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Incentives for Hostels Fall Out of Favor in Panama

Article Summary:

Incentives will be discontinued for the installation of hostels in the Panama City, which have grown in areas classified as residential.

Photo Credit: Panama America

Original Article Text From Panama America via Google Translate :

Hostels In Exclusive Areas

With the arrival of more than two million annual tourists, business opportunities and the emergence of many short-stay accommodation (hostels) is more evident, especially in areas that historically were classified as areas of exclusive residences.

San Francisco, El Cangrejo , Via Argentina and the Banking did not escape the wave of the flights, despite the increasing number of hotel projects that annually open their doors in the country.

Although the hotel industry believes that hostels are not unfair competition, authorities warned that “health” of this industry is regulated the appearance of new flights, specifically in Panama City. The minister of Tourism, Solomon Shamah, confirmed that “there will continue encouraging industry hostels in Panama City . ”

Shamah, who recognized the benefits of this type of business, especially for low-income tourists, recalled that already in the capital city there are many hostels.

Sarah Brown, executive director of the Panamanian Association of Hotels (APATEL) warned that, although the hostels offer lower rates to the tourists, do not guarantee safety, care and services to them, as do the hotels.

Pardo said that so long as these premises comply with the requirements called for by not are reflected as unfair competition, in turn, Shamah exemplified the cost difference by saying that there are hostels that charge $ 15, as opposed to a hotel for the same time costs $ 100.

Throughout the country there are 180 flights, of which 61 are in Panama City, 45 in Chiriqui, Bocas del Toro 22 in, 14 in Cocle, 14 in Los Santos, 12 in Columbus, nine in Veraguas and the rest in Darien and Herrera, according to data provided by the Tourism Authority Panama (ATP). corresponds to the ATP grant permissions for flights, and the same are given to people or families with homes that have a minimum of three bedrooms and up to nine rooms for guest use, restrooms, an area reception, living room, phone available to guests and rooms with adequate ventilation.

hostels activity is regulated by Act 8 of 14 July 1994, amended by Decree Law 4 of 10 February 1998, by which are regulated tourism activities in the country.

Link to Original Article:

From Panama America

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