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Panama
Overview
Country Overview
Panama borders Colombia, Costa Rica, the Caribbean and the Pacific Ocean. The two oceans are linked by the man-made Panama Canal, cut into a gap between the Cordillera de Talamanca and the San Blas mountain range and stretching for over 65km (40 miles). Panama City, the capital, is a curious blend of old Spain, modern America and the bazaar atmosphere of the East. In the old part of the city with its narrow, cobblestoned streets, most of the interesting sights are to be found. These include the Plaza de Francia and the President's Palace, the most impressive building in the city. The Panama Canal to the west of the city itself naturally attracts many visitors. An average transit takes eight hours to complete. Colón is the second biggest city. Visitors should see the cathedral and the statues on the promenade known as the Paseo Centenario. Local dishes include ceviche (fish marinated in lime juice, onions and peppers) and palacones de plátano (fried plantain). Panama City in particular has a wide range of nightlife from nightclubs and casinos to folk ballet, belly dancing and classical theatre.
General Information
Area: 75,517 sq km (29,157 sq miles).
Population: 2,839,177 (2000).
Population Density: 37.6 per sq km.
Capital: Panama City. Population: 708,438 (2000).
GEOGRAPHY: Panama forms the land link between the North and South American continents. Panama borders Colombia to the east, Costa Rica to the west, and the Caribbean and the Pacific Ocean to the north and south. The country forms an S-shaped isthmus which runs east–west over a total length of 772km (480 miles) and is 60-177km (37-110 miles) wide. The landscape is mountainous with lowlands on both coastlines cut by streams, wooded slopes and a wide area of savannah-covered plains and rolling hills called El Interior between the Azuero peninsula and the Central Mountains. The Caribbean and the Pacific Ocean are linked by the man-made Panama Canal, cut into a gap between the Cordillera de Talamanca and the San Blas mountain range and stretching for over 65km (40 miles); the length of the Canal is often referred to as 80km (50 miles) as this is the distance between deep-water points of entry. Only about a quarter of the country is inhabited. The majority of the population live either around the Canal and main cities of Panama City and Colón (the two cities which control the entrance and exit of the Canal) or in the Pacific lowlands and the adjacent mountains.
Government: Republic. Gained independence from Colombia in 1903. Head of State and Government: President Mireya Elisa Moscoso De Gruber since 1999.
Language: The official language is Spanish, but English is widely spoken.
Religion: Eighty-six per cent Roman Catholic.
Time: GMT - 5.
Electricity: 120 volts AC, 60Hz. Plugs are the flat two-pin American type.
Communications:
Telephone
IDD is available. Country code: 507. There are no area codes. Outgoing international code: 00.
Mobile telephone
Roaming agreements exist. The main network provider is Cable & Wireless (website: www.cwpanama.com). Coverage is good.
Fax
Main post offices and some hotels have facilities.
Telegram
Facilities exist in main post offices of Panama City and other major cities and hotels. A tax of 50 cents is levied against each telegram.
Internet
ISPs include Interdotnet (website: www.pa.inter.net). Internet cafes such as Ruta 57 (website: www.ruta57.com) exist in main urban areas.
Post
Airmail to Western Europe takes five to ten days. Main post offices have Poste Restante and EMS (Express Mail Services) facilities. Post office hours: Mon-Fri 0800-1600, Sat 0800-1300.
Press
Crítica Libre, La Estrella de Panamá, El Matutino, El Panamá America, La Prensa, La Republica, El Siglo and El Universal (all in Spanish) are the largest daily newspapers.
BBC World Service and Voice of America frequencies: From time to time these change.
BBC (website: www.bbc.co.uk/worldservice):
Voice of America (website: www.voa.gov):
Passport/Visa
| | Passport Required? | Visa Required? | Return Ticket Required? | | British | Yes | 1 | Yes | | Australian | Yes | 2 | Yes | | Canadian | Yes | 2 | Yes | | USA | No | 2 | Yes | | OtherEU | Yes | 1/2 | Yes | | Japanese | Yes | 2 | Yes |
Note: (a) No brief account of the complex Panamanian visa regulations is likely to be fully successful as passport and visa regulations are liable to change at short notice.(b) Panamanian immigration procedures are rigidly enforced and non-compliance with the regulations may result in transportation at carrier’s expense to country of origin. (c) Many nationals requiring visas also require authorisation from the Immigration authorities in Panama before entry; contact the Embassy (or Consular section at Embassy) if in doubt.
