New Zealand has eased its visa regulations to draw in “digital nomads,” individuals who combine travel with remote work, as part of a strategy to enhance tourism.
New regulations now allow visitors to engage in remote work for a foreign employer while vacationing in the country for up to 90 days. After this period, they may be subject to tax obligations from their residents.
“The modification will allow numerous visitors to prolong their visits, increasing national spending,” stated Immigration Minister Erica Stanford.
New Zealand is grappling with an economic recession, exacerbated by the significant impact of border closures on its tourism industry during the COVID-19 pandemic.
“We invite a diverse range of visitors to New Zealand, and in this specific announcement, we are particularly addressing those who can engage in work as digital nomads on our shores,” stated Stanford.
The government announced that the modifications will affect all visitor visas, including tourists and individuals visiting family, partners, and guardians on extended visas.
The statement clarified that only remote work from abroad is permitted, while individuals whose jobs necessitate their presence in the country must still secure the necessary visas.
Economic Growth Minister Nicola Willis expressed optimism that the initiative would draw in “highly skilled people with roles that connect them to powerhouse firms and industries globally.”
Willis stated that these positions are held offshore, allowing individuals to maintain connectivity while in New Zealand, and emphasized that they will not compete for local jobs.
Before the onset of COVID-19, tourism was the nation’s largest export sector, injecting over NZ$40 billion (approximately $22 billion, £18 billion) into the economy, as reported by Tourism New Zealand. However, this figure has decreased in recent years following the pandemic.
The situation reflects the broader economic challenges that the nation has been enduring. The recent increase in interest rates, driven by persistent inflation, has resulted in a stagnation of economic growth in the country. This situation has contributed to a rise in unemployment and an increasing number of individuals looking for job opportunities overseas.
New Zealand has joined a growing list of countries that have launched visa programs aimed at digital nomads in recent years, responding to the rising trend of individuals looking to combine travel with remote work opportunities.
The phenomenon gained momentum in the 2010s, primarily among younger employees seeking to break free from everyday routines. The COVID-19 pandemic significantly influenced this trend, as global lockdowns prompted a change in perceptions regarding remote work.
Several countries, including Japan, South Korea, Brazil, Spain, and Portugal, have introduced digital nomad visas.
The influx of digital nomads in various locations has ignited a lively discussion. In Cape Town, South Africa, critics argue that the arrival of remote workers has contributed to rising expenses in the city.
The surge of tourists in nations like Spain and Greece has sparked intense demonstrations opposing over-tourism.