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Country Overview The Real Face of Panama Logistics, and real estate are set to drive Panama forward as the country is confident that its best days are yet to come. El Porvenir or more than 100 years, Panama has been Colon Fsynonymous with the canal that bears its name. The waterway has helped Panama develop into one of the most prosperous nations in the region, with an economy that has become one of the fastest-growing David worldwide. While recently this progress has La Palma Puerto been overshadowed by the ‘Panama Papers’ Yaviza revelations, the country confidently charts Armuelles its path forward. There is more to Panama Las Tablas than just financial services, and the nation has been busy preparing its economy for the future. The newly expanded is expected to bring substantial revenue in the years ahead, and excitement about emerg- Between Oceans and Continents Colón, the country’s second largest city, ing opportunities in areas such as logistics Home to just under four million inhabit- is located on the Caribbean Coast. While and manufacturing can be felt through- ants, the Republic of Panama is located Spanish is the official language of the out the country. At the same time, sectors between Costa Rica and Colombia, forming country, English is widely spoken and is such as tourism, agriculture, real estate the narrowest and lowest portion of one of the commercial languages. Panama and construction are regularly competing the Isthmus that links North and South has a warm tropical climate, and seasons for investor attention and are growing at a America. The country has a coastline of are divided into wet and dry. The dry season healthy rate. Panama’s diversified economy 788 kilometres on the Atlantic Ocean and lasts from mid-December through to the is demonstrating that it is rife with op- 1,400 kilometres on the Pacific Ocean. beginning of April with daytime tempera- portunities, and in realising its potential Panama City is the country’s capital and tures between 28-32º Celsius. The wet season Panama’s biggest advantage remains its the principal commercial centre. It lies on lasts from mid-April to late December, oldest – location, location, location. the Gulf of Panama in the Pacific Ocean. and temperatures drop a few degrees. u anzeige CountryProfiler

PANAMA FEATURE

From Spanish Colony to Independent Nation The home of several native American peoples, such as the Guna and Emberá, Panama became the first Spanish colony on the Pacific in 1538. It remained a part of the Spanish empire for nearly 300 years until 1821 when it was absorbed by Colombia. Panama attempted to split from

Colombia three times during the 19th Courtesy of the Panama Canal Authority century, but it was not successful until a US-backed attempt in 1903. At that time, the United States also secured a sover- eign zone in which to build the Panama Canal – which was completed in 1914 and remained under US control until 1999. Today, Panama is governed by President Juan Carlos Varela, who won the last elec- tion in 2014. Varela has been President of the Panameñista Party, the third largest party in Panama, since 2006. With over 39% of the votes, he won against the economy is based primarily on a well- The Big Attraction Cambio Democrático Party. His govern- developed services sector in areas such Panama is one of the best-connected countries ment’s strategic plan for 2015-19 out- as financial services, transport, shipping, in the world, boasting the two leading ports lines public sector investment projects real estate and tourism. However, the in Latin America on the Pacific and on the of around US$20 billion. Varela is also country is keen to widen its economic Atlantic side, as well as an airport in expansion keen to improve Panama’s perception appeal and is on its way of becoming mode that seeks to establish the country as an and enable it to play a greater role in the a manufacturing and logistics hub. important aerial hub. It comes as no surprise region. The country already hosted the This year, Panama’s government expects that Panama is already the logistics hub of the Summit of Heads of State and Government growth of 6.2%, a forecast that institutions Americas. The vessels of German container of the Americas in 2016, an honour that is such as the International Monetary Fund shipping lines such as Hamburg Süd, Hapag- a reflection of Panama’s growing impor- (6.1%) and the World Bank (5.9%) share Lloyd and Rickmers regularly pass through the tance as a strategic hub in the Americas. with only slight deviations. Growth will Panama Canal. Expectations are high that the be mainly driven by large projects such as waterway’s expansion will bolster its importance A Strong Economy the construction of an additional metro as an engine of growth. The US$5.25 billion Blessed with a unique geographical posi- line in the capital Panama City, invest- expansion, which was inaugurated in June tion, Panama has shown strong economic ments in the energy and mining sectors, as 2016, made it fit for the passage of Neopanamax growth over the last decade. According well as a boom in maritime and logistics vessels of up to 13,200 TEU. The Panama Canal to the World Bank, between 2001 and business as a result of the expansion of Authority (ACP) projects a 50% increase in 2013, its average annual growth rate was the Panama Canal. Foreign investment is tonnage by 2025, which will directly boost GDP. 7.2%, more than double the average in also seen as a key contributor to Panama’s However, the expansion could have an even Central and . In 2014, future prosperity, and the government larger impact on related logistics, maritime growth slowed slightly to 6.2%, while its is expecting FDI inflows in the region of and commerce activities. Major investments in GDP expanded by 5.8% in 2015. Panama’s US$5 billion in the next couple of years. ports and logistics facilities are already under

