1 s2.0 S2212571X23000896 Main
1 s2.0 S2212571X23000896 Main
1 s2.0 S2212571X23000896 Main
A R T I C L E I N F O A B S T R A C T
Keywords: Digital nomadism, as a new form of tourist mobility, brings opportunities and challenges for destination man
Digital nomadism agement. To attract this new market, smart destinations need to innovate to develop readiness and competi
Mobility tiveness. This research examines 225 digital nomad destination web articles, from multiple sources and different
Destination policy
continents. The study aims to identify innovative strategies and practices using semantic content analysis and
Innovation
Competitiveness
hierarchical network analysis. It explores relevant stakeholders and their importance, and pinpoints digital
Readiness nomad trends. Findings suggest that smart destinations cater for the work, travel, social, financial and basic-
living needs of digital nomads. These are different from those of short-term leisure and business tourists. Des
tinations tend to portray digital nomads as a homogenous group, although different segments have been iden
tified. The long-term impacts of digital nomads on local economies and societies have yet to be fully explored.
The theoretical significance of this study lies in the provision of an agency-structural perspective of destination
innovation and competitiveness. Practically, the study contributes to digital nomad management and marketing
within smart tourist destinations.
* Corresponding author. Dorset House D202, Talbot Campus, Fern Barrow, Poole, BH12 5BB, UK.
E-mail addresses: ingxu.zhou@zuel.edu.cn (L. Zhou), dbuhalis@bournemouth.ac.uk (D. Buhalis), dfan@bournemouth.ac.uk (D.X.F. Fan), aladkin@bournemouth.
ac.uk (A. Ladkin), lianxiao1@zndwxy.wecom.work (X. Lian).
https://doi.org/10.1016/j.jdmm.2023.100850
Received 18 August 2023; Received in revised form 29 November 2023; Accepted 7 December 2023
Available online 3 January 2024
2212-571X/© 2023 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).
L. Zhou et al. Journal of Destination Marketing & Management 31 (2024) 100850
(Pecsek, 2018). The main difference being the length of stay and the 2. Digital nomadism for tourism destinations
level of engagement tourists have with the destination (Bassyiouny &
Wilkesmann, 2023). Domestic digital nomadism or remote work travel, 2.1. The supply side of digital nomadism
and workcation are subcategories of digital nomadism (Hannonen et al.,
2023). This study proposes that digital nomadism is a hybrid form of Digital nomad research has tended to focus on the demand side and
mobility, practiced by location independent remote workers, who has identified the motivations, profiles, and wellbeing of this unique
combine travel, leisure, and work activities. Digital nomad destinations tourist market (Adams & Bloch, 2022; Bassyiouny & Wilkesmann, 2023;
offer products and services to digital nomad markets by providing a Hannonen, 2020; Rainoldi et al., 2022a, 2022b). Recent research has
smart destination, ambient connectivity, and technological infrastruc shifted emphasis to suppliers of digital nomadism by examining mature
ture (Buhalis, 2020). As destinations compete for the digital nomad digital nomad destinations. Hannonen et al. (2023) applied stakeholder
market, it is pertinent to explore what innovative strategies can be theory to understand how local stakeholders perceive digital nomads as
applied to gain a competitive advantage. new locals in Spain. Accommodative strategies of local stakeholders
Agency-structure theory, drawn from sociology, has been widely correlate strongly with stakeholder specialisations. Digital nomads were
applied in management research (Dong, Karhade, Rai, & Xu, 2021). seen as a more permanent group of tourists, despite individual mobility
Agency refers to the individualistic capacity of action and structure being temporary. This market can address seasonality for destinations
pertains to regularities in social interaction, systematic social relation (McKercher, Prideaux, & Thompson, 2023). Other destinations such as
ships, or script (Cockerham, 2005). Application of structure-agency Indonesia, Portugal, Thailand, Saudi, and Colombia were also studied to
duality in tourism destination research has considered the interplay examine how destinations capture this opportunity to attract digital
between owner structures in tourism investment and the accounts of nomad markets and offer a safe and attractive work and play environ
tourism actors (Meyer, 2013). Aarstad et al. (2018) referred to the ment (Algassim, Saufi, & Scott, 2023; Ma et al., 2022). Destinations
characteristics of embedded interfirm networks as the structure and a projected a digital nomad friendly image, with ideal conditions to live
firms’ autonomous strategic actions as agency. Yildirim (2020) exam and work (Zerva, Huete, & Segovia-Pérez, 2023). Nomads can be suit
ined how structured agency co-constructed a touristic workplace. able markets for activities across boarders (Kozak & Buhalis, 2019).
