News

Isthmian Update

Some of the news in Panama

Torrijos Travels
President Martin Torrijo is continuing his travel schedule. He is to travel to London, England, on November 19 to participate in a meeting of International Socialists, to which his Revolutionary Democratic Party (PRD) belongs. Through a press release, the Presidency reported that at the meeting he will agree with a statement on climatic change to be made at the next United Nations conference to be held in Bali, Indonesia.

Venezuelan president Hugo Chavez announced that Torrijos is due to visit Caracas in December. According to Chávez, Torrijos will be traveling between December 8 and 9 to sign a series of petroleum agreements.

Ticos close border
Costa Rican truck drivers closed the border with Panama for more than 10 hours, as a protest against the collection of an "insurance fee" by Panamanian Customs on international transport. The "insurance fee" of US$25, endangers agreements of reciprocity in the General Treaty of Central American Integration, in the Protocol of Guatemala and in the free trade agreement (FTA) between Costa Rica and Panama, warned Marjorie Lizano Páez, president of the Costa Rican Chamber of Truck Operator Unity.

Gonzales hires U.S. lawyers
The president of the National Assembly, Pedro Miguel Gonzalez confirmed yesterday that he has arrived at an understanding with the American lawyer, Gregory Creig, to explore the possibility of having the American justice system review his case. He explained that he must deliver all the evidence that was aired during the legal process in Panama, where he was aquitted, for it to be accepted in the U.S.

Gonzalez is accused of responsibility for the death of a U.S. soldier shot on a Panama City street before the U.S. invasion of 1989. When he was elected this year as president of the National Assembly, strong objections by U.S. legislators led to the blocking of the ratification of the "Free Trade Agreement" between Panama and the U.S.

Power struggle
Samba Bonita Power & Metals, S.A. an electricity generating business that won a tender for the buying and selling of long-term energy to Edemet Edechi, placed a legal demand for $1,185 million against the distributor for damages. The plaintiff alleges that it was affected by the actions and omissions by Edemet Edechi, property of Union Fenosa, that frustrated the improvement of the energy supply contract that it had been awarded last year.

Fuel price and consumption rise
So far this year the prices of fuel have shown a constant rise of more than 30%, which has caused the gasoline of 91 and 95 octanes, as well as diesel to break the US$3.00 barrier.

Between January and September of 2007 Panama consumed some 504,951.634 million gallons of fuel in comparison with 2006 when the consumption during this period was of 471,680,261 million gallons.

Mega Port
The Panama Maritime Authority (AMP) expects to conclude this month the meetings with companies interested in participating in the public tender for construction of a mega port at Palo Seco, Farfan that will have an investment exceeding US$600 million.

Noriega continues fight
The former Panamanian general Manuel Antonio Noriega presented another legal resource to stop his extradition by the US to France, where he was found guilty on charges of money laundering. Noriega, who is in a Miami jail, requested another hábeas corpus so that his case can be reviewed again and for the US government to repatriate him to Panama according to the Geneva Convention for prisoners of war.

Bocas del Toro Airport
The Panamanian government will invest US$1.25 million between 2007 and 2008 to improve the infrastructure of the Colon Island airport in the Caribbean province of Bocas del Toro, it was reported by official sources.

KLM to fly Amsterdam - Panama direct

The Dutch Airline KLM will begin direct flights from Schipol Airport in Amsterdam to Panama’s Tocumen Airport beginning March 30, 2008, opening up a large segment of Europe for Panamas tourism market.

According to the Panama Tourist Bureau, IPAT, this is only the beginning of a chain of strategies which will be targetting the European potential with 30% of their advertising budget alloted to the area.

KLM and the Panama airline Copa have signed an agreement which will permit customers of both airlines to use the extensive network of flights offered by Copa to the Americas from their hub here in Panama and by KLM in Europe from their hub in Amsterdam.

