Panama: Small Hotel Owners Complain about Incentives


News from Panama / Tuesday, April 24th, 2012

Panama should support the boutique hotel industry as most of the areas outside Panama City and the gold coast around Coronado are serviced by small to middle sized hotels.  In most cases they must try to get by without those incentives and at an occupancy rate of under 40%,  it is extremely difficult. This is the only way to grow the market in parts of Panama as the JW Marriotts of the world are not going to open ocean front hotels all over Panama like they did in Costa Rica, anytime soon that is.

Small and medium entrepreneurs in tourism and hotels are demanding that a new bill include measures favorable to its segment and is not only conducive to large investors.

Representatives of the aforementioned industry complained that a new draft law which will be discussed by the National Assembly is exclusive and does not give economic benefits, reported Panamaamerica.com.pa.

Armando Rodriguez, president of the Association of small and medium hotels in Panama, said that in its current form, the proposed tourism law excludes them because it requires a minimum investment of one million dollars or upwards and a mandatory certification, which, according to small hotel operators, should be voluntary.

Smallholders held a meeting in Santiago de Veraguas, which outlined ideas and projections that will improve the document to be discussed shortly in the National Assembly. The union will also ask for a meeting with Minister of Tourism, Solomon Shamah.

Source: Panamaamerica.com.pa