Panama Investor Blog

David Airport Status

There is a great deal of infrastructure investment going on in Chiriqui these days with the new four lane highway to Boquete well under way and the expansion of the airport in David. I flew out of the airport this past week and was told by some of the administrators that the renovated runway would be ready by the end of this month. In addition the foundation for the new terminal is nearly complete. Here is an article from La Prensa regarding the latest news on the subject.

Machine translated

Malek airport expansion progresses

 The work will enable the arrival of ships capable of carrying up to 300 passengers and improve the conditions and service.

TERMINAL. TERMINAL. Trabajos de ampliación en el aeropuerto Enrique Malek. Extension work at the Enrique Malek Airport. ESPECIAL PARA LA PRENSA/Teófilo González 1495734 SPECIAL TO THE PRESS / Teófilo González 1495734

 TEÓFILO A. GONZÁLEZ  David, Chiriqui
negocios@prensa.com negocios@prensa.com

 The remodeling and expansion of facilities Enrique Malek International Airport in the city of David progressing despite excessive rains late last year.

The rehabilitation and expansion of the airport terminal and runway Enrique Malek develop at a cost of 27 million 478 thousand 845 U.S. dollars.

 Sources from the Civil Aviation Authority (CAA) reported that the first phase (taxiway) was finished and is expected later this month will be delivered the second phase corresponding to reinforcement, sealing cracks and prenivelación of the main runway.

La tercera fase o extensión de la pista avanzaba en un 14% hasta el pasado 22 de diciembre, cuando se habían vertido 20 mil metros cúbicos de material selecto; y la cuarta fase o edificio adyacente de la terminal avanza en un 20%. The third stage or extent of the track progressed by 14% until Dec. 22 when they had poured 20 thousand cubic meters of material selected, and the fourth phase or adjacent to the terminal building by 20% advanced.

 The work awarded through competitive bidding to the company Riva Argentina SA, in mid-2009, allow for the arrival of ships capable of carrying up to 300 passengers and will significantly improve conditions and services of the airport.

 The Civil Aviation director, Rafael Barcenas, said the Enrique Malek airport expansion and construction of new airport terminals in Columbus and central provinces will serve as a hub to the national economy, mainly on the exploitation of tourism potential within the country.

Construction sector recovers in Boquete

Although other than the new highway under construction, there appears to be little activity in the construction sector in Boquete, the municipal is reporting an increase in building permits in 2010 over the previous year. These permits continue to be the main source of revenue for the district and the majority is driven by foreigners who come to live or invest in the area.

From La Prensa

Construction sector recovers in Boquete

Theophilus A. González
Boquete, Chiriqui
economía@prensa.com

The partial reactivation of the construction sector and strengthening the service economy contributed to the recovery of the finances of the Municipality of Boquete, which grossed 1.8 million dollars in 2010.

Last year's budget was $ 1.38 million, but managed to collect only $1,282,050 dollars, reported Ivan Cheva, treasurer of Boquete, Chiriqui.

Cheva described as "satisfactory" fiscal 2010 performance and was confident that the boom in Boquete will recover to what it was in 2007, when they raised $1,475,282, $ 142,222 000 more than budgeted.

"While it is true that the construction, the main source of income for the region, has not yet been fully recovered, the service economy experienced significant growth, mainly in the hotel, the sale of food and retail," said Chev.

The construction of major public works such as the expansion of the David-Boquete-David, rehabilitation of roads of production and the development of electrification projects are positively impacting the economy of Boquete, the official said.

In 2010 the construction sector generated revenues of $428,310.

The activity of restaurants, cafes and snack bars represented a contribution of 13, 837, $1, 837  more than expected.

AARP rates Boquete "best place to retire"

The American Association of Retired Persons has a short but sweet article about our little home town of Boquete. With a membership of over 70 million I would expect this the give Panama and Boquete in particular a nice boost. I am very pleased with that but.... the fact that the AARP supported the Obama Health Care bill when most of its members did not  I find rather dis-ingenuous.

