Hoteliers have suggested making Panama a “duty free” zone for tourists, eliminating customs and import duties and refunding ITBMS to visitors.
Faced with the loss of competitiveness in the Panama hotel sector, entrepreneurs are asking for customs and import taxes to be eliminated, and tourists to be refunded the ITBMS charged when leaving the country. The ultimate goal is to increase the national ITBMS to above 7%, to offset the import tax, informed Herman Bern, of the hotels Miramar, Le Meridien and Westin to Laestrella.com.pa.
See also: “Panama: Hotels React to Low Occupancy Rates”
“… Octavio Vallarino, owner of Marriott hotels, said “this is a very important idea, since Panama is known as a shopping center in the region and this would be a great incentive for visitors’. Entrepreneurs managed to form a committee to discuss with the Government the best way to use money available in the short term, while the Fund is being structured, and in this way increase the tourist population as soon as possible .”
See also: “Tough Competition for Hotels in Panama”
In addition to the initiative to turn Panama into a “duty free” zone for tourists, businessmen are also promoting a national tourism conference with the participation of all unions and maximizing profits once the Amador Convention Center is built. “…’We are late for the convention center, as we need, as of now, a promoter to start selling conventions for when it is completed in 2018′, said Vallarino.”
Source: laestrella.com.pa
As a resident with two months under my belt, I must say that favoring any group for special tax considerations is ludicrous. The lineup of different sectors is sure to follow as will additional hardships on the general population.Taxes are the” mother’s-milk” of civilized society and is rancid to the taste at best. However, the problem with the hotel industry is that there are too many rooms available and yet “visionaries” continue to build even more rooms to be filled. It’s rather like a bath tub filled to the over flowing- you must first turn off the spigot which continues to discharge even more water.
Then, there are so many beautiful parts of Panama, why limit the main thrust to the City and the Canal? I have yet to personally visit so many of the wondrous areas of this amazing country. The province of Chiriqui offers such a diversified climate and array of things to do that it staggers the imagination. Why not more tours from the City to the Gatun Locks and Portobello? There are other attractions on the Caribbean side and no one is boosting them in the City. I don’t see offerings to Coronado-Chame-Santiago. Nor to El Valle de San Anton. These are accessible locations as day trips from the City and would offer more reasons to book a room in the City for extended stays.
I do not enjoy paying a 7% tax on anything but it constitutes the way things have a chance of being done in-country. The government has its hands full trying to keep things on an even keel. Reduction in revenues makes things worse for everyone- native and tourist alike. Catering to any one industry or sector only puts a hardship on others and will cause a desire to raise tax rates on everyone. Let us all attempt to keep tax rates low and politicos’ hands out of the cookie jar.
James Borona