Panama Investor Blog

Boquete businesses get together to save the community

The newly formed Boquete Business Association met this Friday to discuss the flood and to implement some much needed damage control of a different kind. All of the negative press about the floods in the  Panama highlands have begun to affect all of our businesses. Most people who do not live in Boquete believe wrongly that we have been "wiped off the map" by the recent flooding. Airlines and travel agencies have been advising travelers not to come here and we are starting to receive cancellations for hotel rooms in an otherwise busy season.  We tourism business owners directly employ over 500 local Panamanians  who depend on tourism to pay their bills and feed their families. We thought it a good idea to get some factual information out that more accurately describes the situation and its real affect on the community. Here is a press release we have developed. Please feel free to send this to others who may have an interest. A Spanish version follows.

What’s Up in Boquete?
It’s business as usual in Boquete as the town puts the spotlight
where it belongs: on its beauty and its people

BOQUETE, PANAMA: Boquete was in the spotlight this past week, not for its natural beauty, award-winning coffee and friendly people, but because of the damage caused by the Caldera River. The dramatic footage and photos don’t tell the whole story: Bouquet didn’t experience long-term flooding. The river grew quickly during a short period of time and affected some structures in its immediate vicinity. The fact is, the majority of Boquete, including the downtown, roads, tours and activity businesses and most restaurants and hotels, were untouched.  The people of Boquete and the business community have come together to invite the public to experience Boquete today.  

“It is business as usual in Boquete,” says Charlie Collins, Owner and Executive Chef, Panamonte Inn and Spa. “Of course, it has been a difficult week for the people of Boquete and our hearts go out to the families affected. My family has been in Boquete for three generations and some things never change: the things that Boquete has always been known for—its natural beauty, relaxing environment, fresh air, friendly people and welcoming spirit—were 100% unaffected.”

Earlier in the week, media, websites and blogs were reporting on the situation in Boquete. But the photos and footage was limited to a very small section of Boquete, the rest of the town was untouched. 

“Everybody saw the photos and footage, but it’s important to remember: the story didn’t stop there,” continues Chef Collins. “The Boquete community rallied together to help the people in the areas affected by the river. The speed at which those vulnerable points were fixed was truly amazing. It speaks volumes about the character and spirit of the people in Boquete.” 

‘What’s up in Boquete?’

o    Airport service to David and the main road connecting David to Boquete was unaffected
o    All the main roads and the downtown were untouched
o    Traditional Boquete activities Panamanians have always enjoyed—visiting gardens like Mi Jardin es Su Jardin and El Explorador, stopping for strawberry drinks, enjoying coffee, sharing the beauty with family and loved ones—never stopped
o    Great restaurants and hotels are open for business
o    All the exciting outdoor activities Boquete is known for are still available: hiking, rafting, ziplining, rock-climbing, horseback riding, bird-watching, hot springs and coffee tours

“All of the traditional activities that Panamanian families have enjoyed over the years never stopped,” says Lissette Ameglio, Fresas Café. “The gardens of Mi Jardin es Su Jardin and El Explorador. Stopping for a delicious strawberry batido. Enjoying a fresh brewed cup of coffee. Relaxing with your family. Boquete is the perfect place to do this. Now the sun is out and we want people to experience the beauty of our special town today.”

For more information about what is happening in Boquete, please visit www.boqueteweather.com/flood.htm and Experience Boquete Today! 
For more information, please call: Jessica Real, 6-615-2965

Conflict between government, developers and the "original people"

I found an article by Eric Jackson on his Panama News to be particularly interesting as a clash between civilizations is taking place here in Panama. It involves the indigenous people of the country and their complaints against the government who they believe are not dealing fairly with them on a number of issues. The growth in tourism and development is one area of contention. The government is being accused of wanting to make part of the Indian land a national park and a major hydro electric project and not protecting their land from encroachment by developers.
In this 21st century where we are building city skyscrapers, enlarging airports and grand infrastructure projects, the "original people" are trying to hold on to their culture and lands that they have lived on well before the Spaniards and other races took over. You can go to Eric's Panama News to read this insightful report.

Excerpts: On November 14 and 15 in the Kuna Yala village of Mandi Ubgigandu almost all of Panama's top indigenous leaders met for an unprecedented summit.

The gathering denounced the creation of national parks and protected areas that encompass or encroach upon indigenous lands --- it's not that they're against environmental protection or ecotourist activities, but they do object to the national government asserting control over indigenous territory in this fashion.

A resolution was passed that called for reform of the national government's agencies that deal specifically with indigenous affairs; and for the reorganization, renovation and democratization of COONAPIP, an organization that was created by indigenous leaders but has since become a political patronage appendage of national governments.

