Our country is probably in one of the most challenging moments in its history, like many other countries, due to the effects of the pandemic. The economy has suffered a lot and to begin to pave a path that will return us to growth and development, it is necessary that the most important economic segments be encouraged, among them the tourism industry.
For the President of the Chamber of Commerce, Industries and Agriculture of Panama Jose Ramon Icaza, the organization has for years identified the tourism sector as the one destined to lead the sustainable economic system in Panama, along with agro-business, logistics and technology information and innovation.
Initiatives that are Boosting Tourism
This important organization has been supporting initiatives in behalf of tourism development such as the Tourism Promotion Fund created in 2017. Engineer Jose Ramon Icaza believes that it is important for the government to give governance, sustainability and continuity to tourism marketing efforts internationally. Of course, following the path that began to be traced with the Sustainable Tourism Master Plan that develops a tourist offer taking into account the natural, oceanographic, hydrographic, cultural and historical heritage, based on a model of tourism focus on conservation and research tourism. Strengthening areas through the construction of basic infrastructure such as waste disposal, quality water supply and connectivity.
Challenges to Overcome
During the 80’s and 90’s, Panama worked with tourism under a concept based more on the hotel infrastructure. However, the President of the Chamber of Commerce comments that tourism has evolved into a reality where the tourist is aware, wants to positively impact both socially and economically, a line of thought that began in Europe and the United States.
Faced with this challenge of evolving towards what motivates tourists today, Engineer Icaza comments that it will be very difficult to compete in hotel infrastructure with countries that are many years beyond, but with the historical and natural heritage that Panama has, it is possible to create in the market a unique proposal that can position the country in a more important spot.
Guarantee Fund and the Tax Credit Expansion Law
Months ago the Cabinet Council approved the Guarantee Fund for 300 million dollars, in which the government, the national bank and the Inter-American Development Bank participate. Engineer Icaza believes that it should be started immediately, since the debt is estimated between 700 and 800 million dollars, covering only 38% of the total, and if it is insufficient, the government should seek more economic aid for the sector.
Regarding Law 122 that grants tax credits for tourism investment, the Engineer thinks that although it is positive, they have identified five areas for improvement: scope, impact, proportionality, oversight and transparency. The latter is very important so that trust in both the public and private sectors is not further eroded.
Meeting, Conferences and Exhibitions Tourism Can Revitalize the Industry
Although MICE tourism is not fully included in the Sustainable Tourism Master Plan, this segment will be the enhancer in the short and medium term of the country’s natural, blue and cultural heritage, thanks to the opening of the new giant of Capital City: Panama Convention Center.
Engineer Icaza trusts that our country is called to become the epicenter of fairs, exhibitions and conventions in Latin America, due to its geographical position and stable dollarized economy. It also has enviable connectivity and socioeconomic factors that offer a stable environment for Panama to host mass events in 2023 and 2024. The Engineer emphasizes that the economic benefits of these events greatly impact hotels, restaurants, cultural centers and places of recreation. A segment of tourism of great relevance for the country and that it is necessary to take advantage of the opportunity.
The President of the Chamber of Commerce, Industries, and Agriculture of Panama, Jose Ramon Icaza, reinforces the message that everything planned for the tourism sector must be well managed and executed, ensuring the continuity of projects until it is achieved, until we get out of the crisis that the country is experiencing in general. Without these ingredients, incentives such as the tourist bonus will not achieve the expected impact.