Panama’s New Tourism Law

The Law 58 of December 28, 2006 which establishes tourist incentives destined to the construction, the equipment and rehabilitation of public lodging establishments such as hotels, apartotels and hostels among others, located in areas outside the tourist zones identified by the Panamanian Tourism Institute (IPAT), was sanctioned by President Martin Torrijos Espino and was published on Friday, December 29, 2006.

This new legal norm modifies articles from the Law 8 of 1994, and also sets 3 million dollars as the minimum investment needed in the metropolitan zone to fully benefit from the incentives of exoneration of the materials and the equipment import duty, vehicles for the development of the tourist activity and the exoneration of the taxes of properties for 20 years taking effect from the moment of the inscription in the National Registry of Tourism, among other things.

According to members of the area of tourism, this law is very appropriate. Ruben Blades, Minister of Tourism, considers it a fulfilled commitment and a relevant step for the integral development of the tourist activity.
 

2006, a Year of Successful Tourist Activity in Panama
It was said that Panama would had been receiving around 1,200,000 tourists last year (2006) which indeed represented and increase of almost 15% regarding 2005. Those visitors were expected to leave around 1.2 million dollars in our country, an amount that exceeds any other in the history of the industry.

This growing tendency should continue in the following years, a situation that will force the sector to be well prepared to face the increasing and exigent demand. As a matter of fact, this means that more and better planning, investments, services and strategic programs will be required on a long term.

The Panamanian government has made an effort in order to have a transformation that will allow the growth and modernization of tourism in the Isthmus for this 2007. This transformation includes the renovation of the IPAT and the creation of laws that will enable Panama to be more competitive. As an important step in this restructuring process, the offices of the Panamanian Tourism Institute (IPAT) will be moved to a more appropriate place. Besides, with the purpose of having a better quality in tourist services, the IPAT has negotiated the installation of the Hostelry and Tourism School of Valencia in Panama as a pioneer action to accomplish the establishment of “first-world” tourism schools across the country. The idea is to grant Panamanians with scholarships so that they can be qualified to provide a service in terms of tourism.

The research made this year to determine a long term strategy for the Tourism Master Plan (TMP) 2007-2020 should be finished. This plan must provide a conceptual framework for the activity, and the different plans to be implemented in the provinces and reservations should derive from it in order to accomplish a sustainable tourist development in all the country.

The foundation of the TMP is based on the objectives presented by Torrijos’ government such as the formation of new sources of jobs, the creation of the conditions for a better distribution of income and for the politic and economic decentralization.

Finally, the purpose of all these transformations is to present a way that will lead us to the superior accomplishment of the real role the tourist entity has as the guide in the national tourist sector.

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