The Tourism Authority in Panama estimates that the supply of residences in the country that are rented out to tourists now represents 20% of hotel occupancy.

Hotel occupancy remains at the same levels as a year ago, around 50%, according to data from the Office of the Comptroller General of the Republic.  According to hoteliers and the Tourism Authority of Panama (ATP) itself, it has not been possible to improve the figures due to an increasing supply of vacation rentals, an activity which has been banned since 2014 under Law 80.

See also: “Taxes on Rental Accommodation in Costa Rica“

According to the administrator of the ATP, Gustavo Him, “… ‘clandestine accommodation’ accounts for approximately 20% of occupation in the country. If this percentage is added to the 44.7% hotel occupancy that was registered in May, the situation for hotels would have been different.”

See also: “Rental Properties in Nicaragua“

Him explained to Laestrella.com.pa that “… the National Government is making every effort to achieve a minimum of 70% of hotel occupancy by the end of 2017 and the beginning of 2018.“That would be an optimum return on investment for hoteliers.”