“Germany has been “Panama’s success does not depend on irregular flows gaining importance as of money into our financial system. Our success story a trading partner for is based on the hard work of the Panamanian people: Panama. In 2015, exports a noble people and peace-loving nation, that despite of to Germany amounted being a small country in terms of size and population, to US$91.8 million, has found its way to earn an important place within making Germany Panama’s second most the concert of nations. As a country, we feel that it important trading partner after the US. is our duty to protect Panama’s financial centre and There are great opportunities for further logistic platform so that it cannot be used for any illegal cooperation in areas such as logistics, activities or purposes that do not represent the common agri-food business and particularly energy. good. Our country’s commitment to the financial Panama is currently looking at new ways transparency and security of Panama’s entire logistic to meet its energy needs, and Germany is and service platform becomes stronger every day.” a country that has the knowledge and the technology to implement alternatives.” Juan Carlos Varela President of Panama Nestor Gonzalez Vice Minister of Foreign Trade CountryProfiler anzeige

PANAMA FEATURE

“Panama has made much progress in the field of financial transparency, and our banking centre has grown year after year in tandem with measures and efforts to combat money laundering and other Capital: Panama City • Type of Government: Constitutional Democracy illicit activities. Our financial sector is Panama Size: 75,517 square kilometres • Population: 3,968,449 (2015 estimate) healthy and robust, obviously, there Languages: Spanish (official), English (commercial) at a is always room for improvement. We Climate: Tropical, with an average temperature of 27 degrees Celsius Glance are convinced that a more transparent Currencies: Balboa, US Dollar • Time: EST (UTC -5) • Panama will bring increased benefits to the national economy in the long term.” way. Panama also hosts the world’s largest the 11th soundest in the world. Panama is international shipping register, with more also home to an asset management industry, Dulcidio de la Guardia than 8,000 vessels - 18% of the world’s total while services such as insurance and re- Minister of Economy and Finance merchant fleet – flying the Panamanian flag. insurance are growing. Panama’s capital markets are highly internationalised, both in “We are investing heavily A Country Full of Opportunities terms of capital flows and the organisations in infrastructure, which we Tourism is another sector growing at a involved. Additionally, the country is hosting consider crucial to develop rapid rate. In 2015, the number of foreign- Latin America’s first diamond exchange. a competitive economy. ers who visited Panama grew by more than However, and despite of its high level of We are currently building 10%, reaching 2.5 million. Real estate and service sophistication, events such as the a second metro line, while construction are also thriving, and Panama ‘Panama Papers’ revelations show that more the expanded Panama Canal will affect world is home to some of the most stunning needs to be done to future-proof Panama’s trade as it will change some of the routing developments in Latin America. Due to finance centre, although the country has patterns. For instance, the majority of large its strategic location and incentives, the already made some notable progress. In LNG ships carrying natural gas from the country has also succeeded in attracting February 2016, the Financial Action Task US to Asia can now pass through the canal. the regional headquarters of multinational Force (FATF) removed Panama from its grey We are expecting that the canal will add an firms, with some 125 headquarters being list of countries with strategic deficiencies additional US$400 million to our economy based in the country. This has spurred in the area of Anti-Money Laundering and in the first year of operation, and this figure demand for both offices and housing. Combating the Financing of Terrorism. is set to grow in the following years.” Today, around 50% of FDI in Panama is While many in Panama feel the country reinvestment, which serves as a testament has been unfairly labelled as a tax haven as Roberto Roy to the country’s business-friendly envi- a result of the leaked documents relat- Minister for Canal Affairs ronment. Keen to capitalise further on its ing to offshore corporations, and point to geographic position and skilled workforce, the global dimension of tax evasion and “Panama is a relatively Panama pitches itself as a first-class base for financial crime, greater transparency and small country, but advanced manufacturing and a top-notch accountability are key themes going forward. investors need to look distribution platform. Mining is another area at Panama as the entry that is set for growth, with the construction A Formula for the Future point to a market of 300 of a new US$5.48 billion copper mine. While The prospects are good that Panama’s million middle class Panama has long been successful in export- economic boom will continue and even consumers in Latin America, as well as an ing services, investment such as this will see accelerate in the years ahead. While access point to many other markets in the the country grow in the area of materials and critics say Panama has prioritised infra- world. This is also one of the reasons why goods. There are also interesting opportuni- structural improvements over social and Panama is so attractive for multinationals ties in the energy sector as Panama has just institutional development, Panama’s to set up regional headquarters.” approved its national energy plan, which leaders are convinced that public spend- places a strong emphasis on renewables, ing provides the right platform for private Alberto A. Alemán an area in which Panama lacks behind. investment and sustainable growth. n Director, PROINVEX Panama

