Lack of international promotion is the cause indicated by entrepreneurs of the fall in the average rate in the capital, which has dropped by 40% in the past five years.  I suggest that it another typical cycle of overbuilding in the market place that many times does not look at hard statistics.

The union says the problem of oversupply of rooms in the country began to get worse in 2012, when the international tourism promotion agreement which the government signed with an advertising agency ended. They argue that “…While Panama disappeared from international markets, other countries such as Costa Rica, Mexico, Ecuador and the Dominican Republic increased their spending on advertising. ”

“.. There are hotels that opened two years ago and now have rates of less than 50 dollars. It is estimated that the average rate in the capital has fallen by over 40% because the influx of tourists has not grown at the same rate as supply. Of the 24,978 rooms that the Tourism Authority of Panama registered in late 2014, 15,000 are in the capital city. Between 2009 and 2014 alone more than 4000 rooms were added in the province of Panama. ”

Prensa.com reports that “… The hope held by tourism associations is that specific campaigns made by the Tourism Authority of Panama in Mexico, the United States, Colombia and Brazil will create an increase in the entry of visitors to the country. “