Panama's Next Economic Drivers - THE PANAMA PERSPECTIVE

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While I revel in reports like “Paris Hilton, Michael Jordan, Mick Jagger, Arnold Schwarzenegger, Mel Gibson, Angelina Jolie and Brad Pitt can swim, take a walk and eat as any other tourist visiting the area, without being bothered by paparazzi, fans or the locals”, most of these are posted by developers and are of little truth or of any use as an economic driver of tourism here in Panama.

By far, the biggest driver for tourism will be the new international airports under construction here. Not unlike the boom of the Dominican Republic with seven International Airports or our neighbor Costa Rica with three, we will see development of new resorts, communities and business that will continue to transform this country. Unlike our neighbors, we have numerous other industries to bolster our economy and we are the leader of Foreign Direct Investment in Latin America right now. But let’s look at the aiport ingredient again and how it will impact our country. I reviewed an older study that is a little dated and of course economics of the world has changed but one thing remains constant, the markets and countries that I have mentioned above, are still experiencing a boom in tourism and investment related to it. Last year four million tourists visited the Dominican Republic. While Panama and Costa Rica report millions pass through their gates, in Panama, most are transient and do not stay in the country. The report covers the economic impact of one airport in Costa Rica. It is well written and shows the explosive growth and the socio-economic impact, both good and bad that came with it. Here is the introduction of the report on the Daniel Oduber International Aiport in Liberia, Costa Rica and the impact on the Guanacaste region.

Liberia’s impact on its local and neighboring communities has shown that infrastructure can, in a very short time, facilitate access, reduce transport times and attract very significant FDI flows, in the knowledge that many real estate developers seek closeness to international airports as a key variable for financial sustainability. The growth of Liberia’s Airport and the launch of regularly scheduled international flights gave a clear signal to national and international investors that Guanacaste was a mature (investment-grade) touristic destination. Read the full study here.

Now on to our little neck of the woods.

There are two things happening here that will reshape Chiriqui and the mountain and beach areas here. Few people have seen our province but those who have and decided to stay, would not trade living here for anywhere else in the world including this author. First let’s look at our new International Airport which is undergoing a $28 Million renovation including hardening and lengthening the runway to accommodate 737 heavy traffic as well as a new terminal to process the 150 to 200 passengers that will arrive with each flight.

The $28 million remodeling and expansion of facilities at Enrique Malek International Airport in the city of David are almost finished. While we do not have direct flights from the US yet, we are now proud to announce that the new Air Panama Fokker 70 and 100 jets are servicing our new airport with 25 minute flights David to Panama Ciy. They will soon begin service direct from Tocumen so you will only have to change gates to transfer from your US flight to Air Panama once you arrive in Panama City and of course when you leave David.

The second thing that is going to drive tourism, local as well as further foreign investment is the roadway work going on in Chiriqui. In the future the Pan American highway will be four lanes facilitating travel throughout the province to distant beaches and coastal areas that now takes 2 to four hours from Boquete here in the mountains. Travel times will be cut in half with the additional roadwork going on right now with the $117 million four lane expansion of the road from Boquete to David. Soon we will have only a 20 minute ride to David. This will further drive the growth of Boquete and also the whole of Chiriqui province not only from increased tourism but the development of new local middle and upper middle class communities. We will be able to offer the option for people who work in David to enjoy the shorter commute time to communities that are being developed in between like Hacienda Los Molinos. My good freinds have recently recapatilized the second phase of the project with and investment of $6 million. They are betting big on our two big economic drivers!

I see great things in store for us here in Chiriqui and more investors are thinking the same thing as I have seen a significant increase in traffic to my listings and sales this year. I have also had visits weekly from investors looking at land for coastal developments, agriculture and small boutique housing projects here in the mountains. While I do not think that we will experience the same boom as we did before when Boquete’s expat population grew from nothing to almost 2,000, I do think we will continue to see people seek out places to live near the beaches and mountains here in Chiriqui. Golf course communities will remain popular as will beach front condominiums. However, this time I think that developers need to be ready to offer well thought out projects on the beach and in the mountains at lower entry pries than before.

Here are some posts that show some of the things that we have to offer here in Chiriqui.

Paradise on the Chiriqui Coast