DIGITAL NOMADS TOURISM IN BALI

 
DIGITAL NOMADS TOURISM IN BALI
Journal of Development Economics and Finance, Vol. 1 no. 1, pp 1-16      2020

                    DIGITAL NOMADS TOURISM IN BALI

  Agung Suryawan Wiranatha, Made Antara, Agung Cahyawan Wiranatha, Putu Saroyini
        Piartrini, Ida Bagus Gde Pujaastawa and I Gusti Ayu Oka Suryawardani
                   Centre of Excellence in Tourism Udayana University
                                      Bali, Indonesia

Abstract—The development of tourism is significantly influenced by the development of
digital technology. This new development leads to a new tourism type, known as Digital
Nomads Tourism, which is a combination of two activities namely digital nomads with
tourism. The number of digital nomads is estimated to reach 4.8 million in America in 2018
(MBO Patrtners Inc., 2018), and some experts estimate the number of digital nomads to be
more than 1 billion people in 2035 (WYSE Travel Confederation, 2019). Ubud and Canggu
in Bali are among the most popular destinations in the world as hub for digital nomads. This
study aims to: (i) identify the characteristics of digital nomads who live temporarily in Bali,
(ii) analyze their perceptions of Bali as a tourism destination for digital nomads, and (iii)
develop criteria the appeal of destinations for digital nomads. This research was conducted in
two popular tourism destinations in Bali, namely: Ubud and Canggu. This study uses a
qualitative approach with interview and survey methods using questionnaires, and is
supported by appropriate literature review. Data analysis was performed by descriptive
statistical analysis and descriptive qualitative description. The results of the first year
research showed that for the development of digital nomads tourism in Bali, we must pay
attention to the pull factors for digital nomads in choosing their destination destinations,
namely: (a) affordable living costs, (b) availability of adequate amenities, (c) community
hospitality; and (d) many variations of weekly events are offered.

Keywords—co-working, co-living, internet, tourism destination, Ubud, Canggu, Bali

                                     INTRODUCTION

Background

       Global tourism has been developing rapidly in the past decade, in addition tourism
has become one of the fastest growing industry across the globe. UNWTO highlights (2018)
announced that the number of international tourist arrivals have been elevated for 7% in
2017, reaching over 1.32 billion or 84 million greater than the number in 2016. Tourism has
also become the motor to develop the world economic to raise the country’s National Income,
creating employment opportunities, and providing income. Furthermore, UNWTO Highlights
(2018) have mentioned that tourism has create 1.6 trillion US$ in 2017.
       Indonesia’s tourism has significantly rise due to the number of international tourists
who comes to Indonesia reach 14.04 million visitors or increasing 21.44% comparing to year
DIGITAL NOMADS TOURISM IN BALI
Journal of Development Economics and Finance, Vol. 1 no. 1, pp 1-16    2020

2016. The number of international tourists during 2018 have been elevating and reaches
15.81 million people. The national income for tourism reached 13.5 billion US$ in 2016.
National income from tourism held the second top rank below crude palm oil (CPO) with the
amount US$ 15.9 billion. In 2017, national income from tourism reached US$ 16,8 billion
(fakta.news, 2017).
        Tourism has long time being the major sector for the economy in Bali which able to
stimulate the other sectors. Tourism in Bali become more popular and become the top rank as
the world most famous tourist destination in 2017 above London (second rank) and Paris
(third rank) according to trip advisor (2017). In 2017, the number of foreign tourists who
directly come to Bali was 5,697,739 people(Bali Province Tourism Office, 2018). Bureau
Centre of Statistic Bali Province (2019) mentioned the total number of tourists who visited
Bali in 2018 was 6,070,473or increasing 6.54% from 2017. The total of foreign tourist who
visited Bali contributed 38.4% of total foreign tourist who visited Indonesia in 2018.

