Panama’s Economic Activity Is Up Nearly 7% In June Versus Same Period Last Year

Panama’s government is reporting that economic activity has increased 6.96% this past June in comparison to the same period last year. Panama’s economy still appears to be staying strong, despite the sinking dollar and turmoil hitting the markets in the United States and Europe. It will be particularly interesting to see if the trend continues as numbers continue to come out for the later summer months, when increasing gas prices and uncertainty in the finance industry put pressure on the United States economy.

Source:
Panama June economic activity up 6.96% vs year ago (Economictimes.indiatimes.com)

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An Interview With Blogger Sylvain Duford On Building A House In Panama

I recently had the opportunity to interview Sylvain Duford, who is currently building a house in Altos del Maria, Panama, and is chronicling his adventure in his blog,Sylvain’s Panama Adventure. According to his blog, Mr. Duford is a former Canadian Airforce pilot, and is currently a software engineer. He began writing about his experiences building a house in Panama on his blog in February of 2007.

PREI: Why did you choose Panama as a location to build a second home, and how did you decide on the specific region or location?

SD: We heard about from a friend who bought a lot in Bocas del Toro and after researching it, we found out that the combination of infrastructure, health care, safety, low cost of living, climate and favourable tax treatment was pretty much unbeatable. We like to live in the country and we don’t like heat, so building in the mountains made sense for us. Additionally, Altos del Maria is safe, 30 minutes from Gorgona beach, and 1.5 hour from the city, so it was a great combination for us.

PREI: What made you decide on building the home yourself, rather than investing in an existing piece of real estate in Panama?

SD: We didn’t find anything we really liked, plus we had some ideas about our very own piece of tropical paradise.

PREI: As your home is still under construction, what have been the most difficult obstacles in planning and building your home as of yet? What have been the most rewarding aspects?

SD: Finding and selecting a trustworthy architect and a builder were the most stressful and difficult aspects. You pretty much have to go with someone that has a proven track record and is recommended by one or more persons you trust. Building in any country is a lot of work and trouble and you pretty much have to be there all the time. Doing so in a far-away third-world country makes it even more challenging since we can’t be there all the time. Luckily we found a trusted third party to watch over the construction for us. Seeing our embryonic ideas become a sophisticated design and then slowly become reality has been very rewarding.

PREI: Reading your blog I can see that you are interested in the outdoors, and are a self described environmentalist. Have these interests impacted your decisions in undertaking this project as far as location, design, or building materials, etc?

SD: Yes our lot selection and house design have kept in mind the need to minimize our energy consumption and allow us to easily implement green energy and rain-water conservation once we are established there.

PREI: What additional advice would you give to anyone interested in buying or building either a primary residence or second home in Panama?

SD: I would say that you need to arm yourself with a lot of patience and give yourself at least two years for the whole project from lot selection to end of construction. You also need to select the people you work with very carefully and be ready for things to go a lot slower than you expected. But in the end, it’s all worth it.

PREI: Thank you very much for your time, and I wish you luck with your building project!

To read more about Sylvain Duford’s experiences building a home in Panama, please visit his blog.

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Panama City’s Casco Viejo Neighborhood Is “One Of The Hippest Barrios In Latin America,” Says The Guardian

The Casco Viejo neighborhood of Panama City (also called Casco Antiguo) is “one of the hippest barrios in Latin America,” according to a recent article in the Guardian. The article describes the growing popularity of Panama’s capital city as one of the fastest growing tourist destinations in Latin America. Once a stopping off point for tourists visiting the Panama Canal, Panama City is now becoming a base for tourists due to its bustling nightlife, close proximity to both Pacific and Caribbean beaches, and access to unique tropical ecosystems teeming with biodiversity. Panama is also gaining a reputation as a cultural center in Latin America, particularly in the realm of music. Local bands have begun to receive more regional attention throughout Latin America, in addition to a thriving jazz scene in and around Panama City.