Present statistics show that Panama already receives 87,356 European visitors annualy. Those numbers are expected to rise when KLMs flights begin next year.

State spending slammed
Juan Carlos Varela, president of the opposition Panameñista party called for a halt to what he called the unnecessary expenses of state publicity and for a cut in the excessive budget of the National Assembly and benefits of consuls and high level officials. He made these comments during the signing of the agreements of National Coordination for Development.

A daily newspaper reported that the government is spending more than US$71,000 daily on publicity this year, 82% more than in 2005, according to the general budgets of the state for both periods and statistics from the Comptroller’s Office.

City budget up
The Mayor of Panama City, Juan Carlos Navarro, presented to the council the budget for 2008 for a total of US$79.3 million. This exceeds the current budget by US$9.3 million and also contemplates an investment of a little more than US$15 million. The municipal investment has increased by US$2,165,600.

Unemployment down
Unemployment fell from 8.7% to 6.3%, a fall of 2.6%, between August 2006 and August 2007, according to the Comptroller’s Office. The report indicates that the zones with less unemployment are Darien (3.2%), Herrera (3.9%), Coclé (4%) and Los Santos (4%)

The rate of unemployment will continue to descend, said the Minister of Economy and Finances, Hector Alexander.

South Corridor toll rise
An unofficial agreement has been negotiated between the company ICA Panama and the Ministry of Public Works (MOP) that would permit the Mexican firm to increase by 10% the toll on the Southern Corridor from November 15. The increase would not be applicable for buses but would be implemented for motorcycles, cars, pickup trucks and articulated trucks.

War on Poverty
President Martin Torrijos declined to participate in the XVII Latin American Summit of Heads of State and Government, because of the indefinite medical strike in Panama. The First Vice-president and Foreign Minister, Samuel Lewis Navarro represented Panama in the forum in Santiago, Chile, with the theme "Social Cohesion". The Panamanian chancellor will present the subject of the war on poverty.

Prison problems
The newspaper El Siglo reported that there is complicity between members of the National Police Force and people under arrest resulting in the massive jail breaks that have taken place in recent months. Organized crime could also be a factor. This situation has become a headache for the prison system, its current director, Luis Gordon, says. More security personnel and custodians are required to reinforce the penal system. At present, the La Joya and La Joyita prison centers have almost 60 custodians and 200 police units, which is not sufficient for the 6,000 prisoners in these two jails.

Virgin in the U.S.
Panama’s Maritime newspaper The Bulletin reported that Virgin America, launched by British entrepreneur Richard Branson as a cut-price internal US airline is said to be shaking up the route between New York and Los Angeles.

Holiday bonanza
Between US$40 million and US$45 million went into the economy of the interior of the country during the long weekend that coincided with the independence days, during which nearly 400,000 people traveled to different points of the Republic. This was calculated by the Panamanian Association of Hotels (APATEL), based on the movement of cars that passed the tool booths of the Arraiján-La Chorrera freeway, and the movement of passengers through the bus terminal of the country areas and the Marcos A. Gelabert airport.

Marine accident H.Q.
Panama will be the headquarters of the office for the American continent of the International Forum of Investigators of Maritime Accidents (MAIF). Its establishment is due to agreements of the main maritime countries of the world during a recent meeting in Beijing.

Netanyahu visits
The right-wing leader of the opposition and candidate for prime minister of Israel Netanyahu recently visited in Panama.

It was reported that the candidate of the Likud in the 2008 elections in Israel was received in a special private audience by president, Martin Torrijos and then received the keys to the City of Panama. Netanyahu was Israeli prime minister between 1996 and 1999.

Copa’s young fleet
The aircraft fleet of the Panamanian airline, COPA, is one of the newest of America, now consisting of 25 Boeing 737 Next Generation aircraft and eight Embraer 190 jets. The Boeing 737-800 is the largest airplane of the COPA fleet, with a configuration of 155 seats, 14 in executive class and 141 in the main cabin. The routes of COPA Airlines cover 39 cities in 21 countries of North, Central, South America and the Caribbean.

