Cities can make more money on remote workers than tourists
Nacho Rodriguez is an entrepreneur who works with the government of the Spanish Canary Islands to attract remote workers. He told me it makes a lot more economic sense for governments to attract remote workers than tourists:
An average tourist in Europe goes on a trip for 5.2 nights and spends $70 per day or $356 per trip.
Meanwhile, a high-income tech worker from the U.S. or London makes ~$150,000/year. If they'd relocate to the Canary Islands and spend just half of that, that's $75k/year put into the local economy. That amount of money can create 3 local jobs at local average wages. Additionally, tax is paid on that income if they relocate.
The average tourist spending of $70/day, is $25,000/year. At an average tourist trip length of 5.2 nights, that means hosting 210 tourists makes the same amount of money for the Canary Islands as a single remote worker can bring in. (Calculation: $70*365.25 days=$25,567/y; 1 trip is 5.2 days; 365.25 days / 5.2 days = 70 tourists/y; 1 remote worker spends 5o% of their income = $75,000/y; $75,000/y remote worker income / $25,567/y tourist income ~= 3; 3 * 7o tourists = 210 tourists)
Even if we estimate more conservatively, where a remote worker spends just $25,000/year, that's still the same amount of money as hosting 70 tourists.
The Canary Islands get 15 million visitors per year. They could make the same money with 100,000 to 200,000 remote workers there.
A remote worker can live more like a local as they stay in the place for months or years renting locally, instead of the short tourist staying in Airbnbs, resulting in less low-quality touristic areas. Caveat is areas will focus on foreign remote workers, which probably means more hipster-type areas. Regardless, places change for foreigners. It depends which way you prefer.
Personally, I think long-term remote workers make better visitors economically and behaviorally than short-term tourists. But I'm biased.
@levelsio
Cities can make more money on remote workers than tourists
Nacho Rodriguez is an entrepreneur who works with the government of the Spanish Canary Islands to attract remote workers. He told me it makes a lot more economic sense for governments to attract remote workers than tourists:
An average tourist in Europe goes on a trip for 5.2 nights and spends $70 per day or $356 per trip.
Meanwhile, a high-income tech worker from the U.S. or London makes ~$150,000/year. If they'd relocate to the Canary Islands and spend just half of that, that's $75k/year put into the local economy. That amount of money can create 3 local jobs at local average wages. Additionally, tax is paid on that income if they relocate.
The average tourist spending of $70/day, is $25,000/year. At an average tourist trip length of 5.2 nights, that means hosting 210 tourists makes the same amount of money for the Canary Islands as a single remote worker can bring in.
(Calculation: $70*365.25 days=$25,567/y; 1 trip is 5.2 days; 365.25 days / 5.2 days = 70 tourists/y; 1 remote worker spends 5o% of their income = $75,000/y; $75,000/y remote worker income / $25,567/y tourist income ~= 3; 3 * 7o tourists = 210 tourists)
Even if we estimate more conservatively, where a remote worker spends just $25,000/year, that's still the same amount of money as hosting 70 tourists.
The Canary Islands get 15 million visitors per year. They could make the same money with 100,000 to 200,000 remote workers there.
A remote worker can live more like a local as they stay in the place for months or years renting locally, instead of the short tourist staying in Airbnbs, resulting in less low-quality touristic areas. Caveat is areas will focus on foreign remote workers, which probably means more hipster-type areas. Regardless, places change for foreigners. It depends which way you prefer.
Personally, I think long-term remote workers make better visitors economically and behaviorally than short-term tourists. But I'm biased.
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@levelsio
My 4 hour AMA w/ Twitch celebrity @roxkstar74 is now up!
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