From AARP

Best Places to Retire Abroad

Panama

The mountain village of Boquete offers something close to heaven for American retirees.

by: Barry Golson | from: AARP The Magazine | September/October 2010 issue

Panama is a smart choice for retirees who want it all—in a country that really wants them. Not only does it feature attractive retirement destinations—sleek capital city, hot beach towns, cool mountain villages—but it also offers an unbeatable package of retiree benefits and discounts (and a currency tied to the U.S. dollar). Little wonder there has been a steady influx of expats in the past few years.

Many retirees have settled in Panama City, a fast-paced financial hub with a Latin/Miami vibe. Others have gravitated to the Pacific Coast towns west of Coronado and the Panamanian version of Key West, hip and laid-back Bocas del Toro on the Caribbean Coast. But if you want a temperate highlands retreat surrounded by unmatched natural splendor, the mountain town of Boquete, an hour’s flight from Panama City, is close to heaven. Here expats settle amid rain forests, coffee plantations, burbling streams, and hummingbirds hovering over dazzling flowers.

Boquete is decidedly gringo-friendly, offering a wide range of  back-home amenities, from a golf course to high-end gated communities. For some expats it also offers an opportunity for reinvention. Retired teachers Rich Lipner, 65, and his wife, Dee Harris, 61, moved from Berkeley, California, to Boquete, where in 2003 they bought a seven-acre organic coffee farm for $135,000. "Over the past seven years we’ve spent approximately $80,000 to build a new 1,000-square-foot guest house and restore the original 2,000-square-foot house," Lipner says. "We’re living comfortably on our combined Social Security and teachers' retirement. We’ve begun a new and wondrous chapter in our lives."

Oh, about those discounts and benefits we mentioned earlier? They include 20 to 50 percent discounts on air, bus, and train fares, movies, concerts, restaurants, hospital bills, medical consultations, and more. (One older gentleman in Boquete living on Social Security proudly announced he got a 50-cent discount on a McDonald’s hamburger.) As Ruben Blades, the international salsa singer who also served a term as Panama's minister of tourism, once said: "People don’t come to Panama to die. They come here to live."

What to Expect in
Boquete

I need your opinion

Our Valle Escondido Resort marketing staff have developed a new website for promoting package tours of our area of Chiriqui which I believe highlights the diversity of activities and geography of the area very well. I would appreciate any feedback about the site design and content that I may pass onto our department manager Richard Hunt, or you can write him directly by clicking on his name.

I commissioned the fantasy image shown here, which I believe is a fairly good representation of our area with mountains, waterfalls the ocean and islands. I hope it will entice viewers to look deeper into our offerings. Here is a link to the website.

Thanks

Sam

 

Boquete municipal feels the pain of slow construction

An article in La Prensa provides us with some statistical data on construction permits in Boquete which clearly shows that developers and home building has slowed dramatically. Of course the local officials believe it will come back when the U.S. economy comes back. Unfortunately, they know very little about the U.S. economy beyond what they hear on CNN or other main stream press. You would think they would tap in to the know all, see all Panama Investor Blog, written right in their own little town.

IMO, We will not likely see such a real estate frenzy as has taken place here or anywhere for that matter in our lifetimes. They better hunker down and learn to live within their means like the rest of us.

Boquete low in the construction

GONZÁLEZ GONZÁLEZ

  David, Chiriquíeconomia@prensa.com

 The cessation of the residential projects that were under development and no new private investment in Boquete, remain stagnant in the real estate sector, a mainstay of the economy of the Chiriqui district.

  The treasurer of the municipality of Boquete, Ivan Cheva, said he was confident that as the U.S. and Europe will recover from the so-called global crisis, and will reactivate the construction sector, the main income of the budget of this municipality.

  In 2007 the town of Boquete raised $1,475,300.00 , of which $821,900 were for construction permits. In 2008, they received a $1,355,800.00 and only $417 000 were paid by building and rebuilding.

  Last year $987,600.00 came in, while only $230,900.00 in taxes for construction.  