"The Original People currently live under threat, trampled upon, violated and as victims of every sort of imposition by the National Government," the summit concluded. It officially backed the complaints of Panamanian indigenous communities that are now pending before the Inter-American Human Rights Commission.

read the whole story

Panama ranks no.8 in LatAm murder rate for youth

In this ranking Panama would rather be in last place, but unfortunately they are in the middle of the pack of 16 countries rated by World Health Organization for young people between the ages of 15 and 24 who are victims of murder. In a recent report titled “A Map of Violence on Young People in Latin America,” the likelihood of a young person in Latin America being the victim of a murder was 30 times greater than a person living in Europe. You can read the complete report here www.ritla.net. Glad I am over 50 as the statistics show we are not the targets.

Ministry cancels 65 public works contracts

I understand the challenges the MOP has to deal with when it comes to contractors, especially for major works such as roads and bridges. There have been a number of projects  canceled during the construction process due to failure on the part of the contractor.

Adriano Ferrer, head of the ministry's Department of Inspections, said the canceled contracts are for works in various parts of the country and they have levied fines amounting to about $400,000 against companies that failed to finish projects or used materials that were not adequate.

The official said this action is considered a last resort by the ministry, after all other attempts to rectify the situation have failed.

The ministry requires companies to post performance bonds to ensure that the work will meet the contract specifications.

Floods boost hydro power production

One silver lining is the hydro's have been replenished and electricity costs may come down according to this article from La Prensa.

Excerpts from La Prensa;

Recent heavy rains may have caused devastation in the Chiriquí and Bocas del Toro provinces, but the swollen rivers are a boon for the generation of hydroelectric energy throughout the region.

In fact, upward of 80 percent of all energy consumed in the country Tuesday was derived from hydroelectric plants, according to a report by the Empresa de Transmisión Eléctrica, S.A. (Etesa). The remaining 20 percent originated from thermal power and other sources.

“In the midst of the disaster, there is positive news concerning electricity rates,” said the Etesa Manager Isaac Castillo, who explained that abundant rainfall had caused the market price of energy to oscillate yesterday between $50 per megawatt when demand was low and $118 during peak use hours. Available capacity of the grid was 1,291 megawatts, with peak demand reaching 943 megawatts. Earlier this year, in May, energy prices spiked to $875 per megawatt.

Experts cautioned that the savings generated by all of that excess water won’t show up immediately on electricity bills. It is, however, an important factor in calculating energy rates for the first half of next year, said Víctor Urrutia, administrator of the National Authority for Public Services.

Boquete flood update with photos

Wednesday we saw the sun for the first time in about a week. Some brave golfers were out on the course trying to get in some much overdue practice. The schools open again tomorrow and we will once again be getting up at 5:30am to get the boys off for their last week of school before summer vacation. Although things appear to be getting back to normal in Boquete, what we hear about Bocas Del Toro to Colon on the Caribbean side of the mountain range is not good. The only road across the mountain range has been shut down now for days and the bridge at Sixola to Costa Rica is out. The only access is by air or sea and the storm is making it extremely difficult for either of these options. They are apparently without full electric and what they do have is dependent on diesel which is in short supply. Food must be running low without the regular trucks from David that deliver to the hundreds of small supers scattered around the area. The storm seems to be hitting them especially hard with high tides and flooding on several islands as well as the flat lands along the coast. The area just on the Caribbean side of the mountain range from Boquete has been getting most of the rain and flooding has displaced many people there. As usual it is the indigenous people who suffer the most. Our hearts and help go out to all who are still suffering this disaster.

I have read several articles about our area of Boquete that have greatly exaggerated the damage and number of those left homeless. The many calls and emails I receive are from concerned folks who believe that Boquete must be washed away to the sea. I was at the school shelter last night and there were 114 people not the thousands I have seen reported. The number of homes washed away are in the several dozen and not hundreds and they were all right next to the river. The head of the Ministry of public works (Ben Colamarco) was here today and was assessing the damage and directing the heavy equipment that had already begun work in the river to get it back into its regular channel. The town of Boquete was spared except for a few homes that were right along the river edge to the north of the new bridge. That bridge is in fine condition and I crossed it today.

 The real damage was on the east side of the river where it ran through the fair grounds.  I was surprised to see homes on that side still standing and people living in them. A few small fair building's were taken by the river, but most were still standing. The mayor says there will still be a fair in January as is customary for Boquete.

The new Ladera hotel is on that east side and is severely damaged around the foundation. I don't know if it can be saved or not. There is about 300 meters of road that was destroyed in front of the hotel that needs to be rebuilt quickly in order to access three small hotels and the many residents on that side of the river (Jaramillo). Further down the road the Palo Alto restaurant was pretty much destroyed and the 6 room B&B owned by the Collins was also damaged. There was no damage to the Paradise garden inn, the Boquete garden inn, Oasis near the fair grounds and Hotel Los Establos. I visited all of them today and they are just needing easy access. The bridge in Los Naranjos is now open so everyone is able to get to town easily.