Improving Perceptions On the back of its dollarised economy – the US dollar is legal tender in Panama since PUBLISHED BY Regional Director: Garvan Keating 1904, although there is a national currency, [email protected] the balboa – and an investment-grade credit Head of Inflight Media: Beatrice Collet rating, Panama has emerged as an interna- [email protected] tional financial centre and Latin America’s Editor: Sonja Lindenberg banking hub. Today, some 90 banks have [email protected] E: [email protected] Administration: Melissa Puglisevich established operations in Panama, and the W: www.countryprofiler.com [email protected] World Economic Forum ranks the sector as anzeige CountryProfiler

PANAMA FEATURE

Tocumen International Airport Prepared for Take Off

While the expansion of the Panama Canal has been completed, construction works on another important infrastructure asset are still ongoing as Tocumen International Airport seeks to strengthen its position in the premier league of global hub airports.

ubbing itself the ‘Hub of the Americas’, years, TIA has topped the A Spacious Terminal DTocumen International Airport (TIA) rankings in Skytrax’s Airport The new 116,000 square metres intends to fully cash in on the region’s Awards, a global bench- terminal will be located 200 projected growth in trade and transit pas- mark of airport excellence, metres south of the existing pas- sengers. TIA is already ’s in the categories “Best Airport senger complex and will provide 20 busiest and fastest-growing airport, register- in Central America” and “Best “Our new logistics additional gates. More than 50% of ing a record of 13.4 million passengers in Airport Staff in Central America”. centre offers the construction works have already 2015. The construction of a new terminal Tocumen SA, a private company companies been completed, and the plan is to is currently under way to allow the airport whose shares are owned by the warehousing open the terminal progressively. to handle more than 18 million passengers Panamanian government, took space right next It will become fully operational per year. Once completed at the end of over the airport’s operations in to the terminal. during the first six months of 2018. 2017, the modern building aims to rival the 2003. Since then, an extensive This is especially Designed by architects Foster and iconic terminals of airports in Asia, the US programme of expansion and interesting for Partners, the new terminal is set to and the Middle East. To boost its status as a modernisation has been under containers that improve the airport’s operational top cargo hub, TIA is also investing in new way, which has supported arrive via the efficiency. Two symmetrical wings logistics facilities, while the development of continuous growth in air traffic. Panama Canal,” of piers extend to the east and west an entire airport city is also on the drawing says Joseph from a central concourse, and the board. “We want to be a big player on the A Series of Makeovers Fidanque III, entire building is unified beneath world stage and the most important player “Passenger numbers have CEO of Tocumen an aerodynamic bronze-coloured in Latin America,” says Joseph Fidanque grown on average 10% annu- International roof. “This design has allowed us III, CEO of Tocumen International Airport, ally over the past six years,” Airport. to minimise walking distances for underscoring the airport’s ambitions. says Fidanque III. The first in passengers, while accommodating TIA’s series of makeovers, which finished a large number of aircraft,” says Fidanque III. Gateway Position in 2006, involved expanding the main TIA is Panama’s main airport, located 24 passenger terminal, as well as the rede- Maximising Cargo Potential kilometres east of Panama City. Panama’s sign and renovation of the original cargo The US$1.3 billion project also includes the geographic position in the heart of Central terminal in addition to the construction construction of new cargo facilities. “Our new America makes it an ideal hub connecting of new cargo buildings. The second phase, logistics centre offers companies warehous- South and Central America with markets which started in 2008, saw the construc- ing space right next to the terminal. This is in the US, , the Caribbean Islands tion of a new north passenger terminal especially interesting for containers that arrive and beyond. Today, passengers and cargo and related infrastructure, while the third via the Panama Canal. We have frequent con- can benefit from connections to some 92 phase, the construction of Terminal 2, is nections to many Latin American and US cities, destinations. For the past six consecutive scheduled for completion at the end of 2017. and we are an excellent airport for so-called CountryProfiler anzeige

