As part of the study of the phenomenon of digital nomadism and so-called lifestyle mobilities, the Digital Nomads Observatory has come up with seven key parameters to be taken into account for assessing the suitability of a destination for attracting digital nomads, but also as a “compass” for adapting to future needs related to” lifestyle mobilities”.
This model remains in development, but in this article some key points are made and the philosophy of the model is explained.
So far there are not enough quantitative surveys that are clearly directed towards the criteria for selecting a destination from digital nomads. For the creation of the model, have been taken into consideration data from surveys carried out so far, data from bibliographical research, as well as qualitative research carried out by websites and groups aimed at digital nomads.
The model is divided into7 layers (“layers”) in order of hierarchy in which a destination needs to evaluate and then work. The layers are as follows: cost of living, community of digital nomads, workplaces, interconnectivity, environment, activities and an eighth related to security & freedom. Bearing in mind that there are different categories of digital nomads (segments), the below mentioned assumptions apply in general terms and the reader should take into account that there can be significant variations when we are interested in a very specific category of digital nomads.
As the cost of living we define the amount of money required to cover basic after-tax expenses in a particular place and over a specific period of time, such as:
The cost of living is often used to compare how expensive it is to live in one city compared to another. The ability to accumulated wealth and the quality of life (hours required to meet these needs, spending money on personal interests, etc.) depends on the amount of salary in relation to the cost of living in a particular city.
The greater the difference between salary and cost of living, the higher the quality of life is considered and therefore the better the living. For example, a high wage in a city with an extremely high cost of living (e.g. New York) may mean absolutely nothing. Banton, C. 26/03/2021. Cost of Living Definition. Investopedia. https://www.investopedia.com/terms/c/cost-of-living.asp
For digital nomads, the cost of living plays a very important role in choosing a city especially for the following reasons: (a) they can make greater savings, therefore work for fewer years until retirement see for example, Running, T. 20/02/2021. The ultimate retirement savings guide for expats & nomads. NomadGate. … Continue reading, (b) to work fewer hours in order to be able either to make a more balanced life or to devote more time to other interests or occupations or even to their personal development (c) because it can offer them more security in case for a long time they are left without or with less income Stickel, M. 2020. Challenges and Opportunities of Digital Nomadism and its Implications for Tomorrow’s Workforce, Master Thesis, NOVA – School of Business and Economics. pg. 15, … Continue reading.
On the popular Nomadlist platform, cost of living is one of the most important variables for the popularity of a destination. At the same time, many of the up-and-coming digital nomad centers appear to be low-cost destinations Become Nomad. Cost of living Arbitrage for Digital Nomads and Remote Workers. https://becomenomad. … Continue reading.
In shaping the cost of living, the parity between the currency in which the digital currency is paid and the currency in which it pays plays an important role. Having a large exchange rate difference is obviously in the interest of the digital nomad since it relates to the reduced cost of living of the destination, but there are also negative elements such as the various deductions in the exchange difference Bidloss, J. How to get paid and manage taxes as a digital nomad. Lonely Planet. https://www. lonelyplanet. com/articles/payment–and–taxes–as–a–digital–nomad. … Continue reading.
Although digital nomads are called “nomads”, they actually move on their own. However, at the destination of arrival, they are in great need of meeting and socializing with others like them and creating “nomadic communities”.
The existence and meaning of the community is extremely important to digital nomads. Apart from the multiple benefits of socializing with a community (acquaintances, professional networking, exchanges of views, collaborations, etc.), the real need is another and much more important:
It is considered that the sense of teamwork (“togetherness”) caused by the community is for digital nomads the compensation for the absence of other permanent ties in the way of life they have chosen (such as family ties, property, connection to the homeland) and which evolutionarily all people are programmed to seek. Hannonen, O. 2020. In search of a digital nomad: defining the phenomenon Information Technology & Tourism (2020) 22:335–353. There are various recordings about the loneliness felt by digital nomads which comes precisely from this way of life DigitalNomads: InSearch of Freedom, Community, and Meaning Work in the New Ecomony. Oxford University Press, pg 143, Prabawa I W., Pertiwi, P. 2020. The Digital Nomad Tourist Motivation in … Continue reading. Of this importance, the existence or ability to form a community of digital nomads in a destination is placed so high on the priorities of the model.
