How Barbados, Croatia, and Estonia are courting the newly-remote worker

This article is written by Joel Burke, Partner at Tribe AI

For countries heavily reliant on tourism, Covid-19 has been disastrous. Not only has it disrupted tourism in the short term, but it has created additional hurdles to travel such as vaccine passports and mandatory isolation procedures that are likely to persist for years. Countries can adapt by following the lead of places like Barbados, Estonia, and Croatia — or the US city of Tulsa — who have introduced visas and relocation programmes catering for a newly-remote workforce.

There’s no question that Covid-19 has upended the way that most of the world lives and works. According to a US-focused survey conducted by Upwork, between 14-23 million Americans are planning to move as a result of new remote working patterns and more than 20% of those workers are planning to leave a major city like San Francisco or New York.

For some workers, this shift is only temporary, and they look forward to returning to normal life once they’re vaccinated and can go back to the office. But a significant percentage of those who are able to work remotely are planning to continue doing so. A study from the Becker Friedman Institute for Economics at the University of Chicago found that 80% of surveyed workers plan to work at home at least three days per week and that 23% of those surveyed would even take a 10% pay cut to work from home permanently. Companies from Twitter to Coinbase to Ford have embraced remote work as an option for their white-collar workforces, seeing it as an opportunity to cut down on expensive office costs and recruit from a more diverse pool of potential hires.

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Workers who plan to stay remote have no reason to stick around in big cities, or even in the US: in fact they have every reason not to. Being able to work remotely means workers no longer have to spend hours commuting, that they can live where they want to live rather than where jobs or offices happen to be located, and can avoid the dreaded open office in favor of a home office (or co-working space if one really misses the office experience).

Meanwhile, normal tourism is not coming back for a long time. Travellers face complex Covid-19 testing requirements, potentially mandatory isolation for days or weeks, and vague rules. There are not as of yet any concrete implementation plans for vaccine passports globally, and the vaccine rollout has moved slowly in the European Union and the developing world. This means countries could be waiting for many more months or even years for tourism numbers to get back to normal.

Creating a bespoke visa that caters to the unique needs of this workforce, and a programme that helps remote workers get settled in the country and establish links with the community goes a long way.

However, the newly-mobile remote workforce may hold the key for countries seeking to restart their tourism industries in a more sustainable way. While not all of the millions of remote workers in the US and EU will want to work from another country, there is a considerable market for those willing to do so. These remote workers have steady jobs, disposable incomes, employment benefits, and a newfound ability to live and work where they want. On top of that, most of them aren’t interested in staying in a country for just a few weeks. They want to stay for months or even years and integrate into local communities. One doesn’t have to do much maths to see the economic opportunity of attracting several thousand remote workers to a country for six months or more at a time and how impactful these tourists can be for struggling tourism infrastructure.

Catering to these newly-remote workers with bespoke visas and programs is a massive economic opportunity. Early movers who can establish themselves as hubs for these workers stand to gain if they can offer bespoke visas, solid infrastructure (especially internet access), and a welcoming community. One cannot place enough emphasis on the last point. According to Buffer’s 2020 State of Remote Work Report, 20% of remote workers cite loneliness as the biggest struggle white remote working. Helping remote workers integrate into communities, make friends, and feel at home is not just a good idea, it’s good business.

Countries like Barbados, Croatia, and Estonia have moved quickly. Each launched visa programmes focused on attracting digital nomads and remote workers during the pandemic. Barbados’ Welcome Stamp programme offers a one-year visa and exemption from local income tax. According to Insider, the country saw more than 2,800 applicants in November 2020. This is an exceptional amount given the relatively high application fee of $2,000 per individual and $3,000 per family. Each new resident will be shopping locally, renting local housing, and consuming local services.

“Global citizens have recognized that they can live and work anywhere in the world. Governments should move quickly to attract these people to help develop their domestic ecosystems in tech, finance, and other white-collar industries.” - Peter Vincent

Many countries already have existing visas targeted at freelancers, artists, and other professional groups. Despite some similarities, these programmes often miss the forest for the trees. The newly-remote workforce can live and work anywhere, and has discerning tastes. Countries need to now compete with almost every jurisdiction around the world to attract this talent to their country.

Peter Vincent is a global security consultant and former official at the US Department for Homeland Security under the Obama administration. He has helped more than 20 countries develop visa and investment programmes, and says there has never been more interest from governments globally in re-examining visas, residency, and citizenship processes.

In fact, some of the best programmes are run not by countries, but by cities and states. The Tulsa Remote programme in Oklahoma has received tens of thousands of applications from US-based remote workers who were enticed to come and settle down in the state: in part because they were promised a $10,000 moving bonus. The Movers and Shakas programme in Hawai’i has lured in quite a few new remote workers by offering free airfare and bespoke support for new residents.

According to a recent McKinsey report, international tourism is not expected to return to pre-crisis levels until 2024. For many countries, the consequences of the slowdown have been dire, with tourist attractions, hotels, and huge portions of industry shut down.

Attracting remote workers is not a panacea for countries with large tourism shortfalls. But it does present a considerable opportunity for those who get it right. Creating a bespoke visa that caters to the unique needs of this workforce, and a programme that helps remote workers get settled in the country and establish links with the community goes a long way. Following the example set by leadership in Barbados and Estonia could help countries find a more predictable source of income to replace tourism dollars and an influx of human capital that boosts local technology sectors and the wider economy.— Joel Burke

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