News out of the Caribbean Coast of Panama

Caribbean Update from Panama

Cruise Traffic Exceeds Expectations

Headlines in the local papers last week reported hopeful news out of Colon 2000, the main port and cruise ship hub on the Caribbean coast of Panama. Last August, Royal Caribbean announced that they would be moving the Enchantment of the Seas operations to Panama because of visa difficulties that their Latin-American-based passengers had experienced in previous years trying to get into Florida to start their cruise.

 This past December , Royal Caribbean embarked on their first Enchantment of the Seas cruise, marking another first for Panama The results of their first season's operations exceeded all expectations, with the biggest surprise coming from the local Panamanian market, who accounted for over 11% of overall cruise traffic on the Enchantment line. More than 40,000 passengers rode on the Enchantment's 20 sails over the last four months, and almost 300,000 cruisers passed through Panama during the same period.

This is not just pass-through cruise traffic. This means that cruise ships are now STARTING and ENDING in Panama, and the economic implications are obvious:
• Increased hotel occupancy as cruisers come early or stay late
• More money spent in country on goods and services
• Increased exposure to Panama as a country (and not just from the deck of a cruise ship)

For anyone considering starting a business on the Caribbean Coast, the cruise ship market is certainly not one to be overlooked. In fact, it is just the tip of the iceberg, and word on the street is that several other large cruise ship companies are now considering a similar move next season. Hotels are already popping up near the free trade zone, including the newly completed Sheraton Four Points.

Business opportunities in the travel and leisure, fine dining, and corporate services industries are becoming very attractive for anyone with the resources to make it happen. Keep the Cruisers Coming!

Madden-Colon Highway Near Completion

Another exciting piece of news is that the much talked about Madden-Colon extension linking Panama City to the Caribbean Coast is almost done! Odebrecht, the Brazilian company building the highway announced that they expect to complete the 42km corridor traversing the isthmus by May 15th!

According to the Ministerio de Obras Publicas report on economic progress, the main motivation for constructing the highway extension was to facilitate the flow of goods over land from Colon ( the Atlantic entrance to the Canal ) to Panama City. It was also designed as a means to transport the raw materials that will be needed for the canal expansion project, which has already started. The new road is a Godsend for anyone doing business in the Free Trade Zone, because they will see what was once an hour and a half commute shortened to less than 45 minutes.

The road is also great news for all of the tourists and residents in Panama who prefer the tranquility and raw beauty of the Caribbean. I have to say that Playa Langosta is probably my favorite beach in Panama, and every time I drive up there I see a new building and yet another tour bus.

This road will no doubt be the Tipping Point that finally positions the Caribbean coast as THE preferred tourist destination for the weekend traveler. It’s already one of the most popular areas in the country for fishing, birding, and surfing and now it will be that much more accessible.

White Sand, lush mountains, great beach side food, and now easy access on a brand new road. Great news for everyone!

Spotlight on Bala Beach Resort and San Marino 

San Marino was the pioneering community in Caribbean development, and owner Enzo Caponelli reports that there has been renewed interest in his small gated development near Portobello. "We still have a handful of beautiful homes as well as one ocean front lot remaining," he reported enthusiastically. "We also welcome anyone interested in a vacation rental to contact us."

The recently completed $2,000,000 marina and breakwall is a great addition to the San Marino community, which is only five minutes from one of the most beautiful natural ports in Panama, Portobello. Head a bit further down the road and you get to Isla Grande, a stunning and up to now fairly inaccessible little island known for great surfing and good snorkeling.

Progress at The Bala Beach Resort is also now "Firing on all cylinders" according to sales director Evan Forbes. "We've moved more units since the announcement about the road, which is quite a surprise considering the state of the global economy." Im amazed that it (the road) is going to be completed in less than a month, which was well ahead of what we had been expecting."

People have confidence in this project, because Bala is one of the few that has already secured bank financing through solid presales. It is also very well positioned to capture the cruiser traffic and Free Trade Zone business in terms of potential rental markets.

Things are finally happening, and promises are starting to be delivered. In five years, the days of tiny buildings and dilapidated old fishing villages on the Caribbean coast will just be a memory. For anyone even considering an investment on this coast, now is the time.