Workplaces here are workplaces which are either related toco-working spaces whose importance has been summarisedabove, or ‘workspaces’in the broadest sense. That is, workplaces can be described as a room with a view, a public park, a seafront bench or a workbench in the forest.
As we have mentioned in a related article, digital nomads belong to the broader category of “lifestyle mobilities”, a way of life and mobility that is related to balancing work andentertainment. Digital nomads are characterized by a general adaptability which is either a cause or a result of their lifestyle. In the same context there is alsoa deliberate adaptability to their way/workspace (“flexibilitization of the workspace”). Theoretically at least, digital nomads can work with the same efficiency either in an office or in a cafeteria or by necessity or because they wish to work in alternative working environments Orel, M. 2019. Coworking environments and digital nomadism: Balancing work and leisure whilst on the move. World Leisure Journal. 61(3). DOI: 10.1080/16078055.2019.1639275.
|↑1||Banton, C. 26/03/2021. Cost of Living Definition. Investopedia. https://www.investopedia.com/terms/c/cost-of-living.asp|
|↑2||see for example, Running, T. 20/02/2021. The ultimate retirement savings guide for expats & nomads. NomadGate. https://nomadgate.com/investment-strategy-digital-nomads-expats/, Lake, R. 25/06/2019. How to Plan Your Finances as a Digital Nomad. The Balance. https://www.thebalance.com/how-to-plan-your-finances-as-a-digital-nomad-4172654. Lupini, C. 29/08/2019. Last year I lived, worked, and visited in 19 countries and ‘rent’ cost a fraction of what it would in the US. Business Insider. https://www.businessinsider.com/personal-finance/digital-nomad-breaks-down-cost-of-lodging-over-one-year|
|↑3||Stickel, M. 2020. Challenges and Opportunities of Digital Nomadism and its Implications for Tomorrow’s Workforce, Master Thesis, NOVA – School of Business and Economics. pg. 15, Thompson BY (2019) The digital nomad lifestyle: (remote) work/leisure balance, privilege, and constructed community. Int J Sociol Leis 2:27–42, Duncan et al. (2013) . Lifestyle Mobilities. Ashgate. pg 60,114, Woldoff R., Litchfield, R. 2021. Digital Nomads: In Search of Freedom, Community, and Meaningful Work in the New Ecomony. Oxford University Press, pg 14|
|↑4||Become Nomad. Cost of living Arbitrage for Digital Nomads and Remote Workers. https://becomenomad. com/cost–arbitrage–hacking–life–for–digital–nomads–remote–workers/ as accessed on 27/03/2021|
|↑5||Bidloss, J. How to get paid and manage taxes as a digital nomad. Lonely Planet. https://www. lonelyplanet. com/articles/payment–and–taxes–as–a–digital–nomad. As accessed on 27/03/2021, Shamim, A. How to Manage Your Money as a Digital Nomad. https://thefreelancehustle.com/digital-nomad-money/. As accessed on 27/03/2021, Briod,F. 28/02/2020. Digital Nomads — Getting Your Finances Right. Monito. https://www.monito.com/en/wiki/digital-nomads-getting-finances-right|
|↑6||Hannonen, O. 2020. In search of a digital nomad: defining the phenomenon Information Technology & Tourism (2020) 22:335–353|
|↑7||DigitalNomads: InSearch of Freedom, Community, and Meaning Work in the New Ecomony. Oxford University Press, pg 143, Prabawa I W., Pertiwi, P. 2020. The Digital Nomad Tourist Motivation in Bali: Exploratory Research Based on Push and Pull Theory. Athens Journal of Tourism – Volume 7. Issue 3. September 2020. Pages 161-174, Hannonen, O. 2020. In search of a digital nomad: defining the phenomenon Information Technology & Tourism (2020) 22:335–353|
|↑8||Orel, M. 2019. Coworking environments and digital nomadism: Balancing work and leisure whilst on the move. World Leisure Journal. 61(3). DOI: 10.1080/16078055.2019.1639275|