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Latin America Investment News on Viva Tropical

Hotel Bubble in Panama?

Article Summary:

The economic and tourism boom in Panama has created an inordinate amount of investment in hotels, which is threatening to lower the occupancy rate to unsustainable levels. The opening of more than 20 hotels has been announced for 2012, adding 6,000 rooms to the current inventory, representing an annual increase of 300% in the hotel supply, while the increase in the number of visitors to the country during 2011 grew by – 13%, which is significant, but is far below what would be needed to keep up the hotel occupancy rate, which currently stands at 66%.

Photo Credit: El Financiero

Original Article Text From El Financiero via Google Translate :

Tourism Calls Fewer Hotels
The arrival of the big chains in the country became more reflective of economic growth and investor confidence.

“Panama’s hot and all the chains want to be here”, highlighting the authorities, but today all this starts to become a headache and a concern for those most responsible for promoting tourism in the country.

In its annual report, and while showing the new hotel projects under construction in the capital, the manager of the Tourism Authority of Panama (ATP), Solomon Shamah, said that while there is an additional supply 349% of the marked tourist arrivals grew by 13%, a figure that would fill with joy to any country, but not to Panama because rampant investor interest has led to an oversupply.

What makes Shaman fear is that the hotel occupancy reaching 66%, is reduced by half and reached 30%. “For better work you are doing the ATP and the private sector, we can not grow tourism by 300%. That is impossible and there are no planes to bring that number of people, “he said.
“If you want to build hotels, do it inside, I, while I’m here, I will not give more incentive in the city, “he said.

Actions to prevent a hotel bubble are radical: to approve a new tourism law to eliminate the capital incentives and accommodations “underground” and accelerate the construction of the new convention center.

And among the first chains of hotels that could lose their right to receive incentive is the Spanish NH, it still has delayed the start of its construction, said the manager of the ATP.

The point that may create more difficulties Shaman has to do with the new law on tourism, as not all agree with the elimination , n of incentives in the capital.

The president of the Chamber of Tourism of Panama (Camtur), Annette Cardenas, Shaman shares the concern and said to be created attractive incentives inside to complement the supply and look for new airlines, mainly from Europe, to increase the volume of visitors.

The private sector leader added that the hotel oversupply is an issue that has been discussed with the authorities and the impact will depend at Co mo is handled the situation.

Link to Original Article:

From El Financiero

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