Panama in the Spotlight

For the past decade, or so, the hottest tourism attraction in Central America has been the beautiful country of Costa Rica, and rightfully so. After all, it was Costa Rica that started the concept of "Eco-tourism", and has successfully captured the imagination (and money) of adventure travelers from around the globe. Ask the average person about Central America, and Costa Rica likely will be their first thought. An effective marketing slogan (PuraVida) and images of tranquil beaches, erupting volcanoes, toucans, monkeys and bikini clad models is almost too much to resist. What else could you ask for in a vacation in the tropics? Consequently, the booming tourism industry in Costa Rica has brought with it, real estate prices that rival Maui.

We've all heard about a friend of a friend who moved to Costa Rica years ago, bought some cheap land, and now owns a hotel, dive shop or vacation home. This friend of a friend now spends their semi-retirement days surfing or discovering previously unknown species of flora in the rain forest. It's the lure of this elusive lifestyle that haunts the minds of millions of cubicle dwellers across the corporate landscape. I guess I should only speak for myself. By the time I arrived in Costa Rica, pursuing my dream lifestyle, real estate bargains had been replaced by a multitude of shifty agents and brokers with questionable ethic standards. Although there has been significant appreciation since then, I took a pass because I couldn't shake the feeling of being the proverbial babe in the woods.

Today, people familiar with Costa Rica talk about the, less than positive, changes that have taken place over the years. Petty crime is out of control, as less fortunate locals find naive tourist easy pickings. Development has run amok, ruining the tranquil scenery that attracted people in the first place. High prices for hotels and restaurants destroyed the concept of a budget vacation in the tropics. In a sense Costa Rica has been a victim of its own success. It's still a beautiful destination, but lately, the people I've met who have travelled to Costa Rica, do so by organized tours in a comfortable motor coach. Hardly, the Costa Rica that invented "adventure travel".

A study in contrast, Panama has a completely different story to tell. Although, next door to Costa Rica, Panama receives a fraction of the tourism business that Costa Rica depends upon. This is mainly due to a practically embryonic tourism industry, which until recently focused on cruise ships passing through the canal. Oh yes, The Canal. The primary subject conjured by mention of the entire country. Just as Costa Rica invokes eco-tourism, Panama invokes... shipping. Hardly a sexy draw unless you're Aristotle Onassis or an heir to Sam Walton. Let's face it, Pura Vida has a better ring to it than The greatest short cut on Earth. It's this lack of mass marketing know how that has kept masses of surfers and hippies interested in other parts of Central America. Let's not forget the brutal dictatorship and money laundering factor that has long since been squelched, but images die hard without a loud multi-million dollar PR campaign.

There has been a campaign in Panama, but it's been subdued and focused. Operating under the radar because it's target demographic has been highly focused on basically two niches. Business and Retirees. Panama has very attractive programs that open its doors to low key folks who have a steady form of income. Primarily, mature folks less likely to be raving on the beaches at 4am.

The other demographic is the international businessman and woman. Once thought of as an offshore tax haven, attractive to shady characters, Panama has a bustling banking industry rivaling Switzerland and Hong Kong for its variety services and privacy laws. As a result some of the worlds most stable banks do business in Panama. These days, that's a big draw.

So, now let's look at the demographic most likely to find Panama attractive, today. Unless you've been living on the moon, you might have heard of a little group known as baby boomers. Over 100 million strong in the US alone, they make up the single largest demographic with any money, and they're thinking about packing it up and calling it a career. With the world economy as it is, I'm sure this thought is weighing heavy on the collective brain.

Let's say one percent of 100 million, have the means, and decide to retire in a stable little country with a strong economic outlook, good infrastructure and quality health care. That's one million people. Let's say ten percent of that population choose Panama as their new home. And why not, it's still close to the US (2.5 hours from Miami), and ranked as the number one retirement destination globally year after year. That's 100 thousand people, the population of a decent sized town.

How will Panama, a country of less than three million people absorb 100 thousand newcomers? My guess is that Panama will continue the current open arms policy...up to a certain point. Then, the powers that be will gradually raise the price of admission, as the government begins to cap immigration. For now, the door is still open, and there exist some very attractive visa programs. (which I will write about later) But, if a stampede ensues, you can bet these programs will be altered and discontinued. My advice is to book a flight to Panama to take a look around. Do your due diligence, if you like what you see, buy some property before it goes Costa Rica. In a country this small, with this much to offer, with conditions as they are, it's better to act now than regret later.

If you would like more information on locating some of the last areas in Panama with low prices, contact Esteban through email: info@mypanamaranch.com