        Development of digital technology and information plays a great role for the
development of the world tourism. Digital communication technology through internet
commonly applied for the tourism development, especially for the tourism marketing which
include promotion and transaction for tourism business (Mechaet al., 2019; Bhaskara and
Sugiarti, 2019; Ritchi, 2018).Breakthrough of digital communication technology via internet
have changed the promotion transaction cycle which majorly occur between the tourist and
the tourism industry (business to costumer) without middle man (travel agent) (Karisma et
al., 2019).
        The development of digital technology has not only utilized by tourism industry to aid
and fasten the services for the tourists and increasing the accountability of the service
providing company, however tourists can use the digital technology to increase their working
effectivity and productivity while enjoying the tourist destination. Nowadays, internet seems
to be difficult to release internet from daily life. This include occupation. It could not be
denied that internet can create many job opportunities. This situation creates many freelance
workers such as writer, data entry, designer, programmer, and many more. Furthermore, long
distance work using internet create changes towards mindset of the youth nowadays. They
don’t feel that regular job required, because freelance job can create income to support their
daily live. This kind of phenomenon becomes more popular throughout the presence of
tourist which are freelance workers. These people are called the digital nomad.
Journal of Development Economics and Finance, Vol. 1 no. 1, pp 1-16    2020

       Ikhsanti (2017) states that digital nomad is a term for those people who do not stay in
a certain place for long time and work in long distance by using internet. These digital
workers working in several business sectors just by using smartphone as well as laptops.
Certainly, they must provide themselves with internet connection to do their work. These
digital nomads can do their works in their living place such as hotels and apartments.
However, several of them decide to work in coffee shop or restaurants while enjoying foods
and view. That is the reason why tourist spots in Bali are filled with young people from
around the world searching for restaurant and co-working space with Wi-Fi access.

       Novriandi (2017) states that there are five benefit of being digital nomad: (i)
Independent location, (ii) Simple to initiate working mood, (iii) Unlimited Creativity, (iv)
Flexible working time and Coworking space support. The development creates new tourism
model which known as Digital Nomads Tourism which is the combination of two activities
digital nomads and tourism. Digital nomads are individuals who does not depend on fixed
working area and special rooms for working, however the only things required by them is
high quality internet connection to assist their work (Makimoto and manners, 1997; Dal Fiore
et al., 2014; Mohn, 2017; Koeswologito, 2018). Even though difficult to predict, their
numbers can reach 4.8 million people in the United States (MBO Partners Inc., 2018) several
experts predict the number of digital nomads can reach more than 1 billion people in 2035
(WYSE Travel Confederation, 2019). Ubud and Canggu are amongst the popular destination
worldwide as a hub for digital nomads (Koeswologito, 2018a). Tourism market which
targeting the digital nomads is a new market opportunity even though the amount and
contribution are still insignificant toward local economics, however early preparation should
be performed.

       According to Leiper (1990) and Mill and Morrison (2009), to create sustainable
tourism, maintaining tourist satisfaction and ensuring to gain good experience and increasing
tourist awareness about tourism sustainability (UNEP, 2010; UNWTO, 2010). To be able to
provide satisfaction for the tourist during accommodating digital nomads tourist market,
several aspects such as characteristics, perception, and satisfaction of the digital nomads
tourist towards the Bali tourist destination, therefore anticipation of their requirements so
they choose Bali as their favourite tourist destination.
Journal of Development Economics and Finance, Vol. 1 no. 1, pp 1-16        2020

    According to the backgrounds above, digital nomads is potential as a future aspect for
Bali tourism in the future, however preparation for that aspect has not been performed and
require preliminary study. Research about digital nomads tourism has not been done in Bali
and Indonesia.

Purpose of The Study
The purpose of this study:
 1. Identify the characteristic of digital nomads
 2. Analyze perception of the digital nomads tourists who live temporary in Bali
 3. Synthesize destination ideal criteria for digital nomads tourist.

                                   RESEARCH METHOD

Research Framework and Approach

       Bali tourism is famous due to the culture uniqueness, art, local wisdom as well as the
polite local society which are supported by natural landscape and the beaches in Bali. With
the presence of various tourist facilities with international standard has made Bali to become
one of the favourite tourist destination which can attract tourists for revisit. Bali tourism can
enhance the other sectors in Bali, furthermore it can elevate the income for the society in Bali
as well as providing job opportunities.
Digital technology trends as well as tourism trends amongst millennials which are highly
dynamics creating new trends as known as tourism by digital nomads which involve
millennials professionals who are working outside the office, therefore the digital nomads
searching for location which they consider to be comfortable to work and meet the other
digital nomads. However, nowadays the potential of digital nomads has not taken attention of
the tourism industry in Bali compared to other tourism such as marine tourism, sports
tourism, wellness tourism, and spiritual tourism. By conducting this research, the writers can
identify the presence of digital nomads tourists in Bali more clearly so planning for the policy
to increase the visiting number of digital nomads to Bali.
Journal of Development Economics and Finance, Vol. 1 no. 1, pp 1-16         2020

