Why Are Digital Nomads Becoming Unpopular?

Enabled by a surge in telecommunications technology, and spurred on by the pandemic and the cost of living crisis, the digital nomad lifestyle has become a worldwide sensation.

Since 2022, the number of digital nomads worldwide has tripled to around 35 million, and over 50 countries now offer a special digital nomad visa to attract remote workers to their shores. Those numbers are only set to increase over the next decade as the digital nomad lifestyle becomes ever-more popular with those combining work with travel.

However, all is not well in paradise. Due to a number of factors, residents in several popular digital nomad locations have started to raise grievances about their loose-footed neighbours. In this article, we’ll explore some of the reasons locals and digital nomads are coming to loggerheads around the world, and what you – as a digital nomad – can do to help the situation.

The background: What is a digital nomad and where do they tend to go?

A digital nomad is a person who is able to work remotely, and who travels to a foreign country to do their work. They may be employed by a company, self-employed or freelance, an entrepreneur or a company founder. The typical digital nomad tends to do most of their work from a laptop, which means they can perform their job from a coffee shop, bar, hotel or even the beach.

In the aftermath of the COVID-19 pandemic, when many people started to adapt to remote working, certain countries created special digital nomad visas to encourage tourism. The first country was Estonia, which had suffered a 63% decline in tourism during the first year of the pandemic, and introduced its digital nomad visa as early as 2020. By February 2024, Estonia had administered 535 digital nomad visas.

The digital nomad visa was an instant hit, and many other countries started to follow suit. In 2024, more than 50 countries have now started to offer a digital nomad visa, which usually includes:

Residency for an extended period of time, usually between three months to two years
Tax incentives, such as no income tax charged on foreign-sourced income
A fast-track application processes

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By the end of the pandemic, more than 10 million people had already taken the opportunity to live and work abroad. But the pandemic was then closely followed by a sudden cost of living crisis, which decreased the spending power of many people in Western countries. This added an additional incentive for people to work overseas, and the number of digital nomads worldwide tripled to around 35 million by 2024.

According to Pumble:

37% of digital nomads are Millennials
Less than two-fifths (38%) of digital nomads are female
Almost half (46%) of digital nomads worldwide are American
62% work full-time

Where do digital nomads tend to go?

So long as they can find a stable internet connection and a comfortable seat, digital nomads can theoretically travel anywhere. Other major draws may include a low cost of living, a tropical climate and access to nature, such as beaches. The availability of a digital nomad visa is also important, but not always essential.

A few destinations have already emerged as firm favourites among the digital nomad community. These so-called ‘Zoom Towns’ are typically major metropolitan cities with highly-developed infrastructure. With good availability of Airbnbs, co-working locations and transport infrastructure such as airports and rail stations, they make both the ideal places to work for several weeks at a time, and to use as a base for travel.

In 2023, William Russell listed these cities as the world’s top 10 most popular destinations for digital nomads:

New York City

USA

1,000,000

London

717,000

Paris

France

677,000

Bangkok

Thailand

440,000

Barcelona

Spain

394,000

Amsterdam

Netherlands

290,000

Berlin

Germany

213,000

San Francisco

USA

188,000

Zagreb

Croatia

120,000

Lisbon

Portugal

78,800

Source: Zoom Towns: Top 10 Digital Nomad Destinations

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What problems are digital nomads causing?

A handful of digital nomad destinations have emerged as significantly more popular than others.

With tens of millions of digital nomads now roaming the world, these places in particular have noted a sudden, rapid influx of people over the last couple of years. For some destinations, this unforeseen swell has led to a number of problems, such as:

1/ Overcrowding

When a destination becomes popular with digital nomads, a rapid surge in population leads to both public and private spaces becoming overcrowded, especially in hotspots such as beaches, restaurants and co-working spaces.

This is precisely what happened on the Indonesian island of Bali. In 2023, Bali attracted more than five million visitors – more than doubling its population of four million.