PASSPORTS: Passport valid for a minimum of six months required by all (except nationals of USA holding a birth certificate or naturalisation papers).
VISAS: Required by all except the following for stays of up to 90 days (at the discretion of the Immigration authorities):
(a) 1. nationals of Argentina, Austria, Belgium, Chile, Costa Rica, El Salvador, Finland, France, Germany, Guatemala, Honduras, Hungary, Israel, Italy, Luxembourg, Liechtenstein, Netherlands, Nicaragua, Paraguay, Poland, Portugal, Singapore, Spain, Sweden, Switzerland, Uruguay and the UK (except for UK passports issued in Hong Kong (SAR) to those who were born in Hong Kong).
Note: Nationals of Czech Republic, Cyprus, Dominican Republic, Egypt, Peru and Philippines may only enter Panama if they have a visa.
Tourist cards: A Tourist Card will be issued in lieu of a visa to the following for stays of up to 30 days (extendable to 90 days at the discretion of the Immigration authorities):
2. nationals of Antigua & Barbuda, Aruba, Australia, Bahamas, Barbados, Belize, Bermuda, Bolivia, Brazil, Canada, Colombia, Curacao, Ecuador, Greece, Grenada, Guyana, Jamaica, Japan, Korea (Rep), Malta, Mexico, Monaco, New Zealand, Norway, St Kitts & Nevis, St Lucia, St Vincent & the Grenadines, Samoa, San Marino, São Tomé & Principe, Surinam, Taiwan, Trinidad & Tobago, USA, Venezuela and Vatican City.
Types of visa and cost: Tourist: £20. Tourist Card: Prices vary, depending on nationality and also on where the Tourist Card is obtained from (eg, prior to departure, on the flight or on arrival at the airport). Some nationals can obtain the Tourist Card free of charge (including nationals of Colombia, Mexico, Norway, Sweden and USA). Enquire at the Consulate for details.
Validity: Visas and Tourist Cards are valid within a three-month period from the date of issue and allow stays for up to 30 days (extendable to 90 days at discretion of Immigration authorities).
Application to: Consulate (or Consular section at Embassy); see Contact Addresses section. A Tourist Card can be issued either by the travel agent or on the flight or at the airport.
Application requirements: (a) Passport valid for at least six months. (b) Two completed application forms. (c) Two passport-size photos. (d) Return or onward ticket. For countries requiring special authorisation: (a) and, (b) Two completed application forms. (c) Two passport-size photos. (d) Copies of passport. (e) Copy of return or onward ticket. (f) Letter from the person in Panama taking responsibility for applicant. (g) Proof of financial stability in cash, traveller’s cheques or bank statements. (h) fee plus postage if necessary.
Working days required: Normally 24 hours if no authorisation is needed; 20 days if authorisation (which depends on nationality) is needed.
Money
Currency: Balboa (B) = 100 centavos. There is no Panamanian paper currency; coins exist in denominations of B10 and 1, and 50, 25, 10, 5 and 1 centavos. US currency circulates freely: B1 = US$1.
Currency exchange: Banks and cambios are available for changing currency. There is no need to exchange US Dollars.
Credit cards: Visa and MasterCard are the most commonly used, but American Express and Diners Club are also accepted. Check with your credit or debit card company for details of merchant acceptability and other services which may be available.
Travellers cheques: To avoid additional exchange rate charges, visitors are advised to take travellers cheques in US Dollars.
Currency restrictions: There are no restrictions on the import and export of either foreign or local currency. However, amounts of over US$10,000 must be declared to immigration upon arrival.
