PANAMA TOURISM AND REAL ESTATE are two of my favorite subjects as I find interested readers eager to tell me their perspective on things, both good and bad. I must admit that while there are a few people complaining about the lack of numbers of tourists visiting Panama since the boom times, most are either developers or real estate agents who enjoyed the days when it was like handing out free candy at the school house.
While the Global shift in world economies also hit home in Panama, we are really lucky that it was not as bad as most other markets. With hopes of lightening up some of my despondent readers, bankers and attorney friends, what would you do if you opened up La Prensa and saw this AD for property in Panama. I know a number of bankers who would be experiencing a pucker factor of 9 right now just thinking about it.
Instead, we are seeing articles that may seem repetitive, and I am glad that they are, where Panama continues to grow and grow and grow, albeit not at the same rate as before.
As reported in CentralAmericaData.com:
ECONOMIC & FINANCIAL REPORTER
Panama’s Economic Activity Index Up 4.16% for January to June 2010
Source: Statistics and Census Bureau of Panamá
Friday, August 27, 2010
The most active sectors were: retail, transport, logistics and communications, hotels and restaurants, mining and quarrying, community services, construction, and electricity and water.
For the period January to June 2010, the Monthly Index of Economic Activity (IMAE) displayed growth of 4.16%.
Retail reported a positive trend, both in store and for wholesalers.
Transport and communications were helped by telecommunications activity, container shipping loads through the National Port System and air transport. Negative trends were observed in some traffic through the Panama Canal.
Hotels and Restaurants benefitted from increased spending by tourists, particularly in the capital, Panama City.
Trends that Panama must focus on to succeed.
Government support, incentives and spending. These are some of the key factors that the government and the country of Panama must do, especially now while the world is hearing more and more about this beautiful country and how much potential it has to grow and proper even further. To that end, the government recently announced another good plan that I read about in La Prensa.
photo by Bob Therina
Panama Considers More Incentives for Tourism Sector – machine translation
A new initiative from the country’s Tourism Authority (ATP) will, if approved, provide the sector with even more incentives.
The project seeks to create one legislation combining all the regulations, certifications and incentives that currently exist for the sector, as well as incorporate new ones.
“Projects currently being developed in Panama’s 10 designated tourism zones can apply for incentives established in Law No. 8 from 1994 such as 20 year tax exemption on furniture, fixtures and equipment and zero tax on the company’s profits during the first five years of operation,” reports Prensa.com.
The new legislation will keep these incentives and increase them depending on how isolated the development is, according to ATP investment director, Teodolinda Quintero.
Teodolinda Quintero, director of the ATP Tourism Investments, said that work will continue with the same incentives as established by Law No. 8 of 1994, but if it is further away from the tourist development, the incentive would be higher.
Under the new legislation these incentives would be given also by product, ie, if lodging, restaurant, agency or tour operator.
The project also will include certifying that the land transport used to mobilize the tourists, must have certain characteristics, like having air conditioning.
Likewise, they will check the level of training of drivers who will also undergo tourism training.
The new law also would eliminate certain requirements that are now mandatory for companies pursuing an activity related to tourism.
Soraya Alderete, chief of the Department of Tourist Companies and Activities of the ATP, said that travel agents are required to be Panamanian citizens and the general manager has a tourist suitability for the company to operate.
However, the recommendations adopted by the Department of Tourism Investments will only be necessary for an executive of the travel agency tourist count suitability for the company to obtain the approval of the ATP. It also would eliminate the requirement of citizenship.
For Ernesto Reina, president of the Panamanian Association of Travel Agencies and Tourism (APAVIT), the initiative is positive because it would remove many bureaucratic steps that somehow limit the investment in tourism.
One of the other key factors that Panama does not want to see becoming a trend is crime.
While Panama is a poor country and like Korea where I grew up, we always had to be aware that there are the “haves” and the “have not’s” and the “have not’s” will take what they can sometimes to just feed the family. What we cannot afford to have is an expansion of crime associated with the drug trade that does pass through Panama. We have been somewhat fortunate and the government has a pretty serious zero tolerance attitude and we need to keep it that way. I remember many of my friends back in Miami, kidding me that I needed to look out for bandits and rebels when I moved here. I chose Panama, they like a lot of the crowd that knew where to invest in a foreign country chose Mexico. This headline should keep us focused on not letting this happen here.
Mexican Resort Unsafe: 14 bodies found.
“Authorities say at least 14 bodies have been found in the Pacific beach resort city Acapulco.” I won’t go into details as the headlines are enough, but if you want to read the whole story read here…
El Valle, Panama Maggie Valley, N. Carolina Boquete, Panama
Enough of the News and on with my other favorite subject, Real Estate
If you did not catch my last couple of Posts, I have launched the Panama Property Exchange and it seems that there are some like minded people who are sending me properties for consideration. While I do have a few mega mansions and huge tracts of land, I am also getting some bread and butter listings from people who have property here who want to return to the the US or Canada and people who are in the US and Canada who are looking to come to Panama and trade for properties that they have back at home. I need some land maybe with a home on it in El Valle or Boquete for $600,000 to $700,000 as an example. Maybe you would like to trade for some land in Maggie Valley or just sell it for cash.
Panama Property Exchange
If you have a property to sell, you will know only too well how hard it is sometimes to find that elusive buyer. What though, if you could find someone in the same situation, who wants to move where you are, and vice versa? What if you own a luxury estate that you don’t use often enough and want to explore new parts of the world. Or, you have a property and a dream that due to a change in plans is not what you want to do or where you want to do it. Well, we have set up Panama Property Exchange and we may help you find that match. We will select a few properties each week that we feel offer good value and are not over leveraged and we hope that you will drop us a line to see if your property may a fit.
The slowdown in the property market means that you may have to explore different options to sitting around with a for sale sign. There are other ways to move property, we believe that this may offer you a viable option. There may be someone out there who wants what you have and vice versa so why not give it a try.
Permanent property exchange – how it works
Permanent property exchange is really just saying ‘I will buy your property if you buy mine’ All the legalities are basically the same as they would be in a conventional sale, and you should incur no additional costs, and can actually make big savings. You don’t have to find an exact match in value to your own property, and it is possible to trade up or down as long as all concerned are in agreement. You can go it alone or if you prefer you can involve your agent, if you want additional support. It is 100% legal, but you will of course need the services of a Lawyer, and if you are moving up, will need to arrange a mortgage, as you would on a conventional property transaction.
Personal Service
At Panama Property Exchange we like to offer a personal service, and are available to answer your questions, and give advice where we can. We are aware that Permanent Property Swapping is a new concept, and you will no doubt have questions. We have made it as easy as possible to contact us if you so wish, and offer several ways.
Please visit our new site that is still in formation and see what we have to offer. Click on the banner to see.
About the Author
Great article. It is interesting to read about Panama from your unique perspective. Keep up the good work!