New locks
Only four consortiums qualified to participate in the tender for best value of design and construction of the third set of Panama Canal locks, from the large number of companies that presented their offers to the Panama Canal Authority (ACP).

About time
The Colombian Congress is analyzing a government Bill to remove from the Colombian coat of arms, the image of the Isthmus of Panama that still remains on this symbol of the South American country. According to the newspaper El Tiempo de Bogota, the coat of arms has maintained the icon of the Isthmus of Panama as part of its sovereignty, even though Panama gained independence from Colombia in 1903.

More money for Trash
After the crisis over the accumulation of trash in the capital city, the Mayor of Panama City, Juan Carlos Navarro destined US$27.9 million for the cleanliness program next year; US$3.3 million more than that budgeted in 2007. Of that total US$8.6 million are destined for investment expenses, a similar figure to that used in 2007.

Minimum wage
Minimum wage discussions between workers and businessmen’s groups are hotting up Representatives of the business sector confirmed that their proposal is an increase to US$300, and they claim that any increase over this figure would be almost impossible because of its effects on the economy.

More U.N. presence
The Assembly approved three international agreements between Panama and the United Nations to establish regional offices in the City of Knowledge at Clayton. Those agencies are: the United Nations Diet Program (PNUMA), the United Nations Food and Agriculture Program (FAO) and the World Organization of Animal Welfare (OIE), reported the National Assembly press office.

Doctor’s strike reaches impasse
As The Visitor went to press a strike of doctors entered its ninth day with no solution in sight. The doctors are demanding salary increases but the 7% hike offered by the government was "ten times less than they requested" according to a statement reported in one daily newspaper.

Apart from salary, many other dissatisfactions with the conditions within the Social Security system are under discussion between the physicians and the Minsitry of Health.

The doctors, some 5,600 in number, demand that the government improve salaries (60% on their base salary), with union and social adjustments.

In the Social Security Fund (CSS) hospitals there are not enough doctors to attend to the contributors. There are 1,456 general practitioners for the 2.7 million people covered by the system up until December of this year. That is to say, there is a physician for each 1,843 patients.

The doctors of the Arnulfo Arias Madrid hospital complex abandoned their work areas to denounce graphically the lack of supplies in these installations of the Social Security Fund (CSS). On white pasteboards, the doctors made drawings showing damaged elevators, prescriptions rejected because there is no medicine available and special examinations that cannot be done for lack of supplies.

New “Focus” guide highlights boom on the “Costa Pacifica”

The dramatic development taking place along Panama's Pacific beaches is highlighted in the latest issue of "Focus", Panama's top tourist guidebook. In a cover story entitled: "The booming Costa Pacifica....its time has come", the guidebook identifies 21 major projects with 1,200 condominiums and apartments and three golf courses.

The writer comments: "It should not be surprising, given the surge in residential construction taking place in Panama, that the Pacific Beaches should be a target of developers , but the very size and and number of the projects now under way is staggering to Panamanians who have always loved a trip to the beach but have not expected more than an empty beach or an occasional cabin."

The article draws attention to the proliferation of billboards "announcing lots, condos, villas, gated communities and hotels in areas where formerly you would have taken your 4x4 for a family picnic and a swim."

The area the guide defines as the Costa Pacifica stretches from Playa Georgina to Farrallon, a stretch of about 130 km of coastline known to Panamanians as "The Beaches" but which until now did not have a specific identity as a tourist area

This edition of the twice-yearly "Focus", the second in 2007, contains descriptions of all of Panama's resort areas and is a complete guide to places of interest, hotels, restaurants, shopping, sports, transport and general information, as well as latest developments in the tourist sector.

It has been published continuously by Focus Publications (Int) S.A. since 1970 and and its current print-run is 100,000.

