El Salvador’s decision to make bitcoin an official payment method inside the nation’s borders has positively affected the local tourism industry, said the country’s Minister of Tourism. Since then, the sector has been up by more than 30% as most visitors come from the United States of America.
Tourists want to explore the bitcoin-loving country
As in other Latin American countries, the tourism sector contributes a significant share to El Salvador’s GDP. Before the COVID-19 pandemic, more than 2.5 million travelers visited the country each year. Unfortunately, the health disaster has reduced travel activities to a bare minimum in 2020 and 2021.
According to El Salvador’s Minister of Tourism – Morena Valdez – there has been some movement in the space in the last several months. Interestingly, she said that bitcoin’s adoption is the main reason why more and more people want to visit the Central American nation:
“We did a survey to verify activity based on the before and after of bitcoin. The tourism sector increased in November and December. It has increased by more than 30%.
She also added that the main flow of tourists has changed. Before the bitcoin adoption, most people visiting El Salvador were coming from neighboring countries such as Honduras, Guatemala, and Nicaragua. The picture looks different now as 60% of tourists come from the USA.
Travelers also spent more money while in El Salvador. While the department projected profits of $800,000, the actual figure was over $1.4 million in foreign exchange earnings.
It seems like visitors are not only impressed by white sandy beaches, volcanoes, and ancient ruins. They also find it intriguing to explore the first country where the primary cryptocurrency serves as an official means of payment.
El Salvador BTC Projects
In addition to adopting the leading digital asset as legal tender, the Salvadoran government has also purchased bitcoin at the macro level. After its last purchase in January, El Salvador holds 1,801 BTC, which equates to approximately $68 million (calculated at today’s prices).
President Nayib Bukele and his administration involved their holdings in some interesting projects. In October 2021, they vowed to employ some profits accumulated from bitcoin purchases (back then, they totaled nearly $4 million) to create a massive veterinary hospital. Shortly after, the government stated it would use some investment gains to build 20 bitcoin schools.
Subsequently, Bukele announced plans to create an entire city focused on the digital asset. It will be located in the eastern region of La Union and will obtain geothermal energy from a volcano. The leader further revealed that the city will have an airport, residential and commercial areas, and a central plaza that looks like the BTC symbol seen from the sky.