Exchange rate indicators
The following figures are included as a guide to the movements of the Balboa against Sterling:
| Date | May ’02 | Aug ’02 | Nov ’02 | Feb ’03 | | £1.00= | 1.46 | 1.52 | 1.58 | 1.59 |
Banking hours: Mon-Fri 0800-1500, Sat 0830-1200.
Duty Free
The following items may be imported into Panama without incurring customs duty:
500 cigarettes or 50 cigars or 500g tobacco; 3 bottles of alcoholic beverage; perfume and eau de cologne in opened bottles for personal use; gifts up to the value of B50.
Prohibited items: Fruit, vegetable and animal products including shrimp.
Public Holidays
Dec 8 Mothers’ Day. Dec 25 Christmas Day. Jan 1 2003 New Year’s Day. Jan 9 National Martyrs’ Day. Mar 3-4 Carnival. Apr 18 Good Friday. May 1 Labour Day. Nov 3 Independence Day (from Colombia). Nov 10 First Call for Independence from Spain. Nov 28 Independence Day (from Spain). Dec 8 Mothers’ Day. Dec 25 Christmas Day. Jan 1 2004 New Year’s Day. Jan 9 National Martyrs’ Day. Feb 23-24 Carnival. Apr 9 Good Friday. May 1 Labour Day. Nov 3 Independence Day (from Colombia). Nov 10 First Call for Independence from Spain. Nov 28 Independence Day (from Spain). Dec 8 Mothers’ Day. Dec 25 Christmas Day.
Note: (a) For public holidays falling on a Sunday, the following Monday will be observed as a holiday. (b) For other festivals and celebrations held in Panama, see Special Events in Social Profile section.
Health
| | Special Precautions | Certificate Required | | Yellow Fever | 1 | No | | Cholera | 2 | No | | Typhoid and Polio | 3 | N/A | | Malaria | 4 | N/A |
1: Yellow fever vaccination is recommended for those travelling to Chepo, San Blas and Darién. Travellers arriving from non-endemic zones should note that vaccination is strongly recommended for travel outside the urban areas, even if an outbreak of the disease has not been reported and they would normally not require a vaccination certificate to enter the country.
2: Following WHO guidelines issued in 1973, a cholera vaccination certificate is not a condition of entry to Panama. However, cholera may be a slight risk in this country and precautions are essential. Up-to-date advice should be sought before deciding whether these precautions should include vaccination, as medical opinion is divided over its effectiveness. See the Health appendix.
3: Typhoid fevers are common, but polio is not present.
4: There is a low malaria risk, predominantly of the P vivax form in three provinces throughout the year: Bocas de Toro, Darién and San Blas. The risk of transmission in the remaining six provinces is negligible.
Food & drink: Mains water is normally chlorinated and safe. Bottled water is available. Drinking water outside main cities and towns may be contaminated and sterilisation is advised. Milk is pasteurised and dairy products are safe for consumption. Local meat, poultry, seafood, fruit and vegetables are generally considered safe to eat.
Other risks: Hepatitis A and E occur. Dengue fever may occur. Rabies is present. For those at high risk, vaccination before arrival should be considered. If you are bitten, seek medical advice without delay. For more information, see the Health appendix.
Health care: Modern and reliable private medical services are available. According to current legislation covering sanitary matters, Panama offers healthcare facilities to all nationals and foreign travellers who may require them, independent of any reciprocal agreement with a particular country. International travellers are, however, advised to take out medical insurance.
Travel - International
AIR: Panama’s national airline is Compaña Panameña de Aviación (COPA) (website: www.copaair.com). American Airlines, Delta, KLM and others also fly there.
Approximate flight times: From Panama City to London is 14 hours and to Miami is 2 hours 45 minutes.
International airports: Panama City (PTY) (Tocumen) is 27km (17 miles) northeast of the city (travel time – 30-60 minutes). Airport services include a bank, car hire, chemist, restaurant and full duty-free facilities. Buses and taxis go to the city.
Departure tax: B20. Children under two years and passengers in transit to another country not leaving the airport and remaining for under nine hours are exempt.
