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Not a Good Time to Open a Hotel in Panama: More Hotels, Fewer Tourists

Article Summary:

The average occupancy rate of Panamanian hotels during the first four months of 2012 was 62.6%, 6% lower than in the same months of 2011. As expected, the entry of new hotels created an adverse effect on the occupancy rate. To avoid falling occupancy rates, analysts pointed out that it was necessary for tourist arrivals to grow above 12% during 2012, but the reality has been different.

Photo Credit: Prensa

Original Article Text From Prensa via Google Translate :

More hotels and fewer tourists

The opening of new hotels and the slowdown in tourist arrivals have impacted hotel occupancy in the capital city.

During the first four months of the year, hotel occupancy in the capital reached 62.6%, down six percentage points when compared to same period last year.

As expected, the entry of new hotels has had an adverse effect on the occupancy rate. To avoid falling analysts pointed out that it was necessary that tourist arrivals grew by above 12% during 2012, but the reality has been different.

In the first four months of the entry of visitors rose 4.3%, with income of 796 thousand 700 tourists.

The hotels under 100 rooms have been most affected. In this segment the occupancy dropped from 61.7% reported in the first quarter of last year to 54.6% in 2012.

Armando Rodriguez, president of the Association of Small Hotels of Panama (Hoppan) estimated that the situation is more critical in the second half of the year, and does not rule it can be a decrease in prices.

The reduction in rates would hurt the hotel, but would benefit consumers.

Though Rodriguez acknowledges that the authorities are allocating the necessary funds to Panama to market abroad, stresses the need to increase the promotion.

Something that generates distortion is that the figures reported by the Tourism Authority of Panama (ATP) may not be reflecting the true situation in the hotel industry.

At least six hotels were in operation and have not submitted their information to the ATP to be included in the database that is used to calculate the occupation.

In 2011 entered the 2 000 062 square rooms, and start construction in 2012 was 3 000 150. Between 2010 and 2014 is estimated to be 12 000 new rooms built in the capital city.

The market is waiting for the impact that the implementation of the Hard Rock Café hotel has 500 rooms thousand.

Link to Original Article:

From Prensa

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