Article Courtesy from Business Panama

Panama: The land of Opportunities
by Glen Champion, Vice President, Bern Hotels and Resorts



Panamá: The land of Opportunities

As a Canadian living in Panama for the past 9 years I have had the opportunity to witness the steady development of this tiny patch of land that separates two large oceans as well as two large continents. The final handover of the Panama Canal from US to Panamanian control in the late 1990´s as well as the departure of the US military presence didn’t come without a sudden drop in US direct spending in the country. However it did enable a proud country, now completely sovereign, to push forward and diversify its economy by taking a number of key actions as well as realizing that a few others will need to be taken.

Privatization and mergers creating opportunities

Key actions such as the privatization of the telecommunications sector that has brought in players such as Cable & Wireless, Bellsouth and now Telefonica have strengthened the network and provided new technologies thus strengthening our competitiveness. Privatization of the electrical energy sector has also brought in foreign investment including European, American and Canadian companies. The market is wide open in these areas now and opportunities continue to be present. Traditionally a strong banking service sector has seen mergers producing even stronger banks promoting development in the region and backing the future of Panama. Panamas banking sector has taken strong actions in the effort to thwart money laundering with much success. The government has been very supportive of getting these actions in line with international norms however foreign deposits still enjoy confidentiality; important to those interested in a secure offshore investment.
 

Panama Canal expansion: opportunities going forward

The Panama Canal is about to decide on whether to expand its size to accommodate post-panamax ships evermore present in the shipping world. Indications are that this will happen with a needed investment of around US$5 billion dollars over 10 years. Large and small contracts to develop this project provide tremendous opportunity for all those interested. Even without the expansion, the business of the canal as a multi-modal transport and logistic center has taken off in recent years. A new refurbished railway has been established whose main business is the quick efficient shipment of containers from one ocean to the next. This coupled with the large container ports springing up at each end of the canal are proof of the tremendous business existing as well as the potential for much more involving new players.

 

Free Zones and Free trade: Opportunities past, present and future

After the Second World War the Colon Free Zone was created at the Atlantic entrance to the canal in the city of Colon. Over the years fortunes have been developed in a large part by immigrants arriving to Panama and capitalizing on the opportunities that the logistical location of the Colon free zone provides. Newer zones such as the ¨Panama-Pacific Special Economic Area¨ at Howard air force base at the pacific entrance to the canal is open to local or foreign investors with good ideas to grow this area and take advantage of some of the assets and infrastructure left behind by the US military. Recent free trade agreements signed with countries such as Taiwan, El Salvador and Singapore as well as the current talks with the US to establish an agreement point in the direction of opening up markets more for future development. This development is essential for a tiny country such as Panama whose internal market of 3 million people limits many of the potential areas for exporting goods and services.

Real Estate and Tourism opportunities: Land ho!

The departure of the US left behind a tremendous amount of land and assets that the government of Panama has been promoting the sale or concession of for many years. These are all located in what was the Canal Zone a veritable US protectorate in its day with US standard infrastructure in many cases. There are still a great number of excellent prime properties to develop residential, commercial or tourism projects for the interested investors. The country is slowly becoming the newest craze for retirees looking to move south and make their dollars go farther during their retirement. Such is the case of Boquete a small town in Chiriqui nestled in the coffee growing mountainous region. There are a handful of projects catering to investors looking for a comfortable lifestyle at affordable prices. Tourism is also taking off and hotel and resort projects are springing up around the country but still lacking in volume to meet this new demand.

Seizing the opportunities?

Those interested in taking the step towards developing a business or investment opportunity should use Panama City as a base. There are convenient direct flights from many destinations in North and South America as well as direct flights from Spain. A number of web sites cater to foreigners looking for opportunities such as: www.panamcham.com, www.businesspanama.com, or www.panamainfo.com. Whichever route you take, a short visit to the country will be enough to provide you with a good panorama of the opportunities and there is a good chance you will fall in love with our tropical ¨Hub of the Americas¨.

Article courtesy of Glen Champion, Vice President, Bern Hotels and Resorts


 

Article Courtesy of Business Panama
The American Chamber of Commerce (AMCHAM)
and Deal Inc.

 

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