In recent years, numerous initiatives have emerged to allure digital nomads to communities, as an increasing number of countries recognize the propensity of these individuals to eschew settling in one place.
Portugal, in particular, established a noteworthy program that offered dedicated visas, attractive tax incentives, and the allure of year-round sunshine. Although this endeavor achieved a considerable degree of success, it failed to garner favor among locals who voiced concerns about the lack of integration exhibited by the newcomers, thereby leading to the gentrification of the areas they inhabited.
Permanent movement
In light of the mixed reception accorded to these transient workers, several destinations worldwide are adopting an alternative strategy, shifting their focus away from knowledge workers who might spend only a few months per year in their town or city.
Instead, these places are directing their attention toward individuals seeking permanent residence, aiming to facilitate their relocation along with their families. Rather than providing specialized visas and tax breaks, these programs strive to simplify the process of settling down in a new community.
A number of examples can be found in the United States, where Choose Topeka extends an enticing offer of up to $15,000 to individuals looking to rent or purchase a home in the area. Similarly, the city of Tulsa endeavors to attract remote workers by providing up to $10,000 in assistance toward the down payment of a new home. Meanwhile, Calabria in Italy has allocated approximately 700,000 Euros in its endeavors to entice individuals to relocate to the region.
Economic impact
Recently, Tulsa Remote, the largest remote worker relocation program in the United States, released its Economic Impact Report, providing a comprehensive assessment of its influence on the Tulsa community since its establishment in 2018.
In the midst of ongoing discussions about the future of work, this report applies rigorous economic analysis and survey data from Tulsa Remote members to evaluate the program’s economic impact.
Moreover, it offers valuable insights for small and mid-sized cities across the country that aim to replicate the success of such initiatives. Additionally, the report caters to employers seeking to refine their remote workforce strategies and individuals interested in pursuing a more flexible lifestyle through remote work or exploring the benefits associated with programs like Tulsa Remote.
Direct employment income
As of December 2022, Tulsa has witnessed the relocation of 2,165 members through the program, resulting in $306.7 million in direct employment income. In 2022 alone, the 1,852 Tulsa Remote members residing in the city contributed over $203 million in new labor income.
Each Tulsa Remote member generated labor income exceeding $150,937 last year, presenting a return of nearly twelve times for every dollar spent on program expenses. Among members who joined since 2019 and completed the program, 76 percent remained living in Tulsa by the end of 2022.
“For a long time, economic opportunity has favored the largest entities, but our focus lies in attracting skilled knowledge workers who are eager to contribute their expertise to the city’s growth and development,” Justin Harlan, the Managing Director of Tulsa Remote, explains. “Tulsa Remote began as a seemingly audacious concept: enticing individuals to relocate to Tulsa while working remotely.”
A third way
A third approach is to redirect efforts towards reconnecting with individuals who have departed from the community, with the aim of enticing them to return. In deprived areas, it is not uncommon for people to leave their hometowns in pursuit of educational or occupational opportunities perceived to be lacking within their localities.
By actively encouraging these individuals to come back, communities can benefit from their acquired skills, social connections, and, importantly, avoid any negative perceptions of them as “outsiders.”
Research conducted by Iowa State University delves into potential strategies for attracting individuals back to rural communities. The study highlights that graduates are more likely to return if they possess a strong emotional bond with their former school, stemming from active participation within the school community or close relationships with specific teachers.
Furthermore, the size of the school also emerged as a significant factor. Individuals whose schools had an enrollment exceeding 350 students exhibited a lower propensity to return compared to those whose schools catered to fewer than 125 students.
Moreover, returnees seemed to gravitate towards towns characterized by lower population densities and fewer fellow graduates. The authors suggest that this inclination may stem from the perception that they can make a more substantial impact within the communities of these smaller towns.
There is a clear desire among communities to tap into the changing nature of work in order to attract fresh blood into communities. The key to success seems to be that this new blood has a long-term and genuine connection with that community in order for locals to accept and embrace them.
As there is a growing desire to see regional inequality reduced, it will be interesting to see which approach gains more traction in the years to come.