This article highlights many of the strengths in Panama’s growing tourism economy. Given the level of media attention the country is receiving in the United Kingdom, due in part because of the scandalous ‘canoe man’ incident, and the upcoming James Bond film, it is likely that tourism from the United Kingdom and Europe will likely increase. Given Panama’s currency’s ties to the dollar, it is almost certain that the country will increasingly gain attention from European travelers for the foreseeable future (or until the euro and the pound begin to lose value to the dollar).

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IFC Considering $500 Million Loan To Support Canal Expansion

The International Finance Corporation (IFC) is considering offering a $500 million loan to help Panama finance the current canal expansion. The project, which includes adding a third set of locks to the canal, has a current estimated price tag of over $5 billion. The expansion will allow larger ships to pass through the aging American built canal. The canal is a major component of Panama’s economy, directly and indirectly accounting for nearly 19% of the country’s GDP, and 41.2% of its export volume.

The IFC, a member of the World Bank Group, is primarily responsible for providing loans to major private sector projects in developing nations. The group predicts that the Panama Canal expansion will boost Panama’s real GDP by 0.6 – 0.8% at its completion. The IFC’s board of directors is expected to review the loan proposal as early as October this year.

Source:
IFC Mulls $500 Loan For Canal Expansion (Nasdaq.com)

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Panama Enacts New Immigration Regulations

Panama has amended several immigration regulations that impact real estate investors in Panama, according to the My Panama Lawyer Blog. Some of the laws changed include the length of stay allowed for tourists, regulations on foreign workers, changes in the minimum investments for forestry and other visas, and an increase in the required minimum income for the pensionado program.

Here is a selection of some of the changes, which will be effective starting  August 25th, 2008:

-Tourists may remain in the country only for 90 days, with only those with an original period under 90 days being able to ask for an extension to complete the 90 days when justified (Art. 21),

-Forestry temporary visa minimum investment is raised to US$60,000, up from US$40,000, with an additional requirement of 10 hectares purchased (Art. 100),

-Forestry permanent visa minimum investment is doubled to US$80,000, with an additional requirement of 20 hectares purchased (Art. 180),

-Self-solvency investor visa minimum investment is increased to US$300,000, up from US$200,000 left in Panama bank account for 3 years (Art. 192).

-Self-solvency investor visa minimum investment alternatives include also real estate for which at least US$300,000 is paid for, free of mortgage (Art. 193) or a mixture of a 3-year deposit and mortgage-free real estate up to a combined minimum of US$300,000 (Art. 194),

-Self-solvency investor visa real estate may be held under a Private Foundation which founder or beneficiary is the applicant,

-Pensionado minimum income is raised to US$1,000, up from US$500, or a mixture of US$100,000 in directly-held Panama real estate (Art. 200 – it does not specify if the property is free of mortgage),

To read more of the important changes in the immigration regulations, read My Panama Lawyers full post here, or download the full documents in Spanish here and here (yahoo ID required).

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Irving Saladino Wins First Olympic Gold For Panama; New Sports Complex To Be Named In His Honor

Congratulations to Irving Saladino, who took first place in the men’s long jump on August 18th at this year’s Beijing Olympics, bringing home Panama’s first gold medal in Olympic history. The gold is the first medal awarded to a Panamanian athlete since Lloyd LaBeach took home two bronze medals in the 100 and 200 meter races during the 1948 London Olympics.

Panama President Martin Torrijos commended the athlete calling Saladino “an example of success and perseverance for all Panamanians.” The president also said that a new sports complex constructed in Panama will be named in the athletes honor. The complex will include a new football stadium, a gymnasium, a hall of fame, and will be completed in 2009.

