Hotel Occupancy As An Indicator of Tourism Activity and Economic Outlook

[Bud]

Bad news for the hotel industry in Panama continues. See http://www.centralamericadata.com/en/article/main/Panama_Hotel_Occupancy_Rates_Down.

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Panama: Hotel Occupancy Mantains Downtrend

The increase in the average number of days that tourists stayed in the country was not enough to offset the drop in hotel occupancy, which fell to 50% in the first quarter of this year.

Tuesday, May 17, 2016

The difficulties that hotel sector is facing due to the lack of international promotion of the country as a tourist destination and the oversupply of rooms registered in the country explains the downward trend which is still being seen in hotel occupancy rates.

It is hoped that the international promotion which the Tourism Authority will start once it has completed the tender process will help improve the sector's performance.

The occupancy rate dropped to 50% in the during the first quarter of 2016, which is a reduction of 9% compared to the same period in 2015.

Figures from the General Comptroller's Office indicate that in March 2016 there were 10,452 hotel rooms, similar to the same period in 2015, when 10,422 were recorded.

The daily average of overnight stays in the first quarter of 2016 was 11.3, higher than the 9.8 registered in the same period in 2015. 

See figures from the Office of the Comptroller General (In Spanish).

 

[Keith Woolford]

"oversupply of rooms".  The article hits the nail on the head, imo.

Ten years ago, it was quite difficult to find a hotel room in P.C. 

At the time experts said something like "Panama City needs 1000 more hotel rooms", so about 10 hotel developers went out and built 1000 rooms each.

This phenomenon happens over and over again  ..everywhere.

The supply and demand will take time to balance out. Meantime there will be plenty of rooms at competitive prices.

[Twin Wolf Technology Group]

It is not only the hotel business that has been hit by an oversupply.   Many hotels took the opportunity to add a casino to their property.  To do so and to obtain the gaming license, it required the hotel have more than the 300 rooms.  This meant building even bigger hotels.   Under a very different government this appeared to be an excellent opportunity.  Comparatively, the current government is not casino friendly which only adds to the over-supply/under-demand problem. 

Currently, there is an oversupply of casinos as well as hotel rooms.  Some of the larger, new hotel properties cancelled plans to add a casino at the last minute.  The RUI is one such property.   Other have decided to stick it out and are virtually empty such as the Hilton.

The ripple effect is sad as it touches everyone.   I would like to see this government doing more to fill both those rooms and casinos.   It provides jobs and boosts the economy.   Instead this government, looking for money, implemented an additional 5.5% tax on every chip-to-cash transaction.  The  result is the tourists feel cheated, the local workers lose 5.5% of any tips they make and this depresses an already depressed, over-supplied market.

 

Edited May 19, 2016 by Twin Wolf Technology Group

[Bud]

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New hotel adds 300 rooms in crowded market

Posted on August 15, 2016 in Panama, Panama

Post Views: 354

AT A TIME when Panama’s hotel industry  gives signs of imploding, with occupancy rates barely over 40 percent, a Colombian group has thrown its hat into the crowded  ring with a more than $70 million investment.

The Hotel Las Americas Golden Tower near the Patilla Hospital and the heart of the  city’s business center is now open for business.

The opening is good news for laid off employees  from existing hotels as it will create 150 openings in  a constantly shrinking job market,

At the same time it will put more pressure on existing hotels attempting to cope with shrinking tourism figures nd competition from illegal short teem apartment rentals.

The30-story hotel  tower was designed by renowned Uruguayan architect Carlos Ott.
For  Andrés Felipe Ordoñez president of  Yalarame Investment  the hotel’s owner “the venture is a unique project, which we hope will become an icon of the city.”

Investment Talarame chose Panama as its first operation  outside Colombia. “We found here an opportunity to expand due to favorable market conditions, as Panama is  the fastest growing region in  Latin American.

The hotel has 285 rooms and 15 suites, three restaurants, a meeting room and spa.

Three of the first floors will be used for parking for new development.

http://www.newsroompanama.com/news/panama/new-hotel-adds-300-rooms-crowded-market

[Moderator_02]

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Panama: Hotel Occupancy Rate dropped to 48% in 2016

Between 2015 and 2016 the average occupancy rate went from 52% to 48%, while the total supply of rooms decreased from 10,451 to 10,369.

Friday, February 17, 2017

Figures from the General Comptroller of Panama indicate that the downward trend in hotel occupancy was maintained throughout 2016, with the month of December recording an average percentage of 47.7%. 

The daily average for overnight stays during 2016 was 11,116, higher than the average during the previous year, of 9,871. At the same time, the daily average for the number rooms occupied during 2016 dropped to 4,977, after having been located at 5,466 in 2015.

