South Africa cannot afford to waste any more time in implementing the second amendment of the Immigration Regulations – gazetted on Monday, May 20 – which gives the green light to a new visa category: the remote worker visa or digital nomad visa.
This was the opinion of industry associations who have welcomed the second amendment but are anxious not to lose market share from countries that have already successfully introduced this visa.
“We know South Africa has a high rate of repeat visitors, and digital nomads can become loyal advocates through their extended, immersive stays. Introducing this visa lags behind competitors, who swiftly seized the low-hanging fruit and maximised every avenue to fast-track recovery,” said SATSA CEO, David Frost.
“We cannot afford to waste any more time after years of promises regarding this visa.”
City of Cape Town Mayoral Committee Member for Economic Growth, James Vos, agreed. “Now it is up to National Government to focus its efforts on making sure that the visas can be effectively issued and that the entire visa system is effective and efficient as it will be a major boost to our country’s economy, and drive investments and jobs for millions of desperate South Africans.”
Frost highlighted that SATSA remained resolute that collaboration maximised the digital nomad visa's impact. “We stand ready to work with the Department of Home Affairs to ensure successful implementation, benefiting tourism and the broader economy.”
Positive steps
FEDHASA National Chair, Rosemary Anderson, said the hospitality association trusted that this would finally be a positive step for South Africa's tourism industry.
“Digital nomads are a rapidly growing market segment that offers significant economic benefits, with these individuals typically staying longer and spending more within local communities compared with traditional tourists,” she said.
According to Anderson, it is estimated that the global digital nomad economy reached an estimated value of $787 billion in 2023, highlighting the potential opportunity for South Africa.
“FEDHASA has long maintained that job creation is a key product of hospitality and tourism and that there is enormous potential associated with the visa,” she said.
Critical employers
“The tourism and hospitality sectors are critical employers in South Africa, and by attracting digital nomads, we can create new jobs and address the country's unemployment challenge, especially in light of the recent unemployment data for the first quarter of 2024, which stands at 32.9%.”
Anderson said it was encouraging to see that the gazetted regulations now allowed freelancers to apply for a digital nomad visa, provided they meet the R1 million-plus (€50 000) annual income requirement.
“This further opens up the potential to attract this market to South Africa and to enjoy the benefits of a favourable exchange rate, great weather, a host of world-class experiences whilst injecting much-needed capital into our economy,” she noted.
Prepare the sector
Vos pointed out that, to prepare the sector, the City of Cape Town had convened industry sessions to demonstrate its eagerness to have this category included in terms of product and service offerings.
“Additionally, we have signed partnerships with industry bodies and marketing agencies to ensure that our destination is showcased effectively. We are also working on a special marketing campaign that will connect with digital nomads the world over.”
The City’s official Destination Marketing Organisation, Cape Town Tourism, has partnered with homestay platform, Airbnb to highlight the Mother City’s destination value for international remote workers. The partnership agreement includes a dedicated custom-built Airbnb hub for Cape Town that showcases top local long-term listings, attractions and experiences, and information relating to entry requirements and visa policies.
