Its was only a months ago that its was announced that Panama reached the 2 million tourist mark for the year of 2011. Tourism in Panama has been growing at an impressive rate and the word must be spreading because the New York Times just released its list of 45 places to visit in 2012, and who is number 1? You guessed it, Panama. Below is the excerpt that explains why.

1. Panama

Go for the canal. Stay for everything else.

It’s been 12 years since Panama regained control of its canal, and the country’s economy is booming. Cranes stalk the skyline of the capital, Panama City, where high-rises sprout one after the next and immigrants arrive daily from around the world. Among those who have landed en masse in recent years are American expatriates and investors, who have banked on Panamanian real estate by building hotels and buying retirement homes. The passage of the United States-Panama free trade agreement in October is expected to accelerate this international exchange of people and dollars (the countries use the same currency).

Among the notable development projects is the Panama Canal itself, which is in the early stages of a multibillion-dollar expansion. The project will widen and deepen the existing canal and add two locks, doubling the canal’s cargo capacity. For those who want to see the waterway as it was originally designed, now is the time. The expansion is expected to be completed by 2014, the canal’s 100-year anniversary.

Other high-profile projects include the construction of three firsts: The Panamera, the first Waldorf Astoria hotel in Latin America (set to open in June 2012); the Trump Ocean Club, the region’s tallest building, which opened last summer; and Frank Gehry’s first Latin American design, the BioMuseo, a natural history museum scheduled to open in early 2013. Even Panama City’s famously dilapidated historic quarter, Casco Viejo, has been transformed. The neighborhood, a tangle of narrow streets, centuries-old houses and neo-colonial government buildings, was designated a Unesco World Heritage site in 1997 and is now a trendy arts district with galleries, coffeehouses, street musicians and some of the city’s most stylish restaurants and boutique hotels.

Across the isthmus, on Panama’s Caribbean coast, theBocas del Toro archipelago has become a popular stop on the backpacker circuit, with snorkeling and zip lining by day and raucous night life after dark. FREDA MOON

http://travel.nytimes.com/2012/01/08/travel/45-places-to-go-in-2012.html?pagewanted=all

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Thanks largely to Panama’s phenomenal Copa Airlines, Panama is now the most connected country in the Caribbean and in all Latin America- with 59 direct flights from its Tocumen International Airport to 28 countries. The most recent country is Canada with direct  Copa flights to Toronto.

Panama is called the Hub of the America’s and indeed it is in terms of flights. But not only flights- Panama has replaced Miami as the preferred business hub for both meetings and shopping for the Caribbean and Latin America. Panama, whose GNP  grew at nearly 10& in 2011, is  benefiting as the  logistical center of the  faster growing emerging markets economies in the region.

Copa Airlines is building another terminal at Tocumen at the cost of 100 million dollars in anticipation of continuing growth in both Panama and the region. In 2012, Tocumen is expected to have direct flights to 65 destinations and in 2013, 70.

The Free Trade Agreement just passed will be implemented within a year and will attract an estimated 30% increase in American companies setting up in Panama for business.

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Those Amazing Panamanians

November, La Republica, Costa Rica

(Panamainfo Note: Costa Rica is usually very proud of being # 1 in the region, so this article is especially gratifying. This our translation- the article is originally in Spanish  )

Do you remember that advertisement for some brand of cars or electronics that said: “those amazing Japanese”?

The advertisement stressed the idea that the Japanese were capable of doing anything no matter how difficult it seamed.

What the Japanese were years ago—capable of surprising everyone with their abilities in the technological field—is what the Panamanians are today. They are leaving others perplexed by their business acumen and efficiency in carrying out large infrastructural projects in a heartbeat.

It is not necessary to review the miracle of the canal—the shock given to an incredulous world by the ability of a small Latin American country to efficiently and skillfully administer something as important as the Panama Canal.

Nor is it necessary to look at their daring move to expand the canal to accommodate the latest super-tankers, a project that is already well underway and is set to be completed on schedule.

Everyone already knows how they were able to build land on the ocean in order to expand its highways to make the magnificent coastal beltway that brought together the city and air terminals, and facilitated urban transits to newly developed areas. It is also well known how they renovated the Tocumen International Airport and turned it into the best air terminal in the region and the most important and connected transportation hub in Latin American in just one year. We also now about the dizzying speed of the development of Colon as the premier free trade zone of the subcontinent, about the majestic renovation of Casco Viejo and the construction of the Metro in the City of Panama.

