Panama Investor Blog

Panama promoted in Pakistan

Panamanian businessmen are covering every corner of the world to promote the country and bring more foreign direct investment. With Dubai just a short distance away I wonder how much success they will have.

By By our correspondent    
7/25/2008         KARACHI: Rafael Sabonge, Advisor of Real Estate Promotion in the Government of Panama said that the Panamanian government is offering 20 years property tax exemption on new constructions and visa facilitations to foreigners investing in the real estate sector of the country.

During a presentation on Panama and its economy in a local hotel on Wednesday, he said that the Latin American country is the highest growing economy of the continent making it an ideal country to invest in.

Sabonge and Advisor of Government Affairs in Panama, Alejandro Moreno are a two- member delegation from Panama who have come to Karachi to invite Pakistani businessmen to invest in their country

In the presentation, Sabonge explained the various methods and levels of investments that can be done in the real estate sector and informed how potential businessmen can conduct their businesses in the country.

He also informed that though Panama was a small city, there was an urgent need of residential and commercial apartments and hotels especially in the cities of El Carmen and Belle Vista.

Alejandro Moreno, in his part of the presentation explained the economic side of Panama. He mentioned that there were over ten free zone ports that were currently under construction, negotiation or further expansions which had created hundreds of investment opportunities.

He added that the Panama Canal is one of their most important sources of income with access routes to 144 maritime routes in 80 countries and contributing almost 30 percent towards Panama’s GDP directly or indirectly. Moreno further stated that the canal’s expansion project is worth $5,250 million. The two foreign delegates also informed that over $2 billion had been invested into the country in 2007 with about 15 percent hike in tourism every year. They said that Panama’s GDP in 2007 had been 11.5 percent whereas the GDP/capita was $5,410.

Bond film, canoe man John Darwin boost Panama tourism

Everyone is taking credit for the increase in tourism that Panama is experiencing. This article claims that these high profile mass media activities have been the real reason. Of course the tourism ministry would take issue with that and so would I to some degree. We are not seeing huge increases in recreational tourism YET, we are seeing a whole lot of business travelers coming to take advantage of the boom taking place in the country. After all, few places in the world are experiencing booms these days.

Excerpt: An increasing number of tourists are visiting Panama, which is thought in part to be a result of the publicity surrounding the Darwin case, reports The Times. As a result of the attention, the South American country is now firmly at the forefront of travellers' minds.

Wife Anne Darwin spoke in court of Panama's appeal: "[Panama] had much more to offer than I originally thought, with streams, ravines [and] beautiful butterflies." One of Panama's key attractions is its natural beauty; a mix of cloudforest, rainforest as well as two coastlines, the Caribbean and the Pacific, writes The Times. With this in mind, John and Anne Darwin bought property and land in Panama with a view to building an eco-lodge, the court was told.

Interest in Panama has also been sparked by the Bond film Quantam of Solace, according to Journey Latin America. Scenes for the film were shot in Panama City's Casca Viejo (Old Town) as well as in the ruins of Noriega's former "Officers and Troops Club", transformed into the venue of a cocktail party, and in the "precarious, old wooden buildings" of Colon (Haita in the film). Quantam of Solace is due to be released on October 31st.
Read the story here...

Reason for 30 day tourist visa change now revealed

Last year when the immigration ministry mysteriously changed the tourist visa from 90 days down to 30 everyone was miffed. Why would the Panamanian government shoot itself in the foot and destroy a growing demand in residential tourism. Now, because of the sensational trial of John Darwin the "canoeist" , who faked his death and came to Panama with his wife, we finally get the answer. When John  Darwin turned himself into the police in England after everyone thought he was dead for the last five years ,the question on everyones mind was why? Why in the world would he come back when he had pulled off the fraud and was living the high life in Panama?
According to his testimony this week in the last days of the trial, he did it because Panama had changed its tourist visa from 90 to 30 days.

Excerpt: "The real reason   for him "coming back from the dead" was rather more mundane: a   change to Panama visa laws meant he was forced to reassume his old identity"

Mr Darwin, who had moved to Panama in April 2007, had become alarmed that he   could no longer live there under a tourist visa and researched the   requirements for an "investors" visa.

To secure it, the couple's identities would have to be verified by police in   Britain and he knew his John Jones alias - and fake passport - would not   pass such close scrutiny.

The master plan shows that Mrs Darwin would get a police check in Hartlepool   and take their marriage certificate to Panama, staying there while Mr Darwin   returned to England and tried to convince Cleveland Police that he had lost   his memory.

Having seemingly come back from the dead, he would rejoin her by April 2008   with his new passport, police check and driving license.