Structure enables and constrains agency. As rules and resources are Mature digital nomad destinations offer high-performing technological
inherent in structure, actors are enabled through available resources but infrastructure, digital nomad communities, co-working spaces to main
restrained by existing rules (Giddons, 1984). The interplay between tain work routines, and extensive leisure infrastructure such as bars and
structure and agency facilitates action and practice. Smart destination coffee shops for networking. Other pull factors include mild climates,
stakeholders seeking digital nomadism need to innovate to develop ca reduced cost of living, easy to obtain long-term visas, a variety of sport
pacity and competence. When facing the multiple needs of digital no and wellness options, vibrant cultural life and nightlife, and proximity to
mads, destinations require stakeholder innovation and integrated nature (Mancinelli, 2022). Social networking sites and social connect
frameworks to satisfy traveller needs (Matteucci, Nawijn, & von Zum edness with other digital nomads is considered to be essential for a
busch, 2021). Innovation and the cooperative capacity of stakeholders digital nomad ecosystem (Li et al., 2023).
may help to develop valuable relationships and strong leadership to New suppliers catering to the needs of digital nomads emerge such as
improve competitiveness (Cooper, 2018). Innovation is the process of co-working space operators. The hospitality sector adjusts their products
engaging in new improvement and novel ideas related to a product or to satisfy the needs of the digital nomad (Borges et al., 2022) as this
service, process, marketing, organisational method, or workplace market presented an opportunity to recover from the pandemic (Schal
organisation. Innovation may influence external relationships and the k-Nador & Rašovská, 2023). During COVID-19 many hotels offered
commercial or industrial implementation of improvement and novelty ‘work-from-hotel’ or ‘workation’ packages to attract remote workers.
(Hjalager, 2010). The newly emerged service office industry and the hospitality industry
This study adopts a structure-agency approach to categorise inno integrated services such as cafés, hotels, restaurants, and pubs to inte
vation and examine the interplay between stakeholders and digital grate coworking provisions (Merkel, 2022, pp. 140–147). Online plat
nomad destination innovation. The purpose of this study is to identify forms were developed to assist digital nomads to find information and
digital nomad destination innovation and outline the implications for opportunities related to gig work, local lifestyle, workspace booking,
smart destinations to manage diversified mobility markets. The study and social companionship. Platforms such as Spacemize and KettleSpace
applies an innovation framework to destinations seeking to attract new broker remote workers with temporary workplaces in restaurants, hotel
mobility markets, such as digital nomads. The research aims to answer lobbies, or bars. Destinations and suppliers associated with digital
the following questions. nomadism have been reshaped through new socio-spatial patterns
related to mobile digital work (Merkel, 2022, pp. 140–147). This supply
a. What are the destination characteristics that attract digital nomad of digital nomadism has received increased research attention, but the
markets? implications for destination management and innovation have yet to be
b. How do digital nomad destinations innovate to meet the needs of the sufficiently examined.
new market and who are the local and international stakeholders in
this process of destination innovation? 2.2. Destination competitiveness, readiness, and innovation
c. How do structural and agency-based innovations interplay within
digital nomad destinations? Innovation has been driving destination competitiveness in the
global tourism industry (Cronjé & du Plessis, 2020; Xu & Au, 2023).
By adopting the agency-structure approach and a macro perspective, Trunfio and Campana (2019) have argued that innovation in tourism
this research examines web content and evaluates the characteristics destination research is scattered and fragmented. The cooperative ca
and innovation demonstrated by existing digital nomad destinations. pabilities of different stakeholders are important for entrepreneurship
The work also investigates the involvement of stakeholders in destina and destination competitiveness (Goffi, Cucculelli, & Del Chiappa, 2022,
tion innovation, and identifies trends and recommendations for desti pp. 1–25). Innovative entrepreneurs have recognised the importance of
nations wishing to market to and manage digital nomads. tourism lifestyle in the provision of competitive tourist products (Dias,
González-Rodríguez, & Patuleia, 2021). Knowledge-sharing, collabora
tion, and value co-creation enhance destination competitiveness (Melis,
McCabe, Atzeni, & Del Chiappa, 2023). Smartness and digitalisation
have also been closely linked with destination competitiveness (Buhalis,
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L. Zhou et al. Journal of Destination Marketing & Management 31 (2024) 100850
2020; Cimbaljević, Stankov, & Pavluković, 2019; Zainal-Abidin, Scarles, Applying an agency-structure approach, entrepreneurs, businesses, and
& Lundberg, 2023). The development of information and communica organisations, locally and internationally, are agencies of destination
tion technologies (ICT) propels destination smart ecosystems (Boes, innovation. The legal and institutional processes are considered the
