Tourism in El Salvador has increased by 30% since bitcoin was introduced as legal tender. on September 7, 2021. The country's Minister of Tourism revealed the information, saying that there was an increase in the fourth quarter of 2021, 300 million or more than expected.
El Salvador's decision to make bitcoin legal tender has paid off as far as tourism is concerned. The law increased tourism by 30%, according to local media reports on February 21st. The report said the tourism sector is one of the most important items for the country's economic growth - with President Nayib Bukele putting it as the second economic boost for 2022.
It seems that the legal currency of bitcoin has put El Salvador on the tourist map, with the increase in foreign tourists outside the mainland. Previously, many of the tourists came from neighboring Central American countries. US tourists make up 60% of the number.
Tourism Minister Morena Valdez said the sector's recovery after the pandemic has exceeded expectations. The government targeted 1.1 million visitors, hitting a target of 1.4 million. Valdez said,
“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 has increased by more than 30%.”
This will please the government of El Salvador, which has received criticism for its bitcoin-related moves in the past. Citizens protested, although in recent months no such news has been reported. There may even be more benefits for foreign investors, however, as the country is considering giving them citizenship.
El Salvador benefiting from the bitcoin movement
The decision to introduce bitcoin so heavily into the economy sparked global conversations. President Bukele was firm in his commitment, saying that bitcoin would bring enormous benefits to the economy.
Bukele said the use of bitcoin has exceeded expectations. Last year, more than two million citizens started using the Chivo wallet within a month of its introduction.
However, those outside the country seem to think otherwise. The International Monetary Fund (IMF) urged El Salvador to abandon bitcoin as a currency, citing financial stability risks. Meanwhile, Moody's has raised El Salvador's risk profile.
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