Low-cost Spirit Airlines to link Tocumen to Lauderdale

Flights to French Caribbean, too, by Air Caraibes

Two new airlines, Air Caraibes and Spirit Airlines, have announced flights to Panama, opening new destinations for travelers from Panama and new routes for potential tourism.

The U.S. company Spirit Airlines will link Tocumen to Fort Lauderdale, Florida three days a week starting in February,2008. This is especially significant because Spirit is said to be the biggest low-cost airline on the continent and will be offering fares between $250 and $350 for the round trip.

All Airbus fleet leads in Caribbean

Celebrating its 16th year, Spirit Airlines is the leading low-cost carrier to the Caribbean, serving 33 markets in the United States, the Bahamas and the Caribbean with 185 daily flights.

The airline started in 1980 as Charter One, a Detroit-based charter operation. In 1992, jet equipment was introduced and the name changed to Spirit. After rapid expansion, the airline relocated to Miramar, Florida. Adding new destinations every year, the airline last year completed a transition to an all-Airbus fleet --- the youngest in the Americas. The Airbus A319 to be used for the Panama route seats 144 passengers.

The non-stop flight will operate on Tuesday, Friday and Sunday, departing Tocumen at 1:50 a.m., arriving at Fort Lauderdale at 5:45 a.m. The flight will leave Fort Lauderdale again at 11:00 p.m., arriving at Tocumen at 1:00 a.m.

Passengers can connect to many U.S. cities on the Spirit Airlines route network. The equipment for the Panama route will be an Airbus A319. Reservations can be made online at www.spiritair.com

The route between Panama and Fort Lauderdale was served by U.S. Airways briefly in 2005 but the service was suspended the same year.

The French airline Air Caraibes will begin flights on December 11 to Guadeloupe and Martinique twice per week. Panama's Foreign Minister said the new route would foster Panama's relations with the French-speaking Caribbean.

Trump Ocean Club places bond issue in New York

A representative of the Trump Ocean Club, an apartment complex going up in Panama City's Punta Pacifica said in an interview with a daily newspaper that 60 percent of the condominiums of the 70-floor building have already been sold, as well as 40 percent of the commercial area.

The clients come from 29 different countries including The U.S., the U.K, Russia, Europe and Latin America and are paying between $5,000 and $7,000 per square meter. The smallest condos have an area of 100 square meters and cost $500,000. A penthouse goes for a mere $12 million.

A bond issue has been placed in the New York market, plus a "cushion" for the total of the project, which is estimated to cost $220 million, in order to allay doubts and rumors about its financial status. The construction is at the foundation stage. "We have all the permissions of the authorities and approved first drafts", the representative is quoted as saying.

IPAT backs 2008 Panama Jazz fest

Line-up of performances will
be extraordinary

The 2008 Panama Jazz Festival, planned for January 21 to 26 of next year looks set to be the biggest event yet with cooperation pledged between Panama’s Tourism Minister, Ruben Blades and the Danilo Perez Foundation. Blades and the renowned jazz pianist met to discuss details and indicated that the January date would bring the event closer to carnival and the combination of the two events would make Panama an even more attractive destination for visitors

Perez asserted that the line-up of jazz performers for the 2008 Festival will be extraordinary and IPAT’s support for the event would ensure a prestigious affair.

Total smoking ban considered

Panama’s National Assembly is considering the passing of a law which would put a total ban on smoking in closed establishments, a move which is strongly opposed by the Panama Tourism Chamber

2008 Panama Calendar

The unique 2008 Panama Calendar is now on sale. Published for the 22st consecutive year, the calendar is an informative publication of activities, events, concerts, exhibitions, religious dates, Jewish holy days, country fairs and national holidays of the Republic of Panama. The calendar also features Carnival and Easter dates through the year 2020, plus information on each of Panama’s nine provinces, flag etiquette and more.