Buhalis, & Inversini, 2016; Williams, Rodriguez, & Makkonen, 2020). structural environment. Agency theory considers the relationship and
While tourism demand becomes more sophisticated, destinations must alignment between a principal and an agent in the organisational
innovate to attract tech savvy tourists by providing adaptive services context from a positivist perspective (Bendickson, Muldoon, Liguori, &
and processes (Cimbaljević et al., 2019, Sánchez & López, 2016). Davis, 2016). Within the destination context, the principal is regarded as
Innovation is a continuous process of governance that provides the destination collective, and the agent as the actors and stakeholders
transformative ways to improve the experiences of stakeholders within the destination system. Drawing on agency theory (Bendickson
(Sørensen & Balsby, 2021). Destination innovation research has covered et al., 2016), destinations and other organisational stakeholders may
diverse scales and types, such as community-based destinations (Pik innovate to increase their capacity and competitiveness to cater to this
kemaat, Peters, & Chan, 2018), rural destinations (Komppula, 2014), market in a strategic or opportunistic manner. Through the process of
and smart destinations (Buhalis, 2020; Williams et al., 2020; Yang & innovation, businesses and organisations as agencies gain control and
Zhang, 2022). Hjalager (2010) explored the dimensions of product or use resources to diversify tourism revenue. From the dichotomy of
service innovation, process, management, marketing, and institutional structure and agency, the five dimensions of destination innovation can
innovation. Ozseker (2018) integrated literature from cluster theory, be further theorised based on the innovating agency and actors.
innovation systems, network relations, knowledge management, and Applying destination innovation dimensions (Hjalager, 2010) to the
innovation to propose five stages of innovation within tourism desti digital nomadism context supports the destination innovation frame
nations: clustering, integration, configuration, conversion, transfer and work (Fig. 1) and identifies product or service innovation, managerial
implementation. Gardiner and Scott (2018) provided a destination innovation, and marketing innovation. The destination innovation sys
innovation matrix to capture the innovation process. The matrix high tem consists of agency-based innovation and structural innovation.
lighted market innovation, consolidation, transformational innovation, Local and international stakeholders can actively participate within this
and experience innovation. Market innovation and consolidation offer innovative process. Arrows in the figure represent material and infor
existing experiences, while transformational and experience innovation mational connections and interactive relationships. Agency-based
aims to create new experiences. Destinations need to innovate to gain innovation involves independent and individual actors working to in
competitiveness and readiness for digital nomads. crease their capacity. Structural innovation, in the form of process
innovation and institutional innovation, is transformative for the
2.3. Destination innovation and digital nomadism destination competitiveness.
3
L. Zhou et al. Journal of Destination Marketing & Management 31 (2024) 100850
4
L. Zhou et al. Journal of Destination Marketing & Management 31 (2024) 100850
Table 3 such as Bali sought to diversify existing markets and shift their focus to
Themes and categories of digital nomad destination innovation and higher quality groups with more spending power. Destinations in pe
stakeholders. ripheral areas and emerging destinations also considered digital nomads
Theme Category Code a valuable source of revenue to boost local tourism and increase their
Innovations Structural innovation Digital nomad visa (A11)
resilience (Zerva, et al., 2023).
(A1) Tax exemption/reduction policy (A12) Digital nomad destinations attractors included primarily seven key
Agency-based Digital nomad market-driven products aspects: culture and history, nature and climate, infrastructure, work
innovation (A2) and services (A21) facilities, service amenities, economic and financial aspects, and social/
Marketing and campaigning initiatives
political aspects, as presented in Table 7.
(A22)
Stakeholders International Remote work platforms/employers/ Nature and climate were key factors and many island and beach
stakeholders (S1) customers (S11) destinations market their natural environment and island climate to
Digital nomad virtual communities/ attract digital nomads. Other destinations focus on natural scenery,
social platforms (S12) landscape, hours of daylight, wild animals, and wellness activities.
Online travel agencies and airlines (S13)
International banks and financial service
Destinations that have less climatic appeal also marketed based on
platforms (S14) natural attractions. Norway for example, placed a strong emphasis on
Online shopping and logistics platforms polar bears and the northern lights in their digital nomad marketing.
(S15) Culture and history were also appraised by digital nomads with rich
Destination-based Co-working space operators (S21)
cultural and historical resources, including architecture, museums,
stakeholders (S2) Local digital nomad communities (S22)
Local travel business and services (S23) archaeological sites, historical vibe, and cultural events being key at
Local financial business and services tractions. Local specialties, wines, and gastronomy were also presented.
