastructure.

However, missionaries can potentially cause harm when they impose their beliefs aggressively and can easily be perceived as neo-colonial. Some missionary-led aid programs, for example, create long-term dependence on external support instead of promoting self-sufficiency within the beneficiary community. Additionally, missionaries may be perceived as intrusive, especially in regions with strong existing cultural or religious traditions. Political and economic missionaries, such as those promoting specific governance models or market-driven economic systems, may face similar resistance if they undermine local structures or disregard indigenous ways of managing society and commerce.

To ensure ethical engagement, missionaries should focus on collaborative development rather than imposing change, learn the local language and cultural practices, work alongside local leaders instead of replacing them, and prioritize long-term development efforts over short-term humanitarian or charitable aid. Economic and political missionaries should engage with local governance structures to ensure their initiatives are welcomed rather than seen as foreign intervention.

4. The Guest (Tourist, Student, Digital Nomad, etc.)

A guest is a foreigner who visits a country temporarily for tourism, study, business, or short-term work. Tourists and short-term visitors boost local economies by supporting hotels, restaurants, cultural sites, and businesses. They also encourage global connections and cultural exchange, while international students contribute to the education sector and bring innovation.

However, guests can also cause disruptions. Overtourism can lead to environmental damage, cultural exploitation, and rising living costs for locals. Tourists who ignore local customs can cause cultural tension, and since guests are temporary residents, they often do not invest in long-term community development.

Digital nomads, in particular, have found themselves at the center of local ire in several places where large numbers of them gathered during the COVID-19 pandemic."