The calendar is the creation of Panamanian journalist Carmela Lowe de Gobern, Editor of the Panama Ciberspace News. Price per copy is US$5.00. For more information, call 314-0398, or send an e-mail to goberncl@cwpanama.net
www.panamacybernews.com

Luxury “Limos” offer safety, anonymity

A luxury "limo" service without the ostentation of riding in a limousine has been introduced to Panama by Panama & More, S.A., a Venezuelan company recently established in Costa del Este, Panama City.

The company is catering to VIP business and investment visitors who seek comfort, convenience, safety and anonymity. Its fleet includes a Porsche Cayenne, BMW series 7 (one of which is armored), Chevrolet Suburban and Mitsubishi Nativa. The cars come with a highly-trained bilingual chauffeur and can be hired by the day or week or, only for a transfer from airport to hotel as in one case recently when an armored car was ordered for this purpose.

Contact: Johnny Guillermo 391-7630, 6617-4860

Hotel occupancy up

Plea to bring back bridge-days

The Panama Hotel Association (APATEL) has reported a ten per cent increase in occupancy up to the end of October compared with last year. A release from the association attributed the rise not only to the better publicity by the state and private sector, but improvements in hotel installations, offerings of corporate and vacation packages and the arrival of many investors, especially foreigners coming to seek a retirement home.

The association's goal for 2010 is to increase hotel rooms to 24,000, attract a million and a half visitors per year, generate 180,000 direct jobs and put $600 million into the economy.

For the sake of the hotels in the interior, APATEL is urging the government to bring back the "bridge-days" (dias puentes), transferring holidays to Mondays to create long weekends. When a holiday falls on a weekday between 17,000 and 29,000 people go to the interior, whereas "bridge weekends" see between 124,000 and 156,000 people passing through the tollbooths on the Arraijan-Chorrera Autopista. These figures do not count extra flight frequencies or travelers to the Caribbean coast.

Helping the hotels in the interior, the association points out, will generate millions of dollars for areas hard-hit by globalization and create investment and jobs, thereby reducing migration to Panama City.

Last October, the Work and Social Welfare Commission (Comision de Trabajo y Bienestar Social) of the National Assembly turned down the Hotel Association's request for three more bridge-days, but promised to raise the matter in first debate in November this year.

Backed by Venezuela’s biggest bank

Banesco, S.A. Panama’s newest bank, opens with 7 branches

The board of directors comprises Ricardo Ayala, René Díaz, Marcos
Fernández, Juan Carlos Escotet, Antonio Burón, Alberto de Armas,
Alfredo Ramírez, Luis Xavier Luján.

Banesco S.A, which forms part of the Venezuelan banking group, Banesco, initiated operations in Panama this year with the opening of seven branches in the city and the interior. Juan Carlos Escotet, president of Bancesco holding, stated that the bank, which has over 400 million dollars in assets, will offer the isthmus market innovative products and financial services with top-of-the line quality standards and confidentiality.

Formerly only international
Banesco is not entirely a new-comer to Panama. Its parent, Banesco International Inc., operated directly with international clients in Panama for 15 years. However, at the beginning of this year, the authorities of the isthmus issued a general license which will permit the offering of a broad range of products and services.

Banesco S.A comes under the supervision of the Panamanian Superintendencia de Bancos which guarantees solid backing of deposits, bank secrecy proetection and world standards in service quality.

Escotet said that the banks presence in Panama is based on the countrys political stability, its important economical growth, and above all the warmth of its people".

In June 2007, Banesco ranked 14th among Panama’s financial entities with deposits of more than 400 million dollars.

21 branches for the year 2010
When it comes to investment plans, the executive president of Banesco S.A, Alberto de Armas, says that they are so sure of the country’s potential that they plan on opening 21 branches by the year 2010. "We have made an effort to form a team of top-of-the line personnel: young, prepared Panamanian professionals, with vision of growth who are willing to face up to a challenge of this sort.

