Many tourists are only looking for a cheap place to stay. Apart from a 340% surplus in the supply of hotel rooms, the hotel industry must do battle with another hard flank - illegal lodging. During 2010 and 2011 about 6,813 new hotel rooms were constructed in Panama, and in 2012 another 4,135 additional hotel rooms will be added (bringing the total expansion to 10,948 new hotel rooms in just three years). Currently, number of visitors is increasing by about 15% per year. Against this background, the companies who are involved in the tourism industry (hotel owners) believe "clandestine lodging" is an unfair practice. The Administrator of the Tourism Authority of Panama, Solomon Shamah, said within the reforms they intend to make to Law 8 that regulates tourism in Panama, one of the points at issue is precisely this issue ("clandestine lodging"), with their respective laws and penalties. Shamah added they are studying the idea of changing the law, before the challenges represented by the power to keep as many hotel rooms full as possible.

Hotel sector - Annette Cardenas, the President of the Chamber of Tourism (CAMTUR), said when there is an oversupply of apartments, some condo owners, in order to recoup their investment, rent their apartments out by the day. Cardenas said "an apartment is not a hotel, it does not have the same levels as a hotel, and it requires much less investment." The president of CAMTUR said this issue also covers the fact that these accommodations do not provide any services, to the detriment of the labor force. As an example, she said the Marriott was built for about $50 to $60 million dollars, it was a big investment, buy it is easy for a person to buy five apartments and rent them by the day, at prices much lower than a hotel.

She acknowledged that currently there is an oversupply of hotel rooms, which is only going to get worse this year with the addition of more than 4,000 new rooms. "I put forward an easy equation. If you have 4,000 rooms, you need to have about 2,000 guests 365 days a year, in order to have a relatively standard rate of occupation," said Cardenas. "It's very difficult to grow this volume of visitors from day to day. For that you need airline seats, and to encourage an additional 2,000 new tourists to come to Panama, because there are an additional 4,000 rooms coming on line," she said. Cardenas said faced with the secrecy that exists in the rental of these apartments there must be a standard.

Armando Rodríguez Tatis agreed with Cárdenas with respect to the need to develop laws governing this kind of activity, because they generate unfair competition. He recalled this practice began many years ago when there was a hotel shortage, and this system was an alternative. Rodriguez said there have been cases in the area of ​​Via Argentina. To combat this lawlessness they are asking for the practice to be regularized through the modification of Law 8, because there are also small hotels that have not been registered to the ATP, which also fall into this illegality. (Panama America)

Editor's Comment: Extreme Bias Alert. This article contains only the points of view of the government, provided by Tourism Minister Solomon Shamah, and the hotel industry. They did not include one single word from anyone who is renting their condo or apartment on a short term basis. There are some very simple underlying facts. A couple of years ago when it became apparent that the apartment and condo market was being over built and over developed, all of the builders decided (at the same time) to switch to building hotels. It is a fact that there will now be a massive oversupply of hotel rooms, and it will take about ten years or so for the demand to grow to meet the new supply. Until then, competition between these hotel owners is going to increase. Not only are they going to rip one another's throats out as they fight for customers and clients, they are also going to try to kill off any other form of competition where they can. And, hotel owners see private property owners who rent their apartments out short term as "illegal competition" or "clandestine." You are their target.

Underlying Truth: A great many of the foreign investors who purchased their apartments in Panama City over the past few years did so with the knowledge they could, in fact, rent them out until they were ready to use them for themselves. It is not currently illegal to rent your private property out over the short term - there's nothing "clandestine" or illegal about it. This activity is perfectly legal according to current Panamanian law. If the hotel owners want to bitch about "unfair competition" then this practice of renting private property should be clearly regulated, but not made illegal. The hotel owners themselves decided to overbuild the hotel sector. Why should private property owners be penalized because hotel owners can't do very basic and fundamental market research. I could have told them at any time they were overbuilding, and the rate of hotel room occupation would drop like a rock.

What's A "Tourist"? Let's say I rent my apartment for a full year on contract - then it's a house, and I'm not threatening any hotel, right? The issue comes when it's less than a full year. So, what's the cutoff? Six months? Three months? One month? I would start with a definition of "tourist." That should be really easy. Most true tourists stay in Panama for about two weeks or so. These are the people most likely to stay in a hotel room. So, why not make it illegal to rent a private apartment for less than two weeks? Or, if you want to rent your private property for less than two weeks, you have to treat the income as is you are a hotel, pay the hotel tax, etc. Or, make the private property owner get certification as a "hostel" and then be free to compete in the market. If the Marriott or the Veneto or any other hotel wants to offer a room at $120 per night, why can't I offer a room at $15 per night, if I want to? Do these hotel owners really think someone who's paying $15 per night is going to stay at a hotel that's much more expensive? Of course not.

Apartments Offer "More Bang For The Buck" If you rent an apartment short term, then you not only get a bedroom and a bathroom, but also the kitchen, living room, dining room, and the social area of the building to use. If I'm spending $100 per night to stay at an expensive hotel, I get just the room and a bathroom. If I stay for two weeks I spend $1,400 for the privilege. For that same amount of money or less I can rent a fully furnished two or three bedroom apartment. It's not "unfair competition" but rather a much better deal for the money. Hey, the hotels can always lower their prices if they want to compete, right? That's what fair market practices are all about, not having the government intervene on behalf of one sector of the market to the detriment of the other.