David airport enlargement begins

For those of us in the Province of Chiriqui, the enlargement of our provincial airport is big news. This $27 million expansion will allow direct international flights and through flights from Tocumen in Panama city. This will not only open up our province to more tourism, it will help drive down the costs of travel between Panama City and David.

Airport Groundbreaking

Terminal aérea de David. Air Terminal David. LA PRENSA/David Mesa 1388383 LA PRENSA / David Mesa 1388383

teófilo gonzález Teofilo Gonzalez
david, chiriquí David, Chiriqui
nacionales@prensa.com nacionales@prensa.com

  The first stone of the extension of Enrique Malek International Airport in the city of David will begin Wednesday morning by the President, Ricardo Martinelli.

  The project awarded through competitive bidding to the company Riva Argentina SA was rated at 27 million 478 000 $ 845 and it includes the extension of the runway, two thousand one hundred meters up to two thousand six hundred meters and the construction of new buildings in this terminal.

  Sources of the Civil Aviation Authority (CAA) indicated that the extension of Enrique Malek and other air terminals inside the country will increase the quality and capacity of air transport services, both freight and passengers.

Although during World War II ships were operating with greater weight and size, eventually Enrique Malek Airport will receive 737, whose capacity is 300 passengers.  For commercial flights that take place between David, Panama, Bocas del Toro and San Jose, Costa Rica using smaller aircraft capable of carrying up to 60 passengers.

  Enrique Malek operations continue without interruption for 18 or 20 months to delay the enlargement of the main runway, for which it has an auxiliary runway.

  Last year he performed at the Enrique Malek airport a monthly average of 500 operations (takeoffs and landings), mostly between the cities of Panama, David and Isla Colon (Bocas del Toro).

The Enrique Malek Airport expansion is one of the 10 priorities demanded by the business sector in the province of Chiriqui, which has considered the possibility that this air terminal is used for agricultural exports.

“I Lowered My Blood Pressure by 20 Points in Boquete, Panama”

I usually don't run pieces like this one but... it is about one of our Valle Escondido residents and it       promotes the area and my development. It is true that most people feel a relief of pressure when they move to this part of the country, unless of course they decide to become a developer. Photo of our chapel.

From International Living

This must be the best view in the country. It’s in Boquete, where the green hills inspire artistic tendencies in even the most mundane-minded. Rainbow-rows of flowers line neat footpaths and dress up the little cottages that hide behind them.

Richard Detrich, who has lived in this area for more than five years, says he and his wife, Nikki, got healthier just by moving here. The aesthetic appeal may have helped, he says, but there is so much more to it…

“In Boquete, we have what might be the world’s most perfect climate,” he says. “Lows are around 60° F in the morning and afternoon temperatures rarely reach 80° F. The misty rain called bajareque keeps everything green and makes it a cinch to grow just about anything.”

Richard says his produce is all locally grown. Locavores will tell you that food grown or produced locally is more nutritious and tastes better. If that’s true, then Richard has it made.

“We get everything fresh daily at the farmer’s market,” he says, “from the farmer who picked it in the morning.” And it’s affordable, too: “We buy ahi-grade tuna, freshly caught, for $3 a pound (back home we paid $30), and large shrimp for $6 a pound.”

No Rat Race Here

Richard and Nikki moved to Boquete when he was 62 and she was 57. “Before that we lived in California…one of the most expensive states in the U.S.,” says Richard. Life on the “gold coast” in California’s Ventura/Santa Barbara area was good, but it was also hectic, stress-filled and expensive.

Richard says he enjoys a much better quality of life in Boquete. Family values are deeply ingrained in his new community. Parents walk their kids to and from school, and families spend Sundays together. “It’s a lot like the U.S. was back in the 1950s, when I was a kid. As they say around here, life is tranquilo…peaceful.”

He also has more friends than ever…in fact, his children can’t believe how social he has become. “And you can see the stars at night,” he says. “There really is a Milky Way, folks, and it is bright and sparkly.”