Overcrowding has become rife, with people reporting long traffic queues, beaches strewn with litter, bars and restaurants packed to the rafters, and public facilities becoming overwhelmed.

2/ Putting strain on local infrastructure

One of the impacts of overcrowding is that it puts urban infrastructure under immense pressure. This can affect everything from utilities like sewage and electricity, to supply lines for food and medicine, and of course the availability of housing.

One city that felt the impact in this way was Amsterdam. As tourists and digital nomads flocked to the city after the pandemic, Amsterdam’s electricity grid was quickly overwhelmed.

In response, the city has undertaken a number of initiatives (including a ‘Stay Away’ ad campaign and a limit on the number of visitors allowed in a year) designed to deter visitors and put the needs of local residents first.

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3/ Gentrification

Gentrification is the purposeful redesigning of urban spaces to meet the needs of a non-native population. When it comes to digital nomad hotspots, gentrification occurs when neighbourhoods change their look and feel, facilities and housing to appeal to remote workers – for instance, by replacing popular local restaurants with swanky coworking cafés.

The gentrification of digital nomad hotspots in Barcelona has led to protests across the city. One of these locations is the central boulevard of Las Ramblas – once a cultural centre for locals, it is now packed with souvenir shops designed to appeal to tourists and digital nomads.

Pressure from local residents has convinced the city to limit the number of such establishments that are allowed to open in a given area.

4/ Inflated prices

Because digital nomads often earn higher wages than local people, landlords and business owners often capitalise by raising their prices. While these price hikes may be affordable for digital nomads, they end up impacting local residents, who are in turn ‘squeezed out’ of their own local economy.

This happened in Lisbon, where local residents complain that an influx of digital nomads has pushed up the prices of everything from rent to restaurant meals. With tens of thousands of digital nomads competing for the same housing stock as locals, rental prices rose 10% in 2023 alone.

Authorities in Portugal are now attempting to convince digital nomads to disperse to other hotspots around the country, including Porto and Madeira.

5/ Decreased housing stock

Digital nomads tend to look for short-term rental accommodation when moving overseas, and one of the preferred methods for finding a home is to use Airbnb. To meet the rising demand, landlords will often buy up rental properties throughout a city and convert them into Airbnbs. This, however, removes housing stock from the general population, which can lead to acute housing shortages and inflate the price of property.

The German capital Berlin has introduced strict regulations governing Airbnbs to prevent digital nomads from impacting the local property and rental markets.

Landlords must apply for a registration number, and collect information about their guests to acquire a permit every time they wish to rent out their property. They are then only allowed to rent out their property for up to 90 days per year, if it is their second property. They must also pay tax on the profits made through Airbnb.

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6/ Increased crime

Unfortunately, as digital nomads descend upon a certain area, criminals often follow in their wake. Drug dealers, for instance, are keen to get in on a thriving new market, and pickpockets will find the hustle far more lucrative in digital nomad hotspots. Many digital nomads have felt the impact of more serious crimes, from burglary to sexual assault, and in some cases even kidnapping and murder. The increased crime that follows digital nomads can also impact the local community, who may see the digital nomad community as a cause of increased crime.

One particularly harrowing case involved an American digital nomad in the Colombian city of Medellín.

Paul Nguyen was murdered in a potential ‘honeytrap’ killing, in which it appears he was lured to a nightclub after meeting a local woman on Tinder only to be robbed and murdered the same night. Cases such as these highlight why it is incredibly important for digital nomads to take extra steps to protect their lives and well-being overseas.

7/ Conflicts with locals

Digital nomads bring their own cultures with them. They may not speak the local language or conform to local customs, and since their stays are short-term, they may not make much effort to integrate. They may also end up being the indirect cause of social problems, such as noise pollution and litter. As these issues combine, it can result in hostility from local people.

Take Mexico City for example. Angered by an influx of American digital nomads speaking exclusively English, local people have started guerilla campaigns to repel newcomers.

Flyers seen posted around the city call remote workers a ‘plague’ and describe how ‘the locals f–ing hate you.’