With Regards To Investment: I love the example of the Marriott hotel, built with an investment of $60 million dollars. Let's use that. The Marriott has 363 guest rooms, 15 suites, and 8 master suites. In Panama City the average price for a good apartment with a view of the ocean is about $250,000 dollars (low ball estimate). Let's double that to $500,000 for the "suites" and let's use $750,000 (penthouse) for the "master suites", just for sake of argument. If these apartments were purchased by individuals, they represent a total investment of $104.25 million dollars - or about twice of what it takes to build a hotel with the same number of rooms. This makes perfect sense when you think about it for a minute. When you're building a hotel you don't have to build all of those kitchens or living rooms or dining rooms - just bedrooms and bathrooms. So, the argument flies right out of the window on the math. Individual investors spend about twice as much money to buy their apartments, compared to hotel owners. And, it's mostly foreign direct investment - new money pouring into the country from overseas.

Shamah Linked To Hotel Owners: There's an underlying truth to all of this. The hotel owners have the Tourism Minister Solomon Shamah firmly in their back pocket. He will do whatever they want him to do. The hotel owners don't want private property owners to be able to rent their apartments out, to anyone, ever. Back when it was learned that the government of the United States had cancelled the visa of Solomon Shamah to visit the United States (due to alleged links to drug traffickers and money launderers) and there was mounting pressure for him to either resign or for president Ricardo Martinelli to fire him, it was the hotel owners who held a press conference to express their support for Solomon Shamah. This show of support moved him to tears at the press conference (*sniff*), but more importantly, here's the payback. The hotel owners don't only own hotels, they also own Solomon Shamah. If they want this law, then he's going to fight for it. Period.

Opposed? Get Organized: I know there are a great many members of the English speaking community of expatriates in the Republic of Panama who are property owners participating in this "clandestine" activity of renting your properties out for less than a year at a time. First of all, it's not illegal nor is it "clandestine." The simple choice of words used in this highly biased article are an indication of the government's position on this issue. The Panama America is now practically the "official" newspaper of the government of Ricardo Martinelli so don't expect to see many dissenting opinions published there. If you are opposed to his proposal to modify Law 8 to make this practice illegal, then I would strongly suggest that you begin to get yourselves organized. Personally speaking - I don't have a dog in this fight. I don't own any property and I don't rent anything out short term - but I know many of you do. If you don't get organized, develop your counter arguments and counter positions, and fight this proposal from a unified front, then you're going to get steamrolled. Here's an idea - let's say you create an organization and you have 250 members. Those people each purchased an apartment for about $250,000 dollars. Do the math, and there's direct foreign investment of $62.5 million dollars. Those are the kinds of arguments you need to build.

Not The First Time: Tourism Minister Solomon Shamah tried to do this once before by issuing a resolution from the Ministry of Tourism. It was so clearly illegal and unconstitutional (he tried to change the basic and fundamental law regarding the ownership of all private property in Panama with a simple resolution) they had to backtrack, and cancel their own resolution immediately. Now, they are going to try to do it through a law in the National Assembly. It's not a mistake that this article appeared on a Saturday - they were hoping you would not see it. If you sleep at the switch, you will wake up one day, and it will be illegal to rent your apartment to anyone in Panama City for less than a year. Mark my words...   

More than 20 new hotels opening will be opening their doors in Panama this year, representing an investment of more than $1.5 billion dollars, said Sara Pardo, president of the Panamanian Association of Hotels (APATEL). She said about 6,000 new hotel rooms will be added to the current inventory. Among the hotels that will open their doors are the Hyatt Place, Wingate by Wyndham, Aloft, Megapolis, the Westin in Costa del Este, the NH Hotel, Sonesta Hotel and Waldorf Astoria Hotels & Resorts. The latter will be the first structure of this chain in Latin America, and the fifth developed by Hilton Worldwide in Panama, because this year the same company will complete three additional projects. She also said many older, existing, and established hotels are undergoing major expansions or renovations, such as the case with the Hotel Bristol. She acknowledged that most of these facilities belong to large chains. She said by the end of 2012 there will be more than 15,000 hotel rooms throughout the country.

Meanwhile, Armando Rodriguez Tatis, of the Association of Small Hotels of Panama (Hoppan), said they expect a large number of new small hotels and hostels will be opening their doors in the interior of the country. He admitted they do not have exact figures on how many there will be, because many of these businesses do not yet appear on the records of the Tourism Authority of Panama (ATP). However, he thinks with the new law they are thinking about implementing on tourism, this situation will change because they may carry clear statistics. He said the most number of new small hotels will be opening in the central provinces of Cocle, Herrera and Los Santos, and Veraguas. (Panama America)

Editor's Comment: Wow. So just in 2012 the total inventory of hotel rooms in Panama will increase from the current 9,000 to 15,000 - that's a massive 66% increase in just one year. There's no way the market can absorb all of that new inventory without there being some impact on prices. Hotel room occupancy rates will drop. I expect some operators will lower their prices in an attempt to lure tourists and businessmen to their hotels, and away from others. They will put together all kinds of package deals and generally get creative. The projections for the future are based on a continued growth in demand over time, and in the next five to six years then demand will increase to the point where occupancy rates will improve, so the dip will be temporary. In the meantime I expect a sort of cat-fight over customers, for awhile anyway. And all you hotel owners and managers who are reading this - you might want to consider advertising on Panama-Guide.com. I know you're out there... (grin)   

Hotel occupancy rates in Panama City are falling as the result of a greater supply of hotel rooms now available, thanks to the opening of several new hotels. In October 2011 occupancy rates in hotels with more than 100 rooms in Panama City reached 62.3%. By comparison during the same month last year occupancy rates were 68.4%. Overall for the year occupancy rates have fallen by 1.4%. This year more than 600 new hotel rooms have come online, including those in the Trump building, the Victoria, Hilton Doubletree, and others.

Hotel industry projections had indicated that in October 2011 there would be an increase of 4% in occupancy rates as the result of a climate change convention held in the capital city during the month. During the first 10 months of 2011, occupancy rates reached 66%, while last year from January to October the rate was 66.9%. For next year, the Panamanian Association of Hotels (Apatel) estimates that hotel occupancy rates will fall to 50%, with reference to the number of rooms that are entering the market versus the number of tourists entering the country.