PANAMA FEATURE

THE 2 terminal will be located 200 metres south of NEW 116,000m the existing passenger complex will provide 20 Additional gates belly cargo, freight that is stored under the with demand. “We are predicting annual A Global Hub Airport main deck of a passenger plane.” Global growth in the region of 6 to 7% for the next Plans such as these are proof of the confi- logistics and express delivery provider DHL 20 years, and we need to future-proof the dence that is being placed in the future of TIA. is one company that has long recognised airport.” There are already plans for a new While, thus far, the airport is mainly acting as TIA’s potential as a Central American cargo runway by 2022 to complement Tocumen’s regional transit hub, the arrival of new airlines hub and established extensive operations two runways and to ensure that its airfield and better connectivity with Europe and in the country. Fidanque III hopes that TIA is able to cater for the projected growth. “To Asia are quickly turning it into a centre for will be able to grow its importance in the remain competitive, we need to bring planes intercontinental traffic. “We are very happy cargo market, in particular when it comes in and out as quickly as possible. This means about Lufthansa’s decision to commence to the transport of pharmaceuticals and we need a new runway to avoid conges- direct flights between Germany and Panama,” other high-value, time-sensitive goods. tion.” Special attention is also being paid Fidanque III says. Looking to the future, he towards developing an airport city, complete adds: “By 2022, I hope that our airport will Expanding Further with hotels and conference facilities, as be moving 40% more passengers than today Fidanque III is aware that the current well as a monorail link that would connect and that at least a dozen more companies expansion will not be enough to keep up the airport to the closest metro station. will be based in our logistics centre.” n anzeige CountryProfiler

PANAMA FEATURE

Tourism & Travel The Colours of Panama

for some 25% of tourist arrivals, while Panama is also fast becoming a favourite destination of European travellers, with 14% of total visitors coming from this part of the world in 2015. “In terms of European travel- lers, the Spanish market is very important for us,” Minister Him explains. “We are also seeing more visitors from Germany due to the new direct link of Lufthansa.” Going forward, the Minister says, Panama is keen to lure more From beautiful beaches and colonial quarters to tropical rainforests and amazing tourists from Europe, as skyscrapers, Panama offers visitors a unique mix of modern marvels and well as from the burgeon- traditional cultures, as well as exciting wildlife and big city environments. ing Asian travel market.

