Panama2Stay

Panama Canal

Employment in Panama is good with work on the Panama Canal. They are getting ready to release
the major contract. Tourism has been good, too. Hotel rooms are scarce with the second highest
fill rate of any large city.

Airline Travel up 19.5%

Airline passengers thru the Tocumen Airport in Panama were up 19.5% in 2008 over 2007 more than

4.5 million passengers. Tourist growth continues strong. Expansion of the Panama Canal continues

to add jobs and boost the economy. Hotel rooms in Panama City are still in short supply.

Below are some of the major projects that will continue to boost Panama's economy over the next  several years:

•  The $5.2 billion Panama Canal expansion project is recognized as the region's largest and most ambitious. It’s also the biggest project in Panama's history since the original Canal was built. Work is currently underway and will be completed by 2014. Until then, the project is creating jobs and attracting foreign investment to Panama.

•  Panama's major port operators are investing over $300 million to improve port infrastructure here. These include Panama Ports Company, which is expanding the Port of Balboa on Panama's Pacific coast, and Manzanillo International Terminal, which is investing in dock expansion on the Atlantic coast.

• Major refinery projects have also been proposed by Occidental Petroleum and Plan Puebla-Panama. If approved these projects would total over $10 billion in investment. Details of the Occidental petroleum refinery, which would be built on the coast of Chiriqui, haven't been confirmed, but studies are underway and local sources say the refinery should begin operations in early 2012.

• Panama's cellular service was monopolized by two companies—Movistar and Cable & Wireless—until December of this year. Last May the government granted 20-year concessions to Digicel, a company with branches in El Salvador, Honduras and other countries, and Mexican provider America Movil/Claro Panama. Now the companies are battling to set up new towers and offices around the country.

•  Panama's call center industry is going strong. The country offers attractive incentives for companies wishing to establish call centers here. Dell Computers was one of the first major companies to take advantage of the incentives, establishing a large operation in Panama a few years ago. National Asset Recovery Services (NARS), Language Line, and Sitel followed. Next in line is Hewlett-Packard—it plans to open a center employing some 1000 people in Panama in 2009.

•  Panama chose the UK’s London & Regional to head one of the biggest development deals in the world: the Area Economica Especial Panama-Pacifico (Panama-Pacific Special Economic Area, or AEEPP). The company is the master developer for the area, located in Howard, formerly a U.S. air force base. Just weeks ago London & Regional broke ground on phase one of the project that will transform this area into a residential and business district the size of London.

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Panama Economy

The economy in Panama is still going strong. Banks are not having problems like
in other parts of the world. Their lending practices are much more stringent than the US  was.
The expansion of the Panama canal continues which is a big boom to the economy. Panama's
economy probably will be somewhat affected by what is happening to the World's economy
but there still will be jobs and growth.

Construction Booms

Construction continues to boom in Panama with US $357.8 million for permits for apartments,

residences and commercial in the first quarter of the year.

Property Tax Exemption Extended

Panama has extended the 20 year property tax exemption on new construction for 2 more years.

The permit must be obtained before July 1, 2009 and an occupancy permit must be issued

by December 30, 2011. Law 21, 2008 applies to both residences and commercial.

New Immigration Law

Panama has passed a new immigration law estimated to start on September 1, 2008.

The old laws are more advantageous. Those that apply before the start of the law will be probably

be under the old law. Regulations that define the new law have not been written.

New Flights to Panama

Spirit Airlines has started three new low cost flights from Ft Lauderdale to Panama City.

Daily service to Panama City will start on May 1, 2008.

Property Tax Change

Panama has just revised the property tax law to reinstate the 20 year tax ememption for new

construction homes or condos. The change extends the time for completing construction until

December 31, 2009. If you buy a resale that qualified for the tax exemption, the remaining

tax exemption time is transferred to the resale buyer. Land is not tax exempt if the value

is over $30,000.

Market of the Month

Panama is "Market of the Month" for October on the U. S. government's website  www.Export.gov.

The report shows Panama economic growth and highlights the country's popularity as a business

and investment destination. There are numerous major project that will fuel economic growth.

Maritime Opportunities:

The Panama Canal expansion which is estimated to cost over 5 billion.

Port Expansion of existing ports costing over 700 million.

New port on the Pacific side located at the Canal entrance.

Energy Projects:

Twelve hydroelectric projects in the approval stage with an estimated investment of 680 million

over 5 years.

Two regional refineries under consideration that would have an investment of over 10 billion.

Brazil's Petrobras wants to process ethanol in Panama which is a pefect redistribution point

for ethanol moving between North, Central and South America.

Telecommunications:

Two new cellular concessions will be given in 2008.

Panama is developing the call center industry. Dell has a large operation.

Panama is a submarine fiber optic cable crossroads with five major cables passing through Panama.