       This research using qualitative approach with interview method and survey with
questioner and supported by appropriate previous study. The data analysis performed by
descriptive statistic analysis. Several factors which is studied in this research are:
   1. Characteristic of digital nomads tourist who live temporary in Bali.
   2. Perception of digital nomads tourist towards Bali tourism destination.
   3. Ideal criteria of a certain destination for digital nomads tourists.

Research Time and Location

       This study was held from May-October 2019 in two different tourist destination in
Bali which are: Ubud and Canggu (Kuta). The research location was chosen due to several
reasons such as:
   1. Bali and Thailand are the only amongst ASEAN country which is the favourite for
       digital nomads (Conaway, 2017).
   2. For Bali, only Canggu and Ubud which has been categorized as popular spot for
       digital nomads (Koeswologito, 2018a).
   3. Similar research has not been conducted in Bali.

Respondents and Informants

       The respondents of this research is the digital nomads who is living temporary in
Ubud and Canggu. The total respondents of this research are 50 people tourists which is
categorized as digital nomads. This number is selected because the total population of digital
nomads has not been noted in Bali, so the minimal respondentsfor this research is 30
respondents as the minimum requirement for social research. The selection of the respondent
used purposive accidental sampling, where respondents are digital nomads in the research
location.
Meanwhile, informant in this research is the manager or the owner of the co-working space
or digital nomads in Ubud or Canggu. In this research, the informant only four people.

Types and Source of Data
Journal of Development Economics and Finance, Vol. 1 no. 1, pp 1-16      2020

        The types of data which are gathered in this study divided into quantitative and
qualitative data. Quantitative data is data in form of number which includes the total of hub
for digital nomads in both destinations (Ubud and Canggu), the total of tourist visiting, length
of stay, and other data supporting the research.
The source of data is from primary and secondary data. Primary data was gathered by
questioner which has been prepared for digital nomads as well as deep interview to the owner
of the informant who owned or organize the co-working space.

Methods of Gathering Data
Data gathering was performed in several methods as follow:
   1.   Literature review, gathering data and information about digital nomads, hub for digital
        nomads and other tourism information related to digital nomads.
   2.   Questioner which was given to the digital nomads tourist in the research location.
   3.   In-depth interview with the owner or manager of the co-working space where the
        digital nomads do their activity.

Data Analysis Method
        Data analysis for the research Digital Nomads Tourism in Bali was performed by
descriptive statistical analysis to explain the output of the statistical analysis therefore the
characteristic and perception of the digital nomads who live temporary in Bali can be
determined, and ideal criteria for digital nomads will be arranged.

                        RESEARCH RESULTS AND DISCUSSION

Overviewof The ResearchLocations

Digital nomads tourism research was carried out in two well-known tourism areas in Bali,
namely UbudandCanggu.

Ubud

        Ubud is a very famous tourist destination in Bali. Foreign tourists interested in
visiting Ubud because of vibration of art and culture in daily life of community in Ubud area
Journal of Development Economics and Finance, Vol. 1 no. 1, pp 1-16        2020

which has madeforeign tourists feel happy staying in a typically traditional village of
Bali.Natural beauty of landscape in Ubud area has also made foreign tourists want to stay
longer in Ubud. Rice field terrace can also be seen in the area of Ubud supported by
surrounding green area which can improve the beauty of rural atmosphere.      Ecotourism can
also be found in the area of Ubud, namelyMonkey Forest which attract tourists to visit this
place. Other attraction that can be found in Ubud are white water rafting tours, Ubud castle,
Ubud market and many galleries, paintings and museums. In addition,Ubud is famous as
centre of artists. Traditional dance performance is held every night in some places which can
make more interested atmosphere in the evening to attract tourist who enjoy their time.

       The Ubud area has been famous for Western tourists since the 1930s. Painter from
Germany, Walter Spies and from Holland, Rudolf Bonnet used to live in Ubud. They were
welcome by Cokorda Gede Agung Sukawati, from Puri Agung Ubud. At the moment, their
painting collection can be seen at the Puri Lukisan Museum.