SEA: The Panama Canal is the major route from the Atlantic to the Pacific Ocean, and Panama (Balboa) is a port of call for many cruise lines and ocean vessels for both passenger and freight. Cruise lines include Cunard, Royal Caribbean International, Princess, Delta, Norwegian American and P&O.
RAIL: There is currently no rail link betwen Panama and other international destinations.
ROAD: The principal route to Panama is the Pan-American Highway from Costa Rica to Panama City. Visitors are advised not to use the route to Colombia via Darién Gap for personal safety reasons.
Travel - Internal
AIR: Smaller airports for internal flights are: Aeropuerto Marcos A. Gelabert in Albrook and Enrique Malek in David, Chiriquí. Internal air services operated by Aeroperlas, Aerotaxi, Ansi, Aviatur and Mapiex Aero include flights from Panama City to all centres in the interior of the country.
RAIL: The Ferrocarril de Panamá currently only operates freight trains and is in the process of selling the national rail service. The Panama Canal Railway Company (PCRC) runs a scenic 47-mile passenger route from Panama City to Colon as well as cargo services. Further information can be obtained from the Instituto Panameño de Turismo (see Contact Addresses).
ROAD: The Trans-Isthman Highway links Panama City and Colón. The new toll road Corredor Norte reduces the travel time to Colón by 30 minutes. Bus: Traffic drives on the right. There are services between most large towns, but they can be very slow. Taxi: Not metered, and fares, though varying considerably, are generally very low. Fares should be agreed in advance. Car hire: Available in city centres and airport; you must be at least 23 to hire a car. Documentation: A national driving licence is sufficient.
URBAN: Extensive bus and minibus services run in Panama City. There is a flat fare with coin-operated turnstiles at the entrances of most buses.
TRAVEL TIMES: The following chart gives approximate travel times (in hours and minutes) from Panama City to other major cities in Panama.
| Air | Road | | Chiriquí | 0.45 | 6.00 | | Santiago | 0.30 | 3.00 | | Chitre | 0.30 | 3.10 |
Accommodation
HOTELS: Panama is in the middle of an extensive hotel expansion programme, not only in Panama City, but also in the countryside and in mountain and seaside areas. Accommodation ranges from international standard to inexpensive country inns, very simple hotels and new resort-style hotels. There is a ten per cent government tax added to hotel bills. For further information, contact Instituto Panameño de Turismo (see Contact Addresses section).
CAMPING: There are no official campsites, but it is possible to camp on some beaches, and also in the mountainous areas of Boquete and Volván.
Introduction
Panama offers a wide variety of tourist attractions, including excellent shopping. Its position as a crossing point between the Atlantic and the Pacific has naturally made it a major commercial route. Panama City’s Central Avenue, Colón’s Front Street and the newer shopping sectors around the hotels, and Tocumen’s duty-free stores have grown because of this trade.
Note: The Fiestas in the various cities are all worth attending, particularly the one at Panama City during the Carnival. This is held on the four days before Ash Wednesday. Others are held to celebrate local patron saints. Las Balserías, a Ngöbé-Bugle Indian celebration held in Chiriquí Province every February, includes feasts and a contest in which the young men toss Balsa logs at one another; those who emerge unscathed may choose their partners.
PANAMA CITY: The capital is a curious blend of old Spain, modern America and the bazaar atmosphere of the East. In the old part of the city with its narrow, cobble stoned streets and colonial buildings, most of the interesting sights are to be found. These include the Plaza de Francia, the Court of Justice Building, the Paseo de las Bóvedas along the massive stone wall, San José Church with its magnificent golden Baroque altar and the Santo Domingo Church, next to which is the Museum of Colonial Religious Art. The old historic city with the Salón Bolivar is listed by UNESCO as a World Heritage Site. Overlooking the bay is the President’s Palace, the most impressive building in the city; further along the waterfront is the colourful public market. The most interesting museum in town is the Museum of the Panamanian Man north of the market and near the shopping centres. A worthwhile excursion from the city is a visit to Panamá Viejo and its ruins including the square tower of the old cathedral, 6km (4 miles) away. This is the original Panama City which – like Fort San Lorenzo – was, in 1671, sacked and looted by Henry Morgan.
