Lawmakers in Panama scramble to catch up to the tourism boom

Be forewarned, I invented all of these laws myself. I am not sure that the lawmakers of Panama have any intention of implementing such policies. But in my perfect world, were I king of the land, these are laws I would pass to assist Panama’s ambitions to become a world class tourism destination.

1. Protect The Coast — Define High Tide Area Zoning

The first 200 meters from high tide must be protected jealously. The whole world seems to covet beach front property and far too often it is developed in a short-sighted and unsustainable manner. Panamanian lawmakers need to establish this “maritime zone” and define specifically what may be built. Costa Rica’s Ley Maritimo is a great starting point, but I would argue that Panama could take it a step further and therefore maintain the integrity of one of its greatest tourism resources.

Rules should be set that permanently define maximum density and height (my vote: 4 stories!) of real estate projects that exist within this zone. There should also be required public access points so that locals don’t feel that they’ve been walled out completely. To delay doing so may result in Panama’s coastline development repeating the tragic mistakes of once-lovely Waikiki, Daytona Beach, Cancun and so many others. Today, these over developed mega resort towns are cluttered with dated high rises on the water and pawn shops across the street.

2. Prevent “Land Grab” — Require Hotels Inside Beach Projects

Real estate projects over a certain size should be required to reserve space for hotels of consistent capacity. Just like a small town needs space for public works, parks and a courthouse, large-scale projects should allocate areas for tourism. These hotels should be built within a certain time line of the issuance of permits. This would ensure that mega projects do not become walled in, closed door areas devoid of activity. There are several projects in the Santa Clara area without operating hotels today that resemble just that. A law requiring hotel space would ensure that prime beach land in Panama remains accessible to the public (assuming they can afford the nightly rate). It also guarantees that projects do not stagnate and that “land banking” by investors on a massive scale does not stall tourism growth.

3. Attract More Hoteliers — Provide (even more) Tax Breaks For Small Hotels

Operating a hotel anywhere is not an easy task, and with soaring land and construction prices, the incentives to build new ones in Panama don’t presently seem enough to outweigh the risks for most investors. The government should stimulate the much-needed increase in hotel beds by offering even more tax breaks, discounts and incentives to attract smart hoteliers to Panama.

4. Solve The Talent Crisis — Issue 6 Month Work Visas For Tourism Interns

I harp on this issue non-stop, so I apologize if you’ve read this before. We simply do not have the workforce today capable of serving the existing tourism needs of Panama’s visitors. Should there somehow exist another 1,000 hotel beds in Panama tomorrow, who on earth is going to manage these properties, run the front desks, make the beds, wait the tables and so forth? Of course, I would prefer that new businesses employ the many capable, hard working Panamanians out there, but I do not believe with the economic boom that is occurring in Panama that there is enough talent to meet the demand.

So as a short-term solution, I believe that Panama should allow tourism businesses who employ a minimum number of Panamanians to also employ foreign interns. These interns must be qualified to work in the industry and can remain legally for periods of up to 6 months. Many tourism degrees require an internship, so a national level internship program could allow Panama to become an incubator for some of the best young tourism students in the world. Just imagine what a dozen or so recent grads from Cornell’s Hotel School or Les Roches Bluche (Switzerland) could do! Let them come here and help us educate the local work force! It is likely that their teachings could have as deep an impact as any national level education campaign and at a fraction of the cost of high dollar, foreign consultants.

5. Adjust Labor Laws To Meet The Tourism Calendar — Modify (a few) Public Holidays

There are an incredible number of public holidays in Panama. I’m all for vacation time and believe that it’s a worker’s right to have time off. Unfortunately in Panama, the majority of that time off also occurs during tourism peak season. Here are the holidays ONLY occurring during tourism peak season, including a whopping THREE different Independence Days in November:

1 Jan New Year’s Day.
9 Jan National Martyrs’ Day.
21 Mar Good Friday.
3 Nov Independence Day (from Colombia).
5 Nov Independence Day (Colón City only).
10 Nov First Call for Independence from Spain.
28 Nov Independence Day (from Spain).
8 Dec Mothers’ Day.
25 Dec Christmas Day.

What this list doesn’t show is the unofficial week off everyone takes during Carnival, which traditionally falls on the four days prior to Ash Wednesday. What that basically means is that not much gets done from November to March, which is precisely the period when tourists are expected to arrive.

If the country really does want to pursue tourism, it may be necessary to adjust exactly when some of these holidays occur (ex: moving a Thursday holiday to a Friday or Monday) and whether or not they are absolutely required off for those working in tourism businesses.

—
To be sure, I’ve over simplified many of the issues above and perhaps many of my laws would seem heavy handed or idealistic. But if Panama is to have any opportunity at tugging Costa Rica’s tourism coattails, some major planning and government participation is going to be a necessary evil.

This post's rating:

Related Stories

Filed under: Business, Politics on June 4th, 2008