El Salvador Has Seen 30% Increase In Tourism Since Bitcoin Adoption
El Salvador’s decision to make Bitcoin an official payment method has had a favorable effect on the local tourism industry, said the country’s Minister of Tourism.
Since Bitcoin became legal tender in the country, the tourism sector has been up by more than 30% as most visitors come from the United States.
Tourism sector is a big contributor to El Salvador’s GDP. Before the COVID-19, more than 2.5 million travelers visited the country each year, the pandemic has massively reduced the travel activities in 2020 and 2021.
According to Morena Valdez, El Salvador’s Minister of Tourism, in the past several months there has been some movement in the sector. She said that Bitcoin adoption is the main catalyst why more and more people want to visit the Central American nation:
“We did a poll to check the activity according to the before and after of bitcoin. The tourism sector increased in November and December. This increased by more than 30%.”
According to Valdez the main flow of tourists has changed. Before the Bitcoin adoption, majority of visitors came from neighboring countries such as Honduras, Guatemala, and Nicaragua. However, now 60% of tourists come from the USA.
As the traveler profile has changed, more money has been spent in El Salvador. According to estimates by the Ministry expected profits are around $800,000, but the actual number of income in foreign currency was closer to $1.4 million.
It seems like visitors are not only flocking in due to white sandy beaches, volcanoes, and ancient ruins. They also want to visit the first country to adopt Bitcoin as a legal tender.
Bitcoin in El Salvador
Apart from embracing the leading digital asset as a legal tender, the government has also bought bitcoin on a macro-economic level. After its latest purchase in January, El Salvador currently holds 1,801 BTC, equivalent to around $68 million at today’s valuation.
In October 2021, The president of El Salvador, Nayib Bukele promised to employ some profits accumulated from bitcoin purchases to create a massive animal hospital. Shortly after, the government stated it would use some investment gains to build 20 bitcoin schools.
Bukele also announced plans to build an entire city focused on the digital asset. It will be located in the eastern region of La Union and will be powered by a volcano. The president revealed that the city will have an airport, residential and commercial areas, and a central plaza that looks like the BTC symbol from the air.
