Japan Trying to Draw Digital Nomads, Who Are Seen as Beneficial to Economy, Society

Yuichi Negi / Japan News Staff Writer

6:00 JST, October 11, 2024

Richard Keil is German, but any place in the world can be his workplace as long as he has his laptop and Wi-Fi. If there is also a room for online meetings, that would be perfect.

Keil, 26-year-old software engineer who works for an IT company based in Germany, has traveled and worked remotely in countries such as Malaysia and Singapore. “I would say the nice part [of this working style] is the flexibility. The option to see and experience a different country,” he said. “I am free to choose my workplace.”

People like Keil are called digital nomads. These are people who do remote work as they travel the world. The term first appeared in the late 1990s, but the COVID-19 pandemic prompted more people to adopt this way of living and working, according to the Japan Digital Nomad Association in Mitane, Akita Prefecture.

The government is currently trying to attract more digital nomads as a part of efforts to boost regional economies and create business opportunities.

During a stay in Japan between August and September of this year, Keil engaged in remote work out of “S-TOKYO,” a co-working office in Chuo Ward, Tokyo, that reopened in April and caters to digital nomads.

The office is open 24 hours a day, as most of its customers work for firms located outside Japan, and English-friendly staff are available. During his time here, Keil explored sightseeing spots at night in Tokyo, while staying in a share house in the city. He also traveled to rural areas on weekends, he said.

S-TOKYO also offers events to help digital nomads to get to know each other and Japanese locals and provides opportunities for digital nomads and key players such as company executives from various regions across Japan to exchange ideas.

“I feel comfortable staying in Japan, because it offers good digital infrastructure,” Keil said.

According to U.S. traveling information website A Brother Abroad, it is estimated that there are about 35 million digital nomads all over the world. Because many of them are high-income earners and tend to stay in one country longer than tourists, they are believed to contribute to the expansion of local economies. They are also expected to create new business opportunities by interacting with and fostering people with high-level IT skills.

The Japanese government and municipalities have also kicked efforts into gear to bring digital nomads to the country. The Japan Tourism Agency has chosen five residency programs offered by local municipalities and firms as pilot projects. The agency is providing up to ¥10 million for each project, all of which are to be conducted by next January, and plans to review the impacts they have on local economies and points that need improvement.

October 1 saw the opening of “Colive Fukuoka,” an event to attract digital nomads to that city. The event, which is expected to receive about 400 digital nomads from over 50 countries and regions, features many tourist programs, including stalls offering local foods — a popular option for visitors in the city — and an experience on a houseboat called a yakatabune. It also offers meetup events for digital nomads and people from local startups, as the city hopes that those kinds of interactions will lead to new business opportunities.

The city hosted the same event last October. 49 digital nomads from 24 countries and regions participated and spent about ¥20 million in one month. Toshio Haraguchi, head of the city’s Tourism Industry Section, said, “We want to promote Fukuoka so that the city becomes a destination for digital nomads.”

The government has created a visa for digital nomads. If certain conditions, such as an annual income of over ¥10 million, are met, individuals can obtain the visa allowing them to stay for up to six months.

“It is a significant step that the government has recognized digital nomads through initiatives including the creation of this visa,” Ryo Osera, an executive officer for the Japan Digital Nomad Association, said.

At the same time, there is still plenty of room for improvement, he says. The visa has certain drawbacks, such as a shorter stay duration compared to similar visas in South Korea and Taiwan, and the inability of visa holders to sign employment contracts with domestic companies during the stay.

Osera, 41, said, “To bring more digital nomads, we need to create an environment that makes it easy for them to stay and work comfortably.”

However, some foreign media outlets have reported that the influx of digital nomads has contributed to rising rental costs in countries such as Portugal and Mexico. Osera said that it might happen in Japan. He added, “Tourism also increases land prices through development.”

As Japan’s population is shrinking, “we have to do something for the economy in rural areas,” he said. “I think rather than short-term tourists, it’s much better to attract digital nomads who have the potential to contribute to the economy in the long run, looking 10 or 20 years ahead.”

Japanese version

「世界が勤務地」デジタルノマド呼び込み活発化…東京で専用施設オープン・自治体がＰＲイベント