This past week marked another milestone for the Bala Beach Resort in Maria Chiquita, Panama as heavy equipment began operations to install primary infrastructure on site. Before any individual buildings can be constructed initial water and electric channels must be completed. The access road is already in place and fully functional since June, allowing for trucks and bulldozers to enter onto the beachfront and start with the new task at hand.

A new full time construction workforce will be a common sight alongside this small section of Panama’s Caribbean coast, joining the team who had already been regularly cleaning and maintaining the sandy beach. New changes are already evident as small sections of land are being cleared in order to prepare for the storage of the construction materials. The heavy machinery is beginning to open up pathways which will allow for the drilling of freshwater wells to provide clean drinking water for the resort. Other operators and equipment are starting to mark and dig out new spaces to put in electric and natural gas lines.

The dramatic change in the landscape of this small Caribbean fishing village is just now beginning to take form. After making many trips to the Bala Beach site without seeing any heavy work being done, it was hard to imagine how this raw piece of land would be transformed into the foundation for a large residential development composed of an orchestra of multiple concrete structures. But now with just a little bit of deisel powered action taking place, Bala Beach is taking its first steps toward its final goal.

It is an exciting time to be in Panama and especially exciting if you are in any way following or involved with the progress at Bala Beach. Development and opportunity are on the horizon, and the coming months will start this project on its way to becoming a reality. Almost all of the work still remains ahead of us, but from these first days forward, it will be easier and easier to imagine a new life in Maria Chiquita and at Bala Beach.

To see more visit www.balabeach.com

($1Billion investment going to Panama’s Caribbean coast)

This surge of capital being poured into the coastline stretching from Maria Chiquita to Isla Grande stems from the government’s efforts to spice up the once sleepy Caribbean getaway. The Panamanian government has enacted two major initiatives that are attracting both Panamanian and foreigners alike.

One of the main components fueling this is the new Panama – Colon Highway. This highway is going to uncover this whole area to weekenders and tourists. Currently, the drive is more than an hour and a half and is extremely frustrating for commuters. However, with the completion of the next highway coming in less than 9 months (April 2009), this commute is going to be dramatically reduced to 45 minutes.

The second part of the government initiative is to reclassify the entire region from Maria Chiquita to Isla Grande as a tourist zone. As a result, investors, developers, and entrepreneurs have been given the proper financial incentives in the form of tax breaks and other measures to encourage the commitment of their capital.

The combination of a much reduced commute and rezoning has resulted in approximately $1 billion dollars being poured into the area. There are residential developers from Spain, Holland, and other countries building at least 4 new developments that will have the capacity to host more than 20,000 residents and tourists annually, which is 5 times the current capacity.

(Beachfront cafes and resturants)

What does this mean for Bala Beach?

In addition to the millions of dollars we are spending to develop our tropical beachfront community, the area is seeing hundreds of millions more in other residential, commercial, and entertainment ventures. In Bala Beach, you have the opportunity to invest in a place that is on the cusp, with the combination of infrastructure and financial fundamentals to create something unique.

In addition to the $1 billion dollars of initial investment, the second wave of investment is coming down the road. These later changes will be in the form of commercial strips, beachfront restaurants and cafes, tour companies and sailing expeditions, and other secondary entrepreneurs who will round out the community.

(Sailing expeditions)

Bala Beach and the incoming investment around it, is not a “someday it will happen” pipedream that never comes to fruition. On the contrary, the construction of the highway has commenced and the rezoning has already taken place, making this investment not a matter of “if,” but “when?”

(Tocumen International Airport)

What does this mean for the Panama Investor or a person just looking to live or retire in Panama?

Well first off, Panama’s fastest growing and most sustainable sector of the economy is tourism. Every year hundred of thousands of tourists make Panama their vacation destination and this number is increasing rapidly. A solid number of these tourists are searching for a tropical place to stay that is located close enough to the Panama City, so that they can drop into the city and see the sights and then bounce back to their beachfront rental. Thus, Bala Beach is best suited to satisfy this desire because of its 45 minute proximity to Panama City.

Panama is consistently ranked internationally as the best and cheapest place to retire in the world because it offers residents such a great value. With 13,000 baby boomers from the US retiring daily and even more internationally, this demographic is sizeable and will continue to grow. Similar to the vacationers, retirees are seeking a place that is out of the traffic congested streets of Panama City for a more laidback lifestyle. However, retirees want to be close to Panama City to conveniently drop into the city a couple times a week or month. They do not want to drive 2 plus hours or pay the high prices to fly there.

(Tropical living at Bala Beach)

Furthermore, retirees want to be located close to the Panama’s best medical facilities, most specifically the John Hopkins center in Punta Pacific. John Hopkins medical center is one of the biggest, if not the top selling point that retiring in Panama has to offer. Once again, being 2 plus hours or an expensive flight away is not ideal or desirable for timely medical services.

(Bala Beach is the closest beachfront community to John Hopkins medical center)

Before investing you must understand some of the deciding factors for people you are going to rent out or sell to. As I have explained above, being the closest beachfront community in all of Panama, Bala Beach is able to satisfy the location desires of both vacationers and retirees in Panama.