MICE and Medical Tourism elcoming a record 2.5 million visi- Developing an Industry In positioning itself in Wtors in 2015, Panama is rising up the Tourism today accounts for the global travel indus- ranks as a must-visit destination in Central some 11% of Panama’s GDP, try, Panama has long been America. Its exotic tropical rainforests, although the sector had not focusing on special interest stunning mountain villages and unspoiled played a major role in Panama’s and niche tourism markets. As beaches have long been appealing to economic mix for much of the the increasing cost of health- adventure-seekers and backpackers, while, 20th century. However, as soon “Our promising care in first-world countries more recently, the country saw a surge in as the American involvement tourism sector has made medical tourism a interest from those seeking a more luxuri- in Panama began to wane, the is still one of the thriving industry, Panama is one ous travel experience. A more diversified country started to invest in best kept secrets, of the countries that has been tourism product is seen as the main reason tourism infrastructure and at- but we want to benefitting most from this trend for Panama’s growing popularity. In addi- tractions in a bid to develop new change that. due to its excellent healthcare tion to attracting thousands of business revenue sources that would help There is so much infrastructure, US-trained travellers and conference delegates, Panama ensure the nation’s economic to do and explore medical professionals and lower is quickly becoming a centre for cultural, wellbeing. Today, Panama offers in Panama. costs of medical procedures. medical and ecotourism. “Our promising a wide variety of world-class at- Visitors will Investment is also being chan- tourism sector is still one of the best kept tractions, including the Panama never get bored,” nelled into convention centres, secrets, but we want to change that. There Canal, a Caribbean and Pacific says Gustavo helping the island to become a is so much to do and explore in Panama. Coast with 1,500 islands, seven Him, Minister key destination for Meetings, Visitors will never get bored,” says Gustavo indigenous cultures, as well as of Tourism and Incentives, Conferences and Him, Minister of Tourism and Administrator a cosmopolitan capital city with Administrator Events (MICE). “Last year, we of the Panama Tourism Authority (ATP). a vibrant nightlife and colo- of the Panama hosted some 200 conventions, nial quarters. For those seeking Tourism and we are currently building active holidays, there is no Authority (ATP). three new convention centres,” shortage of offers in areas such says Minister Him. One of them as golfing, diving, sport fishing and surfing. is the striking new Amador Convention Centre in Panama City, which is expected Attracting International Travellers to be completed in 2018. Hopes are high Stepping out of the shadow of its tourism that it will boost Panama’s position as a neighbours Costa Rica and Nicaragua, prime destination for large conventions in Panama is today a travel hotspot for tourists Central America. According to Minister Him, from the Latin American region, but the conference delegates usually stay for three small country is increasingly attracting to four days in Panama and spend around visitors from as far away as Europe and Asia. US$ 1,000 per person. “The MICE business Last year, Panama recorded a 10.7% increase is one of the most important segments of in tourist arrivals when compared to 2014, our tourism industry as it creates important which saw 2.3 million people visit the revenue.” The luxury travel segment has also country. Nearly 50% of tourists are coming seen recent growth, with high-end shop- from South American countries, with most ping malls and five-star resorts complete arrivals from Colombia, Venezuela and with golf courses and other amenities being Brazil. The North American market accounts developed in different parts of the country. CountryProfiler anzeige

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PANAMA FEATURE

places T op to visit Bocas Del Toro Discovered by Christopher ➌ Columbus in 1502, Bocas del Toro Travel Tips Panama City and Canal has today become a paradise for surfers, The small size of as well as a top location for scuba diving. Home to a population of almost the country allows This archipelago off the northwest coast of ➊ 1.5 million, Panama City is a visitors to see Panama is made up of a total vibrant metropolis, with a buzzing nightlife, multiple attractions of seven islands. Apart excellent shopping opportunities and a and locations. While from watersports, range of cultural attractions. No trip to tourism in Panama visitors can hike Panama City would be complete without is a year-around through the rain forest a visit to Casco Viejo, the historic quarter, activity, travel to or take a tour to the which was founded in the 17th century. Panama is most Nevada bat caves. Jutting into the Gulf of Panama on the Pacific popular during the Moreover, visiting side, one can easily spend a couple of days dry season between December and April. Bocas Town offers exploring this UNESCO World Heritage Site “Visitors from most European and American plenty of shopping, dining with its churches, palaces, streets, shops countries do not require a visa to enter and nightlife opportunities. Panama, just a valid passport,” the Minister and markets. The Biomuseo, designed highlights. Tourists visiting Panama can by renowned architect Frank Gehry, who also benefit from great deals as hotels, created the Guggenheim Museum in Bilbao Sendero Los Quetzales in particular in Panama City, are cutting (Spain), is also worth a stop, offering visitors Los Quetzales is a beautiful, a glimpse into the country’s flora and fauna. ➍ protected nature reserve located rates in response to an oversupply of hotel rooms. Despite the phenomenal growth of The best way to see the Panama Canal is to high up on the mountains of Chiriquí. It the country’s tourism industry, the number head to Miraflores Visitor Centre, located offers a 10km route for hiking next to a of hotels in the capital city increased faster some 20 minutes outside Panama City. beautiful trail. Winding the forest of Parque than the number of tourists. “But there is a Nacional Volcá​n Barú​​ and following Rio lot of confidence in the sector, and we have Caldera, the route leads to the mountains a long-term vision. Without infrastructure, above Boquete. The trail can also you cannot grow an industry,” he says. be hiked in reverse, but it is entirely uphill from Boquete. Moving Forward To grow the tourism sector further, Coiba Panama is keen to improve flight connec- tions to all parts of the world. The expan- ➎ National sion of Panama’s main airport, Tocumen Park International Airport, is also a key element Known for the high level in its tourism strategy and will surely of marine diversity, Coiba support the country’s efforts to grab a National Marine Park is larger share of the global travel market. the largest island in Central America. Located in the Gulf of Chiriquí, and with more than 800 species San Blas Islands of marine life present in the area, it is a ➋ San Blas Islands are a set of 378 paradise for nature lovers and seen as the islands within the archipelago of ideal place for scuba diving and snorkeling San Blas facing the Caribbean Sea. Mostly on the Pacific Coast. This UNESCO World known for the tribal life of the Guna people, Heritage Site was previously used as a prison these islands are great for coming face to by the country’s former military dictatorship. face with a whole different culture while relaxing on one of the islands’ shores. The Guna tribe works hard to protect their islands against massive tourism and only a limited number of people are allowed daily on the islands. Diving, swimming and relaxing amidst the beautiful surroundings are some of the visitors’ favourite activities. Accommodation is available in the form of eco-friendly lodges, including overwater cabins, built by the locals. CountryProfiler anzeige

