Written by Cristian Ascencio on Connectas and republished by Global Voices under a media partnership. Although her workplace is based in Mexico City, Abril has lived in Cancún, overlooking the Caribbean, for the last two years. Here, she can swim at the beach whenever she pleases, get around without a car, and even have time to cook. Working on the Riviera Maya, one of Latin America’s most popular tourist destinations, has paradoxically resulted in more savings than costs for her. This is on top of her improved quality of life. “When I worked in an office, the stress was relentless. I had very little time to take care of myself. Living here is much calmer. I don’t have to endure the traffic and I live a healthier life,” she said. Whether it be Cancún, Medellín, Cuenca, Buenos Aires, or Mexico City itself, all have become go-to destinations for digital nomads. That is, individuals who work online from mostly tourist destinations, thus benefiting from the best prices and many advantages these places have to offer. Bytes de Una Nómada Digital | Día 1 en Medellín (La Ciudad prometida para los Nómadas Digitales en Latinoamérica) 29/Mayo/2023 Mudarse a una nueva ciudad significa miles de cambios a la vez sin darnos cuentas… pic.twitter.com/elWnqgXwrq — ★GizehCarolina🌴 (@gizehcarolinaa) May 31, 2023 Digital Nomad Bytes (snaps) – Day 1 in Medellín The Promise City for digital nomads in Latin America May 29, 2023 Moving to a new city means thousands of changes all at once without even realizing… pic.twitter.com/elWnqgXwrq — ★GizehCarolina🌴 (@gizehcarolinaa) May 31, 2023 According to Esteban Terán from Impaqto Coworking, a coworking space with offices in Cuenca and Quito, Ecuador, digital nomads spend an average of three months in one destination before moving to another. They carry their belongings in a suitcase or backpack. They have no trouble spending their money on tourism and entertainment but do try to save on food. Terán therefore believes they don’t have quite the same impact on local economies as the tourism sector. “This lifestyle isn't for everyone. They educate themselves well in advance before reaching their destination. They’re usually aged between 30 and 40, so they already have work experience and typically work in the IT, finance, or design sectors,” he told CONNECTAS. This year, Ecuador introduced a special visa granting legal residence in the country for up to two years, as a means of attracting digital nomads. In 2022, Costa Rica introduced a visa that authorized the residence of remote workers with proof of foreign employment contracts. People with this visa can enter and leave Costa Rica whenever they wish. As for taxation, they are exempt from paying taxes if they have already done so in the country of their employer. Nevertheless, those wishing to access this system must have a minimum monthly income of USD 3,000. Mexico City and Medellín, Colombia, also receive a significant number of these high-income professionals. For example, in 2022, Mexico City signed an agreement with the online platform Airbnb to help support tourism in its most marginalized areas. However, the nomads’ arrival also causes tension, mainly because of the increased cost of living in traditional neighborhoods. In Mexico City, neighborhood organizations accused Mayor Claudia Sheinbaum’s government of handing the city over to rental property platforms, thus causing the existing gentrification phenomenon to soar. New high-income residents thereby take over historic and traditional areas and displace local residents due to increased costs in rent and food. Following this criticism, Sheinbaum looked at what other cities around the world had done to mitigate such impacts. Although her government officials insist that any online criticism is purely anecdotal and not backed by figures, they are currently looking into the situation in cities like Barcelona, where Airbnb hosts must obtain a special rental permit or risk paying a fine to limit this phenomenon. On a more positive note, Enrique Soto, an academic from the School of Architecture at the National Autonomous University of Mexico, explains that attracting 5 percent of the potential in the U.S. digital nomad market would bring USD 3.72 million to the economy. However, he clarifies that specific regulations must be developed to ensure its original residents are not displaced. “Public policies that leverage some revenue from higher capital gains on property in order to reinvest in urban infrastructure improvements must be implemented,” he told CONNECTAS.
Aid Journal
Digital nomads: Gentrification or economic boost?
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