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A woman working on her laptop in her campervant with the doors open, looking out to the beach and the sea beyond

Where else might digital nomads not feel welcome?

At William Russell, we’re connected to a worldwide network of digital nomads. Over the years, we’ve heard many stories about the most, and least popular places for digital nomads to settle.

Among the least popular places, we’ve found that some countries seem to get a consistently bad review for being unaccommodating of digital nomads. While this may not be because of any particular policies, digital nomads who choose to visit these countries should be aware that they may face certain unexpected challenges:

Saudi Arabia

Saudi Arabia, despite its efforts to diversify its economy and attract tourists, presents challenges for digital nomads. The country’s conservative laws and cultural norms, rooted in Islamic tradition, may clash with the values and preferences of many digital nomads.

Restrictions on freedom of expression, particularly concerning political and social issues, can be stifling for those accustomed to more liberal environments. Gender inequality also remains a significant concern, with women facing numerous restrictions on their freedoms and opportunities. While Saudi Arabia may offer unique cultural experiences, its strict social and legal framework may be off-putting for much of the digital nomad population.

China

With its bustling cities, dynamic economy, and ancient heritage, moving to China holds immense appeal for digital nomads seeking new experiences. However, navigating the country’s digital landscape presents significant challenges.

The Great Firewall, China’s system of internet censorship, blocks access to many popular Western websites and platforms, limiting digital nomads’ online freedom and connectivity. Obtaining long-term visas for remote work purposes can also be a bureaucratic maze, requiring extensive documentation and sponsorship for expats and digital nomads looking to bring their work with them.

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South Africa

South Africa’s brand new digital nomad visa came into operation on 28 March 2024. However, expats currently living in South Africa suggest it might not be the most welcoming environment.

While there are many perks to living in South Africa – from the glorious landscapes to the hot climate and access to incredible wildlife – South African cities also boast some of the highest crime rates across the continent. Any expat in South Africa is advised to pay extra special attention to their safety and well-being.

Digital nomads moving to South Africa should also be aware of the huge inequalities between locals and foreigners, which contributes to high levels of theft, home robberies and even violent crime. Coupled with an ongoing political crisis that manifests in poor quality healthcare and frequent power cuts, it’s easy to see why South Africa is experiencing a huge wave of outward migration, with 413,000 South African citizens leaving the country between 2000 and 2022.

Venezuela

Venezuela’s ongoing economic crisis and political instability pose significant challenges for digital nomads. Hyperinflation and shortages of basic goods can make everyday life difficult and unpredictable. This in turn poses a huge safety concern for digital nomads, who will likely be entering the country with far more wealth than the local population.

Digital nomads dead set on working in Venezuela should be vigilant and prepare for the reality that high crime rates and political unrest might prevent them from fully embracing the local experience. Indeed, Venezuela topped our list for countries with the highest crime rates in 2023.

Japan

While Japanese people are renowned for their hospitality and good manners, the reality of living in Japan has shocked many digital nomads who have reported widespread discrimination against foreigners. A sudden surge in immigration over the last 10 years has caused friction between the native Japanese and ‘Gaijin’ (‘foreigners’).

Digital nomads report feeling discriminated against in the workplace (where Japanese working culture is enforced quite strictly), in bars and restaurants (which are known to turn away non-Japanese people) and in public. With a ubiquitous culture and difficult language, it can be hard for digital nomads to integrate into Japanese culture, and this has left many people feeling lonely and isolated.

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What can digital nomads do about it?

If you are a digital nomad yourself or thinking of becoming one, you may want to ensure you aren’t adding to the problem.

Being a conscientious digital nomad may help you to integrate and settle into your new culture, as you are less likely to receive backlash from locals. You will also benefit by avoiding ‘digital nomad traps’, such as inflated prices, overcrowded spaces, lower standards of infrastructure, and ultimately an inauthentic experience.

