Despite facing pushback from several international agencies, El Salvador’s Bitcoin Law has revived its tourism sector, which shot up 30% in the middle of the global pandemic.
Tourism Booms With Bitcoin Law
El Salvador’s controversial Bitcoin Law has been a blessing for the Central American country’s tourism sector. Ever since Bitcoin was legalized on September 7, 2021, the sector has seen a 30% increase in the fourth quarter of 2021, as revealed by the Minister of Tourism, Morena Valdez. Moreover, the actual number of visitors to the country, almost 1.4 million, exceeded expectations by nearly 300,000.
Valdez stated,
“We did a poll to check the activity according to the before and after of Bitcoin. The tourism sector increased in November and December. This increased by more than 30%.”
The numbers were first highlighted by local media reports on February 21 and later brought to the government’s attention. The report also pointed out that tourism is one of the pillars of the country’s economic model. This development means a lot for the country, which has been under controversial waters due to the Bitcoin Law.
Foreign Investors Eyeing El Salvador
The decision by the El Salvador government to legalize Bitcoin was met with quite a lot of flak. Along with international bodies, several citizens and Salvadorean organizations have also protested against the law until a few months ago. However, there have been no such reports of protests in the more recent months since the law was implemented. The growth in the tourism sector could be an indication for even better things to come for the country, which is daring to step out of the chokehold of the US dollar. The government is even planning on bestowing citizenship to foreign investors. Industry experts, like the author of ‘Undressing Bitcoin,’ Layah Heilpern, have congratulated the government and tweeted about visiting the country soon.
Overcoming Pushback From Global Institutions
The country’s president Nayib Bukele has been a vocal supporter of BTC and the Bitcoin Law since day one. His bullish introduction of the crypto to give a complete makeover to the remittance payments process has been a controversial move that sparked global conversations. One of the major critics of the Bitcoin Law has been the International Monetary Fund (IMF), which has repeatedly warned the country of the risks of BTC as legal tender and has even gone as far as requesting a callback of the law. In addition, the US-based credit rating company Fitch Ratings had even downgraded the country’s rating from B- to CCC. However, President Bukele has always remained firm in his commitment towards Bitcoin, despite facing severe pushback from these traditional financial organizations. More recently, he clapped back at a group of US Senators who have expressed their concern over the Bitcoin policy.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
