Almost five years after the Tourism Benefits Act was approved outside of the District of Panama, it has been announced that the regulation will be ready in the coming weeks.
The regulation of Law 80 of 2012 was prepared by the Tourism Authority of Panama (ATP) and has been sent to the Ministry of Commerce and Industries for approval. The document establishes the requirements that investment projects and tourist activities outside of the district of Panama must meet, in order to be eligible for tax exemptions.
The consortium Ayesa Panama has won the contract to project manage the construction of the new convention center in Amador.
The Tourism Authority of Panama (ATP) has awarded a $4.5 million contract for services administration, inspection, supervision and quality control for the design, construction and equipment of the new center for conventions, exhibitions and events in Amador, reported Prensa.com.
The First Congress of Tourism Integration will be held on the March 22nd and 23rd in Panama City, with the objective of establishing a road map for the sector.
With this conference the Tourism Authority of Panama is aiming to bring together the different players in the industry in order to establish the roadmap for the sector.
"... Twelve workshops will be held, each relating to a market segment.The idea is that each workshop presents the current situation in its segment, holds a debate and draws conclusions which can be translated into action, " said Alfredo Motta, event organizer to Laestrella.com.pa.
The companies interested in supervising the construction of the convention center in Amador, Panama, will have until February 18th to submit their proposals.
The Tourism Authority of Panama (ATP) has granted the request made by the interested parties to extend the date of the tender for the design, construction, and equipping of the new center for conventions, exhibitions and events in Amador, which was originally scheduled for February 12, reported Prensa.com. The institution will receive the proposals on 18 February.
The Tourism Authority has announced that it is negotiating with the current contractor so that the project can resume works in January 2016.
Although he did not indicate whether the construction company will be HP Contractors, the minister of tourism, Gustavo Him, explained that negotiations are being held to resume construction of the convention center in January 2016.
After two auctions held in the Martinelli administration were declared void, the Tourism Minister has said that the convention center will not be sold.
In order to adapt it for the VII Summit of the Americas, the Panamanian government invested $3.2 million in the Atlapa Convention Center. Having made this investment, the Minister of Tourism, Sierra Jesus said "... This government is not going to sell Atlapa. "
According to tourism businesses in Panama, eliminating benefits for this segment of the touristic market will hurt an activity which contributes $300 per day per tourist.
The Tourism Authority of Panama (ATP) stated in Panamanian media that "... from January, the rental of Atlapa Convention Center will not be free for anyone" ... claiming that it costs money both for the State and the authority responsible for tourism.
An announcement has been made that the Atlapa convention center will not be sold but instead will continue to be rented out for events.
After several attempts by the previous government to sell the Atlapa convention center, the Varela administration decided to keep the amphitheater in government power and continue using it for activities for public and private companies.
Tourism companies propose to boost the capabilities of the Destination Marketing Organization bureau and turn it into a public-private entity separate from the ATP.
Tourism entrepreneurs are asking the new government to revive the campaign to promote the country as a destination for convention tourism and expedite the negotiation of agreements with foreign airlines in order to increase the flow of tourists and improve the hotel occupancy rate, which is currently 59%, due to an oversupply of rooms.
The decision of whether to sell the event center after three failed attempts to auction it will be left to the incoming government.
According to Law 22 on public procurement, after three attempts at an auction the state should proceed to selling the property for $62 million, ie 50% of the original sales price. However, it will be the government of Juan Carlos Varela which will assess and decide whether to continue with the sale process or follow suggestions from the business community about the value that the state could find in this piece of infrastructure in the promotion of trade and culture.
Although it can now be bought for half of its value, there is no interest in acquiring the Atlapa convention center.
Three months ago the third attempt to auction the Atlapa convention center was held and although the law states that after three attempts to auction the property it can be sold for half its value, no person or company has expressed interest in acquiring it.
The 2.270 million visitors who came to Panama in 2013 stayed on average 9.3 days and spent $168 a day.
The number of tourists who came to Panama last year exceeded the target of 2,250 million set by the Tourism Authority of Panama.
"The month with the highest tourism spending is not necessarily the one with the most tourist arrivals. In March $323.5 million came into the country by way of tourist spending.
It is estimated that this year hotel occupancy in Panama will close the year above 60%, which is an improvement compared to 2012 when it stood at 58.8%.
According to the president of the Panamanian Association of Hotels (APATEL), Jesus Sierra, "the positive impact it will have on the sector is due to the fact that this year we carried out various events of international significance such as the Ibero-American Summit of Heads of State and Government, the Latin American Business Conference and Plenary Assembly of the Latin American Business Council and the International Congress of the Spanish Language ... ", reported Laestrella.com.pa.
The Conventions Bureau will be dedicated to the promotion and sale of conferences and conventions in Panama.
The initiative was announced during the Executive Meeting -New Opportunities for the Tourism Sector, attended by members of the Chamber of Commerce, Industries and Agriculture of Panama (CCIAP) and the Tourism Authority of Panama (ATP).
According to Solomon Shamah, general manager of the ATP, this public-private partnership is needed "because you can not depend on the mood of a public official" also "you can not depend on a temporary situation, because, though you may not believe it, positions such as the one I have are not technical positions, but political ones".
The proceeds will pay for the costs of the Convention and Visitors Bureau of Panama, an office dedicated to promoting the country as a venue for conferences and conventions.
The Tourism Authority of Panama could increase between 0.5% and 1% the lodging tax which is currently 10%.
Prensa.com reports that "the measure will be implemented in the next few months and comes from a consultation hired by the Tourism Authority of Panama (ATP) to transform into a public-private entity the Convention and Visitors Bureau of Panama, which will be funded with the new charge to be paid by tourists. "