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| Interview with Casey Halloran, Panama Entrepreneur |
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| Written by Matt Landau | |
| Wednesday, July 19 2006 | |
 The Panama Report: Welcome to The Panama Report Hot Seat! Casey, I'd like to welcome you to my favorite restaurant. Casey Halloran: What's your name again? TPR: Tell me Mr. Halloran, what are you doing in Panama? CH: I am running an online travel agency and real estate business. TPR: Interesting. Very interesting. What aspects of Panama make doing business here so delightful? CH: Among other things, the dollar economy, low inflation, an incredibly talented labor force, solid banking sector, adequate telephony and internet, fantastic roads, as well as great loans and interest rates. TPR: You sound as if you have read these questions already. On a scale of 1-10, how much prospect is there for new businesspeople in Panama? CH: 10. The amount of new business potential is insane and I think Panama is undergoing a rare global immigration. I'm not sure this has ever occurred elsewhere, but suddenly the whole focus of the world is on Panama. There are all these new dollars being injected and these dollars look for the services they know at home. Since most of these services don't exist in Panama, there's opportunity to recreate a Dunkin Donuts or a Donald Trump high-rise because these immigrants want to bring what they know. New things like canal expansion, tax exemption, and tourism allow new businesspeople to select a sector and there will surely be opportunity. There will be new wealth amongst Panamanians, and whether that means Botox or Lamborghinis I don't know. What I do know is that opportunity here is endless. TPR: Could you repeat that? I cannot write that fast. CH: No. TPR: OK. What would you say are the negative aspects of doing business in Panama? CH: I am surprised for a country as capitalist and developed as Panama, how nepotistic and protectionist the laws are here. There's a lot of serious socialist shadows that lie beneath all the laws. They all require you to be Panamanian to do things. These are archaic laws in my opinion. Second, the country's immigration laws are too strict. In order to serve all these new industries, Panama has got to loosen immigration. There are not enough non-Panamanians here to serve this growth. For example, Panama City does not have enough architects that know how to build 50-story buildings. If the law won't let you bring enough these experts in, do you let the building collapse? It's your classic case of supply and demand...limited supply of experienced domestic help and skyrocketing demand. Something's got to give. TPR: Did you just use the word archaic? CH: Next question. TPR: If suddenly tomorrow, you had no money or resources in Panama, what would you do? CH: I would probably find a container of cheap goods coming in from the Panama Canal and sell them to gringos on eBay (at this point, Mr. Halloran let out this evil, almost sinister chuckle...as if this was the sort of plan that he had to take over the world). TPR: Like, what kind of cheap goods? CH: Probably some $5 trinket from china. TPR: Like, what kind of $5 trinket? CH: Probably like a Furby. Or a digipet. TPR: On a scale of 1-10, how beautiful are Panamanian women in your opinion? CH: 9 TPR: In your area of expertise, real estate, how does Panama remind you of Costa Rica? How does it differ? CH: Well, Boquete reminds me of Poas and Arenal. Veraguas has a lot of resemblance to Guanacaste. The Central Pacific coast is unfortunately a lot like Jaco. I promise to you that Coronado will be Jaco in a few years. Bocas is similar to Puerto Viejo. Coiba is similar to the Osa Peninsula. Sadly, I think here we are going the Cancun route...the wrong route. That is city towers at the beach. Costa Rica was wise with its beachfront laws. All beachfront is owned by the government and the within first 150 meters, you cannot go over 3 stories. This protects the coastlines and keep a sexy low profile. It makes the place feel more tropical instead of Waikiki or Cancun. I think a lot of rustic eco-lodges will pop up in Boquete, which is the only place where ecotourism is really starting in Panama. Aside from a small handful of boutique lodges, there's nothing comparable to Costa Rica. Costa Rica has villages at the beach and Panama has none. In terms of development, first, some sort of vision is important: a vision, whether good or bad. Some clear