The country’s tourism minister said El Salvador’s decision to make bitcoin an official payment method within the country’s borders has positively affected the local tourism industry. Since then, the area has grown by over 30% as most visitors come from the United States.
Tourists Want to Explore the Bitcoin-Lover Country
Similar to other Latin American countries, the tourism sector contributes a significant portion of El Salvador’s GDP. Before the COVID-19 pandemic, more than 2.5 million travelers visited the country every year. Unfortunately, the health disaster brought travel activities to a minimum in 2020 and 2021.
According to El Salvador’s Minister of Tourism – Muraína Valdez – there has been some movement in the space over the past several months. Interestingly, he said that bitcoin adoption is the main reason more and more people want to visit the Central American nation:
“We conducted a survey to examine activity before and after bitcoin. The tourism sector grew in November and December. It grew by over 30%.”
He also said that the main flow of tourists has changed. Before bitcoin adoption, most people moving to El Salvador were coming from neighboring countries such as Honduras, Guatemala and Nicaragua. The picture looks different now as 60% of the tourists come from USA.
Travelers also spend more money during their stay in El Salvador. While the ministry expected profits of $800,000, the actual number exceeded $1.4 million in foreign currency earnings.
It seems that visitors are not only impressed by the white sandy beaches, volcanoes and ancient ruins. They also find it interesting to locate the first country where the primary cryptocurrency serves as an official means of payment.
BTC Projects in El Salvador
In addition to adopting the major digital asset as legal tender, the Salvadoran government has also bought bitcoin on a macro-economic level. Since its latest purchase in January, El Salvador has 1,801 BTC, which is roughly equivalent to $68 million (calculated at today’s prices).
President Nayib Bukele and his administration involved their share in some interesting projects. In October 2021, he vowed to employ some of the profits he accumulated from bitcoin purchases (at the time, about $4 million) to build a massive veterinary hospital. Soon after, the government said it would use some of the investment gains to create 20 bitcoin schools.
Subsequently, Bukele announced plans to build an entire city focused on digital assets. It will be located in the eastern region of La Union and will receive geothermal power from a volcano. The leader further revealed that the city will have an airport, residential and commercial areas, and a central plaza that resembles the BTC symbol from the air.
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