Banco Santander points to bitcoin as key to El Salvador’s tourism boom

Banco Santander mentioned the crucial role that bitcoin plays in El Salvador’s recent tourism boom. According to an analysis by Santander US Capital Markets LLC, tourist flows to the Central American country were “impressive” last year. However, he highlights that this is due to the dollarized economy of the Salvadoran land and significant improvements, both in infrastructure and security.

The report shared by Salvadoran President Nayib Bukele on the social network includes bitcoin among the elements driving the tourism boom in El Salvador. He attributes this to the fact that the Central American nation is attracting American tourists in droves, suggesting it could be related to the adoption of bitcoin as legal tender in the country.

“El Salvador is the Bitcoin country and Santander says that the tourism figures prove it,” says the National Bitcoin Office of the Central American nation.

In addition to the adoption of bitcoin, Santander stands out as a driver of tourism and the reduction of crime. In this regard, he points out that “daily homicide rates approached zero in the final months of 2024, with an annual total of only 114 homicides, compared to a peak of 6,656 in 2015. This improvement has created a safer environment that attracts to numerous tourists.

On the other hand, the Spanish financial institution applauds the development of the ecotourism industry, positioning El Salvador as an attractive destination. Estimate that The arrival of tourists for the entire year 2024 was almost 4 millionfar surpassing regional neighbors such as Costa Rica, Guatemala and Panama.

The bank’s calculations show that Tourism income represented 11% of Salvadoran GDP in the first half of 2024, compared to 5% in Costa Rica, demonstrating the relevance of this sector for a much smaller economy. Therefore, it is celebrated that this tourism boom is revitalizing the local economy, becoming a potential catalyst for economic growth.

Banco Santander emphasizes that this increase in tourism will require even more capacity development to maintain momentum, especially considering the possibility of more US tourists visiting places beyond those traditionally known.

In short, this Santander report, intended for institutional investors, suggests that tourism in El Salvador could be the logical driver for sustained economic growth and investment flows that promote an improvement in the country’s credit rating, from category B to BB.

Bitcoin is part of the renaissance of El Salvador.

Santander’s report is in line with a study carried out by the World Tourism Organization last year. As reported by NoticiasVE, at that time, it positioned the Central American nation as the fastest growing tourist destination in the Western Hemisphere.

According to the organization, El Salvador has surpassed Colombia, the Dominican Republic, Uruguay and Honduras, positioning itself as the best tourist destination of 2023. The data reveal that tourism in El Salvador has experienced a notable boost, thanks to the significant reduction in crime and global recognition obtained after being the first country to adopt bitcoin as legal tender.

Since then, El Salvador usually receives visitors who want to see, first-hand, what life is like in a theoretically bitcoinized country, although to the surprise of many, the digital currency is not widely used.

However, El Salvador has become a permanent venue for large events and conferences related to bitcoin. Among them, Adopting Bitcoin stands out, which has been held in the Central American country in the last three years.

In any case, it is not the first time that Santander highlights the importance of bitcoin in El Salvador. In September 2023, the bank recognized the role that the pioneering digital currency plays in the country’s economic growth, highlighting that this digital asset plays a crucial role in its economic transformation by encouraging international tourism.