Panama Investor Blog

Medical Tourism expected to explode in Panama

According to this recent article in La Prensa, people coming to Panama for medical and dental treatments of various kinds is growing dramatically and expected to increase due to the state of the U.S. health care system. My contacts in the medical field here in Panama echo these beliefs as they have seen a growing number of North Americans coming for various treatments which are much lower in cost than their home country. A recent trip I made to Costa Rica showed me just how advanced they are in this form of tourism. The small hotel I stayed in had folks sitting around the breakfast table talking about the various treatments they had come to receive. With Panama having a Johns Hopkins affiliated facility along with a number of top quality practitioners, I think that this is one aspect of tourism that can whether just about any economic storm.

Machine translated from La Prensa

XENIA DE LEON
[email protected] [email protected]

  The government anticipates an explosive demand for medical tourism to Panama after the health reform pending in the U.S., according to the five-year plan submitted by the Executive.

  Americans could choose Panama, whereas in other places there is an increase in waiting times for medical procedures and fix denial of claims.

  Ricardo Martinelli administration estimates that the country could reach between 500 thousand and 700 thousand patients each year.

  Current demand is estimated between 65 thousand and 80 thousand patients annually and is expected to increase after the boom in U.S. retirees who seek health services abroad.

 Panama would benefit a rise in the consumption of health services in emerging markets and regional and stress on health systems in North America.

The plan also mentions the recognition of the improved value for money over health in developing markets worldwide.

  A source linked to this economic sector said that the market is growing and is projected to see more foreigners in our country to be treated.  Private health services represent less than 30% of annual expenditure of 1.8 billion on health in Panama, including the expense of regional clinics and nonprofit organizations.

Local tourism operators work to resume flights to Pedasi

Pedasí is a small town situated on the south-eastern tip of the Azuero Peninsula on Panama’s Pacific coast. It is located in the Pedasí District, in the Los Santos province. Over the last few years it has become very popular as a vacation spot and  there have been some development in the area for retirement and vacation homes. One of the major challenges has been access. It is about a 5-6 hour drive from Panama City and flights to the airport had been canceled because of low traffic part of the year. Some of the tourism operators in the area banded together to guaranty the regional airlines a certain volume of seats for each flight. This is exactly the kind of initiative that one must do in order to achieve success. If you haven't already had an opportunity to visit this part of Panama you should do so. It is really beautiful and unspoiled. Click image to enlarge map.

Here is a press release on the flights.

Flights Open To Pedasi, The Jewel of Panama's Azuero Peninsula Pedasi, Panama
-----
The Pedasi business community, in conjunction with the Panama chamber of Commerce and the ATP, has worked together to open an exciting new flight route in Panama.

The drive to Pedasi can take up to 5 hours.  Now, with this 12 passenger flight, tourists, investors and area business people will be able to get to Pedasi in under and hour!

WHEN?
First flight to launch on February 5th, 2010!

FLIGHT SCHEDULE
Flights departing Friday & Monday

12:31pm -- Departs Albrook   
1:26pm -- Arrives Pedasi   

1:41pm -- Departs Pedasi   
2:36pm -- Arrives Albrook  

COST:
Approx $155.50 round trip, depending on gas tax

See more at http://www.aeroperlas.com

Prison island to become tourist attraction

When I think of a prison island the movie Papillon comes to mind with Steve McQueen. The setting was Devil's island off the coast of French Guiana in South America. Panama had its own island penal colony, the infamous Coiba Island a few miles off the coast of the Azueros peninsula. According to Wikipedia:

"Coiba was home to the Coiba Cacique Indians until about 1560, when they were conquered by the Spanish and forced into slavery. A penal colony was built on the island in 1919.

During the years that Panama was under the Dictatorships of Omar Torrijos and Manuel Noriega, the prison on Coiba was a feared place with a reputation for brutal conditions, extreme tortures, executions and political murder. Nobody knows exactly how many people were killed in the prison during this period, but sources claim that the number could be close to three hundred. As such, the island was avoided by locals, and other than the prison, was completely undeveloped.

With that bad bit of Panama history closed in 2004, came some good news. The island would remain undeveloped as a national park, making it a rich ecological wonderland. I have been to the island several times during fishing and diving expeditions. I won't forget my first trip when it was still a penal colony that catered to fishermen with 6 small "hotel" rooms run by the prisoners. The prisoners had the run of the island and the guards would lock themselves up at night. On the way to the island I was told how we would not see any boats or people other than prisoners as they all stayed away from the island due to its reputation. You can imagine our surprise when we rounded the bay into the island and saw a small cruise ship anchored. What was even more surprising were several dozen naked foreigners playing  volleyball on the beach near our 6 room "hotel". When we arrived at the shore the housekeeper/prisoner told us that this ship was a nudist group and they stopped to see the island. The prisoners who ran the "hotel" were embarrassed by the nudity and told us with disgust that these folks didn't even close the door when they went to the bathroom. Fortunately for us they all headed for the ship and sailed away.

