As a result of the sanitary crisis caused by the covid-19 outbreak, hotel occupancy in Panama has fallen to historic levels and business income has gone up in smoke, a situation that is forcing hotels to look for options to renegotiate their debts.
It is estimated that in this context of economic crisis, Panamanian hotels owe $630 million to financial institutions.
Although most activities in the country reopened at the end of August, hotel occupancy levels are still low and business people fear they will be forced to cut more jobs or close operations.
Following the removal of some of the restrictions imposed in Guatemala by the covid-19 outbreak, the hotel sector reports a rise in occupancy, reaching a level of 25% on August 15 and 16.
Arguing that they will be able to maintain social distance in the common areas, the hotel guild in Costa Rica is asking the government to authorize them to operate at 100% of their capacity, and not at 50% as they are currently allowed.
According to the Costa Rican Chamber of Hotels (CCH) the total use of hotel rooms does not represent a disadvantage since these spaces are used in family, social bubbles or individually.
Because of the restriction measures decreed in the country due to the covid-19 outbreak, between March and April of this year the average hotel rate for two people decreased from $160 to $120.
According to the "Monetary Policy Report" prepared by the Central Bank of Costa Rica (BCCR), in the face of the health crisis, hotel occupancy in the country has plummeted in the first four months of the year, from 90% in January to 15% in April.
Corporacion Camino Real, Radisson, Hyatt, Marriot, Adriatika, Hilton Garden and Holiday Inn are some of the large hotels that have suspended operations in Guatemala due to the health and economic crisis affecting the world.
As a result of the covid-19 outbreak, the Real Intercontinental Hotel suspended operations from April 1 and according to its managers, the reopening will depend on government regulations.
Adapting spaces in the restaurant area, selling themselves to tourists as a clean and safe establishment, are some of the strategies that hotel sector businessmen plan to apply in order to adjust to the new commercial reality resulting from the health emergency.
The spread of covid-19 has forced health authorities to restrict the mobility of people and to close several establishments, with hotels being one of the most affected.
Hilton Hotels & Resorts signed an agreement to open a new facility at the Captalino World Trade Center complex by mid-2020.
Hilton San Salvador will have 198 rooms, 27 meeting rooms, two ballrooms, two boardrooms and 16 meeting units. The building is located in Colonia Escalon.
Last year, hotels in Panama City reported an average daily occupancy of 4,571 rooms, 1% less than in 2018.
Reports from the General Comptroller of the Republic indicate that in December the daily average of occupied rooms did not register significant changes with respect to the same month last year, going from 4,307 to 4,281.
In order to increase hotel occupancy in Panama, business people believe that the country should focus on attracting clients in the segment of meetings, conferences, exhibitions and congresses, events that could become the lifeline of the sector.
According to reports from the General Comptroller of the Republic, in October 2019, hotels in Panama City reported an average daily occupation of 4,457 rooms, 5% less than the same month in 2018.
Between the first half of 2018 and the same period in 2019, the number of hotel rooms in the country grew 4%, and occupancy rose from 62.9% to 63.4%.
Official figures specify that between January and June last year and the first half of 2019, in the hotel sector the number of establishments went from 3,315 to 3,524, and in the case of the number of rooms went from 55,735 to 58,024.
Although in the first semester the average number of occupied rooms in Panama City remained unchanged with respect to the same period in 2018, the figures are still far from what was recorded in the first six months of 2017.
According to the reports of the General Comptroller of the Republic in June the daily average of occupied rooms did not register significant changes with respect to the same month of the last year, product of growing from 4.488 to 4.490.
During May of this year, hotels in Panama City reported an average daily occupancy of 4,293 rooms, 4% less than the same month in 2018.
The figures of the General Comptroller of the Republic detail that in May the daily average of occupied rooms registered a decrease with respect to the same month last year, product of decreasing from 4,479 to 4,293.
From January to April of this year, hotels in Panama City reported an average daily occupancy of 4,933 rooms, just 1% more than the same period in 2018.
The latest report of the General Comptroller of the Republic, details that only in April the daily average of occupied rooms registered a 2% increase over the same month last year, growing from 4,630 to 4,691.
From January to March of this year, hotels in Panama City reported a daily average occupancy of 5,014 rooms, 2% more than that recorded in the same period in 2018.
The latest report of the General Comptroller of the Republic, details that only in March the daily average of occupied rooms registered an 8% increase over the same month last year, growing from 4,644 to 5,017.