Hubud, a Digital Nomads in Ubud

       Hubud is a place in Ubud where digital nomads gather which provides spaces to work
as like office for digital nomads. Hubud provides high speed internet connection where the
working environment is design for individual work or group work. It also provides good
scenery with the scenery of rice field as well as fully air-conditioned meeting room with LCD
projector and whiteboard.

       Hubud also provide access for digital nomads to be the member including Hubud
online community, H-pass discount card, storage locker, skype room and canteen. Hubud is
not only as co-working space, but also as co-living and co-giving. As a co-living, Hubud also
provides accommodation facilities and others facilities for those who lives in Ubud.

       Hubud is also as a co-learning where hubud provides various events to increase
knowledge, facilitate career and gaining experience. Hubud also provides co-giving which
combine social works with entrepreneurship to support local business in Ubud.
Journal of Development Economics and Finance, Vol. 1 no. 1, pp 1-16     2020

       Co-giving program facilitate both benefit interaction between businessman with local
communities. Hubud members take role in supporting the co-giving program which bring
benefits for the local community. This program also initiates members to learn new skill and
providing new knowledge.
       Hubud become the place where digital nomads community gather. Friendship as well
as experience will be gained by them in Ubud because they create connection amongst them
in Ubud. Hubud also place to collaborate to make innovation in creative business.

Canggu

       Canggu is a coastal area in the southern part of Bali which is surrounded by rice
paddy. Several famous beaches in Canggu including Canggu beach and Echo beach which
has great waves for surfers around the world. Canggu has many good accommodations
starting from star hotel, villa, non-star hotel and homestay. Canggu has close distance with
Seminyak where luxurious shop and restaurants are located.

       Canggu has developed after the development of tourism in Kuta beach, Legian and
Seminyak. Many tourists who previously lived in Kuta, Legian and Seminyak nowadays
prefer to live in Canggu. They assumed that the price in Kuta, Legian and Seminyak are
rising nowadays. Canggu became more popular due to the place of living of expatriate who
induce the development of the Canggu. As a result, Canggu grows rapidly and become
coastal tourist destination which still have a village atmosphere alternative to Kuta, Legian
and Seminyak.

Dojo-Bali Co-working in Canggu

       Dojo Bali is very famous co-working space which lies in a short distance from Echo
Beach, Canggu. Canggu’s big name as popular tourist destination greatly assist Dojo Bali to
become popular amongst tourists. Dojo Bali identic with co-working Bali where they use the
facility to collaborate and participating in programs.

       Dojo Bali co-working is aninternational and local community who are motivated to
learn and collaborate by using working place and high-speed internet connection. Working in
Journal of Development Economics and Finance, Vol. 1 no. 1, pp 1-16   2020

Dojo creates productive atmosphere with great access to fresh air. Furthermore, digital
nomads in Dojo receive experience to create connection and starting business with other
digital nomads.

       Dojo Bali co-working space consist of two stories building with modern facilities
with six fibre optics, private skype room as well as fully air-conditioned meeting room.
Swimming pool as well as tropical garden also support this Dojo Bali co-working space.
Dojo Bali also provides canteen and café with various menus.

       Co-living also provided by Dojo Bali similar to Hubud. Accommodation provided by
Dojo Bali only five minutes from the Dojo Bali where the digital nomads can live
temporarily during their stay in Bali. The accommodation in Dojo Bali has been designed to
be comfortable as private houses.
Journal of Development Economics and Finance, Vol. 1 no. 1, pp 1-16   2020

             Figure 1. Facilities and Accessibility Dojo Bali co-working space.

Characteristic of Digital Nomads Tourist

Country Origin
Country origin of digital nomads comes from Australia (13.6%), Germany (13.6%), United
Kingdom (9.5%), United States (7.7%), Netherland (7.3%) and France (6.4%). The rest of the
digital nomads comes from Czech (4.1%), Poland (3.2%), Russia (3.2%), Canada (2.7%) and
other countries 25.9% as shown in Figure 2.
Journal of Development Economics and Finance, Vol. 1 no. 1, pp 1-16     2020

                                                             Australia (13.6%)

                                                             Germany (13.6)

                                                             United State Kingdom
                                                             (9.5%)
                                                             United State (7.7%)

                                                             Netherlands (7.3%)

                                                             France (6.4%)

                                                             Czech (4.1%)

                                                             Poland (3.2%)

                                                             Russia (3.2%)

       Figure 2. Percentage of Digital Nomads Respondent Based on Country Origin

Age
Majority age of respondent in the range 26-55 years old (68.8%). Followed by tourists with
age group 16-25 years old (23.6%) and 56 years old above (7.7%) (Figure 3).