The island of over 50 square miles is truly a wonderland of flora and fauna, both on the island and in the sea around it. Only a small amount of the land was used for agriculture during the years as a prison so most is still forested and in its primeval splendor. Now the Tourism authority is considering making the old prison buildings into a tourist attraction. I think that is a great idea as many would probably like to see the place and hear the tales of torture, murder and escape. But the real attraction is the unspoiled beauty and that should be the focus because it is the largest uninhabited island on the pacific coast running from the tip of Chile to Alaska.

Scientists from the Smithsonian Tropical Research Institute have proclaimed Coiba an unparalleled destination for discovering new species. Rachel Collin, a Smithsonian project coordinator said: "It's hard to imagine, while snorkeling around a tropical island that's so close to the United States, that half the animals you see are unknown to science.”

Machine translated from La Prensa

After 90 years as a penal colony, the island of Coiba, in the Pacific province of Veraguas, officially closed on December 29, 2009 its doors as a prison center.

  The National Prison ordered that the last prisoner serving his sentence on this site that will probably never return to host the nation's most dangerous criminals.

Panama ranks 60 in Economic freedom index

You would think Panama would rank higher in economic freedom but no, it is surpassed in central America by both Costa Rica at #54 and El Salvador at #32. What holds it back? The usual culprits of rule of law and corruption along with a number of other issues brought about because of it. We can only hope that Martinelli's recent activities to curb corruption will result in higher marks next year.

Source: The Heritage Foundation

Excerpt from :Central American Data
Friday, January 22, 2010

In Central America, El Salvador leads (32 in the world), followed by Costa Rica (54), Panama (60), Guatemala (83), Nicaragua (98) and Honduras (99). El Salvador and Guatemala climbed positions in the index when compared to 2009, while Costa Rica, Nicaragua, Panama and Honduras fell lower.

In Latin America, Chile was the surprise, as it made it to the top 10 of the world.

According to the Heritage Foundation, who develops the index in association with The Wall Street Journal, "economic freedom is the fundamental right of every human to control his or her own labor and property. In an economically free society, individuals are free to work, produce, consume, and invest in any way they please, with that freedom both protected by the state and unconstrained by the state. In economically free societies, governments allow labor, capital and goods to move freely, and refrain from coercion or constraint of liberty beyond the extent necessary to protect and maintain liberty itself".

Read more at the source article

Two Great Tourism Operators Resources

We are always looking for ways to improve our resort operations through better service and /or cost reductions and here are two stars that have really worked out for us. Last December we brought in an experienced resort manager as a consultant to help us with a number of areas in our resort operations. Jorge Calderon was a big help to us and after a month of heavy lifting we made great strides in many areas. He is also a fellow blogger and shares his insights on resort operations that you may find of value. His latest posts have to do with restaurant recipes and producing consistent and cost effective dishes. You can click here to see his posts and subscribe for free. It is definitely worth your while.

Another great resource we have utilized is Ahden Bush and her company Institute of Customer Service-Panama. As many of us working and living in Panama realize, customer service is a real challenge. Ahden and her team have many years of experience working in this field. They have teamed up with Stephen R. Covey of Seven Habits fame to help Panama get its act together. They provide a number of free services such as training and a great news letter and will do on site assessments and personnel training as well. You can visit her at their website here.

I don't recommend people unless I have personal experience working with them, so you can depend on these folks to deliver what they promised.

One million Panamanians pay Social Security

Although the article in La Prensa is titled "More contribute to Social Security" the administrator of the Caja Social is concerned that the recent wage increases will cause an increase in unemployment and therefore a deterioration of funding for the public fund. With good reason! IMO

Machine translated from La Prensa

The Social Security Fund (CSS) expected to join about 13 thousand new contributors this year to reach a total of one million people who pay workers share.

  The people listed on the social security institution has experienced a rise from a year ago. In 2008 there were 934 thousand 581 contributors, and the figure is estimated at 987 thousand at close of 2009.

  The Executive Director of Economic Benefits and Investment Technical Unit of the CSS, Cesar Garcia, said he looks forward to further boosting the index, reflecting formal new jobs, due to good prospects in such activities as transportation, telecommunications market, the supply of electricity, gas, water and construction.

Highlights of the system

  One factor that has impacted the number of contributors is the inclusion of dependents under age 35 from 2007, something that would have increased by 10% the income of the Fund in 2009.

  The entity has estimated the number of contributors had been higher, but factors such as unemployment and informal employment have reduced the contributions of the insured.

 A Guillermo Puga, chairman of the board of the CSS, is concerned about possible layoffs in the private sector following the increase in the minimum wage and an end to public sector jobs, which is reflected in a decrease in income entity.

GE decides against Panama

Panama may have the geographical advantage for Latin America but from an education point of view it is sadly lacking, which is costing it more than just jobs. GE had seriously looked at Panama for a new logistical center but due to inadequacy of human resources has decided to open in Chile. Canal Expansion. metro's and new airports are all great, but without education of the locals and opening up immigration to teachers from outside the country, it is only show without substance for the people. The job creation by big projects is only temporary during construction and then what? 