Excursions: An interesting excursion can be made to an easily accessible strip of rainforest within nearby Soberania National Park (40km/25 miles north of the city), particularly renowned for its many bird species.
PANAMA CANAL: The Panama Canal, to the west of the city, is Panama’s main tourist attraction and naturally draws many visitors; recommended is a train or bus ride alongside or a boat trip on the Canal – the scenery is beautiful, and the mechanics of the Canal equally fascinating. There is a new Panama Canal Museum in the Casco Viejo area. The Canal was opened in 1914, and an average transit takes eight hours to complete. On December 31 1999, Panama took over full control of the canal from the USA. Some 50km (30 miles) northwest of the capital lies Barro Colorado, the largest island in Gatun Lake, a man-made stretch of water created during the construction of the Panama Canal (and one of the world’s largest artificial lakes). The island is a biological reserve managed by the Smithsonian Tropical Research Institute and reputed to be one of the world’s leading natural tropical laboratories. Day trips to the island from Panama City take visitors to the small town of Gamboa from where special tours (either on foot or by boat) can be arranged.
BALBOA: A rather Americanised suburb between the Canal quays and Ancón Hill. An hour’s launch ride away is the island of Taboga, where fine beaches and quality hotels abound. The main method of transport is by water taxi, known locally as panga. A longer trip by launch is necessary to get to the Pearl Islands, which are visited mainly by sea-anglers.
BOCAS DEL TORO: The Bocas del Toro province lies in the northwest of the country and includes an archipelago (of the same name) consisting of seven large islands and hundreds of smaller ones. Many of the islands lie in the Laguna de Chiriqui, which is particularly popular with diving enthusiasts. Parts of the province are located in two national parks: the International Friendship Park, administered jointly by Panama and Costa Rica; and the Bastimientos Island Marine Park, a marine nature reserve located on one of the islands. Small planes from Panama City arrive daily at the town of Bocas del Toro and, although the area currently remains fairly undeveloped (with limited accommodation available), it is being targeted for major tourist development.
CHIRIQUI: Located some 450km (270 miles) west of the capital, the Chiriqui province is characterised by volcanic highlands with many waterfalls, rivers and spectacular mountain scenery and is known for its cattle and thoroughbred horses as well as banana and coffee plantations. The province also contains the dormant Baru Volcano (3,475m/11,400 ft), located near the popular resort town of Boquete and the mountain resort Cerro Punta. Also nearby is the Baru National Park, famous for its many Quetzal birds. There are several daily flights from Panama City arriving at David (travel time – one hour).
COLÓN: The second-biggest city in Panama lies on the Caribbean end of the Canal, visitors should see the cathedral and the statues on the promenade known as the Paseo Centenario. Front Street is famous as a shopping centre for duty-free luxuries, though it is now rather run down. The city is bustling and quite rough – most visitors just pass through rather than spend a lot of time here.
DARIÉN GAP: This is a sparsely populated wilderness area linking central and southern America and also the only break in the Pan-American Highway (which runs from Alaska to Argentina). Much of this region lies within the Darién National Park, which contains an exceptional variety of habitats, ranging from sandy beaches, rocky coasts, mangroves and swamps to tropical rainforest. The park is also home to two Choco Indian tribes. Trips to the park are available, but visitors are strongly advised to use an experienced guide; the area around the Colombian border, in particular, is a dangerous guerrilla flash point and kidnappings of Western tourists have been reported.
SAN BLAS ISLANDS: An interesting trip can be made from Colón to the San Blas archipelago which comprises 365 islands. It is the home of the Cuna people, the most politically organised of the native groups in Panama, who live on about 40 of the islands and who administer their own autonomous province. The Cuna also operate the region’s hotels and can assist visitors in organising trips to nearby villages. There are no roads, but small planes fly to several landing strips. For details on how to organise overnight stays, contact the Panamanian Institute of Tourism (see Contact Addresses section).