(S24) Economic and financial factors were the most prevalent, as digital
Local accommodation, food, retail, and nomads seek quality of life within a destination. The cost of living was
lifestyle business and services (S25)
listed and compared within web content. Affordability of daily products,
Institutional Immigration and customs (S31)
stakeholders (S3) Government associations (S32) dining, accommodation, and activities were proposed as attractors,
National ministries and authorities (S33) especially in developing destinations. Since many digital nomads have
Destination marketing organisations unstable jobs or work on projects, they often have irregular income and
(DMO) (S34)
therefore require low cost of living.
Infrastructure was considered important and included factors such as
4.1. International digital nomad destinations characteristics digital capacity and readiness, public transport and urbanity. Digital
nomad destinations tended to concentrate on tourist areas with more
International digital nomad destinations promoted at both countries developed infrastructure. Destinations also stressed their cosmopolitan
and cities levels. According to the number of appearances in the web features when showcased online.
content, the destination countries and their frequency of appearance are
presented in Table 6. In total, 72 destinations were mentioned in the Table 5
articles and their frequency of appearance reflected the awareness of the Relationship metrics between innovation and stakeholders.
digital nomad market from a destination perspective. Nine of the most A11 A12 A21 A22
frequently mentioned countries offered digital nomad visas, except
S11 – – – –
Anguilla and Barbuda, which already had fairly open visitor visa pol S12 4 1 5 6
icies. The mostly frequently mentioned destinations were Portugal, S13 4 – 4 7
Croatia, Mexico, Spain, Colombia, Thailand, and Greece. This suggests S14 1 – – 1
that digital nomad destinations are traditional international tourist S15 – 1 – –
S21 3 7
destinations, mainly catering to the European and North American
– –
S22 2 – – 16
markets. S23 7 – 2 14
Of the top ten destinations presented in Table 6, some were not S24 3 – 2 8
highly ranked international tourist destinations (UNWTO 2023); for S25 4 – 2 12
S31 2
example, Croatia, Anguilla, and Barbuda. Mature tourist destinations – – –
S32 2 1 – 8
considered the digital nomad market to be high quality and more sus S33 14 3 1 9
tainable with regard to environmental and social behaviours. With S34 – – – 1
increased concern related to tourism during the pandemic, destinations
Table 4
Relationship metrics within stakeholder groups.
S11 S12 S13 S14 S15 S21 S22 S23 S24 S25
S11
S12 5
S13 – 11
S14 – 6 –
S15 – 3 – –
S21 – 22 – – –
S22 1 18 1 – – 5
S23 – 24 2 – – 1 4
S24 1 19 – 1 – 1 1 4
S25 – 27 3 – – 1 13 4 4
S31 – – – – – 1 – – – –
S32 – 1 2 – – – 3 2 – –
S33 2 5 4 – 1 6 4 5 4 4
S34 – – – – – – 1 1 – 1
5
L. Zhou et al. Journal of Destination Marketing & Management 31 (2024) 100850
Table 6
Digital nomad country destinations appeared in web articles.
Country Frequency Country Frequency Country Frequency
6
L. Zhou et al. Journal of Destination Marketing & Management 31 (2024) 100850
though expect this to be higher in purpose-built locations such as co- high income and welfare.
working spaces. Whilst that’s fine for most simple laptop-based pro Although visa data was not disclosed for all countries, there was
jects, be prepared for some stuttering if you’re planning a video con evidence of increased tourist arrivals and digital nomads contributing to
ference” (Quote from dataset). Managing expectations and presenting a tourism recovery. Digital nomads shared generally positive experiences
true reflection of the destination situation is critical for the digital no and became a valuable branding tool for destinations that wanted to
mads satisfaction as they commit a long period of time and rely in local attract this market and present a cutting-edge image. However, there
conditions for both work and living. were criticisms of bureaucratic procedures in some destinations when
compared with efficient home administrative systems.
Tax exemption/reduction policies often accompany the digital
4.2. Innovation of digital nomad destinations
nomad visa. Digital nomads are very aware of taxation, as stays over 183
days will be taxed as a resident. Some countries with digital nomad visas
Following the destination innovation framework, innovative strate
allowed visa holders to be non-tax residents for up to one year of stay,
gies from the web content were examined by analysing the structural
where incomes are derived from other countries, while other countries
and agency-based innovations in the digital destination system and the
offer tax reductions. For example, in Costa Rica, residents pay a 30% tax,
various stakeholders involved. Structural innovation in digital nomad
whereas digital nomads are only required to pay 10–15% tax on their
destinations includes policy and institutional innovation and innovative
income. Portugal’s Non-habitual Residency scheme offers entrepreneur
processes. For digital nomad destinations, there were two main inter
residency visas, if they spend more than 183 days in the country each
connected strategies, namely: digital nomad visas and tax policies.
