Aulia Maharani

The Influence of Visa-on-Arrival and Digital Nomad Policies on Local Economic Growth: A Study on Super Priority Tourism Destinations in Post-G20 Indonesia

Introduction

The influence of visa-on-arrival and digital nomad policies on local economic growth: a study on super priority tourism destinations in post-g20 indonesia. Analyze Visa-on-Arrival & digital nomad policies' impact on local economic growth in Indonesia's post-G20 tourism. Uncover spending patterns, gentrification, and policy recommendations.

Abstract

Indonesia's G20 Presidency in 2022 was followed by a breakthrough policy to expand Visa-on-Arrival (VoA) and was taken advantage of by the global digital nomad wave. This phenomenon has the potential to be a catalyst for economic recovery, especially in Super Priority Tourism Destinations, but its empirical impact has not been measured. This study aims to analyze the influence of VoA and digital nomad policies on local economic growth, map their contributions, and evaluate their effectiveness in post-G20 priority destinations. The study uses a mixed-methods approach with a sequential explanatory design. Quantitative data (questionnaires, BPS time series data) were analyzed statistically descriptive and inferential, while qualitative data (interviews, FGDs) were analyzed thematically. The study was conducted in five Super Priority Destinations. The VoA policy contributed significantly to the recovery of tourist visits (+250.6% yoy, 2022), but the impact was uneven and concentrated in destinations with mature infrastructure such as Bali. Digital nomads contribute 2.8 times more than ordinary tourists with unique spending patterns (long-term rentals, co-working spaces, daily necessities), creating a steady economic flow but fueling gentrification challenges. There is a positive synergy between VoA and digital nomads in boosting the local economy. For inclusive and sustainable growth, policy interventions such as special digital nomad visas, MSME liaison programs, and gentrification mitigation regulations are needed. The implications of the findings are the basis for strategic policy recommendations for stakeholders.

Review

This paper presents a timely and relevant investigation into the impact of Indonesia's post-G20 Visa-on-Arrival (VoA) and emerging digital nomad policies on local economic growth within its Super Priority Tourism Destinations. The study adeptly addresses a critical gap by empirically measuring the effects of these policies, which were introduced following the 2022 G20 Presidency and leveraged the global digital nomad phenomenon as a potential catalyst for economic recovery. Employing a robust mixed-methods approach with a sequential explanatory design, the research combines quantitative data from questionnaires and BPS time series with qualitative insights from interviews and FGDs across five key destinations, promising a comprehensive understanding of this multifaceted issue. The findings offer significant insights into the differential impacts and unique contributions of these policy initiatives. The VoA policy is credited with substantially boosting tourist visits, reporting an impressive +250.6% year-on-year recovery in 2022, though this impact was largely concentrated in established destinations like Bali. Crucially, the study reveals that digital nomads contribute an estimated 2.8 times more to the local economy than conventional tourists, characterized by distinct spending patterns that favor long-term rentals, co-working spaces, and daily necessities, thereby fostering a more stable economic flow. While a positive synergy between VoA and digital nomads in stimulating the local economy is identified, the research prudently highlights the emerging challenge of gentrification fueled by these trends. The study's implications are highly pertinent for policymakers and stakeholders aiming to cultivate inclusive and sustainable tourism growth. By providing empirical data on the economic contributions of digital nomads and the uneven effects of VoA, the paper lays a strong foundation for strategic policy development. The recommended interventions—such as the creation of special digital nomad visas, MSME liaison programs, and targeted gentrification mitigation regulations—are practical and directly address the identified benefits and challenges. This research serves as a valuable resource for guiding future policy design to maximize economic benefits while safeguarding local communities in evolving tourism landscapes.

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