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 By the time I arrived in Costa Rica, pursuing my dream lifestyle, real estate bargains had been replaced by a multitude of shifty agents and brokers with questionable ethic standards.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

Wandering Historic Casco Viejo

If you're like me, and have a photography fetish for very old dilapidated architecture, you'll simply be in heaven when wandering the streets of Panama's old town. No visit to Panama City is complete without a trip to the historic district known as Casco Viejo. This area of the city is jam packed with history. You can feel it oozing from the numerous four century old buildings and cobblestone streets. Long neglected, the area became a notorious slum for what seems a century. Once UNESCO inscribed this area as a World Heritage Site, someone had the bright idea of creating a massive restoration project. As a result, Casco Viejo is currently caught in a funky time warp. The distant past, the recent past, the present, and the future of Panama co-exist in this remarkable location. The restoration projects are plentiful, and provide a glimpse of the future of the area. Swank restaurants,
boutique hotels, gift shops and art galleries pepper the cityscape, lending an upscale urban chic vibe among a vast poor local residential area, that for generations have called this barrio home. Walking down any one of what seems an infinite number of narrow streets, I'm treated to a voyeur's delight. The huge arched front doorways are left open, as local residence go about their daily lives, oblivious to (or just ignoring?) the many camera toting tourist.


The french and Spanish colonial style is characteristic of the area, and photo ops are abundant. I am particularly fond of the massive abandoned architecture completely gutted out at least a century ago. Ferns and vines climb walls and fill staircases. Whole rooms, once grand parlors or cathedrals, now reclaimed by vegetation. The flora now call these buildings home. This can only be viewed from the street, through an elaborate cast iron gate. It's actually the coolest urban landscaping motif I've ever seen. It seemingly exists as an unplanned byproduct of decades, if not centuries, of neglect. One of the many dichotomies I contemplate asIwander these streets.






As long as the investment money continues to flow, and the restoration projects continue onward, Casco Viejo is shaping up to be one of the hippest urban neighborhoods on the planet. It took only a few hours hoofing around these cobble-stones alleyways for me to fall in love with this section of Panama City. Prices here have skyrocketed in recent years, due to heavy speculation. It appears there are more buyers willing to hold or flip property, rather that get their hands dirty and make something out of that three century old ruin. Kudos to the visionaries who scale the scafolding to restore 30 ft. arched door ways, recreate 17th century tile work and install modern plumbing. Future travelers will owe a debt of gratitude to these folks for creating a world class destination.

On the other hand, the poor being displaced from the massive gentrification are likely far less grateful. One can only hope, the investment taking place here opens enough opportunities for the people of these barrios to thrive allong with the sawnky clubs, fine dining, and art galleries. It's the energy of the local culture that contribute greatly to the charm of Casco Viejo. Remove too much of it, and the place runs the risk of becoming a contrived tourist trap. It's a fine balance that I hope can be achieved.

Improvisation

In my previous post, I mentioned my love for jazz music and how I find great pleasure in combining the concept of jazz with my experience in Panama. Continuing with this theme, I'd like to focus on the idea of jazz as metaphor for life. One of my literary heroes is Jack Kerouac, the somewhat obsessive Beat writer who spilled his mind's content onto a spool of teletype paper in one long, continuous stream of consciousness. Kerouac's writing style attempted to match tempo, chord progression and energy level of Bebop era jazz, measure for measure. Maniacally typing away at his manual keys, Kerouac resourcefully prevented the disruption of his thoughts by eliminating the need to change typing paper. While writing On the Road, there simply was no page end, only a massive rolling stream of consciousness fueled in part by crazy life observations, Benzedrine, and jazz music. I often wonder what Jack would have done with an ergonomic keyboard and word processing software. Somehow the romance is completely lost with Microsoft Word involved. My point is; Kerouac nailed it. He understood that jazz music, as art form, so accurately mirrors life.

The most distinguishing aspect of jazz is improvisation... "in the moment"..."making it up as you go along"...."without a net"...all cliche'...yet true. Legend has it, Miles Davis once fired a member of his band because he overheard the poor guy practicing solos in his hotel room. Miles Davis deeply valued the purity of spontaneity in his music. He must have understood; life allows no time for rehearsal. It's happening right now...you're either in the show, in the audience or outside in the alley. There's a certain dare-devil quality in every jazz performer. To some degree, it's about taking risk, betting on your own skill and making decisions on the fly. A jazz performer needs to be self-assured on the stand, as a matter of survival. It must be why they refer to one another as "cats". Reflex, balance and heightened intuition are required to take what's thrown at you and make it work. The group is there for support, but when it's solo time, it's all you, baby. If you can't hang with the cats, you'll be pushed back in the rhythm section or possibly thrown out of the jam session altogether...at least, according to some legendary stories from jazz historians. If jazz is a metaphor for life and the competitive and risky aspect is a metaphor for entrepreneurship, then I must be mid-solo, in the middle of an intense jam session.

Finding, buying and developing real estate in Latin America is kind of like the hardcore machismo of the early jazz era. The comparison is simple on a number of levels. First of all, if you want to be down by law, you better have some chops and get booted to the scene, otherwise don't bother showing up to jam. You'll swing like a rusty gate and won't get the gig. Therefore, no bread. If this is the dealio, don't play the refrain. Refrain from playing and go to the 'shed instead. Second, be sure you're jake with the cats in your combo. Your cats need to be tight and know where the changes are, because you'll need them in the pocket for your heat...Also, you'll be expected to lock during the out head, or lay out for a stroll. Third, always expect the unexpected. You'll need to have your bag, 'cause you'll never know when you'll need licks of your own. Finally, improvise, improvise, improvise...nothing will ever go exactly as you plan. You'll find clams that could cause a train wreck and you could lose your scratch...You'll need to adapt to double time tempos, as well as other cat's cornball chops. It's good to be poly-tonal and have more than one key in your noodle at any given time. If one number ends, don't snap your cap. You can quickly switch to another groove...One more thing, watch out for squatters! Now, get your ax out there and blow, amigo!

Translation available upon request.