Japan launching new visa for digital nomads but will it be enough to solve its economic woes?

By Lachlan Bennett, ABC

People walk across the Shibuya Crossing in Tokyo.
Photo: Supplied/AFP

Japan has become the latest country in Asia trying to capitalise on the rise of remote work but plans for a new digital nomad visa may face stiff competition from its neighbours.

Remote-work advocates have welcomed the “institutionalising” of what is already a reality on the ground – laptop-laden travellers working at digital startups or remotely for large multinationals.

But many in digital nomad communities have criticised the visa for being far too restrictive.

Its six-month stay limit is too short for long-term travellers and the AU$100,000 (NZ$106,590) minimum annual salary requirement is often out of reach for those working at startups.

While Japan’s weak yen is putting downward pressure on the cost of living, other countries are being more flexible with who they let in as a digital nomad.

Who are the nomads?

The normalisation of remote work ushered in by the pandemic has transformed the life of a digital nomad from an influencer-fuelled fantasy to a liveable reality.

Many are entrepreneurs, running online businesses from wherever there’s decent WiFi.

Others are former office workers whose bosses let them ditch the daily commute provided they don’t miss too many Zoom meetings.

Some countries want to capitalise on the trend, setting up flexible visas and promoting themselves as a cheap and idyllic place to log on.

But some regulators fear a flood of tax-avoiding visitors and want to ensure foreigners aren’t arriving on tourist visas only to set up at the nearest co-working space.

Is Japan the best remote work spot in Asia?

The Japan Digital Nomad Association has been lobbying the government to take a proactive approach and “institutionalise” something that has become increasingly common since 2020.

Executive officer Ryo Osera welcomed the new digital nomad visa but was pushing for fewer restrictions, given what is available elsewhere in Asia.

South Korea offers up to two years for digital nomads and their families, but applicants must earn at least AU$100,000 (NZ$106,590) and be employed by a foreign company.

Taiwan’s “Gold Card” is not technically a digital nomad visa but it can offer unlimited entry for three years, along with working and residency rights for those who are self-employed abroad, provided they have suitable qualifications.

Thailand’s “Long Term Resident Visa” can accommodate digital nomads for up to 10 years.

They must earn more than AU$120,000 (NZ$127,908) a year, have five years of work experience and be employed by a listed company or private business with a combined revenue of at least AU$230 million (NZ$245 million) in the past three years.

Malaysia’s “nomad pass” provides up to two years’ stay for people of all nationalities, provided they earn more than AU$37,000 (NZ$39,438) a year.

Many Asian countries provide visas for digital nomads. File photo.
Photo: Supplied/AFP

“It’s not competitive at this moment … but Japan is now a really like popular destination,” Osera said.

“We are still talking to the government. It is a really big step but it’s not yet enough.”

Meanwhile, Japan’s sixth largest city, Fukuoka, is trying to position itself as a digital nomad hub.

Tech entrepreneur Pablo Riveros spent more than a decade working abroad before starting the Fukuoka Startup Collective, a community for both nomads and expats.

He said Japan had lots to offer, from its fast internet and transport, to its culture and cost of living.

“It’s super convenient for many Australians to come to Japan. It’s really good and it’s quite affordable,” he said.

But Riveros said the six-month limit on the new visa was “very short” and the salary requirement was “one of the most expensive” in the region.

“It’s really high. It’s way higher than the senior roles in Japan in Tokyo,” he said.

What is in it for Japan?

Given Japan’s notoriously shy approach to immigration, how exactly the public will respond to a potential influx of digital nomads remains to be seen.

Because Japan has been dealing with population decline and an essential worker shortage, ideas about immigration did not always match the “reality on the ground”, Shiro Armstrong, director of the Australia-Japan Research Centre at ANU, said.

“They don’t have wholesale, open immigration that we are used to or that we would recognise,” he said.

“But there are about two million expats or foreigners living on various visas in Japan – and two million is not insignificant.”

Like tourists, digital nomads could stimulate the economy by spending on food and accommodation but Armstrong said that would not address one of Japan’s biggest problems.

“They’ve got such huge public debt. Government debt dwarfs anything we’ve ever seen,” he said.

“They need to raise revenue. So if they bring in foreigners on [a lower tax rate], it would be pretty interesting to see how the population responds.”

Osera saw how digital nomads could exchange ideas and build connections with locals when he recently took a group to a startup conference in Fukuoka.

“There could be more opportunity to communicate [with] each other, the digital nomads, the tech people and the local startups,” he said.

“Japan is a big market and I believe a lot people are interested in having some business opportunity in Japan.”

The visa comes as Japan grapples with the existential threat of a rapidly aging population and a subsequent labour shortage.

Authorities are also trying to foster a national digital transition.

It is a somewhat challenging task given old technology is so pervasive that some bureaucrats used fax machines to report COVID case numbers in the early months of the pandemic.

While digital nomads will not join the local workforce, Japan’s Ministry for Justice hopes they will have the “ability and power to be a source of various innovations”.

– This story was originally published by the ABC.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : RNZ – https://www.rnz.co.nz/news/world/509494/japan-launching-new-visa-for-digital-nomads-but-will-it-be-enough-to-solve-its-economic-woes