Important takeaways
- El Salvador’s tourism industry grew by 22% in 2024, with 3.9 million visitors.
- The country’s Bitcoin adoption has coincided with improvements in security and new inflows from the United States.
El Salvador is seeing a boom in tourism amid its Bitcoin adoption as legal tender.
According to a recent report from Santander, Spain’s largest bank, which was shared by El Salvador’s President Nayib Bukele, the country welcomed 3.9 million tourists in 2024 – a 22% increase from the previous year. The number of visitors almost doubled compared to the period between 2013 and 2016.
The growth has been supported by dramatically improved security conditions, with December 2024 recording only a single homicide incident. Annual murders fell to 114 in 2024 from 6,656 in 2015, the report said.
In addition, improvements in infrastructure and increased mobility have facilitated the growth of ecotourism.
The report also shows an important increase in tourists from the United States, which may include some “BTC news tourists.”
Since many Salvadorans live and work in other countries, especially the United States, the improved security situation encourages them to visit their families back home, which contributes to the tourism sector.
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.
“The tourism sector is the logical potential for higher trend growth and investment flows that would enable a gradual trajectory from the classification category B to BB,” according to the Santander report.
Scale Back Bitcoin Policies
Under Bukele’s leadership, the country has actively promoted Bitcoin usage and expanded its Bitcoin efforts through several initiatives, including the launch of the Chivo cryptocurrency wallet.
The adoption of Bitcoin has positioned El Salvador as a unique destination for crypto enthusiasts. However, the government’s recent agreement with the International Monetary Fund (IMF) may partially limit the extent to which Bitcoin can be integrated into everyday transactions and economic activities.
According to the terms of $1.4 billion loan agreementthe acceptance of Bitcoin by the private sector will become voluntary, and the involvement of the public sector in Bitcoin-related activities will be limited.
The Chivo wallet designed to facilitate Bitcoin transactions and promote financial inclusion will be phased out.
El Salvador continues its Bitcoin buying spree
El Salvador still buys one Bitcoin every day regardless of market conditions. According to data from Arkham Intelligence, the country has amassed 6,024 BTC worth about $569 million as of today.
Aside from its daily acquisitions, it just added 11 BTC worth about $1 million to its strategic reserves on Wednesday.