See statistics compiled by the Comptroller General. (In Spanish) 

http://www.centralamericadata.com/en/article/main/Panama_Hotel_Occupancy_Rate_dropped_to_48_in_2016

[Bill Uhlman]

We just stayed for less at the new PC Crown Plaza - nice pool - including free shuttle to and from Tocumon,  than we do at a rural and shabby Best Western in Oregon. however the food and drink downstairs was fairly expensive.

Edited February 21, 2017 by Bill Uhlman
added detail

[Moderator_02]

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Bargain time for hotel visitors to Panama

Posted on February 21, 2017 in Panama

Post Views: 197

IT’S A BUYER’S  MARKET for visitors to Panama seeking  a city  hotel room as occupancy rates continue to fall, and the careful shopper may  find that there is money to spare from the accommodation budget.

Meanwhile authorities are stepping up raids on  unapproved vendors renting rooms and apartments for extended time periods.

Between 2015 and 2016 the average  hptel occupancy rate fell  from 52% to 48%, while the total supply of rooms decreased from 10,451 to 10,369.

Figures from the Comptroller  General of Panama indicate that the downward trend in hotel occupancy was maintained throughout 2016, with the month of December recording an average percentage of 47.7%.

The daily average for the number rooms occupied during 2016 dropped to 4,977, after having been from 5,466 in 2015.

 

http://www.newsroompanama.com/news/panama/bargain-time-hotel-visitors-panama

[Moderator_02]

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Hotel Occupancy Continues to Decline

From January to May of this year, hotels in Panama City reported an average occupancy of 4,799 rooms per day, 7% less than in the same period in 2017.

Wednesday, July 25, 2018

According to figures from the Office of the Comptroller General of the Republic, in May alone the average number of occupied rooms registered a 5% drop compared to the same month last year, when it fell from 4,690 to 4,479.See also "Central America: $766 million in tourism projects"

During the first five months of 2015, 2016 and 2017, the level of hotel occupancy has registered falls compared to the same period in of each of the previous years, reporting contractions of 5%, 10% and 1%, respectively.

For its part, between May 2018 and the same month of 2017, the number of available rooms fell by 3%, decreasing from 10,488 to 10,199.

See complete statistics. (In Spanish)

 

https://www.centralamericadata.com/en/article/main/Hotel_Occupancy_Continues_to_Decline

[Keith Woolford]

There’s a tendency for some people to blame the water/sewer project in Boquete for lower tourism activity this year but the truth is that the numbers are down everywhere. It’s very noticeable in Panama City.

[Moderator_02]

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Central American hoteliers analyze the future of tourism in Panama

Thu, 09/13/2018 - 22:48

The immediate challenges and the alternatives to promote public-private partnerships for the prosperity of tourism bring together today Central American experts from the industry without chimneys in Panama.

The Panamanian Association of Hotels (APATEL), host of the meeting, informed that it is the fourth version of the Regional Congress of Hospitality and Tourism (COREHOTU 2018) "with the participation of experts in tourism, who will assess the present and future challenges of the sector for two days".

"In addition, it will present alternatives to boost the public-private commitment that allow strengthening the activity in the region."

The APATEL in its report specifies that the appointment will last until tomorrow and includes the discussion on the economic environment of the tourism sector, "which includes the effects generated by unforeseen or natural or climatic phenomena, the competitiveness of other destinations and the marketing required to obtain results."

The executive director of the Tourism Company of Puerto Rico, Carla Campos, will speak about this matter, "who will speak about the experience of that region with the hurricanes and the actions undertaken to lift the sector and make it competitive," it adds.

Moreover, a forum will be held with experts in the field of regional gastronomy and Panama, the organization and progress of the World Youth Day (WYD) will be reviewed, including the preparations for the celebration of the 500 years of the foundation of Panama city, in 2019, regarded as the Ibero-American Capital of Culture.

Tomorrow the Minister of Tourism of Costa Rica, Maria Amalia Ravelo Raventós, will speak on the topic "Connectivity and Infrastructure: importance for the development and competitiveness of a tourist destination".

There will also be a debate entitled "Perspectives of Tourism in Panama for the next five years", which will be headed by directors of the Tourism Promotion Fund and representatives of tourism and hotel guilds in the country.

Another issue on the agenda that stands out is the development of the country brand and its results in the experience of destinations such as Medellín, Bogotá and Lima.

The delegates of Central America have shown interest in "learning about the experience of other destinations in their projection for the strengthening of the image, creation of brands, as well as actions for marketing and strategic promotion," said APATEL.

