Siquijor targets to draw in ‘digital nomads’

CEBU, Philippines — After Cebu’s successful stint hitting the top list in hosting the growing global digital nomads, Siquijor is positioned to attract these kinds of visitors boosting its potential to reap tourism-related revenue.

In an interview with Department of Trade and Industry Central Visayas (DTI-7) regional director Ma. Elena Arbon, she said that the provincial government of Siquijor, together with the DTI provincial office has started to take action in setting up the province to lure not only foreign but also Filipino digital nomads.

Digital Nomads are remote workers who usually travel to different locations. They often work in coffee shops, resorts, restaurants, and co-working spaces, among other offshore or touristic locations.

During the first Philippine Digital Nomad Summit held in Siargao Island last October 5, 2023, Carlo Delantar, partner and head of ESG and Circular Economy of Gobi Partners, presented a study that revealed Cebu hit the number one rank as the potential city of digital nomads with a US$1,381 cost of living per month and an internet speed of 5Mbps. Cebu is followed by Davao, Manila, Palawan, Makati, General Santos City, Siargao, La Union, Baguio City and Boracay Island.

According to Arbon, Siquijor offers an ideal environment to lure digital nomads, and the impending arrival of Starline is set to address the issue of high-speed connectivity, further enhancing its appeal.

Part of the preparation is also to form the Siquijor ICT (Information, Communication Technology) Council to develop the technology side of attracting not only tourists but also investments.

The Philippines is joining other destinations in the world in attracting “digital nomads” tourists following the passage of House Bill No. 8165 authored by Surigao del Norte Rep. Francisco Jose Matugas II.

In an earlier interview with Matugas, he said that the Philippines needs to provide a conducive environment to these emerging traveling workers or the “digital nomads,” as this group will not only push up the number of foreign arrivals to the country but also boost the tourism receipts in the considering that they are long staying and high spenders.

House Bill No. 8165 otherwise known as Digital Nomad Act, was pushed upon observing that in his congressional district in Surigao del Norte, particularly Siargao Island  is now considered a second home for remote workers, not only for Filipinos coming from other urban cities but largely foreign nationals.

“We would like to attract these kinds of tourists [digital nomads]. In fact, they have started to come in during the pandemic. Some of them chose to be locked down on the island,” Matugas said.

With this Bill, the Philippines joins the growing list of countries that issue “digital nomad visas” to attract more travelers, and remote work is already implemented by companies around the world.

However, Matugas admitted that while the Philippines is much more attractive for traveling remote workers, it has to fix its issue with internet speed, especially on islands like Siargao.

Under the “Digital Nomad Act,” the Bureau of Immigration (CI) shall be authorized to issue digital nomad visas, following the success stories of 54 countries in the world that have implemented similar set-ups that developed during the two-year pandemic.

Other countries that are ahead of this curb in attracting digital nomads have offered specialized visa which gives certified digital nomad visitors the right to stay in a country and work remotely for a foreign-based employer or business.

At present, there are already about 54 countries that offer digital nomad visas including Argentina, Croatia, the Czech Republic, Georgia, Germany, Mexico, Portugal, and the Bahamas.

Digital nomad visa holders will not be listed as a resident of the Philippines for taxation purposes and the income they receive from their employer abroad would not be considered income from Philippine sources, the bill reads, stressing: “An alien who has been granted a digital nomad visa shall not be employed in the Philippines.”

In order to recognize the existence of this niche tourism market, the Department of Tourism(DOT-Caraga) in partnership with local government units (LGUs) in Siargao Island and the Department of Information Technology and Communication (DICT) held the first-ever “Digital Nomad Summit.” The first Digital Nomad Summit also aims to promote “Work & Surf” tourism.

Before the pandemic, Bangkok, Thailand logged the highest number of digital nomads at 40 million, followed by Kuala Lumpur, Malaysia, and Bali, Indonesia.

In the Philippines, Arbon said even before the House Bill was passed, “digital nomads were already here.”

Based on Delantar’s report, in 2020, there was a 50 percent increase in the number of digital nomads during the COVID-19 pandemic due to remote work setups. This year, only 53 percent of digital nomads will continue their lifestyle due to back-to-office policies.

“Digital nomads — often foreigners, entrepreneurs, or remote workers for international companies — don’t compete for local jobs. Their migration benefits local communities and stimulates businesses like co-working spaces, hotels, cafes, and restaurants,” Delantar clarified.

About 50 percent of the digital nomad population belongs to Gen Z (those born between 1997 and 2013) and millennials (those born between 1981 and 1996). They are mostly in the IT business like software and web developers, startup founders, marketing, and creative, among others.

Citing a study by MBO Partners, Delantar said one in five digital nomads makes less than $25,000 annually. Forty-two percent said their household income is over $75,000. However other research claims the global median salary is $90,000.

Arbon reiterated that the mystic province of Siquijor has the right environment to host the digital nomad community provided that the prevailing issue of sluggish internet connectivity is successfully addressed. — (FREEMAN)