Chapter 2 – Introduction
2.3 Eco Tourism Industry
Eco-tourism is a segment of the Global Tourism Industry that is increasing exponentially. It is defined by the International Eco-tourism Society as “responsible travel to natural areas that conserves the environment, sustains the well-being of the local people, and involves interpretation and education.”9 Eco-tourism practices are characterized for having positive contributions towards the environment and towards the community in which it is developed.
Eco-tourism proposes a long term solution for maintaining, conserving and protecting our environment and cultural heritage.10 Due to the benefit towards the well-being of local people, the conservation of nature, and the green friendly practices that are advocated by Eco-tourism practices, this industry is growing at impressive rates. The idea of adventure, getting to discover new places, while supporting sustainable accommodations are key for the success of Eco tourism industry. Just in the year 2016 over 69% of global travelers said they wanted to do something new, and 47% said they wanted to see the culture of a specific country.11 This market is therefore expected to grow approximately 7% by the year 2020, therefore being a great opportunity for future investments.12
9International Eco-tourism Society, www.ecotoursim.org
10 International Eco-tourism Society, www.ecotoursim.org
11 Center for Responsible Travel, The Case for Responsible Travel: Trends and Statistics 2016, www.responsibletravel.org
12 Future Market Insights, Eco tourism Market: Industry Analysis and Opportunity Assessment 2014 - 2020, www.futuremarketinsights.com
Chapter 3 - Panama Industry Background
3.1 Tourism in Panama
In combination with the Panama Canal services and related industries, the Tourism Industry in Panama is one of the main contributors to Panamas government annual revenue. It can be observed that Tourism industry in Panama yield in the year 2015 $4,199.77 Million USD.13 Which in relativity to our country size and economy is an indicator of extremely high revenues within this industry. Investment in the Tourism industry, brings many beneficial factors for the population such as: generating social development, improving the economy, and contributing to reduce the unemployment rate. Due to the benefits of investing in Tourism, we have observed in the last 10 years a great involvement of the government with aims to help develop this industry. As it can be seen in Table 4 below, we went from having 671, 182 tourists enter Panama through the Tocumen International Airport to over 1,941, 100 in the year 2015.
In the year 2014 1,609,637 tourist visited Panama, while in 2015 1,941,106. From 2014 to 2015, just one year we had an increase of 20.6%, certainly indicating that our Tourism industry is improving as years advance. Within the tourists that entered Panama, 74.1%
traveled for recreational purpose and the average expenditure per tourist was of $2,629.00 with a daily average expenditure of $329.00, and average length of stay of 8 days.14
13 Autoridad de Turismo Panama, Boletin Estadistico 2015, 19.
14 Panama Tourism Association, 2016 Results of Touristic Activities in Panama, 4.
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Source: Panama Tourism Association, Indicators of Tourism Activity in Panama 2006 - 2015, Page 6.
Even if we compare the year 2014 with 2015 we can realize that 1,609,637 tourist visited Panama in 2014, while in 2015 1,941,106. In just one year we had an increase of 20.6%, certainly indicating that our Tourism industry is improving as years advance. Amazingly, within the tourists that entered Panama, 74.1% traveled for recreational purpose and the average expenditure per tourist was of $2,629.00 with a daily average expenditure of $329.00, and average length of stay of 8 days.15 This success in Panama tourism campaign has translated towards benefits for the Panamanian population, and new opportunities within the tourism and hospitality industry. However, this success is not only in past years, but currently the Panamanian Government is heavily investing in tourism campaigns, developing our airport infrastructure, as well as developing joint ventures with new airlines. Accordingly we can ensure that due to the booming success of Panama tourism, government support to the industry, Panama Eco-friendly infrastructure, and activities we offer, we can certainly forecast our tourism industry to maintain current trends in the upcoming decades
15 Panama Tourism Association, Results of Touristic Activities in Panama in 2016, Page 4.
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3.2 Domestic Tourism Industry Panama
Considering external tourists arriving Panama will increase, we can also observe a trend on increasing numbers of Panamanian families and groups that go to different parts of the country in order to explore and get to know our beautiful touristic locations. Accordingly, due to our population of over 4 Millions, we can calculate that approximately over 5% are willing to engage in within country tourism activities. In order to capitalize and increase our profits, we will also target this local travelers.
