The building boom has stopped. From our hotel room I could see 20 cranes on skyscrapers, not one of them moved for the whole three weeks that we were in Panama. Does this reflect a future price correction?
There is a 20 year tax holiday on new homes in Panama City. This has attracted many foreigners to the area. Unfortunately, with no taxes come other problems. During our stay there was garbage everywhere (the current garbage disposal contract had expired and was being renegotiated). Water shortages were common, often no water for several hours, and there was a drinking ban on all water, boil before drinking. Excessive turbidity in the local water reservoirs was caused by torrential rains this year making the drinking water non potable. A consulting firm from Germany was working on the problem. Streets were full of pot holes, grates missing from sewer drains, and sidewalks uneven and often nonexistent. Maybe paying some property taxes is not such a bad idea.
Panama City is a party town. Full of casinos, nightclubs, bars and ladies of the night (many take advantage of breast and buttock enhancements). The city attracts entrepreneurs from the USA to fill this growing demand for entertainment. We met one such entrepreneur Toni, Italian ,born in New York City, and a former strip club operator from Miami. He has opened a coffee bar (Java House) and an entertainment bar called Bongos, and is in the process of moving all his business to the new wild west (the heat in Miami is getting too hot). He and his brother David, (I call them the Soprano brothers) regaled us with stories during our morning coffee each day. I will not repeat them since I am not sure if sufficient time has passed (Statute of Limitations to apply) for them to avoid apprehension and prosecution.
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| Panama City skyline. |
Panama City is a party town. Full of casinos, nightclubs, bars and ladies of the night (many take advantage of breast and buttock enhancements). The city attracts entrepreneurs from the USA to fill this growing demand for entertainment. We met one such entrepreneur Toni, Italian ,born in New York City, and a former strip club operator from Miami. He has opened a coffee bar (Java House) and an entertainment bar called Bongos, and is in the process of moving all his business to the new wild west (the heat in Miami is getting too hot). He and his brother David, (I call them the Soprano brothers) regaled us with stories during our morning coffee each day. I will not repeat them since I am not sure if sufficient time has passed (Statute of Limitations to apply) for them to avoid apprehension and prosecution.
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| Tony, on the left, and his brother David. |