Many factors have lead to the recent and rapid development of Panama with the expansion of the Panama Canal, the real estate boom in the City, and the expansion of Panama as a healthy international banking center and luxury beachfront hotel development but the one commanding feature that has provided for all of this is the safety of investing here.
I read a couple of recent articles by Panama Offshore Legal Services that discusses the practical aspects of investing here and why Panama is safe.
“After seeing the opportunities here visitors often ask if it is safe to invest in Panama, being understandably nervous about investing in foreign countries. Are there laws which protect foreign investment here? Yes, and also laws which provide benefits for investing in Panama.
Panama’s Constitution Article 44 guarantees the protection of private ownership of real property and private investments: “… Private property is guaranteed as long as it is acquired in accordance with the law by natural person or legal entity.”
Panama’s Civil Code regulates general contracts and states that Panama law applies equally to nationals and foreigners. Panama has also enacted numerous pro-business laws which attract foreign investment.”
For the entire article read: – Is_it_safe_to_invest_in_Panama,_Yes
Now for some real life factors that remind us on an annual basis of why Panama is secure. Nothing like parking a few boats offshore to demonstrate the importance of the Canal and why Panama will always be a safe place. Every year we are host to the Panamax war games and these guys play rough. No one is going to mess with Panama.
As reported in CentralAmericaData.com:
“The Canal’s strategic importance in global trade has grown to such levels that 21 countries engage in military exercises to defend it. The latest addition is Germany, which joins the countries that participate in the Panamax exercises, intended to prepare military forces to combat diverse threats against the Panama Canal. ”
I like to think of Panama as the Switzerland of Central and South America where many keep their money and come here to play knowing that while things might be a little dicey back home, Panama is a safe haven. I often see numerous shoppers at the Cartier Store in MultiPlaza Mall as well as other high end boutiques. While I am sure their sales are off from the height of the market, I still see customers buying $25,000 watches so it can’t be too bad. My friends back in Miami that are part owners in Multiplaza Mall tell me that up to 60% of the shoppers are from other Latin American countries who visit here and it is their best investment in all of Latin America.
One of the plans for the future of branding Panama is to brand it “affordable luxury” whether it is a store, a resort, a restaurant or a hotel. Programs that are in place envision Panama as a hub of the Americas and this means being the “center of world-class value-added logistics services and high value luxury tourism. The Government’s Strategic Plan 2010-2014, stated that Panama should become a center for luxury tourism beach resorts, business and shopping, to focus on attracting high-spending clientele. For this to become a reality, Panama must present itself as truly a safe haven both for investors and for people who wish to move to this beautiful country and take up residence.
I am encouraged to see that despite the doomsayers that say that the hospitality market will get over built, investment in Panama continues to grow and it’s hotel inventory means more people are visiting, albeit a lot of it for business.
Sheraton has done a $25 Million expansion after a recent $17 renovation. And of course, Trump Ocean Club and Hotel is now Panama’s landmark hotel with over 3,000,000 square feet of space.The $17 Million, 126 room Finisterre Suites and Spa also opened and all told 20 new hotels will be opening adding 6,000 rooms to the market to the tune of $700 Million invested. A lot of people feel Panama is a safe place to invest.
I could go on but my wife reminded me of a dinner engagement so I must hit the send button and continue this story another time.
Cheers,
Tom Bymer