3.3 Eco- tourism in Panama
Panama is the bridge of land that unites South with North America and we possess one of the most diversified ecosystems on the earth and one of the Western Hemisphere largest rain-forests.16 “Panama, crossroads of the world and the land bridge of the Americas, is your natural tourism destination” In Panama you can easily find within less than 2 hours away rain forests, mountains, beautiful beaches, outstanding coastlines, and astonishing islands. Due to our enormous biodiversity we have a great opportunity for developing Eco-tourism.
Panama doesn't only has a great Eco-tourism infrastructure, as well we have 944 recorded bird species, more than the U.S. and Canada combined.17 Panama Ministry of Tourism through its minister of Tourism Gustavo Him has reaffirmed that “Panama commitment to pursuing tourism development in a way that it improves livelihood and conserves Panamas natural attraction and ecosystems”18 Therefore we can be certain that Panamas Eco-tourism campaign will continue its high paced development.
3.4 Panama Eco Tourism Destinations:
16 Janeen Christoff, How Eco-tourism is Changing Panama for Better, www.travelpulse.com
17 Panamainfo, Top 10 Reasons Why Panama is a Great Touristic destination, www.panamainfo.com
18 Janeen Christoff, How Eco-tourism is Changing Panama for Better, www.travelpulse.com
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Panama City: Located along the Pacific Coast, it is the heart of the country. With many interesting attractions such as, Casco Viejo which has an unique blend of Spanish and French architecture styles, Metropolitan park, Causeway, Miraflores Canal Locks, Smithsonian, Cinta Costera, Multiplaza mall among many other attractions.
Lake Gatun: Located in the Caribbean Cost of Panama, it is one of the largest man-made meters is the only part in the world from which you can enjoy the view of the Caribbean Sea and the Pacific Ocean.
Boquete: Lies on the East side of Volcan Baru, and is characterized for its comfortable weather and outstanding scenery. One you arrive Boquete, you have the opportunity to visit rural coffee farms, freshly prepare coffee, while enjoying a beautiful scenery. It is also suitable for bird watching activities, even being able to observe Los Quetzales. Other activities in Boquete include: hiking, bird watching, river rafting, rock climbing, horseback riding or even hot springs among others.
Gamboa: Beautiful area, located only 45 minutes away from Panama City. From this place could visit Tropical Rainforest, Parque Nacional Soberania, Barro Colorado and witness Panama
biodiversity. It is also possible to navigate across the Chagres River and meet the Embera Wounaan Communities and its culture and tradition. Within Parque Soberania includes Pipeline Road which is extremely famous for bird watching and which consistently set the record for number of birds spotted in 24 hour period, reaching 367 different species of birds such as Keel-billed Toucan, Thick-billed Mot-Mot, Slaty-tailed Trogon, wrens, tanagers,
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flycatchers among others.19 Other possible activities include the visit to Panama Rainforest Discovery Center Aerial tram that lifts you up to 30 meter in order to get to an observation tower and wild life exhibit.
Portobelo: Located Among Panama’s Caribbean coast, and was one of the most important ports in the entire Spanish Empire, get to know Traditional dances, festivities, scuba diving, visiting beautiful islands and enjoying delicious dishes. One of the key milestones of this area is exploring colonial fortress dating back from the mid-1700s, and learning about Colons population culture and traditions.
El Valle: Located in Coclé Province, and aproximately1 hour and 45 minutes away from Panama City, it offers activities like hiking, zip lining, watching the emblematic golden frog, enjoying nature and delicious restaurants.
San Blas Island: Located among Panama’s Caribbean Coast, they form part of the Comarca of Guna Yala. Guna Yala is the home for the Guna people, who are characterized for their color-full dress and there personality. Visiting San Blas is an unforgettable experience, from being in a natural pool in the middle of the ocean, to swimming with turtles in crystal clear water, all the way to learning a vibrant culture or visiting Nusagandi wildlife refuge. San Blas from the beginning to the end of your journey will certainly offer an unforgettable experience
Coiba Island: It is located in the Gulf of Chiriquí, it is considered a UNESCO Natural World Heritage and which is part of the Pacific Marine Biological Corridor. Coiba Island is renowned as
World-class destination for enjoying clear beaches, watching howler monkeys, diving, observing sea turtles and even whale and dolphin watching.20 Definitely, a must visit if planning on traveling to Panama.