His kids love to visit because Richard’s new home is close to some of the world’s best beaches. The turquoise-ringed islands of the Panama Caribbean and the powdery sands of the Pacific coast are close enough for day tripping.

Richard’s home offers lush valley views near a crystal-blue brook. It also overlooks the 9th hole and 7th fairway in Valle Escondido, the area’s top gated community. In addition to the 9-hole golf course, the community houses a state-of-the-art spa and health club. Here, Richard and Nikki have access to high-speed Internet, satellite television, gourmet food…all the comforts of home, but at a fraction of the price.

When they first moved to Boquete, their cost of living was 30% of what it had been in California. Since Panama’s currency is the U.S. dollar, the cost of living has increased as the dollar has devalued and the price of oil has soared. “Even so,” says Richard, “our cost of living is still just 40% of what it used to be…and remember, cost of living in the U.S. has gone up, too.”

“But a low cost of living isn’t our reason for staying,” he says. “Again, it’s the quality of life we have here. The benefits are many.” Like the fact that there’s little more than petty theft in the way of crime. “Violent crime and gangs are practically unheard of,” he says.

Relaxed, But Not Retired…

And though Richard’s life is more relaxing than ever, he doesn’t live “like a retiree,” as he puts it. “We’ve kept busy. Since moving here we have purchased a tiny place on the Pacific coast and—our latest venture—a small coffee farm.”

Richard and his wife have both developed new interests. She joined a community theater group and helps out at a hospice and at local spay/neuter clinics. Richard is an avid writer, real estate professional, and cruise-ship lecturer.

“Both my wife and I had high blood pressure in the States. After we moved to Boquete, both of our blood pressures dropped at least 20 points…without our changing any of our eating or exercise habits.” Just living the good life in Boquete seems to have made all the difference.

$117 million for a four lane road to Boquete

They say you should not look a gift horse in the mouth, but I cannot help but ponder at the great amount of expenditures going into infrastructure in our area and who will end up paying for it. We have,  I believe, $27 million going into the airport in David and now a new four lane road from David to Boquete scheduled to cost $117 million. If It were a private enterprise that had to justify and pay for this road I wonder if it would have ever seen the light of day. The distance covered is about 45 miles which makes it a bit over $2 million a mile which is pretty pricey IMO. Of course there are three or four bridges that have to be constructed which greatly add to the cost, but the real question in my mind is just how necessary is this road and are there other alternatives that could alleviate the perceived problem of traffic.

I use this road regularly and can attest to the fact that traffic has increased dramatically over the last 10 years. There are many more construction vehicles each morning and afternoon along with public transport bringing workers to and from David and other small towns along the route. The morning has a number of school buses and some additional drivers who drive the distance to live in the cool weather. Most expats living in the area will wait for the heavy traffic to dissipate before venturing out. They don't really have any schedules to meet.

To my knowledge there was no traffic pattern study done to see what and where are the specific problems, but keen observation shows that several simple and low cost measures could make a dramatic difference in the traffic flow without spending $117 million and making the next two years of travel even more of a nightmare.

The first thing would be to build passing lanes at crucial areas of the road such as hills and curves where truck traffic always bogs down. Next on my list would be many new bus stops with 100 meter turn out lanes. Currently the buses stop in the road backing up traffic. Lighting, road signs and reflectors would all help improve safety and traffic flow. And of course maintenance of the existing road so that traffic would not be avoiding potholes at 100 kmh. These measure could be implemented quickly and at relatively low costs and would not disrupt traffic for the next two years.

In addition I would really like to see a passenger train from David to Boquete and on to Bocas Del Toro. This would solve a lot of the problems and bring in much needed tourism as well at a fraction of the cost of a four lane highway.

The fact is that this road is probably as much political importance as it is really wanted or needed. The funds have been allocated and apparently the contractors have been hired. I met one of the partners in the company that won the bid at the airport last week and they assured me the road would be built in 18 months and last many years.

If money is to be wasted I am happy they are wasting here rather than other places, but the capitalist in me still must speak out when I see what I consider to be waste of taxpayers money.