PANAMA FEATURE

Arval Developers Ecosystem of Support Panama offers a flexible and competitive framework for local and foreign real estate A Piece of Paradise investors alike. Foreigners can purchase and own land in Panama, the only restric- tion being on land within 10 kilometres of national borders. In addition, the purchase of property entitles foreigners to perma- nent residency visas, which can be converted to citizenship after five years. “Foreigners With its affordable prices, sunny lifestyle and emerging business relocating to Panama opportunities, Panama is attracting expats from around the can also benefit from a wide world and has become a hotspot for real estate investment. network of banks, insurance and relocation special- hen Panama took control of the canal many developers, the term ists,” says Arias. Other pull Wfrom the United States in 2000, many ‘buyers market’ is a scary factors include the English- were sceptical as to the country’s economic term, this is not the case for speaking friendly environ- potential. Could tiny Panama survive without Arias. “There is still demand ment and an infrastructure that the US military presence? Panama proved for housing. We only use top can compete with the developed sceptics wrong, and while American soldiers quality products, and quite liter- world, with high-quality services and canal workers left, American retirees and ally, pay attention to detail. This “Foreigners and technology. Panama City is international expats looking for better quality is what differentiates us from relocating to also one of the safest cities in the of life discovered the benefits of living and the competition.” His buyers, Panama region and the healthcare system investing in the Central American country. says Arias, have actually become can also benefit is full of US-trained professionals. This has made Panama’s real estate sector his company’s biggest sellers. from a wide a key economic contributor and spurred network of A Global Community the construction of high-rise office and Green Living banks, insurance While American retirees were condominium towers, as well as non-urban While Panama City is a bustling and relocation among the first foreign buyers communities complete with golf courses metropolis with a fast-paced specialists,” says in Panama, throughout the years and other amenities. “Opportunities for environment and skyscrapers, it Manuel Arias, individuals and families from investment are now greater than ever,” says is much more than that, he says. CEO of Arval Latin American countries, such Manuel Arias, CEO of Arval Developers. “After Arval Developers focuses on Developers. as Brazil and Columbia, relocated, a number of miracle years, market activity housing that appeals to home- too. European expats, mainly has returned to normal levels. It is a buyer’s seekers looking for the great British and Spanish, were also market, with a very promising outlook.” outdoors. Albatross, Azalea and Greenview in drawn to Panama for its comparatively af- the district of Santa Maria and Panorama in fordable lifestyle. “Better flight connections A Solid Reputation Coco del Mar are currently under construc- mean increasing numbers of Europeans Arias is convinced that Panama is rightly tion, while apartments in Santa Maria’s are currently discovering Panama,” says taking its place at the top of emerging Greengarden and Terrazas can be purchased Arias. As they join the many international markets and investment opportunities, at pre-construction stage. They all boast expats that have long been calling Panama although there is an oversupply of apart- modern amenities and facilities, and are home, prices are rising at a sustainable ments, hotels and office space as a result of a located in ‘green neighbourhoods’, offer- pace. “This makes the prospect of real estate building boom in the mid-2000s. While for ing breath-taking sea and country views. investing that much more attractive.” n anzeige CountryProfiler