19 Anywhere, Panama Destination Gamboa, www.anywhere.com
20 Janeen Christoff, How Eco-tourism is Changing Panama for Better, www.travelpulse.com
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3.5 Incentives for Tourism Investment in Panama:
With the objectives of developing tourism industries in Panama, the Panamanian government through Law No. 80 from November 8, 2012 has promoted investment in the tourism industry.
Accordingly, I will continue to explain some of the most beneficial sections of this law. In order to promote the creation of touristic hotels and centers located outside Panama City, the constructions of over $100,000.00 will receive exoneration of importation taxes for a term of 5 years in all construction materials, and of 10 years to all furniture or equipment that will be used on the installations. Panamanian government also offers complete exoneration for house hold and terrain for the places in which the tourism activity is executed. Accordingly, complete exoneration on all taxes given over the initial capital investment. All this measures have been taken by the government and guarantee a promising future for the development of the hospitality and tourism industry in Panama.
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Chapter 4 – Company Description
4.1 Company Name: Panama Eco Cabins (PEC) 4.2 Company Ownership: Sole Proprietorship 4.3 Mission, Vision, and Objectives
Mission:
Portray Panama unique destinations, support local community, promoting and fostering Eco-friendly practices while offering fair price and quality service.Vision:
Building Sustainability.Objectives:
Raising awareness for protecting the environment Supporting the development of local populationCreating a relaxing and memorable experience
Portray Panama extraordinary attractions, culture, and traditions
4.4 Management Team
The CEO will be Mario Cortizo, and will be overlooking activities such as sales, marketing, and daily operation activities. The CCO will be Moises Cortizo and will be overlooking ad-equation of the terrain and the construction of the cabins. The person in charge of tourism services will be Litzy Brown, and will be overlooking tourist activities services. We will also count with 2 local assets from the local community. One will be full-time and will be overseeing daily operations of the Eco-lodge. The second worker will be part time and will be in charge maintenance activities.
4.5 Location
Eco- Cabins will be located in Gatun, province of Colon, 60 Kilometers away from Panama City and close to the Caribbean coast of Panama. Just 1 hour and 10 min drive away from the city, this area is characterized for having the second biggest man made lake, its dense flora and fauna, and the possibility to observe how Ships transit through the Panama Canal.
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Figure 1: Location of Panama Eco-Cabin
Source: Google Maps
Figure 2: Proximate location and scenery of Panama Eco-Cabins
Source: Google Maps
4.6 Project Description
Eco-Tourism concept located in one of the world’s most bio diverse ecosystem, we want to develop a business model that serves the needs of our Eco-friendly customers. We are
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proposing to develop a unique Ecological lodge that guarantees comfort, sustainability, and accessibility to ecological tours. Offering activities such as: trailing, observing unique local wildlife, learning about culture, enjoying lake scenery while kayaking as well as simply connecting with nature.
Our Eco cabins will not only offer on-site attractions, however we will build multiple day tour activities that could be accessed within less than 1 and a half hours driving distance. This activities range from witnessing from first-hand the operation of the Panama Canal, to visiting Panama capital, or even getting to know historical sites. The location of our Eco lodges is a total asset, due to its proximity to touristic areas and just 1 hour and 10 minutes away from Panama City. Our project will also take in account offering emergency services, and will maintain constant communication with security services, the main Police office is located in Colon city approximately 15 km away, and the hospital located in 4 altos Colon its 10 kilometer away. We also maintain contact numbers for emergency services, main medical kits for snake bites and small injuries. Visiting our lodge will be a great experience in order to relax in a peace-full environment, get to explore Panama, support the local community and promoting ecological friendly practices.
4.7 Project Development
The Eco friendly project will encompass the construction of 4 Eco-friendly cabins with a beautiful view towards Gatun Lake and ships entering the Panama Canal crossroad. This four cabins will serve as Hospitality residence for tourist’s guests. Surrounded with nature, trees, lakes, and Eco-friendly environment, our main core business will be focusing on offering sustainable housing and unforgettable experience. By talking about sustainable we will use reused materials to construct our buildings. Specifically our cabins will be made with the use of reused containers. Not only this, but we will also equip our cabins with refurbished materials, and furniture, while at the same time will use LED illumination system and connect to a solar panel generation system which will be the generator of electricity in our cabins.