PORTOBELO: Situated 48km (30 miles) east of Colón, Portobelo was a Spanish garrison town for two centuries with three large stone forts facing the entrance to the harbour. Also in the town are an old Spanish cannon, and the treasure house where gold and silver from Peru and Bolivia were stored before being shipped to Spain. Along the Caribbean coast, between Portobelo and San Lorenzo, are numerous notable 17th- and 18th-century military fortifications.
AZUERO PENINSULA: Much more relaxed and peaceful than Panama’s cities is the Pacific Peninsula de Azuero, where charming small colonial towns, quiet villages and near-empty beaches await visitors who do not expect to find big hotels.
Sport & Activities
Ecotourism: The Soberania National Park and the Gamboa Tropical Rainforest Reserve offer good opportunities for learning about tropical fauna and flora. Birdwatching enthusiasts will not be disappointed in Panama: there are about 950 registered species and the country is considered one of the world’s best birdwatching spots. The Anton Valley (El Valle de Anton), 120km/70 miles west of Panama City, is famous for its orchids and the El Nispero Botanical Gardens; one activity on offer here is the tree canopy adventure, where participants are fastened into a harness, pulled up to the tree tops and swung from one platform to another in order to enjoy particularly ‘green’ views. Trips to the famous Smithsonian Tropical Research Institute on Barro Colorado Island (which houses a renowned tropical research laboratory) are also possible, although appointments need to be made at least a month in advance.
Boat trips: Boat trips on the Panama Canal are one of Panama’s major tourist attractions and there are various types of tours available. Crocodiles, frigate birds and other animals living along the banks and in the surrounding jungle can be observed. Canal tours often aim to provide visitors with a chance to observe one of the many large vessels moving through the canal locks. For further details, contact the Panamanian Institute of Tourism or the Panamanian Embassy (see Contact Addresses section).
Watersports: There are some excellent locations for diving and snorkelling in Panama, the best of which include Isla Grande near Portobelo, where there are a number of dive centres offering excursions to the best reefs; the Bocas del Toro archipelago; Tabboga Island (20km/12 miles south of Panama City); and the San Blas Islands (off the northeast coast). Whitewater rafting is becoming increasingly popular on the Chiriqui and Chiriqui Viejo rivers (not possible during the rainy season, from April to mid-December). For further details on some of these destinations, see also Resorts & Excursions.
Fishing: Fish are abundant in the Panamanian waters of the Pacific and the Caribbean. Locations include Piñas Bay, Coiba Island, Contadora Island and Taboga on the Pacific side and the San Blas Islands and the Chiriquí Lagoon off the archipelago of Bocas del Toro in the Caribbean.
Golf: There are six golf courses on the isthmus. Panama Country Club, Summit and Fort Amador’s courses are all open to tourists. Guest cards are needed to play the 18-hole course at Coronado Beach Country Club. In addition, Itoroko, the former US golf course, has now opened up.
Horseriding: This is popular in the mountainous Chiriqui province, whose wild landscapes provide a natural habitat for cattle and horses. There are numerous horse-breeding farms, some of which can be visited. Horse trips to the Baru Volcano are also available.
Social Profile
Food & Drink: French, Spanish and American food is available in all restaurants and hotels in Panama City and Colón. There is a huge selection of excellent restaurants in Panama City, as well as other main cities. There are also several Oriental restaurants. Native cooking is reminiscent of creole cuisine, hot and spicy. Dishes include ceviche (fish marinated in lime juice, onions and peppers), patacones de plátano (fried plantain), sancocho (Panamanian stew with chicken, meat and vegetables), tamales (seasoned pie wrapped in banana leaves), carimañolas and empanadas (turnovers filled with meat, chicken or cheese). Waiter service is the norm. The choice and availability of wines, spirits and beers in hotels, restaurants and bars is unlimited.
Nightlife: Panama City, in particular, has a wide range of nightlife from nightclubs and casinos to folk, ballet, belly dancing and classical theatre. Dancing and entertainment are available in all the big hotels, as well as many clubs. Other large towns and resorts have music, dancing, casinos and cinemas. Further details can be found in local papers.