Nor are their advances in international tourism unknown, which threaten to displace us as a destination for adventure, beaches, city life, business incentives, etc., nor the number of hotel rooms that thousands of foreigners occupy every year in the City of Panama and in the interior of the republic as second homes, which fuel the contruction industry creating thousands of jobs and millions in revenue for the Canal Treasury.

We are all aware of the magnificent campaign of incentives for conventions that this country now offers which has caused hundreds of international organizations, NGOs and private companies to choose Panama for their meetings and fairs.

What I would like to comment on is that last surprise, the type that wait for me every time I got o panama, that I discovered at my arrival to Tocumen while I went through immigration. The women who was happily attending me extended her hand to give me a pamphlet which read: “If you are a tourist and have a medical emergency, Panama will give you free health insurance for 30 days”.  Panamanians don’t know what else they could do to attract more foreigners so that tourists feel safe, at ease and happy when they visit.

Panama is know only becoming a much safer destination than any other country in the region, but how they’ll insure you too, for free!

This new program of the Panamanians includes free assistance in the case of hospitalization caused by an accident or sickness, medical treatments, hotel expenses while you recover, dentist or pharmaceutical expenses, legal assistance, repatriation in the case of death, plain tickets for fellow travelers and even a reimbursement of expenses in the case of delayed or cancelled flights.

All the while we the Ticos, once the Switzerland of Central America,  are occupied by silly and fruitless discussions about cell phone towers, the platina bridge, if our free trade zones should be paying taxes…

What are these amazing Panamanians going to come up with next?

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RECENT PRESS COVERAGE ON PANAMA FOR BUSINESS

On a humid stretch of Pacific coast in one of the poorest parts of the Americas, somebody seems to have misplaced a chunk of Manhattan. The 50-storey skyscrapers of Panama City jut out of the jungle like nowhere else in low-rise Central America. Panama’s smart banks, open economy and long queues of boats at its ports have caused many to compare it to Singapore, another steamy success story. Panama’s president, Ricardo Martinelli, made his country’s first state visit there in 2010 and later said, “We copy a lot from Singapore and we need to copy more.”

Panama is not even one-fifth as rich as its Asian model on a per-person basis. But Singapore would envy its growth: from 2005 to 2010 its economy expanded by more than 8% a year, the fastest rate in the Americas. The IMF expects it to grow by over 6% a year during the next five years. Panama will soon overtake Costa Rica and Venezuela in GDP per head. Accounting for purchasing power, it is one of the five richest countries in mainland Latin America.

The Economist July 2011

 The Central American nation replaced Uruguay as having the highest technology level in the region, fueled by a surge of Internet users and computer sales, according to the sixth annual Latin Technology Index from Latin Business Chronicle. 

 Internet penetration in Panama was up 43 percent and personal computer sales jumped 21 percent, the data show. The index uses 2010 technology data from the International Telecommunications Union, Computer Industry Almanac and the Santiago Chamber of Commerce and population data from the International Monetary Fund and the Population Reference Bureau.

Eduardo Jaen, who heads Panama’s National Authority for Government Innovation, attributes the rise to government support for Internet access and success at luring new businesses into the modern capital. More than 60 corporations, including tech giants Dell and 3M, shifted regional headquarters to Panama since a tax exemption law was passed in 2007.

Latin Business Chronicle 2011

Panama, for the second consecutive year, depicts the strongest competitive position in Central America and is the only country in the isthmus that manages to improve its performance, entering the top 50 at 49^th position. The country has remained relatively stable in most competitiveness drivers. Overall, it benefits from important strengths in its efficient financial market (16th), solid transport infrastructures (39th) [first place in latin America], and very good technological adoption (12th), especially through FDI, where it is ranked 4th. In dynamic terms, it is important to highlight the progress the country has made in the quality of its port and air transport infrastructure (5th and 15th, respectively) and its fostering of stronger domestic competition (43rd).

World Economic Forum, Competitiveness Report 2011-2012

José Domingo Arias, vice minister of foreign trade, points instead to the government’s canal expansion – perhaps the largest remodeling job in history – and additional investments in new airports, seaports, railways, and roadways. What the government is doing today, he says, is simply modernizing its traditional industry niche to make Panama a more complete global player as a value-added logistics hub for the Americas. And the push to expand in new directions, he adds, is not erratic behavior, but rather a sign that Panama is grown up and ready to diversify.

