US Department of State Highlights Bitcoin's Significance for Tourism in El Salvador

The U.S. Department of State has highlighted the relevance of recognizing bitcoin as a legal tender for the rebirth of tourism in El Salvador. In a recently released investment climate report, the department states that this factor has given significant publicity to El Salvador, contributing to its popularity as a tourist destination.

U.S. Department of State Acknowledges Bitcoin Influence on El Salvador’s Tourism Boom

The U.S. Department of State has acknowledged the positive influence of El Salvador’s bitcoin adoption on the tourism boom the country is experiencing. In its 2024 Investment Climate Statements report dealing with El Salvador, the department recognized that adopting bitcoin as legal tender in 2021 has helped the country garner international attention.

As part of the report, the department stated that bitcoin has “brought significant publicity to El Salvador and has contributed to El Salvador’s increasing popularity as a tourist destination,” but apart from this, it has had “minimal impact” on El Salvador’s economy. The department stresses that El Salvador has become the fourth fastest growing destination in tourism, with its visitant numbers rising 35% from 2019 to 2023.

However, this is not only due to bitcoin. El Salvador has invested in this rebrand by hosting events like the Miss Universe pageant contest, the Central American games, and several high-profile surfing contests in 2023. According to the report, over 3.4 million visitors reached El Salvador in 2023, contributing $2.8 billion to the local economy.

The national government linked bitcoin adoption with the tourism recovery as early as February 2022. At that time, Morena Valdez, head of the Ministry of Tourism, stated that bitcoin had increased industry activity by 30%.

In August 2022, President Bukele referred to the recovery stressing that El Salvador was one of a handful of countries that had managed to recover their tourism to pre-pandemic levels. “That’s international tourism, so the reasons behind it are mostly bitcoin and surf,” he assessed.

Nonetheless, Bukele also linked this growth to the personal security improvements in the country, due to the crackdown that the government has exerted on gangs.

What do you think about the U.S. Department of State report on the influence of bitcoin over El Salvador’s tourism industry? Tell us in the comments section below. #Write2Earn