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Friday, August 23 2019 @ 10:24 pm EDT

Is The War Against Vacation Rentals Lost?

Real EstateIn the Central America region Panama is where the phenomenon of Holiday Rentals shows the highest growth, despite a law prohibiting it. According to an article in Prensa.com, the Tourism Authority of Panama (ATP) "... has imposed eleven fines of $55,000 for renting out apartments to tourists for periods of less than 45 days."

Law 80 of November 8, 2012 in Article 21 reads: "any lease of less than forty-five days in the district of Panama, by people who do not possess public accommodation tourist permits (for buildings or residences) is prohibited. This act will be sanctioned by the Tourism Authority of Panama, with a fine of between five thousand dollars (B/.5, 000.00) to Fifty Thousand Dollars (B/.50, 000.00), depending on the seriousness of the offense and / or repetition of such act, by the lessor. Also subject to these penalties are people who by any means, including electronic ones, advertise these services. "

It is clear that activity damages the formal hotel sector, where entities must bear all the costs of exercising a formal trade and paying taxes, against a totally casual competitor.

In Europe, where in Spain alone holiday rentals generate $4 billion a year-the problem is confronted in various ways, ranging from a draconian ban in the Panamanian style, to its formalization by regulation and taxation. The main argument of those who oppose the ban is that the phenomenon will occur anyhow as holiday rentals are increasingly in demand by tourists, and therefore the best option is to regulate it. (centralamericadata.com)

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Is The War Against Vacation Rentals Lost? | 1 comments | Create New Account
The following comments are owned by whomever posted them. This site is not responsible for what they say.
Is The War Against Vacation Rentals Lost?
Authored by: j todd on Sunday, April 13 2014 @ 09:58 am EDT

The website VRBO is loaded with these condo short term rentals.I got sucked into one of these deals which turned out to be a horrendous disaster! I'd love to sick the Tourism authority onto this guy that screwed me.I wish the authority would go to this website and start handing out fines.
JBT