As per a recent report, El Salvador has witnessed a boom in tourism amid its Bitcoin adoption as a legal tender.
As per a report from Santander, shared by El Salvador President Nayib Bukele, the country welcomed 3.9 million tourists in 2024, which was a 22% increase from the previous year. Notably, the visitor numbers nearly doubled compared to the period between 2013 and 2016.
The growth has been supported by huge improvement security conditions, with December 2024 recording just a single homicide incident. Besdies, the annual homicides dropped to 114 in 2024 from 6,656 in 2015, the report says.
Construction Boom and Improved Security Driving The Surge
The boom in contruction and much higher mobility have allowed for the exploitation of the eco-tourism industry. Besides, the breakdown of tourists via geography showed an important surge in US-based visitors which may include some “BTC novelty tourists.” The improved security in El Salvador is encouraging Salvadorans living abroad, especially in the U.S., to visit their families, boosting the tourism sector.
Notably, El Salvador’s tourism growth has outpaced regional peers, including Costa Rica, Guatemala, and Panama, which average 3 million annual visitors each. If tourism continues to grow in El Salvador, it will attract more investment, which will strengthen the economy.
Under President Bukele’s leadership, El Salvador has actively promoted the use of Bitcoin across the country, positioning itself as a unique travel destination for crypto enthusiasts. The government has implemented several initiatives to expand Bitcoin adoption.
IMF Agreement To Limit El Salvador’s BTC Plans?
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 the country’s daily transactions and broader economic activities.
Under the terms of the $1.4 billion loan agreement, the acceptance of Bitcoin by the private sector will become voluntary, and public sector engagement in Bitcoin-related activities will be restricted, which could slow down the country’s ambitious Bitcoin plans.
Nevertheless, El Salvador still buys one Bitcoin each day regardless of market conditions. Notably the country has amassed 6,024 BTC worth around $569 million as of today. Besides, it also added 11 BTC worth around $1 million to its strategic reserves on Wednesday.