Machine translated from La Prensa

The multinational General Electric (GE) ruled out to install in Panama a center for export of software and services to serve its customers worldwide because the lack of qualified personnel in new technologies in the country.

 This project would have required the efforts of  a 1500 engineers and computer scientists who have mastered English.  An application that the Panamanian market could not satisfy.

Panama could not even score a goal with three years to hire and train workers, and reducing by 50% the number of engineers who were fluent in English, and give assurances that the installation would prove successful, GE assured sources of La Prensa.

At the option of Panama, GE also contemplated hiring Costa Rican staff, but the company realized that the number of foreigners employed would be too high, something that does not fit their policies, whicch are more directed toward local recruitment.

  Moreover, it would far exceed the 10% foreign personnel that can be hired by firms established in Panama.

  Since the company pointed out that the decision was taken when the Panamanian government was in transition, they could not negotiate a special labor regime for the project. GE ultimately decided on Chile, one of the options being considered, and last August, GE, UST Global and its partner Chilean officials announced at the Palacio de la Moneda in Santiago the installation of the center.

  ICT Strategy

  Human capital development in information technology and telecommunications (ICT) is one of the priority objectives of the ICT National Strategy in Panama 2008-2018.

The National Secretariat for Science, Technology and Innovation (Senacyt) and the Panamanian Chamber of Information Technology and Telecommunications (CAPATEC) launched the second phase of implementing the strategy.

  This stage, which runs this year, has a budget of 1.2 million dollars, of which 80% (960 thousand dollars) will be provided by Senacyt and 20% by private enterprise.

Canal expansion to become tourist attraction

During the original construction of the Panama canal, tourist flocked to see this incredible undertaking by the boat load. With easy, fast and inexpensive air travel and cruise liners, the construction could  become an attraction again, especially to the engineering minded. Of course back then the engineering feat caught the public's imagination as an incredible undertaking that had been contemplated since the conquistadors first saw the relatively short distance between the seas in the mid 1500"s. Although I doubt if the traveling public would make a special trip to Panama just to see it, the addition of the canal expansion to other Panama itineraries should be a boost.

Machine translated from La Prensa

Two visitor centers are being planned so that tourists can see the progress of the work of enlarging the locks,  the Panama Canal Authority (ACP), confirmed.

  A center will be built in the Atlantic and one in the Pacific, but so far they have not defined where the sites will be located.

  The main market that could be captured and has shown interest, "he added are cruise tourists, with whom already have been some talks.

  Besides the tourist attraction that represents the existing canal, there are high points on the banks of the canal where you can watch the construction of the third set of locks. The ACP has a visitor center, located on the east side of the Miraflores Locks, which allows visitors to observe the transit of boats a few feet away and learn about the various operations of the Canal and the history of its construction, among others.

Air Europa to fly between Spain and Panama

Every new flight into Panama brings more opportunities.  The ATP's focus on direct flights is moving in the right direction IMO.

Machine translated from La Prensa this morning.

The Tourism Authority of Panama (ATP) and the airline Air Europa yesterday signed a partnership agreement which provides for the commencement of flights between Madrid and Panama.

 Of realizing the initiative, the company would operate four flights a week in high season and three down, and operations would start around October of next month, sources with the ATP.

  Speaking to Europa Press, the airline's president, Juan Jose Hidalgo, said his group will bring to Panama and Spain, and expressed his desire to extend the frequency of flights. The route would be operated with A330-200 aircraft with capacity for 299 passengers.

  As confirmed from the ATP, Air Europa has had conversations with Copa Airlines to reach an agreement to distribute passengers on both networks.  This is a key to complete the puzzle, since only one flight between Madrid and Panama might not be enough demand.  Copa has become the key to the arrival of more flights to Panama.

Iberia also recently extended his hand to reach agreements, thus facilitating the Iberia route between Madrid and Panama to avoid the current stop in Guatemala.  Reviewed by La Prensa, FIFA chose not to refer to any agreements with these companies.

Auto sales down 26% from 2008

As 2008 was a banner year for car sales in Panama, it comes as no surprise that the numbers for 2009 are so much lower. As the article in La Prensa points out, in 2009 almost 32,000 vehicles were sold versus just over 41,000 in 2008. With as few roads there are in Panama and little attrition, as they drive till they drop, this is a good thing.

Edith Castillo Duarte
[email protected]

  The car dealerships last year placed 31 thousand 980 new units, a decrease of 26% over 2008, according to the compilation of Automobile Dealers Association of Panama (ADAP). This contraction of edges is somewhat positive: total placed is above 29% of sales from three years ago (31 thousand 83) and is within the range or that has an annual capacity as the Panamanian market, barely 3 million. In 2008 it set a sales record with 43 thousand 239 units, so that 2009, according to what they have highlighted to industry sources, was a year of adjustments.

The Hyundai brand, with 5 thousand 212 cars sold, continues to gain market share, taking third place on the preferences and is the brand that has made minor decrease, only 4%.