                                                              25-55 years (68.8%)
                                                              16-25 years (23.6%)
                                                              56 years and above (7.7%)

                     Figure 3. Percentage of Respondent Based on Age

Sex

Digital nomads tourists respondent dominated by male (54.6%) rather than female (45.6%).
The difference between male and female is 9.2% (Figure 4).
Journal of Development Economics and Finance, Vol. 1 no. 1, pp 1-16           2020

                                                                           Male (54.6%)
                                                                           Female (45.4%)

                       Figure 4. Percentage of Respondent based on Sex

Visiting Periods
First visit to Bali dominated the respondent of the digital nomads tourist (73.6%), followed
by more than fifth visit (10.5%), second visit (9.5%), third visit (3.2%), fifth visit (2.3%), and
fourth visit (0.9%) (Figure 5).

                                                                     First Visit (73.6%)

                                                                     More than Five Time
                                                                     (10.5%)
                                                                     Second Visit (9.5%)

                                                                     Third Visit (3.2%)

                                                                     Fifth Visit (2..3%)

                                                                     Four Time Repeat Visit
                                                                     (0.9%)

                Figure 5. Percentage of Respondent based on Visiting Periods

Perception of Digital Nomads Tourists Towards Ubud and Canggu

Several factors which act as full factors that cause digital nomads come to Ubud and Canggu
as place for co-working and co-living. Full factor is a specific tourists destination attribute.
Journal of Development Economics and Finance, Vol. 1 no. 1, pp 1-16       2020

Several full factors owned by destination so it can accommodate the needs of the tourist’s
candidate are as follow:
   1. Weather.
   2. Suitable access to the touristy spot including internet access.
   3. Tourist Attraction. Every destination has its own tourist attraction which include the
       nature, culture and the people.
   4. Amenities can be one of the requirements for tourists who will live longer in a certain
       area. This includes accommodation, food and beverage.
   5. The involvement of tourism institution to support tourist destination so can be more
       suitable to visit. This institution aspect may include security aspect which can induce
       convenience for the tourists.
   6. Natural as well as man-made environment.
   7. Travel services and advertising retails as well as wholesale marketing.
   8. Special event.
   9. Company Incentive.
   10. Visiting friends and relative.
   11. Souvenir.
   12. Low cost goods.

   According to interview with the digital nomads in Hubud and Dojo Bali, the reason they
   choose Ubud and Canggu as destination for co-working and co-living are as follow:
       1. The popularity of Bali as famous world tourist destination, therefore they feel like
           working while holiday.
       2. Simplicity to receive visa (visa free or visa on arrival) as well as extension of visa
           in Bali.
       3. Affordable cost of living, relative cheaper than their country of origin.
       4. Amenities provided for co-living and co-working with affordable price.
       5. Easy access to International airport, good internet access.
       6. Various weekly events by Huud and Dojo Bali.
       7. Polite and friendly community of local people in Ubud and Canggu so they feel
           convenience to live there.
Journal of Development Economics and Finance, Vol. 1 no. 1, pp 1-16   2020

                                      CONCLUSION

According to the research, can be conclude that:
   1. Bali is already well known as place for digital nomads, therefore tourism for digital
       nomads can be developed and promoted more serious.
   2. Two popular destination for digital nomads are Ubud and Canggu. Open for
       developing other destination in Bali.
   3. For developing digital nomads tourism in Bali, pull factors must be concern to attract
       digital nomads such as: a) affordable live expenditure, b) availability of suitable
       amenities, c) friendly community, d) various weekly events.

                                 AKNOWLEDGEMENT
Gratitude and appreciation to Rector of Udayana University, Lembaga Penelitian dan
Pengabdian Masyarakat (LPPM) Universitas Udayana, for the funding of this research.
Gratitude also delivered for the surveyor who assist this research by collecting data of the
Digital Nomads
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