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Figure 3: Cabin Model I
Source: https://www.google.com.tw/search?q=dise%C3%B1os+de+contenedores
This Cabin Model will be able to host a family, it will have 2 rooms with a possible extension to a third room, a small kitchen, living room, two bathrooms and a terrace.
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Figure 4: Cabin Model II
Source: www.homedit.com/22-most-beautiful-houses-made-from-shipping-containers/
This cabin model will be design for couples and individual travelers, it will be characterized for having 1 bedroom with bathroom, a small office, living room and kitchen.
4.8 Construction of Building Facilities
With our construction practices, we want to ratify our Green Commitment by focusing on using recycled products, ensuring energy generation, recycling practices, adequate water management practices, and commitment with the community. Each Eco Cabin will be designed in order to have a small carbon foot print on the environment and the design will be immersed in within the nature and will converge with harmony with its surroundings. The project first phase which is the construction of 4 cabins, has an expected duration of 1 year until the cabins are ready for hosting guests. Each Eco lodge unit will have: 1 5,000 BTU Air Conditioner unit, 1 fan, Flat screen TV, 2.7 cubic feet refrigerator, small kitchen cooking appliances, full bathroom, as well as access to WIFI. Power will be primarily generated by our Solar Generator Panels, and we will additionally have a backup energy generator in case of emergency. Each cabin will be equipped with a 2kwh solar panel. We will have two models of cabins, however the size of each cabin will be of 28 square meters and will contain a main bed room, bathroom, small kitchen, living room, and terrace.
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4.9 Suppliers
In order to ensure the success of our project, we are considering a multiple list of our partners that will help us equip our Eco-friendly cabins. Ranging from solar companies that will sell their products to us, all the way to the company the will supply used containers. We are also considering other companies that will supply Eco-friendly furniture accessories as well as companies that sell refurbished items.
Containers Panama: It is a company that is working at a high pace in order to become one of the main leaders in sales of containers in Panama. They are focused in customer service and giving good quality products at a fair price. Therefore we will be considering Container Panamas services in order to acquire our 20 foot or 40 foot containers.
Yangtze Solar China: It is a company located in China, and was founded in 1994, they focus on solar PV module factory, we are inquiring the 2 KW Solar Panel grid system, and consider that they could be a great partner in our future business endeavors, due to there great quality products and low prices.
WHC Solar: Located in Guangdong China, they are focused on solar battery, and other solar products. They offer great price for 2kw complete solar set system, and could be a great partner in the future.
Refurbished furniture: In order to acquire our supplies for used furniture, we will first develop an online campaign in order to target friends that are willing to dispose old furniture they have at their places, then we will develop a joint venture with a local talent that has skills to restore used furniture.
4.10 Additional Activities Less than 50 km distance:
Gatun Locks Visitor Center and Observatory: Located in the Atlantic cost of Panama, and approximately 10 kilometers away from our Eco-lodge. If you want to be part of the history of
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those who once witnessed from first view, the operations of the Panama Canal, then you must visit this tourist attraction.
Figure 5: Gatun Locks View
Source: https://www.youtube.com/watch?v=xA2TyFxbH9Q
Portobello day trip: This city is located in Colon district and was established during the Spanish colonial period, it has great importance do to its important geographic position and even used as fort for storing Spanish gold. Close to Portobello can also visit World Heritage sites, islands, do scuba diving, or learning about locals culture and tradition while enjoying delicious dishes.
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Figure 6: Portobello Panama
Source: https://www.anywhere.com/panama/destinations/portobello
Barro Colorado island: Visit this protected and natural reserve island located in Gatun Lake.
From which Smith Sonian Tropical Research institute does research regarding tropical ecosystems. This island has been greatly preserved and it is a great area to learn about Panamas biodiversity.
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Figure 7: Barro Colorado Aerial Picture
Reference: http://voices.nationalgeographic.com
Among other great activities close to our Eco-lodge, guests can also enjoy tours and visits to locations such as Fort Sherman, bird watching tours, hiking or even kayaking at Lake Gatun.
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Chapter 5 - Financial Projection
5.1 Annual Income
In order to calculate the income, we will have 2 main sources: the first one will be the income generated from renting our cabins and the second one will be the one generated from
In order to calculate the income, we will have 2 main sources: the first one will be the income generated from renting our cabins and the second one will be the one generated from