Although Mr. Darwin and his crazy scheme has brought tremendous publicity to Panama, it has come at a severe cost to the country in the form of lost economic benefits from retirees. I suppose the boys at immigration deserve a reward for helping to foil the happy ending this odd couple had neatly planned. The one thing that still haunts me is why Darwin would believe he could outsmart Scotland Yard, but was so fearful of the Panamanian immigration department that he risked everything to comply with their new law.

Read the whole crazy story here....

Immigration update

We have yet to see the regulations for the immigration reforms, but this audio interview with a respected Panaman immigration attorney from Panama Broadcasting Corp. gives you the highlights of the law and its affect on retirees.

If you go to the news page http://www.pbcpanama.com/news.html you will be able to stream the news program.If you don't want to listen to the whole program, as it loads up into the player (the green line) move the slider to about 19 mins into the program to hear the immigration interview.

Developers under fire in the Osa of Costa Rica

Just across Panama western border lies the last frontier of Costa Rica's rich environmental habitats. It is the only area on the Pacific that is still relatively under developed compared to the rest of the country. There have been a number of articles this week about a a recent investigation into "rampant" development in that area that is apparently unbridled and ecologically unfriendly. The rights of local municipalities to grant permits are being challenged by the state in a tale similar to the problems Spain has encountered in recent years. This is from a Blog post on Costa Rican Pages.

Excerpt: Costa Rica walks a tightrope everyday, struggling to find an equilibrium between its booming development and tourist dollars, and it cherished environment, which attracts the development. With many protections already in place, the country has done well for itself, establishing a global reputation as an eco-friendly country. Clearly, however, not all is green and well in Costa Rica, as financial gains often get in the way of well-meaning laws and individuals. To combat these problems, local watchdog organization have cropped up in many towns and cities, helping keep developers within their legal rights.

Marriott expansion in Panama

What began with one hotel with 295 rooms in the banking district is now expanding rapidly to over 1200 rooms in five hotels in the Panama City area. This release from Aisia travel.

Marriott is to open a Renaissance hotel in Panama in 2011 under a management agreement with Hotel Properties of Panama, Inc. In addition, Marriott plans to expand its existing properties and to add two additional hotels, tripling its presence in the country, over the next 30 months to five hotels and 1,200 rooms.

       

The 300-room Renaissance Panama Hotel Financial District will be located in the heart of the financial district on a prime site immediately adjacent to the existing 295-room Panama City Marriott to which it will be physically joined, enabling guests to easily walk from hotel to the other. The hotel will be part of a mixed-use project that will include two towers above a podium. One of the towers will house the hotel and up to 150 unbranded residential condominiums on the floors above the hotel. The second tower will house offices.

       

“We are thrilled to introduce our popular Renaissance brand to Panama and to be expanding our long relationship with Hotel Properties of Panama, which also owns the Panama Marriott and is currently expanding that hotel to 376 rooms,” said Ed Fuller, president & managing director of international lodging for Marriott International. “The economic outlook of Panama is strong and the hotel industry is booming here. This new Renaissance hotel will enable us to offer guests an exciting new choice in lodging.”

       

In addition to Hotel Partners’ new Renaissance property, the Courtyard by Marriott Panama will be expanded from 120 rooms to 248 rooms by its owner, Grupo Poma that is also opening the 150-room Courtyard by Marriott Panama near the Los Pueblos Mall in 2010. Meanwhile, Caribe Hospitality plans to open the 100-unit Residence Inn Panama in 2010 for extended stay travelers. Final agreements on both the Courtyard by Marriott Panama and the Residence Inn Panama are expected to be executed within the next 60 days.

       

Accommodations at the Renaissance Panama City Hotel will feature plush bed and bath linens, upscale bath amenities, contemporary         furnishings, a flat screen TV, in-room safe and mini-bar.  The hotel will offer an executive level and lounge.

       

For dining and entertainment, the hotel will have a restaurant with street access that will offer three meals daily as well as a spacious, open lobby lounge and bar that will change its ambience from day into evening.

       

Recreational amenities will include an 8,000-square foot spa, a state-of-the-art fitness center and a large outdoor swimming pool and deck area. In addition, the hotel will have a gift/sundries shop and a business center.

       

For social events and conferences, the Renaissance Panama City Hotel will have 6,092 square feet of function space comprised of a 4,306-foot ballroom that will be divisible into three sections, 1,292 square feet of flexible meeting space and a boardroom.

A New Cold War in the Caribbean?

This interesting Time article gives a good overview of the situation in the Americas and clearly points the finger of failure on the neglect of the U.S. in maintaining strong relationships in Latin America. They have been so busy in the middle east, they have neglected the threats taking place so close to home.