(Royal Caribbean coming to Colon)

Royal Caribbean is beginning to switch their point of embarkation more and more to cruise liners to Colon, Panama for two main reasons.

First, Colon has a strategic location. 1. Colon has a deep enough water port able to accommodate a cruise ship the size of the “Enchantment of the Sea”. 2. Colon is situated on the Panama Canal, as a result, cruise ships have the possibility of traveling to both the Caribbean and the Pacific. 3. Colon is right next to the up-and-coming tourist destination of Colombia. Colombia is quickly shedding its violent reputation and places on the Caribbean like Cartagena and Santa Marta are becoming international destinations.

Second, Royal Caribbean is attempting to expand its business operations into the rapidly expanding middle classes of Brazil, Argentina, Chile, Peru, Colombia, etc… These Latin American countries represent the best opportunity to diversify out of the recession affected economy of the United States. But persuading Latinos to depart from Florida which requires a visa to enter is not an easy task. Panamalaw.org article offers great insight into the complications for a Latin citizen trying to obtain a US tourist visa.

“The visa process involves waking up early in the morning to go stand online at the USA Embassy waiting to go in for an interview. Numerous documents are required, reasons for the trip, why you are not a risk for overstaying the visa etc. There are fees involved, which are about $165 a person. Many people do not wish to go through this process. Many others are willing to go through the process but are unable to get the visa for various reasons. “

(long lines at US embassies)

These overburdensome requirements turn a vast majority of Latinos off from cruises. In addition to the difficulties acquiring a US visa, Latin American citizens do not want to endure the 10 plus flight to the north of Florida to take a trip to the southern Caribbean.

What does this mean for Bala Beach community? It will offer our Caribbean beachfront community some direct benefits:

First, 2500 passengers four times a month will be passing by Colon. Colon is not the most attractive of Panamanian cities and people will be looking for accommodations before their ship departs the following day. Bala Beach is less than 20 minutes from Royal Caribbean’s terminal and we are the closest beachfront community and hotel. Therefore, Bala Beach has the potential pool of 10,000 vacationers monthly seeking accommodations close to the Colon departure and a place to stay on their way back.

(beaches around Portobello)

In addition to wanting a place to stay, a large portion of these vacationers will be introduced for the first time to Panama’s beautiful and scenic Caribbean coast. In both cases, Bala Beach beachfront community is going to have direct exposure… Thanks to Royal Caribbean!!!

http://www.panamalaw.org/cruise_port_colon.html

1. The new highway from Panama City to Colon.

Currently, Panama is constructing a new 4 lane highway from Panama City to Colon that will drastically reduce the commute to Bala Beach from 1 hour and 15 minutes to 45 minutes. This is not a just a slab of asphalt with 4 lines painted on it, the new highway will be a first world, center divided, with a state-of-the-art drainage system and will be complete April 2009.

Panama City-Colon Highway on youtube

What does this mean for Bala Beach? Well, if you were to look at property values worldwide you would notice that property values located in areas with a high quality infrastructure are worth A LOT more money, typically 2-10 times more. This trend is especially more pronounced in developing world countries because of the shortage of high quality infrastructure or infrastructure at all.

(usual developing world infrastructure)

To the Panama investor, there are a lot of articles and sales people touting their projects as located on the most beautiful beaches, in the most authentic towns, having the best views of the mountains or ocean, coolest climate, cleanest air etc… These are all great reasons and we all have an assortment of them because Panama is so well endowed with beautiful landscape and vibrant culture. However, when it comes to being less than 45 minutes away from Tocumen International Airport, no other project has it.

To reach these other projects, visitor and residents have two exhausting options to choice from. First, get in a car or bus from the Airport for another 2-10 hours. Second, wait in Tocumen to take another plane to a regional airport and take another car ride to the area. These might not sound appealing to someone who had just got off international flight.

With Bala Beach, these inconveniences do not exist. The new Colon-Panama City highway will make our beachfront community the closest such community that Panama Real Estate has to offer. Bala Beach will be 45 minutes from Panama City and International Airport. If the global trend continues pertaining to real estate values with high quality infrastructure, when the new highway is complete Bala Beach units will have gained and continue to gain a significant amount of property appreciation.

These infrastructure and location factors are one of the 10 reasons that Bala Beach community stands apart from any other residential project in Panama today. People who invest in Bala Beach are going to be making a very profitable decision.

The Canadian and Panamanian governments formally came to an agreement that will establish the initial framework for direct flights between the two countries. Currently, there exist no direct flights from Canada to Panama and all flights bound for the two countries are routed through the US. Being routed through the US, with its prison type cavity search and long flight layovers, causes headaches and is time consuming for passengers.

Minister Cannon speaking to reports said. “The new agreement will benefit passengers, businesses, air carriers and airports through a greater range of travel options…I am pleased to announce the conclusion of a new air transport agreement with the Republic of Panama, a close bilateral partner of Canada.”