year, but send no more than 60% of their income back home. Greece
Digital nomad visa is a primary form of institutional and process
offers a 50% tax reduction program for those who stay for a minimum of
innovation, which shows the political efforts of destinations to attract
two years. Other countries, including Norway, Hungry, Georgia, and
and retain this market group. Motivated by the COVID crisis in 2020,
Mauritius, state that temporary residents who stay longer than 183 days
many countries/regions began issuing digital nomad visas or similar
will be taxed as residents.
permits, which allowed digital nomads to stay longer in a country. It
Agency-based innovation supports digital nomad market-driven
aimed at boosting tourist revenue lost during the height of the
products and services. Technological innovations were prevalent in
pandemic. Digital nomad visa holders are not allowed to seek employ
digital nomad destinations. Most countries are investing heavily in
ment or engage in local economic business activities. They must obtain
digital infrastructure to ensure easy access to the internet. Destinations
income remotely from outside of the destination if they wished to gain
collaborated with large technological companies to improve digital
temporary residency.
infrastructure and connectivity and enhance the mobility of digital no
Based on the publicly available national immigration information, by
mads. International financial companies also participated in the desti
April 2023, there were 51 countries/regions offering digital nomad visas
nation’s innovation system. For example, Greece has cooperated with
or their equivalent, under titles such as remote work visas, nomad visas,
Visa Credit Card for the provision of transaction data to promote the
location-independent visas, independent contractor visas, freelancer
destination to digital nomads. Local businesses also perform market and
visas, or temporary residence permits. Fig. 2 presents the distribution of
transformative innovations to accommodate the digital nomad market
these countries/regions according to continent. The Americas, espe
(Gardiner & Scott, 2018). To promote existing facilities to the new
cially South America, and Europe offered the greater number of digital
market, tourism and hospitality businesses, including hotels and res
nomad visas. European countries were among the first to issue digital
taurants, upgraded their technological facilities, increased internet
nomad visas, followed by Southeast Asia, and South America. Since
speeds, and converted spaces into co-working stations. Non-tourism
2023, there has been a growing trend in African countries to offer digital
businesses also carried out market innovations, including the real es
nomad visas. While the visas are aimed towards remote workers,
tate sector, which provides customised services and facilities. Many
countries such as Bermuda and Bahamas were also open to university
properties were developed and distributed in AirBnB listings and many
students. Among the 51 destinations, 33 did not specify the visa eligi
of them were offered on long term lease to digital nomads (Buhalis,
bility of the spouse and children of the applicant, while 18 allowed
Andreu, & Gnoth, 2020). Transformative innovations were
applicants to bring family and dependents with higher evidentiary re
opportunity-seeking, represented by the emergence of commercial
quirements of income capacity. Despite the requirement to prove in
co-working spaces and entrepreneurship providing services, such as
come capacity, some countries also listed evidence of a clear criminal
accounting, taxation, immigration, and travel services. These services
record and health insurance as digital nomad visa application re
may not be destination-bound, as global agencies are increasingly
quirements. Visa processing times range from 7 to 30 days. The digital
aiming to serve this market. Innovation related to digital nomad prod
nomad visa regimes reinforce the global north and global south divide.
ucts and services was largely based on existing tourist products and
The income threshold and range of eligible countries demonstrate that
services and extended their offering for this market.
these visas were aimed at digital nomads from developed countries, with
Marketing and tourism campaign innovations were also seen in
various digital nomad destinations. Marketing initiatives include top-
down branding, as destinations established digital nomad associations,
marketing campaigns, and targeted digital nomad events. Digital nomad
destinations value their technological presence and image. For example,
Bermuda reinforces the message that it is a blue-chip destination where
technology-enabled individuals and organisations can embrace their
creativity. An ecosystem of digital nomad destinations was established
and marketed online. Destination lists were developed by various
agencies and organisations, including digital nomad platforms such as
Nomadlist, NomadX, Nomad Capitalist, and Nomad Embassy. Online
tourism operators such as Airbnb and Allianz Travel also developed
relevant sections. Technological and digital entrepreneurship platforms,
such as: Crucial Constructs, Lemon. io, human resources and consul
tancies companies, insurance platforms, and real estate service pro
viders such as Yelp, Zillow, and InsureMyTrip also provide relevant
Fig. 2. Distribution of destinations with digital nomad visas. services. Destination-based organisations and businesses also focused
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L. Zhou et al. Journal of Destination Marketing & Management 31 (2024) 100850
their offering to this market. Examples include Digital Nomad Croatia, local businesses, online recruitment platforms, international corpora
Mymovermexico.com, Canggu Digital Nomad Travel Guide, and tions, digital nomad communities and organisations, and destination
Malaysia Digital Economy Corporation. Digital nomad destination lists management organisations. Digital nomad communities were important
include comprehensive information for this market including: stakeholders in connecting destinations with this new market. These
geographical location, remote work options, weather and climate, cost communities were formed through formal membership on virtual plat
of living, accessibility, housing, inclusiveness, and integrated factors, as forms, such as Nomadlist, or informal social media groups. The types of
presented in Table 8. stakeholders that emerged from the web content were further cat
egorised based on the needs of digital nomads and the scale of influence
(Fig. 3).