laws or guidelines. They must have some laws that mirror CR, protecting the coastline from high-rise development. Some basic and well enforced eco-laws. Then we must worry about traffic—meaning how do you move tons of tourists in the country without pulling a Costa Rica. Safety and security are also extremely important, being that with the influx of new dollars, you have to make sure that thieves don't follow. Whether white-collar thieves or carjackings. TPR: Now when you say white-collar, are these men actually wearing shirts that have white collars? CH: No, that's a term used to describe a higher level of thievery. Things like real estate fraud, money laundering, scams...you know. TPR: So, how exactly do they all get the same shirts with the white collars? CH: Next question. TPR: Why are you eating with your mouth open? CH: Because it makes the food taste better. I also wanted you to see how much I enjoy it. TPR: Getting back to the shirts issue, how many buttons would you say it is OK to undo when you are at work? How about when you go out at night? You do go out, don't you? CH: I am a one button undone kind of guy. I don't have enough chest hair for two. And three is just plain Travolta. I can't stand when people do that. We are not in Miami. Plus, the A/C is too cold anyway...gets the nipples hard. TPR: Do you think the gold rush for real estate in Panama City has begun yet? CH: It has absolutely begun. All these people buying preconstruction apartments are panning for gold. I think this will end in 24 months or so though. However, the gold rush elsewhere in the country hasn't even started. The big land buyers are the ones panning for gold out there. ‘Land grab' is what that's called. The big fish saying “I need it all.” That's what's happening on both coasts. Even the farmers out there know it. The next blow up (after Boquete and Bocas del Toro) will be anything near Veraguas in my opinion. --at this point in the interview, Mr. Halloran paused for an unusually long amount of time. I wasn't sure whether or not to ask my next question, so I just sort of stared off into space with him-- CH: I want to change my answer to that last one. Make it say, “anything near Portobello.” I just want throw that out there. I´d bet money on both of those two. TPR: Unfortunately, I will have to publish your first answer, but I will certainly add a note. TPR: How do you think a smart investor from, say, the USA or Canada should go about buying property in Panama? CH: One, research a ton. Two, don't hurry Three, get a great lawyer. Four, get multiple opinions. Five, use the bank (don't buy cash). Six, don't spend anything you can't afford to lose. Seven, do a lot of research. TPR: You actually mentioned the research one first, so that'd be six things. But, onto the next question. There is a very famous site in Panama called The Panama Report. Have you ever read it and how useful do you think it is on a scale from 1-10? CH: Yes I do know it. I like it a lot. 8.5 probably. Yea 8.5. Can I say, like, nicer than noriegaville.com , funnier than panama-guide.com?” TPR: Tell me some more reasons you like it so much? CH: I think that's about it. It's just a great useful site. I enjoy the articles. TPR: Maybe give me a few more reasons, as to why you think The Panama Report is so good? --at this point, Mr. Halloran stopped eating his Cobb salad and gave me a bit of a glare. The sort of glare that says, “drop the subject or my fist will burrow its way into your mouth.” I obliged.-- TPR: Are there any things that you think newcomers to Panama should be weary of? Perhaps things in real estate that you would caution them about? CH: Hm, good question. Be weary of unrealistic returns on any investment. Be weary if right of possession properties, and definitely realtors with no license. On top of that, be careful with delivery dates on preconstruction condos. That's it. Oh, and how about Columbian prostitutes? TPR (sarcastically laughing): I'm doing the interview here Mr. Halloran. CH: (no response) TPR: Well, Mr. Casey Halloran, you are officially off The Panama Report Hot Seat! And by the way, you have a kernel of corn stuck in your tooth. CH: Thanks. It was fun. TPR: Now that the interview is over, could you explain to me about those scam artists who wear the white collars? CH: (no response, followed by Mr. Halloran leaving the restaurant and stiffing me with the bill). |
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| Last Updated ( Wednesday, September 03 2008 ) |
