alt Hacker NewsDollar multipliers and sources.
A digital nomad is still economically positive when a) their money circulates locally, eg at cafes and restaurants and b) comes from outside the region. That’s because they’re bringing wealth generated elsewhere (ie, at their employer) into the region.
While you’re correct the state misses out on income taxes, they get taxes on further spending, eg, when those digital nomad supplied dollars are used to pay wages at the cafe.
Not specifically about digital nomads, but Amazon used to estimate their salary dollars induce $2.5 of additional local economic activity — as Amazon employees bought from local stores, the store employees did in turn, etc.
>when those digital nomad supplied dollars are used to pay wages at the cafe
Nations whose economies depend on foreign tourist coming to spend their money there, are some of the worst developed out there, have a disproportionately high low wage sector, and some of the highest wealth inequalities out there with the lowest opportunities for upwards mobility. Basically a dutch disease. Nobody wants their economy to be like that if they can avoid it.
Countries aren't gonna be improved by you moving to buy 2$ lattes there while you gentrify the locals in the process and making life more expensive for them, trapping them in perpetual indentured servitude catering to the digital nomad/tourist industry with little to no possibility of moving up the value chain. The only ones who will be happy you do this will be landlords and business owners in the hospitality industry but no developed economy is built with those two as its pillars.
Developed nations want an export economy of products and services aided by imported skilled workers to stay as long term residents and contribute in income taxes, not in latte purchases, and maybe even become citizens so they can become eligible for the draft in case shit were to hit the fan. Digital nomads are like locusts by comparisons, they come to treat your country like and amusement park in a race to the bottom while the going is good, but leave at the slightest inconvenience if now the 2$ latte now has to be 3$ due to increased labor protections, when the impoverished country next door sells it for 2.50$.