While occupancy rates and average prices continue to fall, the Panamanian hotel market is preparing to increase its supply by another 1,200 rooms at the end of the year.

The Panamanian Association of Hotels (Apatel) reports that in recent years there has been a 209% increase in the number of rooms available in the country, in contrast to demand which has only grown by 5% annually. Following this imbalance of supply and demand, average rates continue to decline and consequently the hotel industry is reporting less income.

Sara Pardo, president of the Apatel, told Prensa.com that “… We need an emergency plan for the next 24 months and convention tourism will increase the entry of visitors, but is not a long term solution. The situation is worrying especially as we currently have hotels under construction. There are some 1,200 rooms which will become available, most of them at the end of the year ”

“… Apatel is proposing the creation of a public-private fund to boost tourism. ” “… We are aiming to create a public-private entity to concentrate in a single entity everything related to promoting the country … This entity would be responsible for analyzing, finance, implementing all actions and plans for tourism promotion.”