Tourism is a lucrative sector for investment in many parts of the world. Tourism investment in Panama is gaining momentum due to its investor-friendly policies and well-developed tourism infrastructure. Natalia Bayona, Executive Director of UN Tourism, highlighted this in a recent statement.
Investor-Friendly Policies and Infrastructure
“Regarding tourism investment, places like Panama stand out as attractive destinations due to their favorable policies for investors and their well-developed tourism infrastructure. These countries have implemented incentives to attract investment in sustainable and technological projects,” said Bayona, who traveled to the Central American nation to participate in an economic forum.
Bayona elaborated that to identify these investment opportunities and analyze the landscape, UN Tourism has developed the ‘Tourism Doing Business’ initiative, a series of tourism investment guides launched in more than 20 countries, including several in Latin America. The guide for Panama provides a detailed analysis of the country’s investment environment and serves as a crucial resource for potential investors.
Key Insights from the Tourism Investment Guide
The guide includes extensive information on tax incentives, ecotourism and cultural tourism opportunities, and case studies of successful investments in the country. “This guide is an essential tool for investors looking to capitalize on tourism investment in Panama. From it, we have extracted highly relevant data, such as that in 2023 alone, Panama attracted 2.51 million visitors, generating revenues of $5.432 billion,” Bayona noted.
She emphasized that “this figure is significant, as it represents a 20% increase compared to 2019.” Such growth is a testament to Panama’s ability to attract international tourists and its strong tourism sector, further bolstered by its economic stability and favorable credit ratings.
Foreign Direct Investment in Tourism
Panama’s legal protections for foreign investments and strong economic indicators enhance its appeal to investors. This is reflected in the tourism sector’s foreign direct investment (FDI) figures. According to Bayona, “Between 2018 and 2023, Panama established itself as the second-largest recipient of announced ‘greenfield’ FDI projects in Central America, accounting for 20.1% of all such investments in the region.”
In the first half of 2024, Panama attracted $1.61 billion in foreign direct investment, marking a 23% increase compared to the same period in 2023. This growth underscores the confidence international investors have in Panama’s economy.
Sustainability: A Key Driver of Investment
In addition to financial incentives, the country’s commitment to sustainability is another major draw. More than 54% of its territory is under environmental protection, and it is one of only three countries in the world classified as carbon-negative. Tourism investment in Panama benefits from this sustainability focus as investors increasingly seek eco-friendly and responsible tourism projects.
The Tourism Investment Guide further reveals that between 2018 and 2023, companies in Panama announced 30 tourism-related investment projects, collectively valued at $1.746 billion. This strong performance positioned Panama as the fourth-largest investor in the tourism sector across Latin America and the Caribbean.
Strategic Location and Business Incentives
Given the data analyzed in the guide, Bayona reaffirmed, “Panama is an excellent choice for tourism investment in Panama.” Several factors contribute to this, including establishing special zones dedicated to tourism development and attractive incentives for projects promoting environmental sustainability and social inclusion.
Furthermore, Panama’s strategic geographic location enhances its appeal by providing easy access to international markets. This logistical advantage and its business-friendly policies make the country a prime destination for foreign investors looking to enter or expand in the Latin American tourism sector.
Growth in Visitor Arrivals and Revenue
The strength of Panama’s tourism industry is also reflected in its recent performance. Between January and October 2024, international visitor arrivals increased by 8.6% compared to the same period in 2023. Meanwhile, tourism revenues reached $4.99 billion during that period, reflecting a 9.3% growth from the previous year. According to data from the Panama Tourism Authority, hotel occupancy rates also showed stability, averaging 51%.
With a growing influx of visitors, solid investment figures, and an unwavering commitment to sustainability, tourism investment in Panama continues to thrive. The country’s proactive approach to fostering economic and environmental initiatives ensures it remains a leading player in the competitive international tourism market.
Conclusion
Panama is emerging as a premier destination for tourism investment, supported by investor-friendly policies, a robust tourism infrastructure, and substantial economic indicators. Natalia Bayona, Executive Director of UN Tourism, emphasized Panama’s attractiveness, highlighting the country’s inclusion in the ‘Tourism Doing Business’ initiative. This guide details investment opportunities, tax incentives, and successful case studies. In 2023, Panama welcomed 2.51 million visitors, generating $5.432 billion in revenue, a 20% increase from 2019. The country also secured 20.1% of Central America’s greenfield FDI projects between 2018 and 2023. In the first half of 2024, foreign direct investment reached $1.61 billion, a 23% increase from 2023. Sustainability further strengthens Panama’s appeal, with over 54% of its land under environmental protection and its status as one of the few carbon-negative countries. Between 2018 and 2023, Panama attracted $1.746 billion in tourism-related investments across 30 projects, positioning itself as the fourth-largest investor in Latin America’s tourism sector. The nation’s strategic geographic location, special tourism development zones, and incentives for sustainable projects further enhance its investment potential. With steady visitor numbers and revenue growth, tourism investment in Panama continues to offer significant opportunities for global investors.