El Salvador Sees Tourism Boom Amid Bitcoin Adoption
According to a recent report, El Salvador’s tourism industry is booming as Bitcoin is adopted as legal tender.
A Santander report shared by El Salvador’s President Nayib Bukele showed that the country will welcome 3.9 million tourists in 2024, a 22% increase from the previous year. Notably, the number of tourists almost doubled compared to 2013 to 2016.
This increase was driven by vast improvements in safety conditions, with only one homicide in December 2024. Annual homicides will drop from 6,656 in 2015 to 114 in 2024, the report said.
Construction boom and improved safety fuel surge
A boom in the construction industry and greater mobility have facilitated the development of ecotourism. Additionally, a breakdown of visitors by geography shows a significant increase in U.S. visitors, which may include some “bitcoin novelty tourists.” Improved security in El Salvador has encouraged Salvadorans living abroad, especially in the United States, to visit family, thus boosting tourism.
Notably, El Salvador’s tourism growth outpaces other countries in the region, including Costa Rica, Guatemala and Panama, which receive an average of 3 million tourists per year. If El Salvador’s tourism industry continues to grow, it will attract more investment, thereby strengthening the economy.
Under President Bukele, El Salvador has actively promoted the use of Bitcoin throughout the country, positioning itself as a unique tourist destination for cryptocurrency enthusiasts. The government has implemented several initiatives to expand Bitcoin adoption.
IMF agrees to limit El Salvador’s Bitcoin plan?
However, a recent agreement between El Salvador and the International Monetary Fund (IMF) may limit the extent to which Bitcoin can be fully integrated into daily transactions and broader economic activity in the country.
Under the terms of the $1.4 billion loan deal, private sector acceptance of Bitcoin will become voluntary and public sector participation in Bitcoin-related activities will be limited, potentially slowing the country’s ambitious Bitcoin plans.
Still, El Salvador continues to buy one Bitcoin a day, regardless of market conditions. Notably, the country has accumulated 6,024 Bitcoins so far, worth approximately $569 million. Additionally, 11 Bitcoins were added on Wednesday, worth approximately $1 million.