Shopping: Panama is a duty-free haven and luxury goods from all over the world can be bought at a saving of at least one-third. Local items include leatherware, patterned, beaded necklaces made by Guaymí Indians, native costumes, handicrafts of carved wood, ceramics, papier mâché artefacts, macramé and mahogany bowls. Shopping hours: Mon-Sat 0800-1900, Sun 1000-1900.
Special Events: For further information contact the Instituto Panameño de Turismo. The following is a selection of festivals and events held throughout Panama in 2003:
Jan 10-19 Coffee and Flowers Fair,Boquete. Jan 16-20 Festival of San Sebastián, Ocú. Mid-Feb Las Balserías (Guaymí Indian celebration – see Resorts & Excursions section), Chiriquí Province. Mar 1-4 Carnaval. Mar 13-23 San Jose International Fair. Apr 3-6 Orchis Fair, Boquete. Apr 24-May 4 Azuero Festival, Villa de los Santos. Mid-Jun San Juan Bautista, Isla Grande, Chitré. Jul Boat Races, Taboga Island. Sep 17-21 Feria del Mar, Bocas Del Toro. Oct 21 Black Christ Celebration, Portobelo.
Social Conventions: Handshaking is the normal form of greeting and dress is generally casual. The culture is a vibrant mixture of Spanish and American lifestyles. The Mestizo majority, which is largely rural, shares many of the characteristics of Mestizo culture found throughout Central America. Only three indigenous tribes have retained their individuality and traditional lifestyles as a result of withdrawing into virtually inaccessible areas. Tipping: Ten to 15 per cent is customary in hotels (where it is added automatically) and restaurants. Taxi drivers do not expect tips and rates should be arranged before the trip.
Business Profile
Economy: Panama has a relatively prosperous economy based on agriculture, light industry, revenues from the Panama Canal and the service sector. Over half the land area is given over to agriculture: the main cash crops are sugar cane, coffee and bananas, while the main food crops are rice, maize and beans. Commercial cattle-raising is also prominent. The country has significant reserves of timber, particularly mahogany, and good fishing stocks, shrimp being a major and valuable export earner. Local industries include food processing, clothing, paper and building materials. Panama also exports petroleum refined from imported crude oil. Further revenue is obtained from tolls levied on ships passing through the Panama Canal (which came under full Panamanian control in 2000) and from registration fees for a plethora of ‘offshore’ companies exploiting Panama’s strict banking and commercial secrecy laws (although the Government has recently instituted measures to permit disclosure in suspected cases of money-laundering).
Other important sources of revenue include the Colon Free Trade Zone established near the Canal through which 30 per cent of all Panamanian trade passes, an ‘open’ shipping registry (ie a flag of convenience) and a rapidly growing tourist industry now worth more than US$500 million annually. A major reform programme undertaken during the 1990s saw the privatisation of many state enterprises, reform of the tax and social security systems, and the removal of price controls and import tariffs. The economy was stagnant during 2002 with annual GDP growth and inflation both around one per cent, although there are signs of a pick-up. Panama is a member of the Inter-American Development Bank. About 40 per cent of two-way trade is with the USA and Japan; Costa Rica and Germany are the country’s other important trading partners. Panama is also attracting growing interest from Hong Kong-based commercial concerns.
Business: Punctuality is appreciated and the exchange of business cards is normal. Suits are necessary for business meetings. Office hours: Mon-Fri 0800-1700, Mon-Fri 0730-1630 (government offices).
Commercial Information: The following organisation can offer advice: Cámara de Comercio, Industrias y Agricultura de Panamá (Chamber of Commerce), Apartado 74, Avenida Cuba y Ecuador, Calle 34, Panamá 1 (tel: 227 1233; fax: 227 4186; e-mail: infocciap@panacamara.com; website: www.panacamara.com).
Climate
Temperatures are high across the whole country throughout the year, though cooler at high altitudes. The rainy season lasts from May to November. Rainfall is twice as heavy on the Pacific coast as it is on the lowlands of the Caribbean coast.
