The government has proposed that Airbnb offer its services only in the interior of the country where the supply of hotels is lower and where the legal prohibition of vacation rentals is not in effect.
Authorities at the online rental company met with representatives from the government and the private sector, after a group of tourists were affected by an inspection by the ATP in an apartment which was rented out using the platform.
Solutions are being sought to the lack of promotion of the country and unfair competition from illegal hotels, so that the occupancy rate, which went from 70% in 2011 to 52% in 2015, can be improved.
According to the Office of the Comptroller General of the Republic, the occupancy rate in Panama fell once again last year, going from 56.1% in 2014 to 52.3% in 2015.
Lack of international promotion is the cause indicated by entrepreneurs of the fall in the average rate in the capital, which has dropped by 40% in the past five years.
The union says the problem of oversupply of rooms in the country began to get worse in 2012, when the international tourism promotion agreement which the government signed with an advertising agency ended.They argue that "...While Panama disappeared from international markets, other countries such as Costa Rica, Mexico, Ecuador and the Dominican Republic increased their spending on advertising. "
Although major hotel brands claim not to be affected, the growing supply of houses and apartments for short stays, is forcing hotels to change their methods of attracting guests in order to survive.
Airbnb, VRBO and Homeaway are just some of the countless websites where owners rent their houses or apartments to tourists, who increasingly opt for this alternative to conventional hotels worldwide, and Central America is no exception.
The air link with the capital is one of the reasons behind the increase in the supply of rooms in the province, a number which is expected to rise to 3,000 by the end of the year.
Currently the Tourism Authority of Chiriqui is running a pilot scheme to improve the quality of the hotels in the province, since most are rated at three stars. At the end of 2014 only 700 rooms offered 5-star amenities and average costs range between $80 and $300.
For the first time in two years, Panama will achieve a hotel occupancy rate of 60% during the days of the Summit of the Americas, which will have an economic impact estimated at between $50 million and $80 million.
The visit which will be made by 35 presidents of the Americas and 25,000 people who make up their delegations have changed the landscape, at least for a few days, of the Panama hotel sector, which expects to achieve an occupancy rate of at least 70% from 6 and April 11.
While occupancy rates and average prices continue to fall, the Panamanian hotel market is preparing to increase its supply by another 1,200 rooms at the end of the year.
The Panamanian Association of Hotels (Apatel) reports that in recent years there has been a 209% increase in the number of rooms available in the country, in contrast to demand which has only grown by 5% annually.
American and European tourists who visit the country are most likely to choose this type of service, where in the province of Cocle alone it represents 95% of the hotel supply.
Following the global economic crisis which began in 2008, tourists are looking for a hotel service that allows them to enjoy a more comprehensive service, paying a fixed fee for everything.
The hotel chain also announced the opening of its fifth property in the country by the end of the year.
From a press release by Hiilton Worldwide:
Panama, Panama City - Hilton Worldwide has announced the opening of Hilton Panama, a new 347 room hotel with a prime location in the heart of the city, the Hilton Panama offers panoramic views of the Pacific Ocean.
Tax incentives for the construction of hotels in the interior of the country are behind the increase in the number of operating permits issued since the implementation of the law in 2012.
With up to six years to start their projects, investors interested in developing hotel infrastructure in the interior of the country have until 2020 to benefit from the tax incentives which include total exemption from import tax, including transfer tax on goods and services (ITBMS), for a period of 20 years for the purchase of equipment, furniture, fittings and equipment used in the construction and equipping of the complex.