Fines For Vacation Rentals in Panama

The campaign against property being rented out for tourism purposes establishes penalties with fines ranging from $5000 to $50,000 for those who promote and commit the crime.

Friday, September 12, 2014

The Tourism Authority of Panama (ATP) has opened up a communication channel for businesses and individuals to report cases of houses rented to foreign tourists in the capital, in compliance with Law 80 prohibiting this activity.

Jorge Loaiza, president of the Panamanian Association of Hotels (Apatel) told Panamaamerica.com.pa that "... it is fully in accordance with the determination of ATP to stop [this form of] piracy. According to the businessman, the measure protects Panamanians from people posing as tourists who come for other purposes. "

According to the director of Tourism Investment at the ATP Nadgee Bonilla, "... 'there are 11 cases of people fined by the ATP with $5000, plus two cases of repetition of the activity for which they could be fined $10,000.'"



More on this topic

Panama: Higher Fines for Vacation Rentals

November 2015

The Tourism Authority is proposing tougher actions against casual vacation rentals, raising current fines and reducing the time it takes to impose sanctions.

The draft law which aims to create tougher sanctions for those renting homes to tourists will be presented to cabinet ministers in the coming weeks, according to statements made to Prensa.com by Gustavo Him, administrator of the Panama Tourism Authority.

Holiday Rentals in Panama Affects Hoteliers

September 2013

Renting apartments for tourism is the apparent culprit for hotel occupancy in Panama City falling by 10% in the last year.

Apartment owners have increased their sales despite the existence of a law banning tourists renting for less than 45 days.

Prensa.com reports: "Hotel owner Jaime Campuzano recognizes that three-bedroom apartments are being offered for $60 a day, which hotels prices can not compete with."

Boom in Vacation Rentals Hurts Hotels

April 2013

Hotel owners are complaining of unfair competition from apartment owners who rent their properties for tourism at low prices.

Hoteliers in Panama believe that competition is not fair because these property owners do not pay tourist tax and work illegally.

Although there is a law that prohibits renting apartments to tourists for less than 45 days and which is punishable with a fine $50,000 for repeat offenders, apartment owners who have failed to sell their properties see in the vacation rentals a way to recover their investment.

From Hotel to Condominium Apartments

April 2013

With its profitability affected by low hotel occupancy recorded in the capital of Panama, the hotel Esplendor has converted its 100 rooms into rental apartments.

This is the example of the boutique hotel Esplendor, which opened its doors in 2010 with an investment of $30 million, but at the end of 2012 closed due to the low occupancy rates, which made it unprofitable.

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