Although through October 2011 tourist arrivals increased by 11%, hotel room occupancy rates have not recorded the same growth behavior. Starting in December the Tourism Authority of Panama will incorporate into its analysis the new rooms that have been opened this year, about 2000, so therefore occupancy rates are expected to reflect a more pronounced decline. There are several hotels in the capital that will begin operations in early 2012. (Prensa)   

Those who enjoy great getaways in Panama, read on. For the next 4 days, OfertaSimple.com (available in both English and Spanish) is offering 50% off stays at Punta Galeon Resort on Isla Contadora – good for redemption over the next 6 months. Hotel Punta Galeon Resort is tucked away on a tranquil island off the Pacific coast of Panama. Located in the Pearl Island archipelago, Punta Galeon is just a short, 20 minute flight from Panama City. The resort is architecturally inspiring, thoughtfully designed and is located in true exotic paradise.

OfertaSimple.com launched just over a year ago and is quickly building a dedicated following in Panama. With offers never less than 50% off and at times inching towards 90% off, it’s no surprise the website already counts 57,000 Facebook fans and tens of thousands of members as loyal users. Past deals have included over 50% off at The Wine Bar and Caffe Pomodoro, LaMar, Os Segredos Da Carne, Canal & Bay Cruises, Enrique Iglesias concert tickets, and Hotel Mandarinos in El Valle, to name a few.

   

Hotel occupancy rates will fall from 70% in late 2011 to 38% in 2012 in hotels with more than 100 rooms, according to estimates from the Panamanian Association of Hotels (Apatel). The percentage decrease is attributed to the 6,000 new rooms will become available, surpassing demand, although the number of visitors grew by 10% during the first half of this year. Among the hotels already under construction that will open next year include the Megapolis (2000 rooms), Renaissance, of the Marriott chain on Calle 50 (300 rooms) Panama Hilton (351 rooms); Waldord Astoria (126 rooms); Garden Inn (170 rooms) and Hyatt Place (167 rooms), among others. Between 2010 and 2014 more than 10,00 new hotel rooms will become available in Panama City, bring the total to about 18,000 in the entire province of Panama. After this drop off, hotel owners will have to wait until 2016 for hotel occupancy rates to return to present levels, said the president of Apatel, Sara Pardo. In that year Panama is expected to receive approximately Panama 4.6 million tourists. "Growth in the hotel industry has been rapid, and although more tourists are arriving every day there are not enough to fill the new hotel rooms that are being built," she said.

The Megapolis hotel, soon to open in Panama City under the Hard Rock flag, will add more than 2,000 new hotel rooms to the market.

In the first months of 2011, hotel occupancy rates in Panama City fell by 2% compared to the same period last year. Reports and analysis prepared by Apatel indicate the average nightly hotel rate in Panama City has gone down by $5 dollars, indicating existing hotel owners are feeling the entry of new competitors. Ernesto Orillac, advisor to the Panama Tourism Authority, said they are working to attract more conferences and conventions which, in their opinion, is the sector within tourism which will maintain hotel occupancy rates in Panama City. For 2012 there are already 53 confirmed conventions, mostly of 1,000 participants each or more. Among those is Herbalife, representing the arrival of 9,000 people.

The director of the company FR Consulting, Fidel Reyes, said it would be a mistake for hotels to lower their prices in an effort to maintain their occupancy rates. He believes the key to maintaining an attractive destination is to improve customer service. Besides the drop in occupancy rates, hoteliers are concerned about the lack of skilled labor available to fill the 12,000 new jobs that will be created within this industry between now and 2014. (La Prensa)

Editor's Comment: Of course the hotels are going to drop their rates and offer sweeter deals in order to attract more customers. I'm personally looking forward to this swing. During the height of the Panama real estate boom when I approached hotel owners and managers to see if they might like to advertise on this website, their answer was usually something like "I'm 100% booked, why would I want to advertise?" My response was - great answer, got it, thanks, maybe later. I wonder if they'll be more interested in advertising when their occupancy rates drop to 38%. Sometimes a tough situation for one is an opportunity for another. Businesses are more likely to advertise when competition is stiff, and in the end lower hotel occupancy rates in Panama City will translate to lower prices for tourists and travelers, which is a good thing.   

Although the Decameron hotel has not revealed the details of their beach project that will be located on the "Upper Coast" of the province of Colon, Panama's president Ricardo Martinelli said the government would build 22 km long road to allow access to the new resort. The hotel would have 300 rooms and would be built on a 700 hectare parcel of land. (La Prensa)

Editor's Comment: In Panama the Colon Province runs along a large portion of the Caribbean or Atlantic coastline. Panamanians refer to this coastline in two segments. Everything to the North and East of the city of Colon is called the "Upper Coast", and includes places like Portobelo, Isla Grande, Nombre de Dios, and Puerto Lindo for example. The "Lower Coast" is everything to the South and West of the city of Colon, and includes the old Fort Sherman area, Gobea, and Miguel de la Borda. This new Decameron resort will be located somewhere along the Upper Coast, probably past Nombre de Dios. The ocean and water out there are beautiful, much nicer than at their current location on the Pacific.   

Jumping through windowsills, kettleball swings, rooftop pushups, junkyard box jumps. Does this sound like your kind of vacation? Los Cuatro Tulipanes is now the first lodging accommodation in Panama City’s historic district of Casco Viejo to include FREE crossfit gym passes with its vacation rentals. Partnering with Top Level Gym, a Casco Viejo crossfit fitness company, guests at 4Tulipanes can now get military-style core strength and conditioning sessions from the pros! The rustic beachfront gym is located just a block away from Tulipanes and is perfect for active vacationers looking to get their butt kicked in the tropics! Gym passes include sunset yoga classes, brutal crossfit sessions and technical training in boxing, Panama’s national sport. Be sure to include the code #crossfit in your reservation request and take advantage of this intense workout promotion today! Email for room rates and availability: info@loscuatrotulipanes.com    

On 10 February 2011 Penrod Management International presented a frivolous claim against Casa de Campo Farallon (Nikki Beach Panama). We are delighted to report on 5 April 2011 United States District Judge Jose E. Martinez, of the United States District Court for the Southern District of Florida, summarily denied Penrod’s motion, dismissed the case, ordered the case closed, and denied all pending motions as moot. This decision is a clear and resounding legal victory for Casa de Campo Farallon (Nikki Beach Panama).

