Panama is making a concerted effort to cater to retiring baby boomers. At a February 2008 conference in Panama entitled Panama and the Global Economy, experts discussed bonds, the expansion of the Canal and the inflow of foreign investments for which the country is preparing. Is it time to hop on the bandwagon?
Panama is perched for the business of the nearly 70 million baby boomers that are in the process of retiring, relocating and reinvesting. Baby boomers are a unique population in that they typically require less infrastructure, in terms of school or community organizations, and can thrive in a tourism-centered economy that supports condos, luxury hotels and shopping.
Panama’s efforts in reaching baby boomers have already seen results. According to statistics from the Cámara Panameña de la Construcción (Capac), foreigners took out 850 mortgages in the first six months of 2007, 32 percent more than during the same period in 2006. Although these figures don’t give a complete picture of home buying by foreigners in Panama (many paid in full for the properties they acquired), they do suggest they are having a significant impact on the real estate market of Panama.
In January of 2006 NPR featured a program on boomer retirees in Panama highlighting their spending habits and media-savvy. With pensions dwindling, most boomers are facing the reality of a working through retirement. Many will do this from home, through travel, or ownership of their own small business. This means that connectivity and mobility are a top priority for countries looking to cater to boomers. Proximity to wireless cafes and web access can be as necessary to baby boomer investors as airports and road infrastructure. Panama is clearly focused on meeting these connectivity necessities.
To woo baby boomers, Panama has been focusing not only on the low cost of living but also their robust health infastructure. Health care access is easy and affordable. Many boomers are able to live without health insurance and easily cover all their treatment and prescriptions out-of-pocket. In addition, Panama offers many tax breaks for retiring expatriates.
Eco-tourism is another industry that makes Panama an attractive destination for tourists, baby boomers and investors. Lodges such as Punta Caracol Aqua Lodge on the Northern Coast exemplify the potential of green tourism in Panama. The lodge was built using natural materials and utilizes solar energy. Investments in green tourism and sustainable development are a key part of Panama’s overall growth strategy for reaching the well-informed (and energy conscious) retiree population.
By focusing on ease, quality of life, cost of living and accessibility to modern convenience, Panama is making an aggressive bid for the attention of U.S. baby boomers. Investors should take notice and invest accordingly. Every day more and more baby boomers are reaching retirement age.
Panama Real Estate Investment 