Words: Ashley Rigg
Published: 21st October 2009
Hotel occupancy rates see sharp drop
Hotel occupancy rates in Panama City fell to 56.4% in August, down from a high of 70.9% in 2008 according to a report in La Prensa.
It could be the start of a longer-term downward trend as 7000 new hotel rooms are due to come onto the market in the next 12 months which is bound to put further pressure on occupancy rates and prices.
The Hotel Association of Panama recently blamed rental management companies
and by implication the overseas property owners who employ them for a sharp drop in hotel occupancy rates in Panama City. In Panama, it is illegal for management companies to rent apartments on a short term basis which restricts competition for hotels who have a strong political influence in the Panamanian government.
Further coverage on Panama Investor Blog