Although Casa de Campo Farallon (Nikki Beach Panama) continues to have both the legal and contractual right to use the “Nikki Beach” name and branding for our project, as evidenced by the US District Court decision, poor past performance, mismanagement, and questionable business practices on the part of Penrod Management International have prompted us to reconsider our ongoing business relationship with them. Therefore we reaffirm our strategic decision to rebrand our project as the “Royalton Playa Blanca in Panama” and to seek new strategic partners.

On 14 March 2011 Casa de Campo Farallon and RG Hotels in Panama entered into a management agreement with Blue Diamond, a hotel operations company owned by the Sunwing Group of Canada, and TUI Travel PLC, a UK-based travel company, to manage the hotel property under the “Royalton Hotels” brand. The 5-star project at Playa Blanca in the Republic of Panama offers 240 rooms, five restaurants, two pools, an events hall, and entertainment amenities.

Maru Galvez, the company owner and chief executive officer, said “The Royalton Playa Blanca is one of the most stunning resorts we have ever worked on, and now, thanks to our partners at Blue Diamond, our guests will enjoy an unparalleled luxury experience. Immaculate service, attention to detail, and casual beachside elegance at one of the country's most desirable locations is a winning formula.” (Press Release)   

If you enjoy spectacular vacations, I highly recommend that you read on. For the next 5 days, OfertaSimple.com (now available in English) is offering a two night getaway at Casa Grande Bambito Resort for 65% OFF – good for redemption anytime during the coming nine months. Casa Grande Bambito is a luxury boutique hotel nestled in the midst of mountains, rainforests, natural springs, volcanic structures, and beautiful surroundings that nurture the soul, calm the spirits, and revitalize the body. At Casa Grande Bambito, one of the few true luxury resorts in the Chiriqui Highlands, first class service is the norm rather than an exception. Only now, with OfertaSimple.com, can you take advantage of this luxury two night getaway for just $68 (regular value $198). OfertaSimple.com launched in August of last year and is quickly building a dedicated following in Panama. With offers never less than 50% off and at times inching towards 90% off, it’s no surprise the website already counts 31,000 Facebook fans and tens of thousands of members as loyal users. Some of the best sellers on OfertaSimple.com have included half off at LaMar Restaurant, $13 for $50 worth of food/drink at Ego y Narciso Restaurant in Casco Viejo, 70% off at LT Burger in Hotel Manrey, 50% off a stay at Hotel Los Mandarinos in El Valle, 72% off food and drink at Habibi’s and 57% off a jump at Panama SkyDive.

   

BERLIN -- During the ITB Berlin tourism trade show which recently took place in Germany, RG Hotels Group has announced a new agreement for the branding and management of its recently completed luxury five-star resort property at Playa Blanca, Panama. Blue Diamond, the new hotel operations company owned by Sunwing Group of Canada, and the European tour operator TUI will work with RG Hotels to manage the property under the Royalton Hotels brand.

The management agreement will cover the newest property in the RG Hotels portfolio, located to the west of Panama City, previously known as Nikki Beach Playa Blanca. The resort features 240 rooms, 70 percent of which are 90-square-meter oceanfront suites. The hotel also features five restaurants, two pools, an events hall, amenities for the whole family and a modernist chic, organic design.

"The Royalton Playa Blanca is one of the most stunning resorts we have ever worked on, and now, thanks to our partners at Blue Diamond, our guests will enjoy an unparalleled luxury experience," said Maru Galvez of RG Hotels. "Immaculate service, attention to detail, and casual beachside elegance at one of the country's most desirable locations is a winning formula."

In addition to this agreement RG Hotels and Blue Diamond are developing expansion plans for two more properties in the Playa Blanca area to compliment the region's elite lodging options. Blue Diamond Resorts and its shareholders are betting on Panama as a major tourist destination, complementing their strong position among corporate and leisure travelers.

The Royalton Playa Blanca Panama will also benefit from its partnership with Europe's top travel group, TUI. TUI Travel is a global leader in the industry, consisting of 80 tour operators in 25 different countries, servicing 40 million passengers a year. With a fleet of 200 planes on seven different airlines and 5,000 travel agencies, the company has ambitious expansion plans.

Sunwing Tour Operators is the Canadian leader for destinations in the Caribbean, operating the brands Sunwing Travel, Signature Vacations, Sell Off Vacations, and Red Seal Vacations. All passengers flying with Sunwing Airlines enjoy the most modern fleet of 737-800 aircraft servicing 35 different airports across all of Canada. In 2010, 1.5 million passengers traveled with Sunwing.

RG Hotels, headquartered in Panama City, Panama, has more than 12 years experience in the hospitality industry, operating several successful luxury real estate developments across the country.   

MIAMI- IHG (InterContinental Hotels Group), the world's largest hotel group by number of rooms, announced that it has signed a 15-year license agreement with Shakir Investment Group for a new-build Staybridge Suites hotel, scheduled to open in late 2012 in Panama City, Panama. It will be the first Staybridge Suites property in Central America, and the second in Latin America, complementing a 31-story, 215-guestroom Staybridge Suites in Saõ Paulo, Brazil. There are more than 180 Staybridge Suites opened across the Americas, Europe and the Middle East. “As the Canal is being expanded, it is estimated that an influx of families of expatriated workers will need extended-stay housing in the city. A Staybridge Suites hotel, with all the amenities it provides long term guests, is a timely addition to this area.” Located less than two miles off the Bridge of the Americas and next to the entrance to the popular Amador Causeway, the 122-room Staybridge Suites Panama City will be in close proximity to the Figali Convention Center, the Smithsonian Institute of Tropical Research and other popular tourist destinations, fine dining restaurants and beautiful scenery.

