How do digital nomads affect local socio-economic (cultural) development? A literature review

Introduction: Until 2019, remote working was limited to a small proportion of the workforce, mainly in the technology and information sectors. However, the COVID-19 pandemic accelerated digital nomadism, expanding remote work opportunities and increasing demand for destinations with strong technological infrastructure and high quality of life. Objective The main goal of this study is to examine the opportunities and challenges of the phenomenon, exploring the multidimensional impact of digital nomadism on social, cultural, and economic factors. The significance of this research lies in the need to understand how digital nomadism influences and reshapes host communities' social and economic structures. Methods: Grounded on Putnam's (2000) social capital theory, this study adopts a Narrative Literature Review (NLR) to provide a comprehensive overview of current knowledge on digital nomadism's sociocultural and economic impacts across different regions. The review synthesizes existing research in complex areas, enabling critical analysis and the identification of future research directions. Results: This global trend reshapes work, mobility, and lifestyles, with digital nomads influencing social, cultural, and economic dynamics. While they contribute to local economies and knowledge transfer, they pose challenges like Gentrification and rising housing costs. Conclusion: Digital nomadism drives cultural exchange and economic growth and fuels Gentrification and social tensions. While nomads boost local economies and innovation, they strain infrastructure and widen income disparities. With millennials and Gen Z leading this trend, effective policies are needed to balance the benefits and challenges.