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Saturday, February 04 2012 @ 06:08 AM COT

Panama Government Plans To Halt Short Term Apartment Rentals To Tourists

HotelsBy LUIS ALBERTO SIERRA for La Estrella - The interim report submitted by the Comptroller General of the Republic on Aug. 19 showed a decline of 9.3% in the daily average of occupied hotel rooms in the country, in contrast to an increase of 8.7% in the arrival of new tourists. The administrator of the Panama Tourism Authority (PTA), Solomon Shamah, told La Estrella that "clandestine hotels" are primarily responsible for this contrasting result, and that it is affecting the sector it represents. Given that the current financial crisis is making it more difficult for some real estate investors who purchased apartments to resell them, there were homeowners who chose to furnish them and use them as guest houses, creating competition for the hotels with these so-called "public accomodations." Shamah said the ATP will sit this week with representatives from the Ministry of Housing, and in addition they will talk to representatives from the tourism and construction industries, in order to find a solution to the problem which is considered to be "unfair competition". The institution would propose, the official said, a settlement which will prevent the creation of "public accomodations" while creating a solution that gives an opportunity to the real estate sector. They are considering to work together with two laws, of tourism and Real Estate, so that the ATP would regulate public lodgings providing stays of 45 days or less, and the Housing Ministry regulating weekly rentals of 45 or more days. "We are not going allow the use of a private apartment as public lodging," he said. Shamah said trying to regulate this activity is risky. Another objection comes from apartment owners who do not want to see strangers in the buildings where they live. The president of the Panamanian Association of Hotels (Apathel), Jorge Loaiza, considered it appropriate that the Tourism Authority should take action, because apartment owners are renting their apartments to tourists and not paying the 10% tax charged to the rest of the hotels in the tourism sector, and they also do not provide the proper guarantees, including security. "This is a totally unfair and unlawful competition," he said. Ana Royo for his part acknowledged that the sector of tourism operators, which he represents, has not yet recovered from the impact of the crisis. He emphasized that tourism from France was affected, to the point where Air Caribes has suspended flights to Panama. She recognized that those who rent their apartments as hotels find their customers through the Internet. She admitted this situation is affecting tourism operators. The Comptroller General's Office also noted in its latest report that was also a decrease of 11.9% in the average daily overnight, and 8.9% in hotel room occupancy. There was an 8.7% increase in passenger entrances. Expenditures reported by tourists increased by 3.2%.

Freno a hospedajes clandestinos

08-24-2009 | LUIS ALBERTO SIERRA lsierra@laestrella.com.pa

ATP propone cambio legal para conciliar intereses

Capital PANAMA. El informe semestral presentado por la Contraloría General de la República el pasado 19 de agosto reflejó un descenso de 9. 3% en el promedio diario de cuartos ocupados en el país, en contraste con la variación positiva de 8. 7% en el ingreso de pasajeros.

El administrador de la Autoridad de Turismo de Panamá (ATP), Salomón Shamah, reconoció a La Estrella que el hospedaje clandestino ha sido el principal responsable del contrastante resultado que está afectando al sector que representa.

Ante la dificultad por la crisis de algunos inversionistas de vender pronto los apartamentos que habían comprado, hubo propietarios que optaron por amoblarlos y usarlos como hospedajes, generando competencia a los hoteles y los llamados hospedajes públicos.

Shamah explicó que la ATP se sentará esta semana con representantes del Ministerio de Vivienda, además de dialogar con delegados de los ramos turístico y de la construcción, en busca de una solución al problema y ante la considerada “competencia desleal”.

La institución propondrá, según el funcionario, una conciliación que impida que se afecte el hospedaje público, pero que le dé una posibilidad al sector de los bienes raíces.

La fórmula considera el trabajo conjunto en dos leyes, de turismo y de Propiedad Horizontal (PH), de tal forma que la ATP regule los hospedajes públicos que presten servicio por 45 días o menos, y el Ministerio de Vivienda regule los alquileres temporales de 45 o más días.

