1. A lot of bureaucracy, little initiative of small
businesses and communities.
In 2015 the budget of the Costa Rican Tourism Institute (ICT) was
approximately $ 60 million, while the budget of the Tourism Authority of Panama
(ATP) amounted to $ 80 million. The ATP has approximately 600 permanent
employees. Those who must be added a large number of temporary workers.
The growth of government workers is a way to absorb some of the informal
sector, alleviate unemployment and mitigate potential social conflicts. In 2015, from January to December, they joined to form
the new 27,270 public sector employees, according to the Comptroller General of
the Republic. In January, the number of staff in the public sector and in
December amounted to 194.855, 222.125, an increase of 14% over this period.
Last year they were named an average of 2,479 new officers every month. More
appointments months were February, with 8,554 new contracts, and December,
5,417.
The bureaucratization of the ATP does not affect the large hotel company,
but hinders small business enterprises and communities. The establishment of
tourist routes, the design and promotion of tours, organizing consortia and
networks of communities and small businesses, among other initiatives, not
receive any support from poorly trained staff, more concerned about having
under its control these activities.
The brake
and abandonment of small business ventures and communities has prevented the
development of rural tourism, ecotourism, with the exception of Bocas del Toro,
a destination promoted by Costa Rica. In conclusion, the supply of Panama is
still restricted to convention tourism and shopping.
2. The crisis of business tourism and conventions.
While the hotels in the city of Panama 79% in 2011 expanded to 2015, in the
same period the number of tourists who stayed in hotels increased by 44%. It
was available in 2011 in the city of Panama 5,837 rooms and 10,451 in 2015.
In 2011 an average of 3,807 rooms per day and in 2015, a daily average of
5,466 rooms occupied. This is the reason why in recent years, hotel occupancy
in the city of Panama has declined consistently.
These results are attributed to factors such as the oversupply of hotels
and the appreciation of the dollar against other currencies that have made
Panama an 'expensive' destination, said the president of the Tourism Commission
of the Panamanian Association of Business Executives (APEDE). The devaluation
of the other currencies against the dollar has affected the country, because
European and American tourists prefer to turn to cheaper destinations.
Hotel
Occupancy (percentages)
However,
the problems of tourism in Panama has swelled. The extreme specialization of
the Panamanian tourism convention and shopping is strongly linked to the
service economy of this country. One of the biggest attractions is the Colon
Free one, where you can find of low -cost products, especially electrical
and electronic (PlayStation, laptops, tablets, mobile phones, smartphones and
more).
However,
the Colon Free Zone is losing competitiveness. The Association of Users of the
Colón Free Zone reported that in January 2016 of this year 55 companies closed.
The situation has prompted the association to seek government assistance for
the zone that would reduce the costs of doing business there.
"This
can be done without the need for a change in the law and it may be a decision
that involves only a board meeting," the association said. "It
is imperative that the executive and the National Assembly approve reforms to
the law which will provide better tax conditions and equal footing compared to
any other free zone or special economic area in the country to make it
attractive for new investors".
More of the same or diversify tourism?
Panama has achieved a market niche in the international arena: shopping and
conventions. Investments and experience in this field has become a prime
tourist destination. The problem is that it has failed to diversify supply. The
Tourism Authority of Panama (ATP) manages the Atlapa Convention Center and
Figali Convention Center. Amador Convention Center currently under
construction, with an investment of $ 193.7 million.
Common
sense indicates that Panama should complement its traditional offering with
other products, mainly ethnic tourism and rural tourism. However, the model
promoted by the government throughout the country, is a copy of the model
followed in the cities of Panama and Colon. It is now thought to build
convention centers in the cities of David and Chitré... "Before the boom
and tourist development that is taking Panama!"
An example
of diversification of supply is giving Costa Rica. His government presented a
strategy to position the country as an attractive destination for conference
tourism and meetings, which will build a convention center in December 2015.
"The
business tourism has proven to be a highly dynamic industry around the world,
which breaks with the seasonality that affects tourism as the biggest boom
months are May, June, September and October, these being the off season for our
country, "said Tourism Minister Mauricio Ventura, during the presentation
of the strategy.
It is
anticipated that the building will begin construction next year in an area of
10 hectares located on the outskirts of the capital, near several hotels and
the Juan Santamaria, the country's largest international airport. The strategy
also includes a plan to promote Costa Rica as a destination for meetings and
conferences, which contains tools to organize, develop and implement
communications and marketing actions.
Costa Rica
is a powerhouse in ecotourism, now will complement tourism Convention. Panama
should be the reverse.
Inequality
and tourism diversification.
The German
expert Karola Tippmann, who both contribute to the tourism strategy Costa Rica,
defined tourism in this way "meeting of people with people."
Certainly, the big tourist infrastructure is necessary for a small segment of tourists
with high purchasing power, but not the main attraction for people traveling
waiting satisfaction with exceptional cultural and natural experiences. This
alone can offer small businesses and rural communities located in places of
great natural attractions (mountains and beaches).
Costa Rica managed to conquer an important position in the global tourism
market because I took advantage of a broad base of small urban and rural
property and the ability of business organization communities. The meeting of
people with people is summarized in a popular expression of international fame:
"pura vida". The small tourist property has an unparalleled
advantage: personalized service and flexibility to design products tailored to
the tourist.
Panama's situation is different. The service economy against a large
concentration and centralization of resources and activities in terms of
territory and property. According to the UNDP country's wealth, measured
from GDP, Domestic, is highly concentrated, the province of Panama with a
little over 50% of the population it produces 71% of GDP, followed by a Colon
and Chiriquí, which together shared 89.4% of the wealth in 2012 with 70% of the
population.
The other provinces and counties have a lower contribution to production
National and located below its population weight.
Suggestions
for an alternative strategy.
1. The
business sector related to tourism and conventions are not interested in
diversifying supply possibly support the creation of new convention centers.
Given this situation, it requires external support. I do not mean to
consulting, research, training, etc. because that spare in Panama. I think the
establishment of international alliances.
The Master
Plan for Sustainable Tourism 2007-2020 Panama suggests "Develop
integration and Synergies With ecotourism, Costa Rica", "Generating
synergies for integrated destination with Costa Rica and to attract demand from
that fate." In practice, this means partnerships between Panamanian
organizations of rural and ethnic tourism Costa Rican organizations as the
Costa Rican Association of Rural Community Tourism (ACT) and National
Ecotourism Consortium Cooperative Network, COOPRENA R.L. The joint business
organization is the best way to transfer knowledge and provide training. Design and sell domestic tour packages is a great way to
make money and expertise transfer from Costa Rica.
2. In 2008 we visited Spain for establishing a cooperation agreement with
the Spanish Association of Rural Tourism (ASETUR). At that time, the most
interesting was the proposal to identify partners in the search for
co-investment in our countries. The co - investment between the European and
North American companies and owners of rural tourism Panamanian establishments
located in rural locations with tourist potential, is the best way to boost the
tourism alternative to Panama.
3. This is only possible if associations, cooperatives, and rural and
ecological tourism in Costa Rica develop. These organizations must be
independent of the public sphere and created with the aim of doing business
together. Previous experience indicates that politicians view these
organizations as a platform for their activities; this is the cause of its
failure.
We have come within Panama, including indigenous reserves, and found small
tourism business owners who have established itself without any kind of state
aid. They have leadership, entrepreneurial spirit and organizational skills.
They require international partners to expand the community-based tourism and
ecotourism, not a charity initiative, but as pioneers of a sort of profitable
tourism, Panama urgently required.