Geisha Coffee breaks records

Boquete continues to lead the world in the best and most expensive coffee. This last week a new record was set for the most expensive coffee.

La Prensa

Geisha Coffee 'Esmeralda Special' surpassed his own record and established global brand to the pound quoted at 170.20 dollars. Geisha Coffee 'Esmeralda Special' SURPASS own historical record and to the Established global brand pound quoted at 170.20 dollars.

Aet Elisa Tejera C. Aet Elisa Tejera C.
Flor Bocharel Flor Bocharel
economia@prensa.com economia@prensa.com

The "Esmeralda Special" Geisha variety re-heat the coffee market yesterday by breaking the world record in sales to 170.20 quoted in dollars per pound, the online auction "Best of Panama 2010." The "Esmeralda Special" Variety Geisha re-heat the coffee market yesterday by breaking the world record in sales to 170.20 quoted in dollars per pound, the online auction "Best of Panama 2010."

Japanese Coffee House Sazae purchased eight bags of 50 pounds of coffee worth $ 80 68 000. Japanese Coffee House Sazae Purchased eight bags of 50 pounds of coffee worth $ 80 68 000.

Panamanian Geisha Coffee has six consecutive years of winning first place of the auction is harvested and processed at Finca La Esmeralda, located in Boquete, Chiriqui. Panamanian Geisha Coffee has six Consecutive years of winning first place of the auction is harvested and processed at Finca La Esmeralda, Located in Boquete, Chiriqui.

"Achieving a world record price at us very proud, because this victory brings to Panama on the map of the best coffees in the world," said Rachel Peterson, owner of Hacienda La Esmeralda. "Achieving a world record price at us very proud, Because this victory Brings to Panama on the map of the best coffees in the world," said Rachel Peterson, owner of Hacienda La Esmeralda.

"With this we tell the world that we have a coffee with great attributes," said the producer. "With this we tell the world That We Have a coffee with great attributes," said the producer.

In the online auction which lasted two hours 20 lots traded of the best varieties of the country and involving purchasers from Japan, Korea, Sweden and the United States. In the online auction Which Lasted two hours 20 of the best lots Traded VARIETIES OF INVOLVING Purchasers the country and from Japan, Korea, Sweden and the United States.

The total turnover for the 20 lots was $ 190 148 000 and the average auction price was 12 dollars and 45/100. The total turnover for the 20 lots Was $ 190,148,000 and the average auction price Was 12 dollars and 45/100.

Richard Koyna, president of the Specialty Coffee Association of Panama, said the aim of the auction is to sell small lots, but at high prices. Richard Koyna, president of the Specialty Coffee Association of Panama, said the AIM of the auction is to sell small lots, But at high prices.

Hydro Power Versus River Rafting

River rafting has been a part of the Boquete Chiriqui experience well before I arrived here in 1997. I have made several rafting trips down the less active parts of the Chiriqui Veijo with my family and it was an inspiring journey. Several companies operate rafting adventures in Boquete and by and large they bring a great deal of tourism to our community.

Now these businesses and the adventure tourism that has sprung up around it are in jeopardy. The Chiriqui Viejo river than runs near the border of Costa RIca is now being harnessed for hydro electric power which includes damming the river in a number of places to extract the valuable energy it contains. Panama is hungry for new sources of energy and hydro, which makes up a majority of our energy in Panama, is continuing to grow in leaps and bounds. Unfortunately, like most modernization and "progress" some very good things take a back seat or are eliminated entirely by the advances. In the case of Boquete's river rafting, the hydr'os will eliminate any water passing through the river in areas that are considered some of the finest rafting experiences in the world.

Is there a solution or a compromise that could be found to allow river rafting to continue while much needed energy is derived from the river? In a number of similar situations around the globe, governments and private enterprise have found it beneficial to release sufficient water for several hours each morning which allows for river rafting and the tourism it brings to flourish without the hydro's losing much in the way of revenue. Lets hope that Panama's leadership will consider this matter seriously before the switch is thrown and Panama's only river rafting industry has its lights put out.