The president of APATEL, Armando Rodríguez Tatis, said that Panama "works hard on this matter" and validated the contributions made during COREHOTU 2017, which allowed the creation of the Tourism Promotion Fund and their respective adjustments to obtain better and higher results in the short and medium term.

For this year, the IV Regional Congress of Hospitality and Tourism will coincide with the Panama Black Weekend, which according to official information was attended in 2017 by some 30,000 people and earned profits that reached 100 million dollars for local commerce.

 

https://www.panamatoday.com/panama/central-american-hoteliers-analyze-future-tourism-panama-7840

[Moderator_02]

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5000 fired as hotel occupancy plummets

Posted on September 17, 2018 in Panama

Post Views: 490

 

Some 5,000 Panama hotel workers have lost their jobs in the last year as hotel occupancy continues its downward spiral with a 6%  drop in the first six months of 2018 forcing hotels to cut expenses.

the Panamanian Association of Hotels (Apatel) reports that the rate per room fell this year from  $ between $6 and $90 a night. Five years ago the average price per standard room in the province of Panama was between $135 and $140. The Tourism Authority of Panama attributes the fall to the crisis affecting countries in the region and the valuation of the dollar.

 

https://www.newsroompanama.com/news/panama/5000-fired-as-hotel-occupancy-plummets

[Keith Woolford]

Tourism will get a boost from Chinese travelers.

 

[BlueBird]

The Chinese are coming!  The Chinese are coming! ?

[Moderator_02]

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Businesspeople urge boost to tourism after 25,000 jobs lost in Panama

Sun, 09/23/2018 - 23:06

Panama's tourism sector has lost "close to 25,000 jobs in the last two years," in a crisis that, to be overcome, requires actions such as handing over resources to a Mixed Fund for the promotion of the country, said today the Chamber of Commerce, Industry and Agriculture of Panama (CCIAP).

"Despite the recognition of its importance in the development of the country, the tourism sector is going through a critical situation on which the Chamber of Commerce, Industries and Agriculture of Panama expresses its concern," said the guild, which groups to more than 1,600 companies in the country.

Among the actions to promote the sector, the Chamber considers it "extremely important the formalization of the Mixed Fund destined to international promotion" of the country, "especially the creation of its legal personality and the allocation of the necessary economic funds, to avoid a harmful delays for the projects and plans underway".

On August 23, Panamanian President, Juan Carlos Varela, signed the internal regulations of the International Tourism Promotion Fund, whose budget consists of 20 million dollars per year.

From August to December of this year the Fund will have 8 million dollars, and the remaining 12 million dollars would be received from January to July 2019, according to official information.

Among other issues, the CCIAP warned on Sunday that "the advertising campaign to promote Panama as a tourist destination abroad will end in November of this year, and the next campaign has not yet been called for tender, which would mean losing continuity and strength in the corresponding channels and platforms".

"The private sector in general has been involved in supporting the strengthening of tourism; however, it is necessary to take the aforementioned decisions and actions, which are to empower tourism as a strategic factor of our progress and collective well-being," said the directive of the private guild.

Tourism represents around 10 percent of the gross domestic product (GDP) of Panama, one of the most dynamic countries in the region, which in 2017 experienced an economic growth of 5.4 percent.

 

https://www.panamatoday.com/economy/businesspeople-urge-boost-tourism-after-25000-jobs-lost-panama-7926

[BD]

Duh. What do you expect when Panama gets known as being the 25th most expensive city in the world? Decline in tourism is a natural and direct result of being too expensive to visit here (or in my case to live here).

Where to go now is my problem.

[TwoSailors]

5 minutes ago, BD said:

Duh. What do you expect when Panama gets known as being the 25th most expensive city in the world? Decline in tourism is a natural and direct result of being too expensive to visit here (or in my case to live here).

Where to go now is my problem.

Many choices!

[Moderator_02]

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25,000 jobs lost with  Panama tourism in critical state

Posted on September 23, 2018 in Panama, Panama

Post Views: 492

 

PANAMA tourism  is in a critical state with 25,000 jobs  lost in the last two years  and businesses closing says The Chamber of Commerce, Industries and Agriculture,

Despite the recognition of its importance in the development of the country, the “The tourism industry slowdown  is evidenced in the loss of jobs  with a direct impact on the management of  services and products of the sector that have in some cases, had  to end their activities and in   others  reduce them severely  with the closing of several companies dedicated to various related fields” said a Sunday September 23 statement.

According to the Chamber, with the construction of the Amador Convention Center, it is necessary to move forward with the ratification of the contract of the administrator who will manage its operations, so that the nominee is able to participate in the making of decisions for the start-up of such an important work.

