Travel in Panama

Declining occupancy see Panama pushing to appeal as attractive overnight destination rather than just transportation hub

Tourism continued to attract leisure and business travellers to Panama and contributed much to the country’s economy in 2019. Travel infrastructure improvements including a new cruise port at Amador, completion of a second terminal at Tocumen International Airport and upgrading of Metro Line 2 were key developments, on top of which Copa Airlines increased its number and frequency of flight routes to key destinations.

Online sales continue to narrow gap as players push for online presence

Internet transaction value increased in all travel categories in 2019, with online value sales of short-term rentals seeing the highest, double-digit growth and online value sales of hotels, conversely, seeing the slowest, single-digit growth. The contrast in online value growth between the two lodging types is largely a reflection of the difference in overall demand rather than on differing preferences for booking modes.

While hotels open and lodging infrastructure improves, growth of short-term rentals challenges traditional lodging

Panama aims to disrupt the travel industry and become a go-to destination for MICE trips, competing with well-established players like Dominican Republic. Towards that end, lodging infrastructure targeting meetings, incentives, conferences and exhibitions (MICE) travellers continues to improve.

Panamanian authorities banking on online travel agencies and Groupon business models to boost tourism

To promote more domestic and foreign tourism and attract more interest in Panama as a destination in general, Panamanian tourist authorities and stakeholders are increasingly relying on the expanded reach of online travel agencies such as Panamamundo Tours and on online business models such as Groupon to achieve this purpose. An increasing number of local travel players are using the Groupon model to promote Panama’s major tourist attractions, hotels, resorts and restaurants by offering discounts and discounted package deals.

Improved infrastructure, increased connectivity and intensified promotion all set to boost sales

Tourism authorities in Panama are banking on their targeted promotional campaigns using online tourist agencies and digital media to showcase the country’s main attractions besides the beaches, Colón Free Trade Zone and Panama Canal. They also expect the new Pullmantur cruises that will start and end in Panama from the new port in Amador to increase the likelihood of passengers staying in Panama for a while before or after taking a cruise, which will benefit the hotels, restaurants and some of the tourist attractions.

Files are delivered directly into your account within a few minutes of purchase.