Q & A with Carl Fredrik Nordström, Panama’s Deputy Minister of Tourism

Tourism has panned out to be Panama’s number-one industry, doing one better to the toll money collected by the Canal. Today, the local leisure sector churns out $1.2 billion worth of revenues on a yearly basis. On the other hand, the industry has been growing steadily, peaking a whopping 16 percent increment in 2006 and forecasting a similar figure -or slightly higher- this time up.

Its undisputed allures, the reigning calmness and new incentive legislation are making Panama the perfect retirement getaway. These segments and an assortment of projects linked to the enhancement of the Canal have triggered a real-estate boom in the country with total investments in the neighborhood of $3 billion and as many as 120 new buildings under construction.

Q.- How is Panama working to reel in more tourists from Europe?
A.- First of all, I must say that we’re just about to sign a contract with a publicity transnational for a total investment of $40 million, with 30 percent of that amount being funneled into Europe. We used to pay little heed to the European market in the past, but that trend has been shifting in recent years. Moreover, there’s a real-estate boom sweeping the country right now, with 120 new buildings under construction.

Many of these investments are coming from Spain and other European nations, while the rest hails from the United States, a market that chips in 85 percent of all tourists visiting Panama every year. However, we want to rake in far more European tourists since there’s an increasing amount of people from the Old World handpicking Panama as a retirement getaway or a place to settle down a second residence. This is owed in part to incentive legislation that has won passage in the Parliament and has made Panama one of the finest safe havens for retirees around the world.

Q.- What locations other than Panama City is the government giving top priority to for the advance of both beach and residential tourism?
A.- Under this administration, the Panama Tourism Institute is charting a number of tourism regions across the country. Up to now, we’ve charted Tierras Altas, Boquete, Volcan, Concepcion, Bocas del Toro, and Chiriqui. We’re also planning to call Darien –near the Tropic Star Lodge- the surroundings of the Canal Zone and other areas. InterContinental Hotels is currently building a new facility in the area of Clayton and we’ve also put the zone of Azuero on that same list under the umbrella of Panama’s Act 8 on Fiscal Incentives.

Q.- Is there any other piece of information you’d like to share with us?
A.- We’d love to have Europeans visit the country because we have a lot to offer them in terms of safety and leisure. There’s a great explosion of real-estate assets going on in Panama and the Canal expansion is going to play a major role in the country’s future development.

Last but not least, Panama has a whole lot more to offer than just conventional tourism. In addition to breathtaking beaches, the country boasts superb infrastructure, lookout sites for birdwatching and whale-watching off the Perlas Archipelago. And there are tribes of indigenous populations very much alive and kicking and that can be watched in their own territories, let alone the ear-to-ear smile the Panamanian people will always welcome visitors with. And those smiles go for free.