“To cover these and other aspects, it is extremely important to formalize  the Mixed Fund destined to our international promotion, especially the creation of its legal structure and the allocation of the necessary financial funds, and thereby avoid delays that are detrimental to ongoing projects and plans,” the organization said

ITt pointed out that the advertising campaign to promote Panama as a tourist destination abroad ends in November of this year, and  a call for tenders for next season “has not yet been

Made , which would mean losing continuity and strength in the corresponding channels and platforms “.

The Chamber insisted on the need to boost tourism as an activity of the country’s development through its multiplier effect in practically all areas of the  Panamanian economy.

“The private sector, in general, has been involved in supporting the strengthening of tourism but, it is necessary to take the aforementioned decisions and actions to empower tourism as a strategic factor of our collective progress and well-being,” says the Camber.

 

https://www.newsroompanama.com/news/panama/25000-jobs-lost-with-panama-tourism-in-critical-state

[Moderator_02]

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Tourism Sector Complains

Given the slowdown in activity, which is reflected in the loss of 25,000 jobs in the last two years, tourism entrepreneurs in Panama insist on continuing with the international promotion campaign.

Monday, September 24, 2018

The Chamber of Commerce, Industries and Agriculture of Panama (Cciap), denounced the fact that the tourism industry is suffering a slowdown, evident in the loss of about 25,000 jobs in the last two years, with direct impact on the management of different services and products of the sector which, in some cases, have had to halt their activities and in others to reduce them severely, as well as the closing down of several companies dedicated to various related areas.

See "Fewer tourists arrive in Panama" and "Hotel occupancy continues to decline".

From a statement issued by the Cciap:

Despite the recognition of its importance to the country's development, the tourism sector is going through a critical situation about which the Chamber of Commerce, Industries and Agriculture of Panama wishes to express its concern.

The tourism industry is suffering a slowdown, evident in the loss of about 25,000 jobs in the last two years, with direct impact on the management of different services and products of the sector which, in some cases, have had to halt their activities and in others, to reduce them severely, as well as the closing down of several companies dedicated to various related areas.

Real full article (In Spanish).

 

https://www.centralamericadata.com/en/article/main/Tourism_Sector_Complains

[Moderator_02]

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Small  regional hotels planning 3-countrypackages

 

Posted 03/04/2019

 

Small Central American hoteliers are working on a multi-destination offer between Costa Rica, Nicaragua and Panama to attract visitors to the region.

The initiative, announced in the transfer from Costa Rica to Panama of the "pro tempore" Presidency of the Central American Federation of Small Hotels (FECAPH), focuses on plans to develop, strengthen and update the tourism sector.

This organization, which will be led by the Panamanian entrepreneur Hector Golcher during 2019, intends together with the Central American guild to replicate a multi-destination proposal that has been successful for Honduras, El Salvador and Guatemala.

He also stressed the need to promote charter flights, which would promote the entire region, also noted that strategic alliances will be made with international organizations and meetings with tourism chambers to identify tourism products that are in each region as agrotourism, fairs, and adventures.

"The idea is to see what we can offer our guests and encourage them to stay a day or two more nights and repeat the destination," he said.

In addition, Golcher emphasized that training is a key element for tourism, so he advanced that in his management he will update the method of marketing, public relations, reception, event organization and use of digital platforms.

The FECAPH,  is composed of 1,500 hotels and small hotels. In May, it will stage an assembly within the framework of the celebration of EXPOTURISMO, organized by the Chamber of Tourism of Panama and the Chamber of Commerce, Industries and Agriculture of Panama (CCIAP).

At the end of next July, Panama will host the XVII Central American Forum of Small Hotels as a result of assuming the Presidency of FECAPH.

 

https://www.newsroompanama.com/travel/small-regional-hotels-planning-3-countrypackages-1

[Moderator_02]

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Panama Tourism continues to plummet

Posted 13/06/2019

The  outgoing government’s promise that work would be done for Panama to reach  reached 3 million visitors by the end of 2019. appears to be another  unfulfilled hyperbolic  dream as the number of tourists continues to plummet, in spite of the extra boost by the highly promotred and overly expensive World Youth Day.

 The  entrance of visitors in the month of March plummeted 6.2%, to 186,000  the most acute monthly decrease recorded in recent years.  thus closing the high season of  Panamanian tourism, which left more pain than glory reports La Prensa.

The first quarter closed with 647,0000 visitors, an increase of 0.2% compared to the same period of the previous year, but it must be taken into account that in January there was an extraordinary entrance of visitors as a result of the World Youth Day.

A factor that reinforces the bad news in the tourism sector is the spending of visitors , which in the first quarter recorded a marginal increase of 0.5%, with $329 million.

