With the government's decision to ban the entry of non-resident foreigners, in an attempt to stem the advance of the coronavirus, some Panama hotels are considering the possibility of temporary closing.
Occupancy in the capital city is below 40% and a fall in annual profitability of 20% in the last 7 years, the entry ban puts national tourism on the brink of the abyss reports La Prensa.
Industry leaders are huddled with health and economic authorities to establish palliatives for the crisis already battered tourism sector
In the midst of this storm, temporary closings are not ruled out in an attempt to reduce expenses due to the lack of visitors, said Armando Rodríguez, president of the Panamanian Hotel Association (Apatel).
In the last two years, the entry of tourists has fallen more than 2%, , and until January 2020, Tocumen International Airport reported a 6% reduction in passenger traffic entering the country with a total of 226, 607.
He added that some of the decisions made by the Superintendency of Banks regarding the modification in loans were part of the suggestions made by the private sector.
"We all must support and that is why since last week we have made an approach with the Government," he said.
The first two months of the year left a negative balance for the hotel sector with an occupation of 39%. In the capital city, there are over 20,000 rooms
Until 2018, says the Panama Tourism Authority there were 134,000 workers in the tourism sector, including restaurants.
Exactly. Over-built - over-greed -> Game Over. The same for the housing/appartment market. While the majority of the countryy is somehow shutdown, the workers still flood constructin sites and build houses, that will be then (if by any chance they will finish it) tried to sell overpriced and stay VERY Likely empty, lilke 50% of the city. I wonder when these greedy people realize that they cannot take the money into their graves.
The result of over-building hotels has been obvious for years, but greed closed the eyes and minds of officials who approved the contracts (bribes) and expansion and the companies that over-built. They can't blame the result on Covid 19. The over-built hotel rooms have been sitting empty for years.