 ”During the colonial era,” says Mr. Arias, “Panama [then part of the Spanish Empire] was a transshipment route to move gold safely from Peru to Spain. And that implied a business of logistics – moving merchandise from the ships to pack mules, then organizing the security of its transport across land, then repacking another ship that would leave for Spain. That was the beginning of our logistics and shipping industry.”

But those 500 years of history suggest that Panama is best suited to be a financial, trade, and logistics center, and risk analyst Ms. Berkman agrees. If the president can stay focused on that, without getting too distracted by other development models along the way, it might yet be enough to turn Panama into Latin America’s only first-world nation.

Christian Science Monitor March 2011

 Panama’s government bond rating was upgraded to Baa3 from Ba1 to reflect significant improvement in the country’s fiscal and debt positions and favorable prospects for further consolidation in the government accounts over the medium term….

The country’s economic resilience is strongly supported by a dynamic service-based economy. In recent years, Panama’s role as a transshipment and logistics hub between continents and within the Americas has strengthened. Large scale investments, including the widening of the Panama Canal, should ensure strong rates of growth in the medium term. Despite a short track record of fiscal responsibility, Panama’s institutional strength benefits from general policy consensus among the major political forces.

Moody’s Credit Opinion June 2010

On July 21, 2011, Standard & Poor’s Ratings Services affirmed its ‘BBB-/A-3’ long- and shortterm sovereign credit ratings on the Republic of Panama and revised the outlook to positive from stable. Our transfer and convertibility assessment on the country remains unchanged at ‘AAA’.

·       Panama’s GDP growth continues to perform better than expected and we think it will likely remain strong over the medium term.

·       Although the government faces challenges in implementing large infrastructure projects, the country’s debt burden has continued to decline.

·       As a result, we have revised the outlook on our long-term foreign- and local currency sovereign credit ratings on Panama to positive from stable.

·       The positive outlook is based on our view that stronger growth and increased infrastructure spending could result in faster-than-expected improvement in the sovereign’s financial profile.

Standard and Poor’s July 2011

 The Rating Outlook is revised to Stable from Positive.

 The upgrade reflects Panama’s solid economic growth prospects and favorable government debt dynamics. Panama’s highly favorable investment cycle is underpinned by the Canal expansion, an ambitious public investment program and strong foreign direct investment flows. Favorable economic growth combined with continued fiscal discipline has allowed for a sustained decline in government indebtedness, with debt to GDP of 43% nearly converging with the ‘BBB’ median. 

Panama’s ratings are also supported by the country’s stable banking system, political stability and the consensus among political parties on the main thrust of macroeconomic policies. The country’s demonstrated resilience to external shocks is also noteworthy.

Fitch Ratings June 2011

 Visit www.meetpanama.com.pa  for more information on Panama for investors.

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The World Economic Forum’s Global Competitiveness Report 2011-2012 ranked Panama number two in the region based on infrastructure quality, increased macroeconomic stability and technological readiness.

A few of the highlights of Panama’s global and regional rankings for freedom and economic competitiveness:

1 - For Freedom           
Freedom House’s 2011 Freedom in the World score of Panama’s political rights system.

#1 – For Financial Freedom In Latin America
According to the 2011 Index of Economic Freedom, Panama’s financial freedom score of 70.0 is tied with two other countries for the best in Latin America and is more than 20 points higher than the world average.

#1 – For Port Facilities in the Western Hemisphere
Panama ranked first in the Western Hemisphere and 5th in the World for the quality of port facilities, according to the World Economic Forum’s Global Competitiveness Report 2011-2012.

#1 – In Latin America for Availability of Venture Capital
The World Economic Forum’s Global Competitiveness Report 2011-2012 ranked Panama number one in the region, and third in the Western Hemisphere behind Canada and the U.S., for availability of venture capital.

#1 – For Air Transport Facilities in Latin America
Panama ranked 1st in Latin America and 15th in the world for the quality of its air transport facilities, according to the World Economic Forum’s Global Competitiveness Report 2011-2012.

#2 – Among Most Competitive Economies in Latin America
The World Economic Forum’s Global Competitiveness Report 2011-2012 ranked Panama number two in the region based on infrastructure quality, increased macroeconomic stability and technological readiness.

#3 – For Business Freedom in Latin America
Panama ranks behind only 2 other countries in mainland Latin America for business freedom according to the 2011 Index of Economic Freedom. Panama’s business freedom score of 75.1 is more than 10 points higher than the world average.