"We are thrilled to introduce the first Staybridge Suites hotel in Central America to Panama," said Alvaro Diago, COO, IHG, Latin America and Caribbean. "We see tremendous potential for this extended-stay property with features that set it apart from other hotels in the city." “This is the perfect time and location to build a Staybridge Suites hotel in Panama,” added Jim Anhut, Chief Development Officer, the Americas, IHG. “As the Canal is being expanded, it is estimated that an influx of families of expatriated workers will need extended-stay housing in the city. A Staybridge Suites hotel, with all the amenities it provides long term guests, is a timely addition to this area.” The 13-story property will feature three well-designed spacious suite options (deluxe studio, one-bedroom and two-bedroom/two-bath). All suites include in-room DVD/CD players; functional, well-lit work stations with ergonomic seating; speaker phones, personal voice mail and complimentary local phone calls; and fully equipped kitchens.

Consistent with the Staybridge Suites brand, the new hotel will offer exceptional guest amenities including a deluxe complimentary daily breakfast buffet; complimentary guest laundry and workout facilities; a complimentary 24-hour business services center; a guest library with books and games; and BridgeMart®, the hotel’s 24-hour convenience store stocked with snacks, sundries, beverages and easy-to-prepare meals. The hotel also includes a fully-equipped fitness center, rooftop swimming pool, two-story underground parking and meeting space. Guests will be invited to get comfortable in the hotel’s Great Room for evening “Sundowner” receptions three days a week that include complimentary refreshments, light appetizers and conversation. Staybridge Suites hotels participate in IHG's guest loyalty program, Priority Club® Rewards, the industry's first and largest guest loyalty program with 56 million members. Priority Club Rewards membership is free and guests can enroll by logging on priorityclub.com, calling 1.888.211.9874 or inquiring at the front desk of this hotel or any one of IHG's more than 4,400 hotels worldwide.

Editor's Comment: There are currently 45 new hotels under construction in Panama City already.   

By DON WINNER for Panama-Guide.com - Yesterday I was notified that Panama's Tourism Minister, Salomon Shamah, was going to be meeting with the property owners and residents of the Playa Blanca beach resort in order to discuss with them the plans being made by the government to move the Rio Hato garbage dump. From earlier reporting I already pretty much knew the situation. This dump has been there for more than 25 years and it predates all of the high-end beach front developments and hotels that have since been built. However, the dump has since become a health hazard for everyone in the area. It burns constantly and the smoke from the burning garbage drifts through the developments and hotels at Decameron, Playa Blanca, Nikki Beach, Buenaventura, as well as the surrounding communities. The entire area has become invested with flies, rats, mice, buzzards, and who knows what else. Anyway, after many years of talk and little action, a couple of peaceful protest actions and demonstrations by area residents finally pushed it over the top. I knew Minister Shamah was going to be giving the "good news" to the residents, but I didn't expect what came later when I interviewed him one-on--one... (more)    Click Here To Read The Full Article (1,905 words)

The Central/South America hotel development pipeline comprises 139 hotels totalling 21,966 rooms, according to the October 2010 STR Global Construction Pipeline Report released this week. “While Brazil takes the lead with the most hotel projects in a country across Central and South America, it is Panama City, Panama, that dominates on a city level in the development pipeline”, said Elizabeth Randall, managing director at STR Global. “The city benefits from a stronger recovery in Panama and a positive economic outlook due to the expansion of the Panama Canal. Panama City has 21 hotels in the pipeline, followed by Buenos Aires with six hotels and five hotels in the Brazilian markets of Rio de Janeiro and Sao Paulo”. Among the markets in the region, Panama City reported the most rooms in the In Construction phase with 2,468 rooms. Other markets that reported a significant number of rooms in the In Construction phase for the month include: Buenos Aires, Argentina (560 rooms); Lima, Peru (542 rooms); Bogota, Colombia (385 rooms); and Sao Paulo, Brazil (364 rooms) (Source)

Editor's Comment: Wow. I didn't know there are now 21 hotels under construction with 2,468 rooms - that seems like a massive expansion of the market. I bet prices will drop as these new rooms come online. This, combined with the delivery of all of the new apartment buildings, should also work to reduce prices for apartment rentals. It seems the niche of rentals of short term fully furnished executive apartments might be spared to some degree, because they still represent a middle ground between luxury hotels and unfurnished apartments.   

By Doreen Hemlock - Starwood Hotels & Resorts Worldwide said it will open two Westin hotels in Panama in the next two years, tapping a boom in business and resort development in the Central American nation. The Westin Playa Bonita Panama is scheduled to open in 2011, roughly 20 minutes drive from the capital city near the Panama Canal. The new beachfront hotel will feature 611 rooms, three restaurants, a pool bar, entertainment area, lobby lounge, meeting space and a spa. The Westin Panama Hotel is slated to open in Panama City’s Costa del Este business district in 2012. It will offer 198 rooms, a restaurant, snack bar, lobby lounge, executive lounge, swimming pool and some meeting space. Both hotels are franchises that partner with Bern Hotels & Resorts Panama. (sunsentinel.com)   

By DON WINNER for Panama-Guide.com - Welcome aboard to our latest link swapper, the Dos Palmitos Bed and Breakfast. From their website - "This colonial style bed and breakfast is situated in the lower part of Ancon. Surrounded by the lush green gardens of the former Canal Zone, it has become a very popular place for birdwatchers and other nature lovers. Away from the traffic noise it is yet close to all major places of interest, like the Casco Viejo, the Amador Causeway or the Panama Canal and Albrook shopping mall and airport." And just like that, by participating in our long standing Link Exchange program, they quickly and easily raised their level of visibility on the Internet. If you have a business or website with English language content related to the Republic of Panama, you should consider participating in our long standing link exchange program as well.