4.3. Local and international stakeholders in innovation Digital nomad destinations collaborated with different types of
stakeholders to meet the needs of the new market. Based on results of the
Multiple stakeholders participated in digital nomad destination network analysis, three major types of stakeholders, international,
innovation. For structural innovation, destinations integrated immi destination-based, and institutional were identified. These were further
gration and national security, financial and taxation, destination man broken down into thirteen sub-groups (Fig. 4). The digital nomad
agement, and marketing institutions need to develop innovative policies communities and social platforms serve as key stakeholders that indi
and processes. These efforts include local, international, and institu rectly facilitate innovation. Digital nomadism offers opportunities to
tional stakeholders. In agency-based innovation, destinations encourage local stakeholders, who drive innovation and marketing by utilising
local businesses to innovate, providing services to the new market, while social media and digital nomad platforms. Compared with tourists,
also collaborating with private and public stakeholders for marketing digital nomads’ needs require the provision of services from both in
and branding. Based on the web content, major stakeholders include ternational and local stakeholders. As digital nomads value connectivity,
the involvement of international online platforms is important. These
Table 8 platforms provide professional and private services, collaboration with
Examples of digital nomad destination listings. destinations, consultancy and marketing, and they participate in local
Listing criteria Agencies and initiators Examples of digital nomad investment and the management of digital nomad products.
destination listings
Geographical Digital nomad platforms and The best Spanish and Portuguese 4.4. The interplay between structural and agency-based innovation
location local organisations. cities for digital nomads.
Eight best African cities for The hierarchical relationships among major stakeholders and type of
digital nomads. innovation are shown in Fig. 4. The darker the lines, the stronger the
Most recommended Caribbean
digital nomad destinations.
relationship. As the web content analysed was in English, collaborations
32 Best cities for digital nomads at the local level may not be included and it is likely only larger scale
in Central and Eastern Europe. partnerships and collaborations were reported. As digital nomads rely
Remote work Digital nomad platforms, Community site Digital Nomads on the internet and web-technology to locate destinations and build
online travel services and rounded up the world’s top
communities, the digital nomad communities and online platforms were
remote work services. destinations for people looking
to work remotely. the most salient stakeholders in forming networks and collaborations.
Top Destinations for online Co-working space operators, local travel business and services, and local
fintech workers and digital accommodation and other basic-living services were closely linked with
nomads in 2023. online digital nomad platforms. The digital nomad visas were linked to
Digital nomad destinations from
Airbnb and Reviews.org: Work
national ministries and authorities and to local travel business and
from home top choices. services.
Fourteen top destinations for Marketing and campaign initiatives were the most common form of
remote work. innovation, linking with multiple groups of stakeholders. For example,
Cost of living Digital nomad platforms. 4 of the cheapest and most
Airbnb partnered with the Caribbean Tourism Organisation (CTO) to
incredible destinations for
digital nomads this year. promote Caribbean territories, such as the Virgin Islands, as a viable
10 TOP cities to live under digital nomad destination. The Nomad X platform partnered with Por
$2000 as a digital nomad. tugal’s Madeira Friends Association to launch a digital nomad village
Most affordable destinations for project to empower visitors with opportunities and access to local
digital nomads in the U.S. &
Canada.
experiences.
Weather and Digital nomad platforms. 6 Sunny digital nomad hotspots In digital nomad destinations, the digital nomad visa as a structural
climate where you can escape the cold innovation allows remote work markets to enter and reside within a
this winter. destination. This provides an opportunity to utilise local destination
10 Best paradisiacal beach
resources and services. Structural innovation also provides business
destinations for digital nomads.