“No se va a permitir estar en un apartamento como hospedaje público”, aseguró.

Shamah expuso que se trata de regular ante una actividad que es riesgosa.

Otra objeción sería la de dueños de apartamentos que no quieren ver a extraños en el edificio en donde viven.

EXPECTATIVA

El presidente de la Asociación Panameña de Hoteles (Apathel), Jorge Loai za,consideró oportuno que la Autoridad de Turismo tome medidas, y al estarse alquilando apartamentos a turistas que no pagan el impuesto al 10% que se cobrar al sector turismo, y no dan además las debidas garantías, incluida la seguridad. “Esta es una competencia totalmente desleal e ilícita”, aseguró.

Ana Royo reconoció por su parte que el sector de los operadores de turismo, que representa, aún no se recupera del impacto de la crisis. Destacó que el turismo procedente de Francia se afectó, de tal forma que la compañía Air Caribes suspendió sus vuelos a Panamá.

R econoció que quienes alquilan apartamentos como hoteles, consiguen clientes a través de internet. Admitió que esta situación está afectando a los operadores de turis mo.

RADIOGRAFÍA

La Contraloría General de la República destacó además en su último informe que se dio también un descenso de 11.9% en el promedio diario de pernoctación, y de 8.9% en la ocupación.

Del aumento de 8.7% en la entrada de pasajeros sobresalió la entrada de excursionistas. La entrada de turistas se reportó entretanto que bajó 2.7%, mientras que los gastos reportados por los pasajeros tuvieron una variación positiva de 3.2%.   

Panama Government Plans To Halt Short Term Apartment Rentals To Tourists | 5 comments | Create New Account
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Panama Government Plans To Halt Short Term Apartment Rentals To Tourists
Authored by: Rusty on Monday, August 24 2009 @ 11:34 PM COT

Hotel costs usually make up the largest percentage of a travel/vacation budget.

Last year many hotels in Panama significantly raised their rates. Then with the economic downturn tourism took a nose dive. With fewer customers or customers that cannot afford to stay in Panama as long as they did on previous trips; the hotels are complaining that investment properties are stealing away their business?

It's not investment properties that are stealing away their business, it the jacked-up hotel rates and the poor economy.

Panama hotels are using the wrong business model for this economy. Rather than raise rates, sometimes more money can be made by lowering rates. When the price is affordable, people will stay longer. When people stay longer, they tend to spend more money directly and indirectly on other things within the hotel (restaurant, bar, room service, laundry/dry cleaning, gambling, etc).

Maybe if the hotels didn't raise their rates so steeply they wouldn't be strangling now?

No wonder tourists look for better deals. I can't blame them. A "basic" hotel that I regularly stayed at for $30 per night just a few years ago is charging $44 per night...that is greater than a 45% rate increase or 15% per year.

Perhaps a lesson from Las Vegas is in order? In other words, make hotel stay cheap so more tourists come and stay longer. That is the secret to making money in a tourism business.

Also, if Panama outlaws short-term investment property rentals...I wonder how they will enforce it? For example, I have a friend in the states that owns a furnished apartment in Panama that he rents exclusively to gringos via word of mouth. The business transaction happens in the states. His guests fly-in to Panama. He gives them access to the apartment. They stay. Then they depart. Then within a couple of weeks somebody else comes in. Money doesn't change hands in Panama. The only way Panama would know these people are staying in his apartment would be if someone were to report it. But even then, how can Panama differentiate between a legitimate house guest and a customer? (By the way, the customers will know it is better to keep their mouth shut).

Panama can't regulate their massage parlors...they can't keep undocumented Colombians, Dominicans and Costa Ricans out...how are they going to prevent (regulate) tourists from staying wherever they choose to stay?

This will be interesting to see how this unfolds.

