Panama, The Next Costa Rica? |
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| Written by Editor |
| Monday, 29 January 2007 01:38 |
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When I first began hearing about Panama around eight years ago, it was from the typical band of barfly gringo expats who like to gripe about everything. They made wild claims about how much cheaper, cleaner, safer and more modern Panama was compared to Costa Rica. As with my tequila, I take bar room talk with a giant lump of salt, so I decided to see for myself what all this Panama talk was about.
My first trip to Panama was in late 2001. I was in immediate shock at the modern skyline of Panama City and its unique, cosmopolitan air. Different “barrios†evoked memories of New York, Madrid, New Orleans and of course, Miami. As I toured the countryside, the raw beauty and lack of tourism stood in stark contrast against the ultra developed city. The potential was obvious, and I was hooked. Nearly a decade later Panama as a whole is now a boomtown. The city only continues to grow, with over 50 cranes dotting the skyline and indicating the next fancy condo or business tower to be built. The mountain town of Boquete, at one time a haven for “el gringo cheapo†who sought more affordable living than San Jose offered, is now home to thousands of expats. Prices there have risen with demand and dozens of residential projects are in various stages of completion. Pacific Coastal development is underway at breakneck pace and an explosion of Caribbean tourism and construction is currently focused on the Bocas Del Toro area. Tourism, investment and retirement here are all on the rise. So, can Panama become the “Next Costa Ricaâ€? Can Panama become the next big blip on the vacation radar? Well...yes, and no. Sorry to be imprecise, but I'll explain. Panama has a few advantages over Costa Rica, some inherent setbacks and some benefits that could actually work against it. Panama's Strengths � Infrastructure – A network of highways, airstrips and modern bridges connect Panama City to even the most remote areas. Cell phone and Internet coverage is excellent and easy to obtain. � Banking & Lending – Panama has always been famous as an offshore banking jurisdiction. Banks here are professional, lend at reasonable rates and still respect privacy laws. � Diversity – The country is incredibly diverse with immigrants from all over the world, active indigenous communities and a rich culture. � Safety – The Panamanian police force is tough, well-equipped and well-trained, especially compared to their Costa Rican counterparts. Certainly Panama hasn't yet faced the many issues that Costa Rica is now seeing, most of which are symptoms of success, but presently I feel much safer in Panama. Panama's Weaknesses � Poor Customer Service – Costa Ricans are simply some of the friendliest people on the planet and really enjoy working in the hospitality business. Panamanians by comparison have a lot to learn about the basics of “please and thank youâ€. � Lack of Tourism Experience – Panama's economy has always been driven by the Canal and banking, so the best and brightest are not yet drawn to the tourism sector, nor are many students learning the trade. � The Ghost of Noriega – Most potential tourists still associate Panama with the Noriega era of corruption, drug smuggling and civil strife. Even though this was twenty years ago, changing this image is an uphill battle. � Tight Immigration Policies – Whether Costa Rica wants to admit it or not, the country depends heavily on a foreign work force of Nicas, Gringos and Europeans who work in and around the tourism sector. Panama has very tight immigration policies and regulates foreign hiring more stringently than does Costa Rica. As there is such limited talent pool for tourism staff, this could hinder Panama's tourism development. Strengths That May Actually Be Weaknesses � A Penchant For Building Towers – Although Panama City's skyscrapers are impressive, they should be limited to the city. Both the lack of capital and intelligent legal restrictions that kept Costa Rica's coastal skyline low profile are in my opinion, a grand part of the country's allure to foreign tourists. Panama is in danger of going the route of Cancun, Waikiki, Daytona and other beaches that littered their beachfront with ugly, dated skyscrapers. It's not an easy mistake from which to recover. � Velocity Of Capital – Since it's so much easier to obtain a personal or corporate loan in Panama, development is going to happen at a much faster pace and likely, with a less organic feel or thoughtful planning as occurred in Costa Rica. We've seen how fast developers have sullied locales like Tamarindo and Jaco, so one can only imagine how much faster it can be done in Panama with 6% loans. � The World Seeking “The Next Costa Rica†– Because the world is so desperately seeking the next big hot spot, I fret a bit that they may be a little to eager to hoist the crown upon Panama's head before the country is truly prepared. Whatever happens to Panama, I'm in deeply, madly in love with the country and plan to stay. Sure there will be fits and starts of growth, some good, bad and ugly developments, but the untapped potential and energy of the country are just contagious. Neither Costa Rica nor Panama are perfect, but for now, I'm perfectly content to travel between both countries to get my fix of each. There's no other 50 minute flight I know that travels so far. Trackback(0)
Comments (2)
  written by agent420 , August 28, 2010 I came to Panama in 2008 and stayed in boquete for a bit but after seeing a large family house and gardens in the san mateo section of the city i decided that it was a good time to follow my life dream and i opened a hostel you can see it here http://www.bambuhostel.com or just stop by we have a pool and gardens and all that a traveler might need and David panama is a fun well located small city.
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I have been living here for about 4 years if you have any info on this please send it to me