Required clothing: Lightweight cottons and linens are worn, with rainwear advisable, particularly in the rainy season. Warmer clothes are needed in the highlands.
History and Government
History: Under Spanish rule from 1501, Panama was a pivotal trade route and collection point for Spanish commerce from the New World. This abundance of transient wealth also attracted many foreign pirates and buccaneers, such as Henry Morgan and Sir Francis Drake. Throughout the colonial period, Panama belonged to the Vice-Royalty of New Granada. The region achieved independence in 1821, as a region of Gran Colombia, which also included Colombia Venezuela, Ecuador, Peru and Bolivia. However, when Gran Colombia collapsed in 1830, Panama became part of modern Colombia. Unhappy with this status, the Panamanians found an ally in the United States, which had strategic interests in the region – specifically, the construction of an Atlantic-Pacific link. A deal was signed with the Americans in 1846, allowing for the construction of a railway. But it was not until 1903 and the achievement of full independence that the Americans embarked on the construction of the Panama Canal. Colombia withheld recognition of the new state until 1921, when the USA agreed to pay compensation of US$25 million.
The Panama Canal Zone became an American Protectorate. The canal was completed on 15 August 1914, although Panama remained under effective American control until 1939. The country’s domestic politics were reasonably stable until the 1968 military coup, led by General (later Brigadier-General) Omar Torrijos Herrera. He held effective power, despite surrendering the presidency during his later years, until his death in plane crash in 1981. Four years earlier, the Americans had agreed to turn over the canal to full Panamanian control at the turn of the century.
During most of the 1980s, the country was run by Torrijos’ former intelligence chief, now the head of the armed forces, Manuel Noriega. The general’s policies and his personal activities, including alleged involvement in drug trafficking, produced very strained relations with the USA. American development aid and military assistance were cut but with little effect. US intervention became more likely after the Panamanian presidential election of May 1989. This was won by the principal opposition candidate, Guillermo Endara Galimany, who took 62 per cent of the vote. However, the election was almost immediately annulled. After an attempted coup in October 1989 – believed to have had US backing – Endara was quickly crushed by Noriega’s forces. The only means of getting rid of the troublesome dictator was military intervention. So, in December 1989, US President Bush authorised an invasion of the country. After a few days of fierce fighting, US forces secured control of the country and the capture of Noriega, who had taken refuge with the Papal Nuncio. As Noriega was flown to the USA – where, in April 1992, he was tried, convicted and sentenced to 40 years of imprisonment – Guillermo Endara was installed as the head of a new administration drawn from the ADOC coalition, which had won the May 1989 election. After a slow start caused by chronic lack of finance, the Endara government gradually started to put the country back on its feet. Early discontent was reflected in a number of coup attempts during 1991 and 1992, although all were easily subdued.
Endara’s term ended in 1994. At the presidential election held that May, the victor was Ernesto Perez Balladares, backed by a three-party centre-left coalition under the banner of Pueblo Unido. Five years later, Panamanians reverted to the conservative bloc, which took control of the national assembly, where a four-party coalition is in government. The party leader, Mireya Elisa Rodriguez, also won the presidential race. Rodriguez presided over the defining event in recent Panamanian politics – the return of the Panama Canal Zone to Panama under the terms of the agreement negotiated by the Panamanians and the US Carter administration in 1980. (The prospect of Noriega enjoying unrestricted control of the canal had been an important reason behind the US invasion). Despite obvious US irritation at the unusual phenomenon of ceding territory to a foreign government, the USA pulled out on schedule, in a low-key ceremony in December 1999. Since the Panamanians took over the canal, the main development has been the announcement of a restriction on the draught of vessels using it. This is due to a regional drought, for which the weather phenomenon known as El Niño is held responsible.
Government: Both the unicameral 72-member legislature (Asamblea Legislativa) and the executive president are elected for five years. The president appoints a cabinet of ministers.
Copyright © 2003 Columbus Publishing Ltd.
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