Banesco S.A, relies on the backup of the Banesco Corporation of Venezuela. Banesco Banco Universal, the biggest bank in the country, operates in Venezuela and declared assets of $9.869 million at the close of August 2007. The group also operates in the United States and Puerto Rico.

New market segments
Banesco S.A’s executives indicated that with its arrival on the Panamanian market they hope to contribute the corporations experience in different business channels. They plan to incorporate new market segments such as e-commerce and strengthen electronic payment methods. They will introduce services such as the "Caja Externa" for those who want to do transactions in the evening, an international client-attention phone center and internet banking BanescOnline.

EU to invest in Canal expansion

In a recent diplomatic visit, dignatories of the European Union, and the European Investment Bank announced the investment of $482 million ( 300 million Euros) in the Canal expansion project.

The Investment Bank has already financed other local projects, including the building of the Centenario Bridge and has expressed strong interest in the Canal expansion.

Carl Fredrik Nordstrom, assistant Manager of the Panama Tourist Bureau, IPAT indicated that in recent months a great number of delegations not only from Europe but around the world have shown interest and have come to Panama, attracted by the impact which the Canal expansion will have on maritime commerce and the international economy and he is confident that this will be reflected in a surge in the tourism industry.

During their visit the EU representatives signed an agreement by which the European Union has promised to donate 38 million Euros ($54 million) to Panama between the years 2007 and 2013.

Attract tourists with music, say the experts

Taking a hit from the Pied Piper, the latest idea for promotion of tourism in Central American is "say it with music". The federation of Tourism Chambers of Central America (FEDECATUR) announced at the recent Travel Market fair in San Jose, Costa Rica a "musical production" whose principal song entitled "Central America - so small, so big" was written by Nicaraguan singers Carlos and Luis Enrique Mejia Godoy.

Well-known musicians of the region will participate---Ruben Blades of Panama, Leyla Vernon of Belize, Editus y Tito Oses of Costa Rica, Alvaro Aguilar formerly of the Alux Nahualt band of Guatemala, Guillermo Anderson of Honduras and Alvaro Torres of El Salvador.

The new Radisson Colon 2000

On Colon’s seashore.

The Radisson Colon 2000 Hotel, a new and beautiful 102 room hotel on the shore of the Caribbean Sea constructed at a cost of $12 million, will open its doors at the end of 2007.

The investment entre-preneurs who are confident of the revival of the Caribbean city, state that the new hotel is oriented to satisfy the necessities of all business men, especially those who visit the Free Zone, but that the recent announ-cement that from 2008, the city of Colon will be a home port to the Enchantment of the Seas cruiseship of Royal Caribbean International, opens doors for a new market.

Panama to have 2 more cell phone companies

Panama will auction two new cellular phone licenses at a minimum price of $35million each to increase competition, lower prices and give improved service.The contracts will be award in March next year after a pre-qualification process which is already under way.

Michael Mihalitsianos, director of the National Authority for Public Services said half a dozen companies had shown interest, including the Mexican company of billionaire Carlos Slim; Orange, France Telecom's mobile company; Panama's Cableonda; Bermuda-based Digicel which has operations in Jamaica, Trinidad and El Salvador as well as Mexico's Lusacell.

Panama, with a population of just over three million, has 2.4 million cell phone users. Over 200,000 new subscribers were registered last year.

Jamaica group comes to Panama

SuperClubs hotel for Playa Blanca

The well-known Jamaican hotel group, SuperClubs,with installations in many parts of the Caribbean such as Jamaica, the Bahamas, and the Dutch Antilles, recently entered the Panamanian market with construction starting on its latest hotel, Breezes Panama, at Playa Blanca. Opening of the 300 room hotel is planned for the end of 2008.

"Ten years ago I recognised Latin America as a region of great potential for the development of SuperClubs" said John Issa, president and Executive Director of the chain. Now we have the Breezes and Starfish hotels in Brazil and within the next year and a half we plan to open one more in Brazil,and another in Panama.