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Panama hopes to have attracted 1.4 million tourists by the end of 2008. Figures from the beginning of the year show an increase of 11.6 percent over 2007. Considering that tourists spend, on the average, $1,000 or more a person in Panama 1.4 million tourists will have added more than $1.4 Billion USD to Panama’s economy by the end of the year.

Panama

Panama is the tropical country that links North and South America with its Tocumen International Airport as well as the Atlantic and Pacific by way of the Panama Canal. Panama’s great natural beauty, its first world infrastructure and services and its low prices attract vacationers and shoppers from North and South America as well as Europe. Panama’s service industry including tourism is a major source of income.

Panama Tourism

According to La Prensa, Panama the largest percentage of tourists (sixty or more) arrives by air. Only two to three percent a year come overland from Costa Rica. Tourists arriving by boat account for roughly a third of visitors at a little over 30%. The ministry of tourism notes that the numbers of visitors coming from countries such as Costa Rica, Guatemala, Colombia, Ecuador, Venezuela, Peru, Spain, Germany and Italy seem to be increasing. Panama is attempting to promote a wider range of tourists so as not to be overly dependent upon North Americans.

Mid year figures cited in La Prensa, August 21, 2008, show that 765,000 people visited Panama through the end of June and spend about $677,000,000. It should be noted that visitors and tourists may be different and that a visitor from Colombia, for example, who visits family in Panama will not necessarily be spending as much as a North American tourist. The figures for spending per tourist run as high as $1,500 per visit.

Panama Tourism and Investment in Panama Business and Real Estate

There is direct investment in tourist related activities and there is indirect investment. This seems obvious but it is the crux of successful commercial real estate investment over time in Panama’s economy. Hotels, marinas, cruise lines, and tours catering to Panama tourism have done well in recent years. Those investing under Panama Law 8 continue to benefit from tax breaks included in that law. In addition the folks who lease property to those businesses have done well, both in monthly income and in appreciation of their initial investment.

Panama’s economy is doing well in general. Those who have invested in other support and supply facilities, office space, etc. benefit from the tourist boom and from the other aspects of Panama’s growth.

Investment in condos on the Bay of Panama has made money for quite a number of folks not to mention given many a spectacular view of the Pacific and the Panama interior. Investment in warehouse space, restaurant space, etc. gives the investor the security of owning property and gives the risk of developing the business to someone else.

A Word about Numbers

The figure of up to $1,500 per tourist is out of pocket payment by a tourist. It does not count the reinvestment, spending, reinvestment and spending of those dollars as they move through Panama’s economy. There are investment opportunities all along the business and supply chain for those willing to do the homework.

If you are interested in investment in one of the many facets of Panama tourism come to see us at ABPanama. We have over 23 years experience managing real estate portfolios and do business throughout Panama.