Rusty

Panama Government Plans To Halt Short Term Apartment Rentals To Tourists
Authored by: susangg on Tuesday, August 25 2009 @ 07:40 AM COT

Instead of "change," this proposal is a knee jerk reversion to the typical third world monopoly model, which views the way to deal with a "connected" individual or group's business problems is to set up a monopoly and regulate the competitors out of business. President Martinelli should veto this proposal and tell the hotels to compete the old fashioned way: Lower your rates, improve your service, and update your marketing. I have seen 75%-100% price increases in hotel rates in the two years in several mid range hotels where we stay when visiting the city. And unlike the hotels in the rest of the country, who are lowering their rates substantially to address the dire tourism economy, the PC hotels choose to whine about condo competition instead of doing the same.


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"Dissent is the highest form of patriotism."
(Thomas Jefferson)

Panama Government Plans To Halt Short Term Apartment Rentals To Tourists
Authored by: observer27 on Tuesday, August 25 2009 @ 09:26 AM COT

Solomon Shamah might as well post a sign at the airport REAL ESTATE INVESTORS GO HOME. Please note tourists are expected to stay in overpriced hotels with bad service as we have restricted competition in Panama so that we can get more money from you without actually providing any service, please enjoy your stay. Investment property is based on income, service and value to the end users is based on competition. Long term rental rates are very low in Panama so property price needs to drop by 50% in the high end market (which is supported by foreign travelers to Panama), for anything in Panama to make sense on a long term bases. Should you be investing in real estate in Panama? The answer is now clear: investors should stay away that the government does not want real estate investors here. Real estate prices are not going up so there will be no gain from appreciation, and you have to leave the apartment empty or rent at a very low rate, due to the laws against real estate investments income in Panama. Panama real estate will very low return on investment and very little appreciation over the next 5 years. If you own an apartment in Panama: sell now and go back to countries that allow you to make an income from your investment. That is the message from Solomon Shamah the new administrator of Panama tourism Authority (PTA). If you are looking to move a business down here accept that your employees will be treated as tourists and charged extra for everything, increasing your expenses of doing business here. Temp employees will have to stay in over priced hotels because reasonably priced short term housing is illegal in Panama. Panama which is a business city is now shutting down the services that businesses need, and tourists like. There are vacation rentals in every country in the world and Panama wants to help tourism by outlawing vacation rentals. Less money for all in Panama higher unemployment and less options for tourists through government protectionism, now there is a plan-go figure.

Panama Government Plans To Halt Short Term Apartment Rentals To Tourists
Authored by: susangg on Tuesday, August 25 2009 @ 11:40 AM COT

It seems to me that the tourist board is cutting off its nose to spite its face. Instead of trying to "help" the tourist industry by banning private short term rentals, why not simply ask the condo owners to "register" their units and charge/pay the 10% tax? In return for paying this tax, the tourist board could tamp down the excessive and burdensome paperwork this process currently requires...and they could also actually DO SOMETHING USEFUL with the tax money besides just pay paper pushers to push ever more burdensome paperwork burdens on businesses. From what I have seen the tourist board is one of the more useless government agencies that operate in Panama. I was told that the new director of the tourist board was a smart guy with experience in tourism....but this move isn't very promising, is it?
The ONLY argument that the new head of the board makes that has any logic to it is the argument that if hotels have to charge the 10% tax, then everybody else who rents in the tourist market should either. That's not an unreasonable argument, the rest ("security," "neighbor objections") are silly.
In fact, it really isn't going to be possible for the government to hunt down all the private owners who are renting out their homes and apartments and condos to tourists...unless they take all the cops off the street and dedicate them all to searching the internet for "for rent" ads and stinging the owners. Instead, they will likely focus on the companies who have set up shop in the past few years marketing large numbers of condos mostly to the business visitor/relocatee/temp worker market. Instead of harassment, why not just ask those people to register their units and pay the tax and otherwise stay off their backs?

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"Dissent is the highest form of patriotism."
(Thomas Jefferson)

Panama Government Plans To Halt Short Term Apartment Rentals To Tourists
Authored by: DJo on Tuesday, August 25 2009 @ 03:46 PM COT

How are they going to enforce it? Maybe people should have some morals and comply with the law. Oh wait! I came here to do whatever I please.