Accessibility Digital nomad platforms. Easiest countries to get a digital opportunities for international stakeholders to serve as a virtual agent
nomad visa. between potential markets and the destination. Although the digital
Housing Real estate service The top U.S. metros for digital nomad visa schemes and requirements vary, the process brands the
providers. nomads based on available, destination as a digital nomad destination and informs other stake
affordable and flexible rental
housing and community
holders of potential opportunities. Structural innovation enables stake
amenities. holders to innovate and meet the needs of digital nomads. However, the
Inclusiveness Digital nomad platforms. The top 5 safest, healthiest limitations of nomad visas also restrain agency opportunities. Digital
countries for female digital nomad visas are limited to those from developed countries. Financial
nomads.
requirements also set a threshold that may lead to inequalities and im
Where is best to live and work
for LGBTQ + digital nomads? balances between digital nomads and local residents. Digital nomads
Integrated Digital nomad platforms. The best destinations for digital face potential residency restrictions and are unable to earn income from
factors nomads: A new survey within the destination. This may limit the potential for locally based
These cities around the globe are entrepreneurship and investment. Bureaucratic procedures and pro
ideal for digital nomads.
cesses related to visa applications also creates obstacles.
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L. Zhou et al. Journal of Destination Marketing & Management 31 (2024) 100850
Fig. 4. Main hierarchical relationships between stakeholders and innovation (constructed based on network analysis).
Agency-based innovation was driven by the need to support the demand and occupancy within tourism destinations, by interplaying
pandemic affected tourism economy and provided an opportunity to between structural and agency-based innovations (Borges et al., 2022).
expand existing markets towards digital nomadism. As this a relatively If this trend remains in the post-pandemic era it will determine the
new phenomenon, the innovative capacities of digital nomads are yet to effectiveness of the various innovative strategies.
be recognised and structural changes may potentially be enforced. In the Characteristics of digital nomad destinations included travel and
context of digital nomad destination innovation, the relationship be work aspects reflecting the digital nomad lifestyle. It was interesting to
tween structure and agency is generally aligned as the market grows. discover that inclusiveness was an important consideration for digital
nomads. Inclusive tourism involves the provision of tourism for diver
5. Discussion sified markets, such as the disabled, aged (Darcy, McKercher, &
Schweinsberg, 2020), and LGBTQ communities (Ram, Kama, Mizrachi,
Based on a content analysis of web articles related to digital nomad & Hall, 2019; Vongvisitsin & Wong, 2021). Destinations also used digital
destinations, this study identified the characteristics of the destinations nomad visas and strong digital nomad communities to strengthen
and the agency-based and structural innovations within these destina branding and present an attractive digital image. Destinations with an
tions. A digital nomad destination builds upon a destination’s existing inclusive and sustainable destination image are more likely to maintain
tourism status. Digital nomad destinations tended to be developed after a competitive edge. Mostly the destinations were mature tourism des
the height of a major crisis, such as the-pandemic that facilitated remote tinations although there were several exceptions with digital nomad
working, as a result of the work from anywhere paradigm established villages located within emerging destinations. Urban and resort desti
during the pandemic. Pre-pandemic, lifestyle mobility was exclusively nations equipped with advanced infrastructure, service facilities, a
exploited by freelance workers and entrepreneurs but remained a niche natural environment, and lifestyle appeal, provided a basis for
market in many destinations. Changes to the remote work policies agency-based innovation. Smaller scale peripheral destinations required
within large corporations, therefore, are likely to determine the future of more development capital and investment (Garcez et al., 2022).
the digital nomad markets. Digital nomads contributed to increased The digital nomad market is not homogenous; destination
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L. Zhou et al. Journal of Destination Marketing & Management 31 (2024) 100850
requirements varied based on individual preferences and lifestyles. stakeholders demonstrated structural and agency-based innovation
Different segments, such as: executive nomads, energy nomads, family strategies. Moreover, this study contributes methodologically by
nomads, and grey nomads also emerged within the web content. Work- combining semantic content analysis and hierarchical network analysis
related aspects distinguish digital nomads from regular tourists and to examine the digital nomad phenomenon through online web data.
define this group based on temporal, financial, and social needs, which The methodological approach could be further applied to understand
also drives destination innovation. It is important for destinations to the diffusion of new travel types and destination innovative actions.
understand the digital nomad market to identify specific needs and the
corresponding impacts. The potential for immigration may be attractive 6.2. Practical and social implications
to nomads. However, most destinations limit the transition from a dig
ital nomad status to a long-term resident. The study identified that Practically, this study contributes to the management and marketing
destinations that were successfully branded as digital nomad destina of tourist destinations that cater to the digital nomad markets. The study
tions required increased collaboration and campaigns, driven by desti proposes best practices for digital nomad destinations based on stake
nation marketing organisations (DMOs) and other similar organisations. holder involvement and innovation. These practices include.
