Tourism Opportunities in Panama: A Growing Sector for Investment

by | Jan 29, 2025 | FDI Latin America

Introduction

Panama’s tourism sector is gaining global attention as a prime destination for investment and sustainable development. The Tourism Doing Business – Investing in Panama guide, launched during FITUR—the leading tourism fair for the Ibero-American world—provides a comprehensive analysis of the country’s tourism potential. The guide, prepared by CAF—Development Bank of Latin America and the Caribbean—and UN Tourism, highlights Panama as a strategic location for local investments and a gateway for regional expansion.

Panama’s Strategic Advantage in Tourism

Panama’s unique geographical position, political stability, and continuous economic growth make it an attractive destination for tourism-related businesses. The Tourism Doing Business – Investing in Panama guide positions the country as a global leader in connectivity and logistics. With a world-class logistics platform, Panama serves as a maritime and air transport hub, facilitating the movement of goods and travelers across the globe. The expansion of Tocumen International Airport, known as the “Hub of the Americas,” further strengthens Panama’s role as a key transit point, enhancing tourism opportunities in Panama.

Sustainable Tourism Growth and Investment Potential

Investments in infrastructure and economic sectors related to tourism have the potential to benefit the entire Panamanian population. CAF and UN Tourism promote green, inclusive, and sustainable tourism growth. As such, the guide underscores the need for investment in projects that align with environmental sustainability, cultural preservation, and digital transformation.

Sergio Díaz-Granados, Executive President of CAF, highlighted that the tourism sector plays a crucial role in the triple transition—green, digital, and energy—with a strong focus on human development. He stressed that climate change adaptation initiatives and biodiversity conservation efforts complement tourism growth, ensuring long-term sustainability.

Panama’s Commitment to Green, Blue, and Cultural Heritage Tourism

According to Gloria de León Zubieta, Minister of the Panama Tourism Authority, the country offers sustained opportunities in three key tourism areas:

  • Green Tourism: Panama has significantly expanded its protected areas from 33% to 54%, demonstrating a strong commitment to conservation. As one of the few nations with negative carbon emissions, Panama provides an ideal environment for ecotourism and nature-based travel experiences.
  • Blue Tourism: With its extensive coastlines along the Pacific Ocean and the Caribbean Sea, Panama is an emerging destination for marine tourism, including scuba diving, sustainable fishing, and adventure sports.
  • Cultural Heritage Tourism: Rich in history and traditions, Panama boasts UNESCO World Heritage sites, indigenous communities, and historic landmarks such as Casco Viejo and the Panama Canal. Expanding heritage tourism routes further enhances tourism opportunities in Panama.

Zurab Pololikashvili, Secretary-General of UN Tourism, praised Panama’s leadership in environmental preservation and highlighted the nation’s ability to attract investment through sustainable tourism initiatives. With an ambitious infrastructure agenda, Panama is well-positioned to foster tourism growth while maintaining its ecological and cultural heritage.

Infrastructure Developments and Modernization

Panama’s government and private sector continue to invest in infrastructure that supports the tourism industry. Major projects include:

  • Expansion and modernization of airports, roads, and tourism facilities.
  • Developing sustainable hotels and resorts in key destinations such as Bocas del Toro, Boquete, and the Pearl Islands.
  • Digital transformation initiatives to enhance visitor experiences through innovative tourism solutions and digital payments.
  • Improvements in public transportation, including metro and bus systems, to facilitate tourist mobility.

These efforts create a fertile ground for tourism investments aligned with principles of innovation, accessibility, and sustainability.

Economic Stability and Investment Security

Panama’s economic strength adds another layer of appeal for investors in the tourism sector. The Tourism Doing Business—Investing in Panama guide presents the country as a safe and stable destination for tourism investments. With a GDP growth of 10.8% in 2022 and 7.3% in 2023, Panama ranked as the second-fastest-growing economy in the region. While growth is expected to moderate to 2.5% in 2024, the country remains an attractive investor hub.

Panama has been a CAF member since 1997, benefiting from financial and technical support across key sectors. CAF has approved 105 credit operations exceeding $7 billion to enhance the country’s infrastructure, education, water supply, telecommunications, and social development. These investments directly contribute to improving the tourism sector, reinforcing tourism opportunities in Panama for both local and foreign investors.

Emblematic Tourism Projects and Future Outlook

Several flagship tourism projects further showcase Panama’s potential:

  • Heritage Route Expansion: Strengthening historical and cultural tourism by restoring colonial sites and indigenous heritage trails.
  • Ecotourism Development: Enhancing national parks and protected areas for sustainable tourism, including wildlife observation and adventure tourism.
  • Luxury and Wellness Tourism: Encouraging investments in high-end resorts and wellness retreats catering to international travelers.
  • Cruise and Marina Expansions: Increasing Panama’s presence in the cruise tourism industry with modernized ports and facilities.

The future of Panama’s tourism sector looks promising, with continued support from international organizations like UN Tourism and CAF. As the country advances in green, digital, and economic transitions, tourism opportunities in Panama will continue to expand, solidifying its position as a premier destination for investment and sustainable tourism growth.

Conclusion

Panama’s strategic location, environmental commitment, and substantial economic performance make it a prime location for tourism investments. The Tourism Doing Business – Investing in Panama guide highlights key opportunities for businesses and investors, emphasizing sustainability and innovation. With a focus on green, blue, and cultural heritage tourism, Panama offers a diverse and dynamic environment for growth in the sector. As infrastructure projects continue and new tourism initiatives emerge, the country remains a top destination for those seeking to capitalize on tourism opportunities in Panama.