Four Seasons Goes to Panama

1301 WordsOct 18, 20106 Pages
INTRODUCTION Panama is with the most important airport hubs in Latin America and Panama’s Government is going to extend Panama Canal which would increase the number of tourists. These days, the industries of construction and hotel are expending quickly and the supplyI is unable to meet the demand about the rooms especially in the peak seasons. I thnk it’s the best opportunity for Four Seasons to start a hotel in Panama OVERVIEW OF FOUR SEASON HOTELS Founded by Isadore Sharp in 1960, Four Seasons Hotels & Resorts (FSH&R) started its first hotel in Toronto, Ontario in 1961 (now its headquarters.) So far, there are 80 hotels in more than 30 countries around the word under Four Seasons Hotels & Resorts chain which are positioned to be…show more content…
In so-called Special Tourism Zones, Law 8 offers incentives such as 100% exemption from income tax, real estate tax, import duties for construction materials and equipment, and other taxes. Panama has declared different parts of the country as Special Tourism Zones which are benefited with multiple tax exemptions and tax holidays ECONOMIC ENVIRONMENT Panama uses US dollar as currency since 1904 so that dollarization results in low inflation and interest rates. That’s why Panama is the most stable country among Latin America because Panama has kapt its annual inflation rate under two percent for almost 40 years. Further, dollarization eliminates any currency exange risks to foreign companies. Tourism is the fastest growing industry in Panama, according to statistics provided by the Panama Tourism Bureau, IPAT (STATISTICS REPORT 1997-2006), in 2007 the tourism industry contributed $1.45 billion dollars to the nation 's economy. This amount represents 9.5 percent of Panama 's total Gross Domestic Product, making it the largest single industry in the country (Panama Canal Cruise). By comparison, in 2006 the Panama Canal generated $1.08 billion dollars in income while the total economic impact of the Colon Free Zone was a paltry $696.2 million dollars. Labor force in Panama is 1.362 million that the number of unskilled labor are more than the number of skilled labor (Panama Labor force – Economy).

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