#3 – In the World for Affordability of Financial Services
Panama ranked third in the world and first in the Western Hemisphere for the affordability of financial services, according to the World Economic Forum’s Global Competitiveness Report 2011-2012.

Panama is # 49 in the world and # 2 in the region behind Chile as #31.

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Panama Named in the Top 10 Food & Wine Destinations

Panama City is finally getting the recognition it deserves for its many fine restaurants and amazing seafood.

It has been  named in the Top 10 Destinations for Food & Wine in Central and South America by Trip Advisor. As the largest community of tourism and travel information in the world, Trip Advisor has a wide range of views from the worlds most experienced travellers. In this sense, they were able to do a profound study and name Panama as a top destination for Food and Wine. Trip Advisor emphasized the seafood Panama as one of the great treats. They labeled seafood plates as “magnificent”, noting that the Chefs in Panama have the peculiar capacity of serving seafood dishes from the Pacific and Atlantic Ocean while still preserving amazing freshness. Additionally, Trip Advisor highlights the Panamanian “ceviche” as a delicatessen seldom seen in other regions or countries. With exquisite taste of fresh sea bass, “Corvina Ceviche” is one of the most delicious seafood dishes. This is a small plate of fish seasoned with lime juice and spices, like no other.

The stew locally called “Sancocho” is also featured in Trip Advisor. This is described as a chicken stew made ​​from cassava and yams. They mention the Sancocho to be another incredible mouth watering dish.

The following is how Trip Advisor describes Panama:

“This multicultural city full of contrasts, with almost 1.3 million people, offers much more than the obligatory visit to the Canal. The slums are crowded with glittering towers. The old city is a maze of picturesque churches, plazas and palaces. 25 km from the city center are the National Sovereignty Park, the perfect place for hiking and birdwatching. To enjoy superb views over the canal, take a taxi or bus to Miraflores Visitor Center and do not miss naval traffic.”

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Congress passed three long-awaited free trade agreements on Wednesday, ending a political standoff that has stretched across two presidencies. The move offered a rare moment of bipartisan accord at a time when Republicans and Democrats are bitterly divided over the role that government ought to play in reviving the sputtering economy.

The approval of the deals with South Korea, Colombia and Panama is a victory for President Obama and proponents of the view that foreign trade can drive America’s economic growth in the face of rising protectionist sentiment in both political parties. They are the first trade agreements to pass Congress since Democrats broke a decade of Republican control in 2007.

All three agreements cleared both chambers with overwhelming Republican support just one day after Senate Republicans prevented action on Mr. Obama’s jobs bill.

The passage of the trade deals is important primarily as a political achievement, and for its foreign policy value in solidifying relationships with strategic allies. The economic benefits are projected to be small. A federal agency estimated in 2007 that the impact on employment would be “negligible” and that the deals would increase gross domestic product by about $14.4 billion, or roughly 0.1 percent.

The House voted to pass the Colombia measure, the most controversial of the three deals because of concerns about the treatment of unions in that country, 262 to 167; the Panama measure passed 300 to 129, and the agreement concerning South Korea passed 278 to 151. The votes reflected a clear partisan divide, with many Democrats voting against the president. In the Senate, the Colombia measure passed 66 to 33, the Panama bill succeeded 77 to 22 and the South Korea measure passed 83 to 15. Senator Harry Reid of Nevada, the majority leader, voted against all three measures.

http://www.nytimes.com/2011/10/13/business/trade-bills-near-final-chapter.html?_r=1&hp=&pagewanted=all

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We recently took a tour of the of the still infinished Biodiversity Museum designed by Frank Gehry on the Amador Causeway. The tour includes an presentation by Ing. Margo Lopez. She shows a video of that the seven major exhibits will look like. One cannot help getting excited by her presentation- Why? Because the exhibits are so unique and outstanding that you can believe this this museum will be a major tourism destination by itself, just as in Miraflores Locks which receives over 600,000 visitors a year. In fact KPMG did a study on the Gehry museum and calculated it will attract 500,000 visitors a year.

The museum is successfully  getting multi-million dollar  corporate sponsorships of the seven exhibits.

Many in the hotel industry are wondering how we are going to fill all those new hotel rooms. The Gehry Biodiversity Museum is an answer.