 I would imagine that within a week or so things will quickly get back to normal and most signs of the flood will be confined to the bridges and roads in some areas. Lets pray for those in Bocas del Toro, Cera Punta, Colon  and other affected areas that have not been nearly so lucky.

You can see the latest photos by clicking here.

Canal administrator receives well deserved accolades

Although you will read commentary from me questioning the economic viability of the canal expansion, the one thing we all agree on is the effective management of the exsiting canal since the handover to Panamanian management. Under the leadership of Administrator/CEO

Alberto Aleman Zubieta they have been very efficient and effective in running the canal. Now Mr. Zubieta has received a well deserved award for Excellence in business practice and management. Congratulations to you sir!
Read more about the award here.

Let the good times roll!

As pointed out in this article from Reuters, Panama's economic numbers are driven by construction, real estate and hotels. The tourism authority claims that a significant number of tourists are coming from Europe which is driving the high occupancy rates. But will it continue?

Excerpt; Panama's economic activity increased by 8.24 percent in September compared with the same month a year earlier, the government said on Monday.
The comptroller general's office said construction, real estate and hotel and restaurant sectors all surged in the first nine months of the year. Read the article on Reuters.

Boquete's 30 year flood

It has been drizzling in Valle Escondido for 5 solid days and raining hard above us on the continental divide for almost a week. Today we received a call from the civil protection agnecy (Sinaproc) asking for help with food and blankets for the many people who have been displaced by flooding. I grabbed my camera and my youngest son  and we headed out of the valley to see just how bad things have gotten. The Que Brada Grande that runs through our valley was only about 6 inches above normal, but 2 minutes latter as I reached the Caldera river that runs right through the center of Boquete, it was a roaring brown mass of water, mud and boulders. I headed up to the Panamonte Hotel to see if the river had reached the road way of the bridge and found there was no bridge. We went to the Church in town where my son goes to school and looked out the back to see the fair grounds on the other side of the river under water and the many buildings being swept down the river. We headed further into town to find the civil patrol office near the bridge that crosses to the fairgrounds with a large crowd gathered in the rain, looking toward the bridge. The bridge was blocked by trucks and police to keep people from getting on it. We drove further down the road through town to find the river was now above the road. Cars had stopped and an American told me his apartment was on the other side and under water.
Next stop was the visitors center above town. There must have been a hundred cars there as everyone wanted to see the river and the town from there. The river had swollen to two or three times it normal size and was inundating the entire area.
It was already dark so we headed back home and we went to bed wondering just how bad this was going to get. When I awoke about 6 am I headed right out with my camera to get an assessment of the damage. Rather than more written details I will let these photos speak for themselves. A number of people have lost their homes or businesses from this disaster. We are thankful that there has been no reports of deaths or injuries in Boquete.
You can go here to see the satellite weather map on Lloyd Cripe's Weather website which shows a stalled low pressure area directly over Panama and most of Central America along with some photos people have sent in to him of the flood damage. You can go here to see the photo album to see my photos of the damage to the Boquete area.

Crisis in paradise: Meltdown leaves ghost resorts in Caribbean

This story from the Miami Herald shows just how bad things have gotten for both developers and resort operators in the Caribbean.

Excerpt:

Hundreds of luxury villas are positioned to take in the view, but there are no guests. There are no roofs either; neatly tied bundles of red tiles are stacked outside. The wind slams doors and rustles the yellowed newspaper taped to the windows.

The paralyzed work scene at the Cap Cana resort, a development including four luxury hotels, three golf courses and a mega-yacht marina, is a victim of the global financial crisis that has hit the Caribbean's tourism industry especially hard.

Construction is also paralyzed at the Ritz-Carlton Molasses Reef resort in secluded West Caicos, where 60 Chinese workers revolted last month to demand back wages. About 160 workers have been sent home to China, and it's unclear when construction will resume at the hotel, marina and condominium project, which is three-quarters complete.

This month, the sprawling Atlantis resort in the Bahamas laid off about 800 workers, citing low occupancy rates. Baha Mar Resorts Ltd. laid off about 40 employees at its Sheraton Resort in the Bahamas and 40 more at the Wyndham Nassau Resort. The Bahamas Hotel Catering and Allied Workers Union has called a demonstration Thursday to demand government aid.

"I've been in the business 38 years. I have seen the impact of the Gulf War. I have seen the recession of the '80s. Certainly Sept. 11," said Robert Sands, senior vice president of external affairs at Baha Mar. "But nothing has been of a global nature, which makes the current financial situation we're in much more worrisome."

Read the whole story at Miami Herald