PANAMA FEATURE

Grupo VerdeAzul Panama’s Growth Quotient Tourism and real estate development are established pillars of Panama’s economy, while a growing logistics sector holds the key to the country’s future prosperity, explains Alberto Vallarino, President of Grupo VerdeAzul.

anama’s economy has long been the envy Pof its Latin American neighbours. The country has had the highest average growth rates in the region over the past decade and is expected to maintain that performance. success in attracting tour- appeal to high-end travel- Its GDP is predicted to expand by some 6% ists. In 2015, 2.55 million lers and real estate investors in the coming two years. As with many visitors came to Panama, alike. They have transformed emerging markets, investment compa- an increase of more than 10% Panama from a tropical backwa- nies and diversified groups are behind when compared to 2014. As ter into one of the fastest-growing much of this growth. Grupo VerdeAzul one of the booming economies “We believe there economies in the region. “But is one such company that has supported in Latin America, Panama is will be many more than bridges, highways and Panama’s journey towards becoming a increasingly attracting tourists more attractive airports, the positive impact must major destination for leisure and logistics. seeking five-star treatment. opportunities for be measured in the ability to create “All our assets are unique,” says foreign investors and maintain a stable, peace- A Leader in Hospitality Vallarino. “The Bristol caters to as our market ful and dynamic environment in VerdeAzul is known primarily as a luxury the most demanding business matures, but these which private sector investment real estate developer, given the strong as- travellers and the Wyndham opportunities will can flourish,” says Vallarino. sociation that exists to its flagship project: Panama at Albrook Mall can require a local Buenaventura, an exclusive beach commu- host large conferences. The partner in order Casamar & Santa Maria nity located on the Pacific coast of Panama. Villa Marina Lodge is located in to be identified, The country’s stable political “The success of Buenaventura has helped us Playa Venao, which is the most structured and and economic environment has develop a brand associated with world-class popular surf destination, while executed”, says given VerdeAzul the confidence quality, which we have been able to apply in the JW Marriott Panama Beach Alberto Vallarino, to invest further and to replicate the hospitality sector with our hotel proper- & Golf Resort is a beach hotel President of Buenaventura’s success with its other ties,” says VerdeAzul’s President Alberto located within Buenaventura.” VerdeAzul. developments: Casamar and Santa Vallarino, pointing to the country’s recent Maria. Casamar is a gated residential Buenaventura – master-planned community located Transforming Panama on the beachfront in San Carlos, a 60 minute Today, Buenaventura combines the best of drive from Panama City. Casamar is a particu- all things Panama. Set in a tropical envi- larly family-friendly community. “In addition to ronment with extensive landscaped areas, building a waterpark for children, we are creating lakes and lush trees, Buenaventura boasts the first family-oriented ‘pitch & putt’ golf course luxurious beachfront townhouses, lake front in Panama, a 9-hole par-3 course which will villas and condominiums. “Our approach to allow parents and children to play together,” says real estate development is with a long-term Vallarino. More than 100 families have already frame of mind. In Buenaventura, we decided moved into Casamar. “We can’t wait to have our early on to hire one of the best master plan main amenities ready by the end of this year.” developers in the world in order to focus on Grupo VerdeAzul has also been actively how to preserve and enhance the natural involved in the development of Santa Maria, beauty of the site. We established rigor- the premier residential real estate develop- ous design parameters to ensure that our ment in Panama City, which also includes vision was attained,” explains Vallarino. an 18-hole ‘Nicklaus Design’ golf course. “It The large infrastructure investments of will eventually feature The Santa Maria, a recent years by the Panamanian government 5-star Starwood Luxury Collection hotel and a have equally helped boost the country’s country club, which is set to open in 2017.” CountryProfiler anzeige

