Welcome to the Panama Weekly News Roundup! Here鈥檚 the latest.
Panama Confirms April 2016 Opening for Canal Expansion
After a month of heavy speculation into yet another delay for the opening of the Panama Canal Expansion, representatives are confirming an April 2016 opening. This would still leave the project two years behind the original date.
The ACP in a public statement asserted that the completion of the expansion project has “reached聽94 percent聽completion, and everything indicates that in April 2016 the new locks will come into commercial operation.”
Speaking on arrangements for the opening ceremony, Hincapie said that heads of state and government officials will be invited from聽70聽countries, as “related to trade with the Panama Canal.” At the end of August, it was discovered that a聽crack had developed in the new聽Cocoli Locks聽on the country’s聽Pacific聽side, potentially delaying the opening of聽the newly expanded Panama Canal.
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Fitch Affirms Banco Nacional de Panama’s IDR at ‘BBB’ Following Peer Review; Outlook Stable
Banco Nacional de Panama received some good news this month as their credit rating was upgraded from BBB- to BBB. This is a positive sign for not only the bank, but also for Panama鈥檚 overall economy. And it could mean increased lending in the future.
The ratings reflect the potential support the bank would receive from its owner, the Republic of Panama. Banconal’s IDRs are aligned with those of the sovereign while the Support Rating Floor (SRF) and Support Rating (SR) reflect a state guarantee for its debt. In Fitch’s view, the Panamanian government has a vested interest in providing timely support to Banconal as it is considered a policy bank that plays an important role as the government’s financial agent.
The Stable Outlook reflects Fitch’s expectation that the issuer’s long-term IDR will remain unchanged over the rating horizon.
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New Life Comes to the Heart of Panama’s Old City
Casco Viejo鈥檚 modern renaissance is in full-swing these days, and it鈥檚 garnering a lot of attention as the crowned jewel of Panama鈥檚 bustling capital. Casco is a neighborhood of art, luxury, and beauty; but it鈥檚 also the centerpiece for Panama鈥檚 unique cultural mix, and preserved heritage. In a recent HuffPo Travel article, there was a great write up on why.
Preserved as the conquistadors left it, Casco Viejo has that frozen in time authenticity you feel in Havana, and Old San Juan, the sense of a place that is crumbling from such great heights that even in despair, there is glory. The oldest city on the Pacific Coast of the Americas, Casco was the center of Panamanian life for nearly 300 years, a home for the rich and the powerful until the 1930s, when, like many old quarters in Latin America, the area began a period of long slow decline. Although many of Panama’s upper crust built and owned mansions here, with the development of the automobile, they moved to suburbs and by the 1980s the old city had fallen under the control of gangs.
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Tourism in Panama Continues to Fuel Service-Based Economy
Panama鈥檚 economy is largely service-bases, and a good portion of that is from tourism. Tourism-related economic factors are critical in the overall health of Panama鈥檚 economy. According to new data, this sector is not only healthy, it鈥檚 growing.
Tourism in Panama by the Numbers
As far as an economic driver, tourism in Panama is huge. According to the World Bank, Panama鈥檚 tourism sector accounts for around 6-7% of the country鈥檚 GDP, which is around $2.5 billion a year. Copa Airlines alone counts for around half of that, with hotels, restaurants, city/canal tours, sports excursions, and eco tourism programs making up the majority of the rest. And according to Panama鈥檚 Board of Tourism, the first six months of 2015 have been great. So great, in fact, that it may be a signal of another wave of growth for tourism in Panama, much like we saw in 2011, and into 2012. In 2015, about 1.1 million tourists entered Panama, which is down from the 2011 peak, but up by about 50,000 from last year.
Continue reading about tourism in Panama