Source:
Panama honours its gold (Edmontonsun.com)

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Tourism On The Rise In Panama, Says Seattle Times

Panama’s tourism industry brings in $1.5 billion in revenue per year, more than earned from the tolls at the Panama Canal, according to a recent article in the Seattle Times. Panama’s government, through the official tourism ministry – IPAT, have sought to increase the country’s visibility by promoting the recent “Panama – It Never Leaves You” advertising campaign. The article discusses major tourism destinations in Panama, including Isla Parida, David, Boquete, and Bocas del Toro.

The article also described the rapid pace at which growth and development have been occurring in parts of Panama. A local from Isla Parida, an island ten miles off the coast from David in southwestern Panama, describes his current frustration have sold his property over a decade ago when surrounding land was converted into a national park, not knowing the value the property would be holding today.

The author goes on to describe his experience Boquete, in Chiriqui Province:

Nowhere is the investment as intimate as in the lush foothills of the 11,397-foot Baru volcano, where Americans retire in mass to the town of Boquete. Signs on the edge of town promote Coldwell Banker, Kohler sinks and the Hacienda Los Molinos, which promises, in English, “A Fabulous Lifestyle in Boquete… Later, [we] drive the road east from Boquete and pass parked bulldozers, cleared hillsides and billboards promising more.

I thought the article was interesting, and shows the wealth of opportunities that Panama offers to international tourists. Panama is uniquely positioned as a crossroads of business and culture, as well as an ecological crossroads between two continents. This diversity will help to continue to diversify and help bolster Panama’s already robust tourism industry.

Source:

A detour-filled drive across Panama (Seattletimes.com)

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Nikki Beach Resort Scheduled To Open In Panama In March 2009

Located 45 minutes north of Panama City, the Nikki Beach resort is scheduled to open in March of 2008. The Nikki Beach Playa Blanca Resort and Spa complex will include a 140-unit condo-hotel in addition to two other elements, Nikki Beach Residences, which will feature 60 two and three bedroom ocean view apartments, and Nikki Beach Lofts, featuring 68 one and two bedroom ocean view lofts. Nikki Beach, internationally known for its opulent hotels and resorts, recently opened a similar resort in Turks and Caicos, and currently has 15 planned resorts worldwide.

The resort, which is located in Playa Blanca, has seen a recent surge in major international projects and upscale condominiums, including a Hard Rock Hotel opening in the area in the near future. Playa Blanca, Panama was also rated one of the top destinations to visit in 2008 by the New York Times.

Source:
Nikki Beach Playa Blanca Resort & Spa To Open In Panama On March 1 (Hotelinteractive.com)

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English Language News Sources In Panama

For anyone interested in keeping up to date on local news and events, here is a selection of English language newspapers in Panama:

The Panama News: an English language online news magazine with articles written by Eric Jackson. The magazine features a variety of stories on topics that relate to Panama’s economy, culture, lifestyle and natural environment.

The Bocas Breeze: An online magazine with articles in both Spanish and English that discuss news and information relating to Bocas del Toro.

The Bajareque Times: An online news magazine that publishes stories related to the Boquete region in both Spanish and English.

La Prensa: The Republic of Panama’s primary major print and online newspaper. Published only in Spanish, La Prensa can be translated into English (or any other language) using Google Translate.

These are just a sampling of English language news resources for Panama. If any readers have further recommendations, please share!

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Panama Resort Named One Of The Top ‘Clothing Optional’ Destinations In World

A recent Reuter’s article ranked the Garden of Eden Resort in Bocas del Toro the number two ‘clothing optional’ resort destination in the world. The top resort went to a scandalous sounding resort in Mexico called The Au Naturel Club (definitely not beating around the bush with that one). According to the article, the Panama resort is on a pristine island on Panama’s Caribbean coast, and features a laid back atmosphere. The resorts website makes it clear that the property is strictly “adults only,” and offers many opportunities for their adventurous clientele, including snorkeling and kayaking.

While I personally prefer to keep my clothes on in public, apparently there is enough of a demand for these types of resorts to necessitate a top 10 list (although I would hate to know what the worst ‘clothing optional’ resorts are).

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