After remittances, tourism is the largest contributor to the economy, contributing 3.2% to GDP.
Monday, October 28, 2013
In 2009 the contribution of tourism to GDP was 2.5% and it is projected that in the next five years it could grow to 5%. But this is still far from the contribution made by remittances, which come mainly from the U.S.
Data from the Central Reserve Bank reveals that "... remittances account for 16.4% of GDP and in January-September this year they amounted to $2.9317 billion, $38.4 million (1.3%) more than the $2.8933 billion received during the same period in 2012, " noted an article in Prensalibre.com.
Meanwhile, tourism generated approximately $771.6 million in 2012, more than double what coffee contributed, $300 million, said Roberto Viera, manager of the Salvadoran Tourism Corporation (Corsatur).
The amount generated by tourism, around $580 million came mainly from the U.S. market, with 89% of tourists coming from the U.S., 6.8% from Canada and 3.5% from Mexico. In addition, domestic tourism produces about $100 million per year, being responsible for the movement of four million people, said the chief of Tourism, Jose Napoleon Duarte
In the first seven months of the year Salvadorans living abroad sent home $2.467 million, 8% more than in the same period in 2013.
Data from the Central Reserve Bank of El Salvador (BCR) shows that remittances received in July alone amounted to $359.6 million, about $28 million more than in the same month in 2013.
Family remittances, which amounted to $1,744 million in the first five months of the year, represent 16.4% of GDP.
The recovery of the U.S. economy is one of the reasons behind the sustained increase in the flow of remittances from Salvadorans living abroad.
"...Transactions corresponding to May totaled 393.3 million dollars, higher by 36 million than in the same month in 2013, which is an increase of 10.1%. "
Tourists who arrived in the country in 2011 provided $615 million in revenue, 18.7% more than in 2010.
In terms of quantity, 2011 closed with 1,634,679 visitors, 62%, from Central America, 30% of the U.S., 4% from South America, and 4% from Europe.
"'Foreign exchange earnings from tourism have a real impact for the Salvadoran economy, as this represents a contribution of 2.9% of Gross Domestic Product (GDP)', said the head of tourism, Jose Napoleon Duarte .
Remittances, vital for the country's economy, saw a 4.5% increase, year-on-year in the first quarter of 2011.
On average, in the first quarter of the year the country received $286.6 million in remittances, 0.9% more than the figure recorded in the same period of 2010.
"Remittances are an important source of income for the Salvadoran economy, making up 16.3% of the annual Gross Domestic Product (GDP), equivalent to 76.7% of total export value and covering 40.1% of the value of goods imported," according to Elsalvador.com.
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