The tours take place every Friday. You can sign up on the link below. Make sure and follow the instructions on what to where. ( The tour of the construction site requires certain shoes etc.)

http://www.biomuseopanama.org/form/ven-y-conoce-el-biomuseo

Nancy

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I  spent a weekend at Cerro La Vieja hosted by Alfonso Jaen and his fine family. I had been there 5 years ago and there were many new developments. It took me 2.5 hours just to arrive by car from Panama City to this pristine mountain destination, It is half an hour from Penonome and  the roads were excellent, unlike a 5 years ago.

For me one of the best kind of  relaxation vacations is a getaway to where I can be totally surrounded by beautiful  nature, truly away from it all. It helps if it is easy to get to from Panama City- the private nature reserve of Cerro La Vieja (CLV) fits the bill perfectly.

Cerro La Vieja has the most amazing mountain views in Panama- what  Frommers guide called “drop-dead” views…namely these are panoramic views of various unusually shaped mountains that make for a kind of enchanted scene.  I enjoyed these views from my hammock on the private balcony of my cabin. Another extraordinary view CLV is from the dining room- nothing like eating 3 meals a day contemplating an exquisitely formed mountain right close. The CLV reserve is also covered with all kinds of beautiful flowers and trees- there constant reforestation and care for the native vegetation.

The owner and founder Alfonso Jaen along with Carlos Alfaro of Los Quetzales in Chiriqui, and  Raul Arias de Para of Canopy Tower and Canopy Lodge  is one of Panama’s  ecotourism pioneers. His extraordinary private reserve not only has these extraordinary mountain views but also one of Panama’s most accessible and beautiful waterfalls…on our first our family bathed at the foot of this waterfall. Alfonso is just finishing up a more upscale cabin with close up view of this waterfall with more cabins to come.

Being in an off- the-beaten-track location it hasn’t been easy forAlfonso to bring the tourists but his good work and patience has  achieved a major breakthough- in 2009  a USA tour group which will bring about 3000 persons to CLV…so the secret of the beauty of CLV will now get out…

Another major attraction of CLV is the  surrounding campesino community that works there and lives nearby. In fact one “tour” of this American group will be for the Americans to visit the home of a campesino and share a typical meal with them. This is what is called “authentic” tourism and is a major trend in tourism today. This kind of tour is possible Alfonso has a beautiful relationship with the locals - I witnessed this going about the area  with him as he picked up anyone needing a ride along the way and supervised workers at the hotel and at his farm- they work for the hotel  as well in his organic farm.Foresighted Alfonso is also an organic farming pioneer.

Most importantly Alfonson has gently taught them not to “tumbar”vegetation on their properties..ie to break the Panamanian campesino habit of clearing all vegetation from any piece of land he can-a habit which is  by far Panama’s biggest conservation problem. So in this area, instead of cleared land, rich vegetation is flourishing.

I was very encouraged to hear that MEF is getting some advice from Alfonso on how to get campesinos to cooperate in preserving forests and his ideas about it are sound and wise.

Many tourists know Alfonso and his family indirectly since they are one of the owners of Las Tinajas in Panama City- Panama’s most popular restaurant for typical Panamanian food which also offers a folkloric dance show.

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In Panama, whales get close to their visitors

Congrats to Whale Watching Panama for this international coverage of whale watching in Panama. Our family just went whale watching with Anne Gorden- amazing…we saw lots of whale activity, heard them singing enjoyed the Pearl Islands tropical scenery sailing a beautiful catamaran.

Nancy Hanna

Posted: Sunday, Sep. 04, 2011

COLUMNISTS »

John Bordsen is the Travel Editor for The Charlotte Observer.

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  Panama is one of the few places where humpback whales arrive from Alaska as well as Antarctica. Anne Gordon de Barrigon

Anne Gordon de Barrigon, 53, has lived in Panama for 7 1/2 years; she operates Whale Watching Panama ( www.whale watching panama.com ), which offers whale- and dolphin-watching trips. The Seattle-area native trained animals for movies and TV. She fell in love with Panama while on a shoot in the jungle, and decided to stay there.

Q: When is whale-watching season there?

Panama is one of the few places where you get humpback whales from Alaska as well as Antarctica. July-October is the best season; we get several thousand from Antarctica; December-February, there are several hundred from Alaska. In season, you can see whales as close as where all the ships line up to enter the Panama Canal. The ideal place is the Pearl Islands, in the Pacific. They’re a 90-minute ferry ride from Panama City, or a 15-minute flight.
Read more: http://www.charlotteobserver.com/2011/09/04/2574180/in-panama-whales-get-close-to.html#ixzz1WzmGkCTn

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