Surge of digital nomads and their gentrification of less-wealthy cities
One direct result of COVID was the huge increase in remote working arrangements by large corporations or companies that recognised that their employees can still perform off-site, regardless of where they are. This led to global competition, and was initially not beneficial to employees who are based in countries where their renumeration and benefits are a lot higher compared to workers in other countries without strong laws or unions protecting their interest. Thus, the workers from “cheaper” workforces benefitted from the flexibility of remote working from at least 2020 to 2022, when employers cut down headcounts to save on overheads, while employing new remote contract employees with lower salaries.
Besides this shift, there were also employees who decided to move abroad because of the flexibility afforded to them. Some moved to countries where their employers have offices just to enjoy a new environment, while some others moved to cities/countries with cheaper cost of living to enjoy life as a digital nomad — earning as much as they did before while paying much lesser money for rental and daily necessities. Typically, a lot of these digital nomads moved to tropical places like Bali, Indonesia, where their earnings (a stronger currency) would afford them a better lifestyle while enjoying the holiday atmosphere on a daily basis (because typically they are from countries with changing seasons, tropical places tend to be favoured holiday spots).
They tout the benefits of “going back to basics”, and living a slower-paced life in these cities/countries, to get out of the hectic city lifestyle they have always had pre-COVID. Usually giving reasons such as, them recognising the uncertainty and mortality of their life due to the pandemic, and the importance of slowing down to smell the roses. Which are all valid points.
The thing is while they are focused on their personal revelation, and in doing everything they can in achieving the slow paced lifestyle they desire at countries which are not as developed as theirs, they ended up gentrifying the places they flock to.
“Gentrification describes a process where wealthy, college-educated individuals begin to move into poor or working-class communities, often originally occupied by communities of color. The people and businesses that move into gentrifying neighborhoods may have goals for their new homes that are at odds with the goals of people who have lived there for a long time. Rising costs of living and a changing community culture can make for a difficult adjustment for longtime residents. These changes may drive out people of color and minority-owned businesses. At the same time, gentrification brings much needed investment into long-neglected areas. Gentrification is thus a complicated issue that involves many different stakeholders and perspectives.” — Gentrification, NatGeo
There were people who started calling them out, but the common responses were that they were bringing in their spending power and contributing to the economy, therefore they do not feel like they were creating problems for the locals. The thing is, their agenda for moving to the less-wealthy areas were never about bringing in resources for them, isn’t it? It is at its core, for their personal growth and benefit. Therefore, gentrification is not a problem they will be aware of or be concerned about, because it simply does not affect them negatively. As long as they are performing at work and remain employed, they will always have the mobility and choice of moving back to their country or somewhere else, without having to bear any consequences to any potential issues they may have created or left behind.
This reminds me of the issue of Volunteer Tourism and its negative impacts on the communities, which is another whole topic on its own. Personally, both seem to stem from a privileged and narrow mindset, without careful considerations given to the people who will be affected at the end of the day. Kind of giving off a Saviour Complex as well, in my opinion.
While globalisation as a whole might be beneficial to most people, and having flexibility of remote working may also benefit people from cities with fewer opportunities, lesser investments or which is not as prominent on the world stage prior to the pandemic — giving them the same level-playing field as their counterparts in developed countries as long as they are also able to perform per the requirements of the positions that are available. The flip side of having their own backyards gentrified by people who also benefit from the new working climate, may in the end, cancel off the benefits gained. Especially if their renumeration and benefits are much lower due to employers taking advantage of the lack of workers’ protection in their countries or the fact that they are on contractual employment.
This is obviously, not a new phenomenon. Gentrification has been happening in society for as long as we know, to different places, under different circumstances as well. However, the problem has probably been exacerbated by recent circumstances for certain cities in particular.
Therefore, people need to hold more conversations and discussions on this, to assist in balancing the impact on the livelihoods and situations of the locals who are most affected. Good or bad, turning a blind eye is not the best way forward when we strive to be global citizens with less nationalistic tendencies or inclination — we all have responsibility to each other and as we can see in recent years, proximity or lack of, is not an excuse to not extend our help or support to people in other countries. In this globalised world, everything that happens, even on the other side of the world, has ripple effects on everyone. We are so interconnected, there is no escape from the consequences if we were to be selfish and unhelpful.
The effects may not be immediate, and of course things may turn out positively for everyone involved. We cannot predict with certainty. The awareness is simply to pre-emptively mitigate any possibility of negative impact in the long-run — so everyone is a little more prepared for what comes ahead.
Here are more reading materials on this topic:
- Tourism Gentrification in Bali, Indonesia: A Wake-up Call for Overtourism by I Wayan Suyadnya, Brawijaya University
- Controversial Bali deportation sparks discourse on gentrification and ‘foreigner privilege’ by Amara Putri
- Remote Work Is Causing Gentrification In The Global South by
Esthefany Castillo - As countries ranging from Indonesia to Mexico aim to attract digital nomads, locals say ‘not so fast’ by Rachael A. Woldoff
Professor of Sociology, West Virginia University and Robert Litchfield
Associate Professor of Business, Washington & Jefferson College - Displaced By Your Own: How Working-Class East Asians Perceive the Role of Co-Ethnics in the Gentrification of Flushing, Queens, Angelica Qin UG ’23 (3949038) From Research Princeton Research Day
