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Look out, nerd-invasion imminent?

29 Jan 2025

The government has announced that it will be easing the rules to make it easier for intinerant tech workers to spend time in New Zealand.

So called "digital nomads" will soon be able to get a visa to spend up to 9 months in this country, while teleworking for overseas employers.

The claims being made by government Minister Nicola Willis include a boost to our local economy by making the country more attractive to tourists.

Sounds like a plan, but is it a good plan?

It's claimed that such digital nomads have a high level of income so that money will flow into the local economy, boosting everyone's fortunes.

Since these folk will be working for offshore employers it is true that the nation will benefit from that net inflow of funds but some have voiced concerns about the unintended consequences that may follow.

This RNZ story cites the experiences of Spain where a similar scheme was introduced some years back. It is claimed that locals were disadvantaged by the inflow of such nomads. In some areas, rents rose by as much as 60 percent as a result of these rich tourists needing a place to live, leaving locals out in the cold, sometimes quite literally.

There are however, undoubtedly many benefits for the tourism industry.

Not only will the nomads themselves contribute to our tourism revenues but it would appear as if many such people have quite high social media profiles, with lots of followers. Those who frequently vlog about their experiences will effectively be showcasing New Zealand to the rest of the world. That amounts to a snot-load of free promotion that could be more effective than the entire advertising budget of the NZ Tourism industry itself.

Also, since such people tend to network with locals in the industry, there's a good chance that we could see job opportunities appearing for Kiwis. If you make friends with such a nomad while they're here, they may introduce you to the offshore company they're working for and that could result in work you may not have otherwise had access to.

While Spain may have had some negative experiences, I doubt New Zealand will suffer the same.

The reality is that travel within Europe is pretty cheap and easy, making the mild climate of Spain a mecca for those who want to do a bit of nomadding awayfrom their own European nation. New Zealand however, is a lot further away so we're unlikely to face an invasion of nerds in response to the new programme.

To be honest, I think that those who bring money into the country, by working for an offshore employer, are to be valued. Hey -- I'm one of those people. Virtually every cent I earn comes from offshore and because I spend almost all of it in NZ, I'm effectively making the entire nation wealthier -- just as the digital nomads will.

Perhaps I'll review the effectiveness and the impact (if large enough to be measured) in a year or so's time -- but I don't expect miracles.

Carpe Diem folks!

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