Copyright 2010 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.   

Los Cuatro Tulipanes, a Panama apartment agency, does not consider it their responsibility – or heck, even their right – to attempt to sell people on Casco Viejo. There are people who are attracted to Casco Viejo as a travel/investment destination and there are people who are not. The following list is intended to avoid major disappointment in that latter group, and to clarify -- or perhaps commend -- those guests of theirs who actually do get the most out of their visit to Panama's historic district. Some reasons that, before visiting, one should consider:

1. Lack of English: From its museums to restaurants to locals on the street, Casco Viejo – not unlike Panama as a whole – does not stress English. If you’re a traveler or investor who only feels comfortable in surroundings where English is spoken primarily, and who fears surpassing language barriers, Casco Viejo may not be for you. Alternate option: London.

2. Lack of brand names: If you are someone who enjoys traveling abroad but likes to consume mainly brand names which you’ve become accustomed with at home, Casco Viejo may not be for you. There are very few international chains in Casco Viejo, the majority of its businesses either boutique or mom-and-pop style establishments. Alternate option: Cancun.

3. Little direction/guidance: If, when traveling or investing, you are someone who looks primarily to tour groups, tour guides, and organized events for activities, Casco Viejo may not be for you. Because its tourism industry is so nascent, Casco Viejo has only a small handful of tour opportunities, most of which are unreliable and/or not in English. There do exist regimented escorted tours but these generally are based with tourism companies outside of Casco Viejo. Unless you are comfortable with exploring on your own, asking locals for suggestions, and making your own sleeping/dining arrangements, Casco Viejo may not be for you. Alternate option: Costa Rica.

4. Few events staged for tourists: Whereas downtown Panama offers a number of tourist-designed Panamanian dining and leisure activities, Casco Viejo has very few organized events period, not to mention even fewer meant specifically for tourists. If you’re idea of the perfect Panama vacation is to eat large platters of “native food” and see “traditional dance” in a comfortable and controlled environment, Casco Viejo may not be for you. Alternate option: Mexico.

5. Potential risk factors: Because it is still an emerging neighborhood with issues, Casco Viejo and its residents do deal with things like uneven cobblestone roads, poor handicapped access, and some less savory surrounding neighborhoods. If even the slightest hint of this sort of risk worries you or your family, Casco Viejo may not be right for you. Alternate option: Denmark.

6. Strays: If stray dogs, stray cats, or stray individuals searching through garbage cans make you uneasy,Casco Viejo may not be for you. Alternate option: Multi-Plaza Mall.

7. Minor inconveniences: Are you the type of regimented traveler or investor who is put off by minor infrastructure inconveniences such as parking difficulties, uneven sidewalks, potholes, lack of light on side streets, dirt/grime…etc. Casco Viejo may not be for you. Alternate option: Costa del Este.

This is all to say that, those with strict and dependable requirements for travel (be it on vacation or for investment) are oftentimes put off by Casco Viejo, and rightly so. We often find that guests at Los Cuatro Tulipanes who need large-hotel-amenities like room service, pool, buffets...etc are better suited to stay downtown at a Marriott-like hotel. This alternative is often best for both the guest and for us as there is no clash of personalities. There is often too the flip side: guests at the Marriott-like hotel that visits Casco Viejo and embraces its pulse, who then cancel their downtown reservation in favor of a night with us!!!

This article was republished with permission from the Blog at Los Cuatro Tulipanes   

By DON WINNER for Panama-Guide.com - Welcome aboard to our latest link swapper, Casa Selva del Mar. From their website: "Casa Selva del Mar offers two small, private oceanfront villas on on Isla Cristobal, the third largest island in the Bocas del Toro Archipelago, 15 minutes from Bocas Town by boat. The villas have an "open" design, with a wrap around, screened deck and louvered doors and windows on all four sides, with magnificent ocean views in front and the jungle in back . They are beautifully furnished, with teak accessories and orthopedic beds, complete kitchens fully equipped for cooking and eating, large bathrooms with double sinks. Each villa has a laptop computer with wireless internet access and satellite TV with premium channels. Casa Selva del Mar offers sustainable tourism at its best. Our villas and our home are powered by the sun (with backup generator) and our water is plentiful and pure, because it comes from the sky. There is a coral reef approximately 100 feet from our dock, and our guests enjoy free use of snorkels, fins and kayaks. We have 18 acres of pristine jungle with giant old growth trees and hand-cut walking paths. Our villas and our rainforest are prime bird watching locations. We can arrange day tours to other islands for snorkeling, beachcombing, and wildlife viewing. We can take our guests to nearby islands for dinner, or alternatively, prepare dinner family style in our home on request. We live here, so service is 24/7." And of course everyone already knows that Susan Guberman-Garcia is no dummy - she's smart enough to recognize the value of swapping links with us and to participate in our long standing link exchange program. As a matter of fact the only people I link to anymore are those who are linking back to me. So, if you have a website about Panama with English language content, and if you would like to see a link from this website to your website, you can either join the party (or toss a bunch of cash at your Uncle Don.) Other than that, fuggitaboutit...

Copyright 2010 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.   

