Over the past few years, the emergence of blockchain has caused fervor across a plethora of interests due to its potential to drastically transform the way data is stored and used. With the promises which blockchain holds to improve transparency and security in transactions, tourism and industries alike have begun to take firm grips as well as experiment with it, knowing quite well that this development will prove to be quite interesting.
Taking a stand away from the Interoperability of the new technology and its dynamism, it has further posed as one which will not just evolve but as one which will stay evolved. Tourism and blockchain have the potential to become a powerful combination as the technology can bring safety and transparency to several critical touchpoints. Blockchain could make this operation more secure and transparent since the responsibility spreads throughout the whole network. The same will happen with foreign transactions, increasing the level of trust among all parties involved.
The ripple tide of this reality has gradually begun with El-Salvador. Salvadoran President, Nayib Bukele previously announced that El Salvador’s GDP grew over 10% in 2021. With the smart move to adopt bitcoin (BTC) as an accepted legal tender in September, 2021, spiking a notable surge beyond its gross domestic product (GDP), reflecting on the local tourism development as well.
According to Salvadoran Tourism Minister, Morena Valdez, the tourism industry in El-Salvador has surged more than 30% since the adoption of the Bitcoin law in September 2021. Having executed some analysis to examine the before and after of Bitcoin, it was notably found that the tourism sector increased between November and December.
This surge also witnessed observations that El-Salvador’s Bitcoin adoption impacted the flow of tourist visits (i.e raising its tourism growth to a whopping 1.4 million visitors as opposed to its predicted value of 1.1 million), this resulted in a hike towards their expectation. With reference to this statistics, an increasing number of tourists came from the United States. Prior to the Bitcoin law enactment, majority of visitors came from neighbouring countries in Central American isthmus. Another key area where this has Rubbed off is in its foreign exchange, it exceeded its $800,000 in foreign exchange expectation, pulling up over $1,400,000 of income. With all these, it is alomost certain that there is more in the offing to be revealed by El-Salvador sooner than expected.