Tourist associations point out that the trend registered in the first quarter will worsen during the coming months, with Panama will be in a low season. The cruise season ended in  May, and until March the number of passengers disembarking in Panamanian ports had fallen by more than 20%.

It was expected that at this point the Amador convention center would be operating, but construction has still not finished.

The lack of an international promotion campaign since the end of 2018 does not help the country attract more visitors says  La Prensa.

In the absence of official data on the occupancy of hotels in the capital city, businessmen commented that the situation is critical, with more than 65% of the rooms vacant. People in the industry say that hotels need a 60% occupancy rate to become profitable.

They point out that the lack of statistics further complicates the sector's outlook, since the exact reality of the industry is unknown and with   the first half of the year about to end, the  Tourism Authority  has not delivered data for 2019.

 

https://www.newsroompanama.com/travel/panama-tourism-continues-to-plummet

[Moderator_02]

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Hotel Occupancy Begins 2019 with Slight Increase

From January to March of this year, hotels in Panama City reported a daily average occupancy of 5,014 rooms, 2% more than that recorded in the same period in 2018.

Tuesday, June 25, 2019

The latest report of the General Comptroller of the Republic, details that only in March the daily average of occupied rooms registered an 8% increase over the same month last year, growing from 4,644 to 5,017.

You may be interested in "Tourism and air connectivity"

During the first three months of 2016, 2017 and 2018, the level of hotel occupancy has fallen compared to the same period of each of the previous years, however, in 2019 that behavior was reverted.

On the other hand, between March 2018 and the same month of 2019 the number of available rooms grew slightly by 0.05%, rising from 10,199 to 10,205.

See full statistics.

 

https://www.centralamericadata.com/en/article/main/Hotel_Occupancy_Begins_2019_with_Slight_Increase

[Moderator_02]

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Hotel occupancy: Figures up to April 2019

From January to April of this year, hotels in Panama City reported an average daily occupancy of 4,933 rooms, just 1% more than the same period in 2018.

Tuesday, July 9, 2019

The latest report of the General Comptroller of the Republic, details that only in April the daily average of occupied rooms registered a 2% increase over the same month last year, growing from 4,630 to 4,691.

You may be interested in "Tourism and Air Connectivity”

During the first four months of 2016, 2017 and 2018, the level of hotel occupancy has fallen compared to the same period of each of the previous years, however, in 2019 that behavior was reversed.

For its part, between April 2018 and the same month of 2019 the number of rooms available slightly increased by 0.05%, rising from 10,199 to 10,205.

See full statistics.

 

https://www.centralamericadata.com/en/article/main/Hotel_occupancy_Figures_up_to_April_2019

[Moderator_02]

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Panama: Hotel Occupancy Falls 4%

During May of this year, hotels in Panama City reported an average daily occupancy of 4,293 rooms, 4% less than the same month in 2018.

Wednesday, August 7, 2019

The figures of the General Comptroller of the Republic detail that in May the daily average of occupied rooms registered a decrease with respect to the same month last year, product of decreasing from 4,479 to 4,293.

You may be interested in "Tourism and Air Connectivity”

During the first five months of 2016, 2017 and 2018, the level of hotel occupancy has fallen compared to the same period of each of the previous years, however, in 2019 that behavior was reversed, reporting a slight variation of 0.1%.

On the other hand, between May 2018 and the same month of 2019 the number of available rooms grew slightly by 0.05%, rising from 10,199 to 10,205.

See full statistics.

 

https://www.centralamericadata.com/en/article/main/Panama_Hotel_Occupancy_Falls_4

[Moderator_02]

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Panama: Hotel Occupancy Does Not Improve

Although in the first semester the average number of occupied rooms in Panama City remained unchanged with respect to the same period in 2018, the figures are still far from what was recorded in the first six months of 2017.

Friday, September 6, 2019

According to the reports of the General Comptroller of the Republic in June the daily average of occupied rooms did not register significant changes with respect to the same month of the last year, product of growing from 4.488 to 4.490.

You may be interested in "Tourism and Air Connectivity”

During the first six months of 2016, 2017 and 2018, the level of hotel occupancy has fallen compared to the same period in each of the previous years. This trend could not be completely reversed, since in 2019 a slight variation of 0.1% is reported.

For its part, between June 2018 and the same month of 2019 the number of rooms available did not grow as it remained at 10,205.

See full statistics.

 

https://www.centralamericadata.com/en/article/main/Panama_Hotel_Occupancy_Does_Not_Improve

[Keith Woolford]

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product of growing from 4.488 to 4.490

The numbers at least reflect stability.