New Zealand’s latest attempt to attract more visitors through its digital nomad visa policy has yet to deliver the expected results. Despite the government’s hopes that more remote workers would take advantage of the relaxed rules, the number of visitor visa applications has declined.
According to Immigration New Zealand (INZ), 23,654 fewer people have applied to visit or extend their stay compared to the same period last year. However, there has been a noticeable increase in interest, with 50,000 more visits to INZ’s website pages for visitor visas and electronic travel authorities (ETAs) in the past two weeks alone.
key factor contributing to the drop in applications could be the timing of Lunar New Year, which fell earlier in 2024 compared to the previous year. INZ visa director Jock Gilray explained that many travellers apply for visas before the holiday so they can celebrate in New Zealand, which naturally leads to a slowdown in applications immediately afterward.
While this seasonal trend may partly explain the numbers, some experts believe other factors could be at play, including the high cost of visiting New Zealand and the limited appeal of the new visa policy to certain groups of travellers.
Introduced just two weeks ago, the policy enables visitors—including tourists and those visiting family—to work remotely for their overseas employers while staying in New Zealand. This includes activities such as answering emails, coding, writing reports, attending online meetings, and even working as social media influencers.
The government hoped the policy would appeal to IT professionals and other remote workers, encouraging them to “stay and play” while contributing to the local economy. Officials also saw it to attract high-value visitors, particularly from tech industries in the United States and East Asia.
However, despite the initial buzz, the impact of the policy remains uncertain. While many people have shown interest in the idea, it’s unclear how many will choose New Zealand as a destination based on these changes alone.
Some worry about an influx of remote workers adding pressure to local accommodation—an issue that has been seen in other countries that have introduced similar schemes. Others believe the policy may not be enough of an incentive to attract large numbers of digital nomads, who often carefully plan their destinations based on affordability, visa flexibility, and overall lifestyle benefits.
Immigration advisors suggest that the relaxed rules may be more attractive to visitors from Western countries than from Asia.
A key issue for Asian travellers is New Zealand’s strict visa application process. While citizens from many Western countries can enter New Zealand under the ETA system without applying for a visa in advance, visitors from countries like India and China must go through a more complex and time-consuming process.
An immigration lawyer pointed out that Asian visitors tend to be more cautious about working remotely while on a visitor visa, as previous visa policies have often rejected applications on those grounds. “They are very fixated on whether working remotely could lead to a visa rejection, which makes them hesitant,” he said.
The high cost of living in New Zealand is another major concern. Many digital nomads prefer affordable destinations in Southeast Asia, such as Indonesia, Thailand, and Vietnam, where they can stretch their budgets further.
Despite the challenges, some experts predict that New Zealand could see an increase in digital nomads from the United States.
One key reason is the favourable exchange rate, which makes living in New Zealand more affordable for Americans earning in U.S. dollars. A senior immigration adviser in Auckland noted that he has received numerous inquiries from U.S. citizens interested in relocating to New Zealand.
Currently, a general visitor visa can be granted for up to nine months, but that’s not a new policy. For many remote workers looking for stability, this isn’t enough.
-TIN Bureau
