Tourism
Panama passed Law No. 8 of June 14, 1994 - the most modern and comprehensive law for the promotion of tourism investment in Latin America and the Caribbean. Law 8 offers incentives such as 20-year exemptions from import duties, fees for construction materials and equipment, and income, real estate and other taxes.
To date, 35 new hotels and resorts have been built - by some of the world’s largest hotel chains including Marriott, Holiday Inn, Sheraton and the Inter-Continental. Other projects such as ecological and historical tours are also being developed. Despite a rapid increase in tourism investments (above the world average in 2001), this sector is still undeveloped and represents great potential for investors.
Hotels
The hotel supply has significantly increased both in the capital as in the main cities in the countryside. Different hotel chains, such as Miramar Intercontinental, Marriott, Radisson, Decameron, Country Inn, Gamboa Rain Forest Resort and Bristol were built in Panama City and Hotel Meliá Panama Canal in the province of Colon. To these hotels, we add important investments in improvements made by local hotels like El Ejecutivo, Paitilla Inn, Soloy and Hotel Riande Continental.
Also, the hotel supply offering in the main cities of the provinces increased with the opening of new hotels in David, Boquete and Santiago; and with the construction of several small ecological lodges and beach resorts in the Caribbean region (in the sector of Isla Grande and Bocas del Toro). In addition, new maritime transportation companies have been developed, allowing the connection between the local ports of Almirante in Bocas del Toro and Chiriqui Grande.
Tourism Potential
The country has 1,398 tourism attractions currently registered, from which 1,005 representing 71.9% are natural sites and 393 representing 28.1% are cultural and historic expressions.
Panama's Tourism Development Master plan has delimited the National Tourism Space, based on the location and importance of the attractions, achieving the decentralization in nine Tourism Zones, 20 Tourism Centers and other units convenient or apt for tourism development, For this purpose, equipping these nine zones is scheduled to obtain the development of different regions in the countryside.
Cruise Ships
One of the tourism sectors that has experienced a recent growth is cruise ship activity. Panama has developed the proper infrastructure to accommodate this industry, including two ports in the Atlantic side of the Canal and one in the Pacific entrance.
Two (2) brand new cruise passenger terminals have been built on the Atlantic and Pacific entrances of the Panama Canal representing in investment of US$100MM and opening more opportunities for cruises and mega-yachts docking in Panama for services and pleasure.
In the 2003 season, cruise ships with more than 319,026 visited Panama city and Colon, where the passenger terminals are located. The Panama Canal is the No. 1 destination for cruise passengers according to recent surveys.
Shopping for tourists will just get better with the opening in 2003-2004 of three (3) new mega shopping malls at a cost of US$100MM each one.
Additionally, Panama signed an agreement with Florida Caribbean Cruise Association (FCCA) to promote our country as one of the best destinations in the region and as a Cruise Ship hub.
All these efforts have resulted in the recognition of Panama by Porthole Cruise Magazine as "Best Adventure Destination”.
Panama has declared different parts of the country as Special Tourism Zones which are benefited with multiple tax exemptions and tax holidays.
Tax Incentives for Projects in Special Tourism Zones
- Property taxes exemption including land
- Income tax exemption for a period of 15 years
- 20 years exemption from Import taxes including the Sales tax ( 5%)
- 20 Years Income Tax Exemption originated by the interests charged by creditors in the tourism activity investment
- Exemption from liens due to the use of docks or airports built by the company
The Inter Panama can represent you, or find you local partners, or provide consulting in different areas of a project, or raise equity capital, or recommend you to the leading lawyers in Panama.
For more information about Tourism Investment Opportunities, Consulting, Legal or other Services, please contact Inter Panama.
|