Excerpt: Ever since the Monroe Doctrine, the U.S. has seen the Caribbean in the way that the Romans viewed the Mediterranean: Mare Nostrum, Our Sea. From the Spanish-American War through the Cuban missile crisis and the Central-American dirty wars of the Reagan era, Washington was always quick to flex its muscle over the rum-soaked waters that stretch from Florida to Venezuela. The bad news: it ain't our sea anymore, gringos.

Russia isn't the only U.S. rival dipping its toes into the Caribbean of late. Iran has parlayed its deepening relationship with Chávez into an alliance with Nicaragua's Ortega. China and India, aside from receiving increased crude imports from oil-rich Venezuela, are themselves poised to help Cuba drill for an estimated 5 billion bbl. to 10 billion bbl. of oil recently discovered off the island's coast.

Read the rest at Time

Costa Rican president under fire for Taiwan funds misappropriations

In 2006 Taiwan wired $2.5 million to help Costa Rican poor with housing of which only $1.5 million can be accounted for by the brother and chief of staff of the President. In 2007 Costa Rica ended its long relationship with Taiwan and announced that they would recognize only China because Taiwan was not paying enough to help the country. Sounds like they were helping, but not enough was going to the family of the president to warrant a warm relationship. What gall!

Costa Rica leader denies knowledge of diverted Taiwan funds

"I had no knowledge of this help from the government of Taiwan which I learned about from the press just recently," he said in remarks published Saturday in the La Nacion newspaper.

La Nacion earlier this month alleged that the office of Arias' brother and chief of staff, Rodriguez Arias, paid scores of government consultants with two million dollars that had been donated by the Central American Bank for Economic Integration (BCIE).

Funds were sent by Taiwan to BCIE at the request of Costa Rican Housing Minister Fernando Zumbado, according to press reports, which have said the sum of the wire transfer was 2.5 million dollars.

Zumbado admits to having received only 1.5 million. The minister has been suspended from his post pending a congressional investigation.

News reports said donations made by Taiwan in 2006 were destined for the construction of housing for the poor, but never got to the intended recipients.

Costa Rica in June 2007 broke its ties with Taiwan, and instead established relations with the Chinese government in Beijing.

Panama Canal says cargo may merit bigger expansion

My Concerns about the canal expansion seem to be unfounded as some believe and Reuters reports that the expansion is not going to be enough and needs to be expanded even further. This fortune teller can see into the future and project continued growth forever. I wonder if this is the same guy that produced the original study projecting growth for the next 20 years at the same rate of of the past 5 years?

Excerpt:

Rodolfo Sabonge, head of market analysis for the Panama Canal Authority, said further expansion might be necessary to double the capacity of the canal as Chinese exports to the eastern United States grow.

   

"If the projections we have today are realized within five years, we'll have to respond or carry out the necessary studies to be ready to expand the canal once again," he told reporters at a business event in the Panama City.

"In the short term, this year will be flat ... but this will be corrected in the long term. We're in a good position because the increase in (U.S.) imports is going to overtake the capacity of West Coast (ports) in the United States."

read the story here.

The President of Panama speaks out on security reforms

But he doesn't say much! The new security changes going on in Panama have many groups concerned about the direction the country is going. I have reported on some incidents here in Boquete that have caused many of us to wonder about whether the country is welcoming foreigners to live here. The President has requested special powers be given to him in order that he can make swift changes to security and immigration without the need for legislative approval. According to this article, his Cabinet" is analyzing the reforms and he will explain how they will be implemented at a later date. In most cases heads of state make decrees like this because they don't want debate and public opinion to affect the outcome, which usually is not a good thing in my experience.

President Torrijos defended the security reforms he authorized with the “special powers” granted him recently.

The president also said he changed the law that stating that the Policía Nacional must be directed by a civilian.

CORTESÍA/Presidencia de la República

special powers: President Torrijos discussed the matter of appointing a member of the military to direct the Policía Nacional.1060215

President Martín Torrijos came out in defense of the security reforms approved by way of the “special powers” recently granted him by the Asamblea Nacional. Torrijos did not give details of the reforms, but said that the public would be consulted after his Cabinet finishes its analysis.

For the first time since his election campaign, the President spoke of the matter of appointing a member of the military to direct the Policía Nacional (PN), a topic included in the special powers granted by the Asamblea Nacional for legislating by decree.

Torrijos explained that future presidents will not be obligated to nominate a uniformed military officer to head the PN, but that his reforms will give his successors that option, which is currently prohibited by law.

Once the debate over his security reform come to an end, Torrijos said he will meet with concerned groups and explain how his administration intends to address public safety needs.

The President will also use his special powers to create a Servicio Nacional Aeronaval and establish the Servicio Nacional de Fronteras, which is currently under the aegis of the Policía Nacional.