Here are some of the ways you can roam the world more authentically and live your digital nomad life to the full:

Get off the beaten track

Digital nomads instinctively flock to large, metropolitan cities. But there’s nothing stopping you from heading to smaller, quainter places too. Smaller towns and cities will benefit much more from receiving digital nomads like you, and you are more likely to be welcomed with open arms. If you have your heart set on visiting the big cities and popular tourist destinations, you can always make these destinations a ‘holiday within a holiday’.

Immerse yourself

A big part of the digital nomad experience is getting to know foreign cultures. This will only happen when you throw yourself into the deep end and surround yourself with as much culture as possible. Don’t just head for the top-rated restaurants; ask locals for their recommendations. Don’t just spend all your time in the same coworking spaces; try local cafés, libraries and offices where you are more likely to bump into local people. Don’t spend all your time in digital nomad communities; try to make friends with the locals, too.

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Avoid Airbnb

Airbnb is a convenient alternative to traditional renting, as it allows you to book high-quality, serviced accommodation in advance. However, Airbnb is widely condemned for contributing to housing shortages in popular digital nomad destinations. To help alleviate the problems caused by the short-term rental market, you should instead look for traditional forms of accommodation: either renting property directly through a private landlord, or living as a lodger (i.e. renting a room or annex in someone’s home). You should also avoid living beyond your means – renting a three-bedroom home for yourself removes that housing stock from a growing family, who would benefit much more from the extra space.

Learn the local language

Many digital nomads miss the opportunity to pick up new languages while living abroad. Don’t be one of them. By spending time at a language school, or with a language tutor, you can not only come home with new skills, but make it easier for you to make friends and integrate into local society. Learning the local language will also ensure that local people feel more comfortable around you, since they are less likely to immediately think of you as an outsider.

Be mindful of locals’ concerns

As many locals push back against digital nomads flocking into their towns and cities, you may be tempted to keep a low profile and hope it all blows over, especially if you take the view that you, personally, are not part of the problem. Unfortunately, burying one’s head in the sand rarely solves the problem. Rather than avoiding the limelight, try to listen to local people’s concerns. You may be able to help the situation if you can act as a bridge between local people and the digital nomad community. Speaking to local politicians, the local media and community groups may be a good way to add your voice to the wider conversation.

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Don’t flaunt your wealth

Because digital nomads usually work for overseas companies, they tend to earn significantly more than the local population. While this can afford you a higher quality of life, it’s important not to let this increased spending power go to your head. Remember, the more digital nomads congregate in one area, the more prices will rise and the higher the risk of gentrification becomes – often at the detriment of local people. Spend your money mindfully, and if you find your excess cash burning a hole in your pocket, try to use it towards something productive for your local community. Donating to local charities will always be appreciated.

Be a conscientious nomad

Digital nomads get a bad reputation when they fail to act in a way that is consistent with local culture and traditions. When you first move to a new destination, you should go out of your way to learn about the local culture and adapt your behaviour accordingly. This may include wearing certain styles of clothing, using local gestures, and contributing to society in a meaningful way. Above all, be polite, courteous, and behave in a way that is consistent with how local people act.

Conclusion

The number of digital nomads worldwide is only set to increase over the next decade. During this time, it’s important that everyone, whether they are already a digital nomad or thinking of becoming one, becomes more mindful of the issues surrounding this lifestyle.

As a digital nomad, you should be mindful of the impact you are having on your local community, and try to minimise this. Adapting to cultural traditions, communicating with local people and avoiding overpopulated areas are just some of the ways you can help to tackle the big problems caused by digital nomadism.

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Make the most of your digital nomad experience

At William Russell, we have over 30 years’ experience providing international health insurance for digital nomads just like you.

Remember, many destinations will require you to have health insurance when applying for a digital nomad visa. Our international health insurance policies offer the option of worldwide coverage, giving you the ability to move wherever your heart takes you, with no extra hassle.

Take the stress out of international health insurance by choosing William Russell. Find out more about our international health insurance policies and get a quote online in under two minutes today.

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