Note: Offer exclusive to business owners and Panama residents. Give your friend or client an experience they won’t forget! Refer a client to Casco Viejo's Los Cuatro Tulipanes apartment rentals for supreme client service, commission checks, and free nightly stays! The fact that all ten apartments are located in Panama’s most fascinating neighborhood doesn’t hurt either. Email for reservations at info@loscuatrotulipanes.com after browsing testimonials...   Click Here To Read The Full Article (593 words)

Wednesday, April 21, 2010 the Veneto A Wyndham Grand Hotel threw a party that left its guests speechless. From the Italian masked dancers, mouth watering gastronomic displays and even a replica of a gondola near the seventh floor pool, the theme surpassed everyone´s expectations. This party was also used to highlight the talents of the banquet and hotel sales team for transforming traditional convention space into a variety of extravagant events. In separate rooms were a wedding, fashion show runway, nightclub atmosphere, executive meeting and poolside banquet. The Veneto has truly demonstrated its ability to cater to large groups and corporations in providing both excellent service and creating an exciting and modern ambience. Please contact the banquet department at 340 8888 ext. 4278 or 4207 for any further questions or arrangements.









   

By DON WINNER for Panama-Guide.com - Received today via email: "Here we go. I won't pretend it's anything else but self promotion but I just finished building a great new website and I really think it rocks. So check out the totally overhauled www.thebalboainn.com. ( or flame me :-) ) Thorwald Westmaas, The Balboa Inn, Las Cruces 2311a, Balboa, Panama"

And, also the following response: "Thorwald, I love your new website. The Balboa Inn rocks! Ken and I stayed there for three days and it was most pleasureable, with great location, safe neighborhood and friendly staff. Gina was the best and the breakfasts were a great way to start the day. Thank you for a wonderful experience in Panama City! Pattie & Ken Thompson"

Copyright 2009 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.    

By DON WINNER for Panama-Guide.com - Received today via email: "For those Jazz fans outside Panama City or with friends coming down...... With our 2 new rooms now ready we still have some space for those that need a room during the Jazz Festival next month. Located in Balboa, the Balboa Inn is only 5 minutes away from the Casco Viejo. Saludos, Thorwald Westmaas, The Balboa Inn, www.thebalboainn.com"

Copyright 2009 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.    

By Staff Writer (Press Release) - Jumeirah, a luxury hotel management group, said yesterday it has been appointed by Spain's Grupo Mall to manage a luxury property for the real estate developer in the Panama City. The Los Faros de Panama complex will consist of three towers, each boasting residences, offices and a luxury hotel, respectively. The hotel will comprise 400 hotel rooms and suites, along with Jumeirah's signature Talise spa. Maintaining its association with iconic structures, such as the Burj Al Arab, the Jumeirah Group-managed property will boast one of the tallest towers in Latin America, with the central building standing tall at 361 metres and 85 floors. The two lateral towers will reach 266 metres in height with 75 floors. The management agreement was signed by Julio Noval-García, President of Grupo Mall, and Gerald Lawless, Executive Chairman of Jumeirah Group. Over the past few years, Jumeirah Group has maintained an aggressive growth strategy internationally by expanding into London with the Jumeirah Carlton Tower and Jumeirah Lowndes Hotel and into New York with the Jumeirah Essex House. (Editor's Comment: Now that's funny. The last thing I saw on the Los Faros project was that it was dead in the water - no construction or activity at the job site. It's interesting to see this press release coming out now. Maybe they are going to start it back up? Refinancing or something like that? Who knows...)   

By DON WINNER for Panama-Guide.com - Recently one of our sponsors, Panama Corporate Living, was favorably reviewed on the TripAdvisor.com website:

• “So much better than a hotel” - Panama Corporate Living, by Grace0704 - I stayed in a full size apartment. It was so nice to have all the extra space that you just don't get in a hotel. The apartment was very conveniently located for my business meetings. It was comfortable, clean and well appointed. The kitchen included all the utensils I needed to be able cook my meals. There was even a washer and dryer in the apartment--talk about convenient. The furnishings were comfortable and the staff were great. I would definitely stay with Panama Corporate Living again.
  
  
• “Home away from home.” Panama Corporate Living, by ampboy - This Panama Corporate Living apartment was perfect for my business trip. The apartment is located in one of the new codo towers in the desireable San Francisco area ... close to downtown and restaurants. This two bedroom apartment was clean and well appointed with the usual features one would expect ... exactly as advertised, and a real bargain for two business travelers vs. a hotel stay.

To see these reviews for yourself, please click this link.

Copyright 2009 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.    

By DON WINNER for Panama-Guide.com - Received today via email: "I was in PC last week and stayed at the Balboa Inn. I truly enjoyed my time there...the rooms were immaculate, the beds comfortable, great pillows, and perfect air conditioning. Because I had my cats with me, I asked if I could check out late, and that was no problem with Thorwald. I wasn't even charged for the 3 p.m. check out. I will stay there next time I'm in PC. Thorwald even picked me up from Albrook...which really is only 5 minutes away."

And then another person added: "My husband and I stayed at the Balboa Inn Monday night while in PC getting our passports renewed. We, too, had a very positive experience. The service is far beyond what we expected, the premises clean, the water hot, and the breakfast great. Thorwald and his wife have put together an exceptional staff. The rooms are basic but comfortable, and we enjoyed being able to walk around the neighborhood and to a good restaurant without feeling insecure in any way. I also highly recommend it. Bonnie"

Copyright 2009 by Don Winner for Panama-Guide.com. Go ahead and use whatever you like as long as you credit the source. Salud.   