The role of DMOs is particularly salient at both the macro and micro
levels and helps drive innovation (Melis et al., 2023). a. Enhancement of technological infrastructure to provide portable
This research established that innovation was driven by a need to internet connection, improve connection speeds, and increase
address the impact of the pandemic. It created an opportunity to accessibility to technological services;
leverage the digital and remote working market. From a destination b. Development of smart space allocation, by encouraging the opera
perspective, structural innovation related to visas and taxation were tion of commercial co-working spaces and the transformation of
based on an understanding that digital nomads were tourists or tem existing spaces and services within hotels and restaurants;
porary citizens by nature, although nomads may identify differently. c. The formation of digital nomad social communities, virtually and
Digital nomad visas were varied in their requirements and their effi physically, with the construction of nomad villages and hubs;
ciencies. The findings resonate with Sánchez-Vergara, Orel, and Cap d. Collective digital nomad marketing by stressing the destination
devila (2023) and support the optimisation of bureaucratic procedures unique selling propositions and collaboration with digital nomad
to eliminate barriers. The interplay between structure and agency in platforms; and
digital nomad destinations indicated that public-sector policy makers e. Support the development of digital nomad visas, which provide
need to consider international and local stakeholders to realise a stra legislative support and stipulate tax reduction/exemptions, to pro
tegic fit with structural innovation (Aarstad, Ness, Haugland, & Kvi vide a clear message that brands the digital nomad destination.
tastein, 2018).
Attracting high-quality tourists has been associated with sustain While individuals may not persistently adhere to a digital nomadic
ability. Post-pandemic tourism recovery has seen destinations shift from lifestyle, influxes of young adults opting for a balanced approach be
activating underused tourist resources to managing tourism flows in a tween life and work continues. Subsequently, the scale and quantity of
more sustainable way (Vujičić, Stankov, & Vasiljević, 2023). Innovation digital nomad communities around the world continues to grow (MBO
at the agency level that enables entrepreneurs, product and service Partners, 2023). Remote working opportunities are foundations for
providers, and other related organisations, will contribute to the digital nomadism. The remote working trend is likely to continue with
development of new products and create a network between interna the advancement of information technology and tools for remote
tional and local stakeholders. Innovation at the agency level can employee management. As remote work has been increasingly normal
encourage entrepreneurship and inclusiveness that may mitigate the ised, cyber security and employee surveillance have become a point of
potential negative impacts of digital nomadism. discussion to reduce the risks of remote working (Statista research
department, 2023). In comparison to the pandemic period, the optimi
6. Conclusion sation of national policies and economic recovery globally, empower
digital nomads to exercise greater freedom when selecting destinations.
6.1. Theoretical implications These decisions are based on individual needs and the digital nomad
community environment. Socially and politically, governments should
This study identified the characteristics of, and innovation within, continue to implement and refine measures such as digital nomad visas
digital nomad destinations. The study also highlighted the drivers and and tax policies to attract global digital nomads to sustainably manage
consequences of digital nomadism on tourist destinations. The attractors their impacts on local residents.
of a destination are key to its appeal and play a vital role in the desti
nation’s competitiveness and success (Vinyals-Mirabent, 2019). This 6.3. Limitations and future research
study discovered that the key attractors included: culture and history,
nature and climate, infrastructure, work facilities, service amenities, This study is not without limitations. The sources of data may limit
economic/financial aspects, and social/political aspects. Agencies that its generalisability and objectivity. As the media can be biased, the sites
are technology-oriented tend to be strong innovators, providing digital that directly cater to digital nomads may promote this form of lifestyle
nomad services and were active in the diffusion process. However, and DMOs may amplify the attractiveness of digital nomad destinations.
structural actors are also important to drive digital nomadism at the The collaborations and relationships between the different levels of
institutional level. Theoretically, this study contributes to the diffusion stakeholders may also be underestimated given the constraints of the
of innovation theory, in terms of how ideas are spread, within destina online data. Although digital nomadism is a generally a western-centred
tion research by combining the phenomenon of digital nomadism and an phenomenon, articles in languages other than English may provide
agency-structure perspective. The study consolidates the destination different perspectives. Table 9 presents an overall summary of destina
innovation framework and links the framework to different stakeholders tion attractors, innovation, and competitiveness that support digital
and innovations. It provides an integrated approach through the analysis nomadism based on this research and may provide future research
of web content related to digital nomad destinations and presents agendas.
findings relevant to digital nomadism supply. Digital nomad destina From the demand side, the dynamics of the digital nomad market
tions can be categorised into traditional destinations with mature tourist and demand may also vary in different destinations. Future research
facilities and new, emerging destinations seeking development oppor could examine the heterogeneity of the digital nomad market and the
tunities. Both destinations and various local and international impacts it would have to the competitiveness and prosperity of
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