Canadians and Panamanians can now rejoice at the fact that they can now fly directly into each others countries with not first getting routed through 2,3, or even 4 airports and that they can now carry on their valuable 6 oz shampoo and lotion bottles. Probably future direct flights to Tocumen International Airport in Panama City will include; Toronto, Calgary, Vancouver B.C., and other Canadian international hubs.

Furthermore, this trade agreement is very symbolic for both countries.

For Canada, it’s an opportunity to expand its economic presence in the region. According to the article, trade between the two countries totaled $115 million with Canada exporting $86.4 million of their products and services to the Panamanian market. In addition, Canada is looking to strengthen their relationship with Panama because of its strategic transportation location with the Panama Canal.

For Panama, it is a chance to establish itself in the minds of Canadian business, retirees, and tourists. At this time, Canada has direct flights to Latin and Caribbean countries such as Costa Rica and the Dominican Republic thus giving those counties a competitive advantage over Panama. But Panama is striving to become the Dubai of Latin America and sees these direct flights as a means to attract multi-national business to relocate or expand, retirees to live, and tourist to visit.

In the near future, both countries are pursuing a bilateral free trade agreement that will further strength their relation and will create more direct flights.

Link to full article:

http://www.tc.gc.ca/mediaroom/releases/nat/2008/08-h148e.htm

La Prensa Wednesday June 25, 2008

By Roberto Gonzalez Jimenez

www.laprensa.com.pa

Tocumen Registered 18.15% More Passengers Until April

Confirming what most folks in Panama have already noticed, official numbers were released this week that show a significant increase in air traffic in Panama. With international tourism, real estate and business all booming in Panama, it’s no wonder that the Tocumen International Airport is handling more flights and passengers this year than it ever has before.

The number of passengers who used the Tocumen International Airport in Panama between the months of January and April of 2008 grew by 18.15% versus the same time period last year, reported the Tocumen Corporate quarterly report.

Overall there were 423,994 passengers who departed, arrived or made connections to other flights at the airport.

Panama is definitely one of the major – if not the top, maritime hub in all of the Western Hemisphere; but it is also trying to become a regional leader in air traffic as well. With a growing economy, Panama needs to accommodate more international contacts, connections and relations to take advantage of today’s global economy. Panama’s central location makes it a desirable location to do business, but also makes it an ideal spot to organize and redistribute regional air traffic. It would be easy to leave your home, fly directly to Panama, and then transfer onto another flight that will take you to your final destination.

According to the report, the Tocumen terminal has enjoyed the highest rate of air traffic growth in all of Latin America, beating out the regional average of 8.2%

In terms of the general movement of all air travel, including both passenger and cargo planes, traffic increased 14.4% over the first quarter of 2008.

In 2007 3.8 million passengers used the Tocumen airport.

The capacity of the airport will pass from 5 million currently per year up to 10 million once the construction of the northern dock is completed, assured Orcila de Constable, the general manager of the Tocumen International Airport.

With an additional terminal under construction that is set to double the airport’s capacity, Panama and the Tocumen International Airport may soon pass air traffic through the isthmus in a similar fashion to the way boats and cargo ships go in and out of the Canal.

- The expansion of the Panama Canal. “economic activity is only going to intensify starting next year,… the $3.5-billion deal to design and build new canal locks, is awarded.”. The Panama Canal expansion is going to require housing for all the workers and their families. “(the construction company) will need 500 apartments for its employees, housing that will have to be built.”. This has many property holders in Panama excited about the potential pool of upcoming renters and an economy that is ready to take advantage of an influx of foreign dollars that is already on its way.

- Panama’s flock of foreigners: Wealthy Latinos from Venezuela, Colombia, Ecuador, and Bolivia seeking to protect their assests from left-wing governments as well as retirees from the US, Canada, and Europe searching for a cheap place to retire, is transforming Panama into a cultural melting pot that reminds people of Miami 15 years ago.

- Multi-national companies are relocating to Panama and adding jobs. “This month, 3M joined other corporate giants Hewlett-Packard, Sinopec and Singapore Aerospace in announcing that it was opening an operation here… Panama added 51,000 jobs last year, double the number in 2006″.

- Lastly, in Panama a true real estate boom has been taking place turning Panama into the hottest real estate market in the Americas. There is not a place in Panama City where you cannot see construction all around you. “The skyline increasingly resembles a mini-Sao Paulo”. The skyline is constantly adding more and more buildings and the people here say that the Panamanian national bird is a construction crane. Anyone who has toured or spent time in Panama would have to agree.

The article does point out that this economic and real estate boom is causing a few growing pains. Among them are issues regarding sanitation, electricity, and the awful traffic congestion. These are all major problems that the government has to overcome, but these growing pains are to be expected when a country, and more specifically a city, is undergoing the development jolt that Panama is experiencing. However, it is undeniable that the city is pulsating with a certain vibe that looks ahead to the future. We’ll just have to wait and see if it all goes well and Panama City can achieve first world status.

To read the full article:

http://www.latimes.com/news/printedition/asection/la-fg-canal16-2008jun16,0,7847226.story