By ROBERTO GONZALEZ JIMENEZ for La Prensa - Depending on who you're talking to, they might be called "illegal hotels" or "executive apartments" but the activity is the same: the renting of apartments in residential buildings to tourists for a short period of time. Panama's Tourism Authority (ATP) received complaints from building managers due to the presence of strangers in their buildings. In addition, hoteliers in the country made it known to the ATP that their occupation rates were falling sharply, and not just due to the effects of the economic crisis. This fall in occupancy rate directly affects the financial capacity of the ATP, because part of their funding comes from the 10% tax charged to hotels. And these resources, in turn, are used to create the campaigns to promote tourism in Panama and abroad. On August 13, the administrator of the ATP, Solomon Shamah, signed a resolution forbidding the practice. His basic theory is that buildings are places intended for private accommodations, homes to families, and they are practicing public lodging, a practice which is reserved according to Panamanian law to hotels, hostels, hotels that rent suites, and other types of approved public facilities. The resolution, which was distributed among several building managers, will not be published in the Official Gazette, and therefore it will not enter into force. The ATP hit the brakes and decided to meet with the business leaders and companies who are involved in this practice of short term apartment rentals in order to find a solution so that the activity can be regulated by a new law. One of the options being discussed in government circles would be to establish a time limit between what is considered to be either public or private housing rental. The first would be regulated by the ATP, and the second by the Ministry of Housing. Thus, apartments in residential buildings could not be rented for less than 45 days. This solution, however, does not satisfy the companies who are engaged in vacation rentals, a business carried out by a small group of companies, mostly foreign nationals. In a conversation with La Prensa, several of these entrepreneurs - who preferred to remain anonymous - claimed that more than half of their customers, in many cases, corporate executives, stay in the apartments for less than 45 days. They say they are legally registered companies, which pay income tax, and although these payments are not reflected in the income of the ATP, they still contribute to state coffers. On the allegations of a lack of control over the people entering the buildings, they argue that every tourist is asked for a copy of their passport, and the companies inform the building management of who will be occupying the apartment. They also add that when a building does not want their apartments rented for short periods of time they respect that decision. This practice is common around the world. The website www.vrbo.com offers rentals of this kind in five continents. The journalist Pablo Mazarrasa, who is currently in Panama working on a report for the New York Times Magazine, is currently staying in Panama in an "executive apartment." "In an apartment we can install our office which gives up some flexibility," he says. One of the tourist segments which could be directly affected if this kind of activity is either limited or restricted is medical tourism, which is trying to take off in Panama. These tourists, who arrive to undergo medical treatment, often prefer to stay in an apartment, where they can be more relaxed. "This kind of measure would make us obsolete. Other countries we are taking the lead, "says Andres Caballero, the manager of Global Health of the Punta Pacifica Hospital, a center that has made a significant investment to promote Panama as medical tourism destination.   

The Balboa Inn is a small Bed & Breakfast at the foot of Panama's main landmark, Ancon Hill (Cerro Ancón) in Balboa. Conveniently located between the downtown area and the Amador Causeway and just minutes away from the domestic airport and the Panama Canal, guests are away from the city noise yet close enough to be able to easily access all that the city has to offer. The Balboa Inn is the ideal base from which to explore Panama and a great place to stay during stopovers in Panama City. We welcome families who will find our inn, its gardens and the surrounding neighborhood especially child-friendly and safe. (more)

   Click Here To Read The Full Article (494 words)

By DON WINNER for Panama-Guide.com - This afternoon I was discussing some more of the unintended consequences that will arise as a result of the resolution signed by the Director of Panama's Tourism Authority (ATP). Salomon Shamah (see: "Serious Problems With ATP's New Restrictions on Short Term Rentals" - 1 Sept 2009) Consider this - the hundreds of thousands of Panamanians and tourists who flock to the interior of the country every time there's a holiday or a long weekend very often rent houses or rooms from local owners. This is particularly true in Las Tablas where the population of that normally sleepy little town can grow to 100,000 or more, literally overnight. Well, not this year folks. This week representatives of companies involved in the business of short term property administration have been meeting with ATP officials to voice their concerns over the unintended consequences of this new broad and wide sweeping resolution, and they were told that "violators would be fined $500 for the first offense and $1,000 for the second offense." And of course, this resolution makes it illegal for anyone to rent any private property on a short term basis, which they define as anything less than a year. Therefore, during the traditional holiday periods when Panamanians flock to the interior, such as Carnival and Semana Santa (Holy Week), anyone who rents even a room for a few days will be subjected to possible fines and sanctions. I wonder how many hotel rooms there are in Las Tablas? (more)    Click Here To Read The Full Article (630 words)

My Michelle Dominguez for the Panama America - Despite the existence of 16,724 hotel rooms in Panama City and another 5,380 in the interior of the country, tourists prefer illegal hotel options. Jaime Campuzano, the manager of the Hotel El Panama and President of the Chamber of Tourism of Panama, said that hotels providing this illegal clandestine service are causing losses to the state. "In these places tourists do not receive the required guarantees of quality and safety," said Campuzano. According to José Thomas, the President of the Association of Small Hotels of Panama (HOPPAN) condominiums and apartments that before were rented for five or six months now are being rented for $40 per day. For Thomas, this is because many of these places have all the facilities of a normal residence, such as a kitchen and a living room, among others. The hotel industry in conjunction with the Tourism Authority of Panama is working to identify and punish these types of unauthorized establishments, that evade paying the 10% tax paid by hotels. "The goal is to eradicate these practices that are detrimental to the development of tourism in the country," said Campuzano. (See Comments)    Click Here To Read The Full Article (467 words)

By 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%.   Click Here To Read The Full Article (504 words)

La Critica - The Director of the Panamanian Tourism Authority (APT), Salo Shamah, said he would put an end to these illegal hotels. The APT intents to investigate a series of real estate (companies) that are competing unfairly with hotels by offering daily rentals to foreigners, which constitutes unfair competition. The director of the APT, Salo Shamah said he would put an end to these illegal hotels that do not pay the same taxes as hotels, and operate outside of law. The official explained that many developers who did not sell the buildings they built, due to the global crisis, have opted for this marginal practice. In another aspect, Shamah announced they are considering the possibility of holding the annual Carnival celebrations along the new Coastal Strip this year, but after a promotion to attract tourists. Furthermore he announced the budget allocated to the Government for these festivals is also intended to support the Carnival of the interior.   Click Here To Read The Full Article (167 words)