In a strategic move to rejuvenate its tourism industry and stimulate economic growth, New Zealand has announced a relaxation of its visa regulations to attract digital nomads—individuals who work remotely while traveling. This initiative allows visitors to work for foreign employers while holidaying in New Zealand for up to 90 days without having to pay local taxes, after which standard resident taxes apply.
Immigration Minister Erica Stanford highlighted the potential economic benefits of this policy, noting that it would encourage longer stays and increased spending within the country. “The change will enable many visitors to extend their stays, which will lead to more money being spent in the country,” Stanford stated.
The decision comes at a time when New Zealand’s economy is grappling with the repercussions of the Covid-19 pandemic, which included prolonged border closures that severely impacted the tourism sector. Before the pandemic, tourism was New Zealand’s largest export industry, contributing over NZ$40 billion annually to the economy. However, these figures have sharply declined in recent years.
Economic Growth Minister Nicola Willis expressed optimism that the new visa rules would attract highly skilled individuals connected to global industries, without them competing for local jobs. “These are jobs they hold offshore and that they’ll be able to stay connected to while in New Zealand,” Willis explained.
The relaxed visa regulations apply to all visitor categories, including tourists and those visiting family, partners, and guardians on longer-term visas. It specifies that only remote work based overseas is permissible, with visitors requiring appropriate visas for local employment.
This policy aligns New Zealand with several other countries that have introduced similar visa programs for digital nomads, a trend that gained momentum in the 2010s and was accelerated by the global shift towards remote work during the Covid-19 pandemic. Countries such as Japan, South Korea, Brazil, Spain, and Portugal have also opened their doors to this new wave of travelers.
However, the rise of digital nomadism has not been without controversy. In places like Cape Town and popular destinations in Spain and Greece, locals have raised concerns about the impact of these remote workers on living costs and over-tourism, which has sometimes led to public unrest.
As New Zealand navigates these new waters, the government remains hopeful that inviting digital nomads will serve as a catalyst for recovery in the tourism sector, balancing the economic benefits with the social dynamics introduced by this modern workforce. The initiative is seen as a critical step toward overcoming the economic stagnation exacerbated by high inflation rates and interest hikes, which have stifled growth and increased unemployment within the country.