PANAMA FEATURE

A Future in Logistics development in the world. “Due to its Going forward, VerdeAzul seeks to exploit privileged location and proximity to major Panama’s growing niche as a shipping and logistics assets, such as the PSA & Balboa logistics centre. The US$5.25 billion Panama Ports and the Howard Airport, we plan on Canal expansion project, which has been developing the site as a logistic centre.” opened in June 2016, is predicted to double the amount of traffic passing through this A Partner for FDI Central American isthmus. “We feel that Foreign Direct Investment (FDI) income in logistics and agriculture present tremendous Central America totalled US$11.808 billion growth opportunities for Panama. These last year, a 6% increase compared to 2014. business units are still relatively small With 43% of the total, Panama was the main within the group, but growing quickly.” recipient in the region. “We believe there PTL, VerdeAzul’s own logistics company, will be many more attractive opportunities was set up in 2012. The Group currently for foreign investors as our market matures, owns and operates two land transportation but these opportunities will require a local companies and has invested in a 65-hectare partner in order to be identified, structured plot of land located in Panama Canal’s and executed. Through our 30 years as West Bank, adjacent to Panama Pacifico, investors in Panama, and our proven track which is said to be the largest mixed-use record, we believe we can be an attrac- tive, long-term partner for foreign inves- tors.” The increased presence of European investors has been very important for VerdeAzul, Vallarino emphasises. ”We are currently in different stages of joint venture negotiations with European groups in the hospitality, logistics, agriculture and energy sectors. Those are the sectors that under- pin Panama’s phenomenal growth.” n anzeige CountryProfiler

PANAMA FEATURE

Meyer’s Group of Panama’s GDP. The Meyer’s Group expects about 7-10% growth in its operations as a result of the expansion and has rolled out new tugs The Panama and technologies ahead of the opening of the widened Panama Canal. “I firmly believe that Evolution the new canal will not only be positive for Panama, but for the world,” says Mittelmeyer.

Growth Potential The Meyer’s Group has also become a key player in infrastructure construction in Panama. The firm was involved in the construction of a new metro line and a new highway, amongst other While growth predictions for projects. “We invest a lot in machinery,” Panama’s economy rightly centre on the explains Mittelmeyer. This makes canal, the country also offers other exciting opportunities. Meyer’s one of the go-to-firms for civil construction. Panama City, he says, is already well hen the Meyer’s Group moved into Expectations are that the developed, but there are other WPanama in 2006, there was no ques- expansion of the Panama areas of the country that tion that its maritime division would remain Canal will boost Meyer’s offer tremendous potential. at the heart of its operations. Originally a maritime business, such Revitalising the agricul- Venezuelan company, its maritime herit- as its towing and piloting tural sector has also become age can be traced back more than 100 years. services in Panama’s ports. a top priority for Panama, and “Despite our experience, moving into However, says Mittelmeyer, the Meyer’s Group has turned Panama was tough at first as there were other economic activities also its attention to the production of many new companies setting up and com- have the potential to shape “I firmly believe dairy and pork. Thus far, Panama’s peting for business,” Michel Mittelmeyer, the country’s economy in the that the new agri-food businesses are facing CEO of the Meyer’s Group, admits. However, years ahead, and he is confident canal will not a number of challenges, includ- Panama’s growing economy provided fertile that the Group’s investments only be positive ing fragmented land ownership ground for expansion. The numbers tell in Panama’s construction and for Panama, but and limited access to financing. the story: “When we started, we had just 20 agricultural sectors will pay off. for the world,” “Most food products in Panama are employees; now we have more than 600, and says Michel imported and hence expensive,” we record on average 6% growth per year.” Canal Expansion Mittelmeyer, CEO says Mittelmeyer. However, efforts The opening of the Panama of Meyer’s Group. to address the sector’s structural Canal expansion in June is issues are under way and are driven widely seen as a game changer. by the country’s desire to move It has tripled the size of ships that can beyond its purely service-based economy. now travel the canal, fuelling hopes that “I would like us to become one of Panama’s Panama can gain market share from rival leading agro-food businesses. I believe that Suez and US land routes. By 2021, the the production and the distribution of organic Panama Canal Authority is hoping the and more natural food also offer excellent project will bring in US$2.1 billion per export opportunities. We are open for busi- year in added revenue, representing 2.8% ness with Europe and the rest of the world.” n