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Bitcoin tourism stands out in El Salvador’s economic development

The Santander Group mentioned that Bitcoin (BTC) plays an important role in the economic transformation in El Salvador as the digital asset attracts visitors to the country; and in this way generates significant increases in yield at the same time.

In his most recent reportthe institute’s division, Santander Corporate & Investment Banking, highlighted the 30 percent increase in tourism to El Salvador compared to last year. A lot of it is based on Bitcoin.

This figure was presented by El Salvador’s Minister of Tourism, Morena Valdez, who said months ago that the Bitcoin law was boosting visits to the country. He also noted that the expectations of those in power regarding the economic impact that visitors would have after the legal launch of BTC have been exceeded.

It is important to remember that as of September 2021, El Salvador became the first country in the world to adopt Bitcoin as legal tender. This came after the Bitcoin Law came into force, which was presented by President Nayib Bukele and subsequently debated and approved by the Legislative Assembly.

Santander points out in its report that most tourists visiting El Salvador come from the United States Tourist flows are growing faster than in the Dominican Republicwhere around 7 million visitors come every year.

According to the analysis, the arrival of American tourists (including Bitcoiners) has doubled compared to 2019 levels. The numbers have increased from 281,000 visitors from the US in the first half of this year to 483,000 in the same period but in 2023.

Both Nayib Bukele and the National Bitcoin Office welcomed Santander’s recognition of El Salvador’s tourism tax, which is largely related to Bitcoin being legal tender in that country. Source: Bitcoinofficesv/Twitter.

“The United States represents potential tourism (to El Salvador) for residents and also BTC tourists due to geographical proximity and dollarization,” says Santander Corporate & Investment Banking.

However, Bitcoin tourism is not just limited to American visitors. Due to BTC’s legal status in this country, El Salvador has received visits from people from all over the world (even from Japan), all drawn to the economic realities of the Central American nation.

Low crime also benefits tourism

The Santander Corporate & Investment Banking report also reflects the increase in tourism responds to El Salvador’s reported low crime rates. This is due to the security policy of the government of this country.

Specifically, Santander points out that the crusade against Salvadoran criminals “has left clear growth dividends, including an immediate increase in tourism,” as has the return of the Salvadoran diaspora through a wave of reverse migration.”

The investigation concludes that the measures taken by President Nayib Bukele “are not too popular with the Biden administration,” but this has been proven “can not only reduce American migration pressure, but also reverse it.”

Among these measures, the state of emergency stands out, which led to the arrest of thousands of gang members and, as a result, to to increase the security of the Salvadoran population.

In this order, the Santander report estimates tourism revenue in El Salvador doubled and reached 10% of GDP in the first quarter of 2023. However, they emphasize that the Nayib Bukele government has not confirmed this latest forecast.

El Salvador’s gross domestic product (GDP) has grown due to Bitcoin tourism and security. Spring: Santander.

El Salvador confirms increase in tourism thanks to Bitcoin

Salvadoran tourism growth is fueled by Bitcoin It has already been reported by the government. Tourism Minister Morena Valdez recently said that more than a million people had visited El Salvador in less than a year.

As CriptoNoticias reported, the official stated that among the strategies they have used to increase tourism, There is an aspect that has to do with Bitcoin’s legal tender status.. According to the minister, many Bitcoiners travel to El Salvador to find out what it is all about.

The country’s president himself, Nayib Bukele, confirmed a few months ago that Bitcoin had led to a 95% increase in tourism, allowing for a “revitalization of El Salvador’s image.”

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