With an estimated 22,000 room inventory about to happen here in Panama City, the private sector has successfully lobbied the government for more incentives. This is the beginning of more to follow as the operators struggle to compete for a finite amount of tourists and businessmen visiting Panama. That said, this inventory and the new convention center that will be built soon will insure that Panama continues to be a world class destination. In addition, a recent ruling in favor of Panama was issued by the IRS allowing US companies to write off costs for conventions held in Panama and this will make it attractive for US companies to hold conventions here.
A bill is being prepared that introduces incentives for organizing conventions and 20 year tax exemptions for hotels investing at least $20 million and who register within three months after the law’s approval.
This week, the National Assembly made public bill number 125 which “establishes rules for incentives to tourism in Panama”, after a year of talks between the private sector and government.
On becoming law, new hotels in the capital district who have invested at least $20 million will be exempt for 20 years from import duties on materials, furniture and equipment. To qualify for the exemption, new premises will have to register within three months of the law’s enactment.
The domestic private sector had asked for tax benefits not to be reactivated after the expiration of the last period stipulated by tourism law number 8 of August 1994, which was valid until December 31st, 2008, a request which has been ignored in the proposed law, reports Prensa.com. This led to investments reaching close to $2 billion between 2006 and 2008, when investors bet heavily on the development of tourism.
“Regarding the idea of reviving benefits for construction in the capital city (if only for a short period), some hoteliers are talking about a possible saturation. With the opening in the coming months at least 15 hotels, representing about 5,000 new rooms, worried hoteliers believe that by promoting incentives they will encourage more construction which at the moment is not needed,” reported Prensa.com.
Source: Prensa.com
OK, here is what Really should be done here in Panama
What we need to see happen here in Chiriqui is the establishment of our coast as a tourism district that will allow for titling of coastal property and incentives for the larger hotel developers and operators to open a few major resorts here. We have one of the most incredible coast lines in all of the Americas right here in the Golf of Chiriqui.
Let’s take it to another level.
Think Los Suenos Costa Rica!!
We have areas and properties that I am working on that have the potential for branding as new, family oriented beach resorts and sport ranches located on the pristine Pacific Coast of Panama. They boast world class marlin and sailfish fisheries along with other game fish just an hour from shore. World class dive spots, many of which have never been seen by anyone, lie just offshore and offer excellent visibility. There are no dive major shops nor any dive resorts here in Chiriqui. What is up with that?
For the non fisherman or non divers, we have scenic coastal horseback trails overlooking the pacific ocean, eco-tours, hikes to remote beaches, waterfalls and all in view of our huge mountain range. For the more leisurely group, R&R is a lifestyle here with shaded hammocks and the beach.
Call me if you would like to know more about our opportunities.