6. Marketing Strategies
6.6. SWOT Analysis
6.6.4. Opportunities
1.1.1.5 Local source of construction materials available
Volcan is rich in natural resources, there are good quality local materials available such as wood and rocks; additionally, there are block plants and hardware stores. Other construction materials and equipment can be brought from major retailers in David (1 hour ride) or Bugaba (30 minutes ride).
1.1.1.6 Chiriqui Province attractions
Chiriqui claims to have it all: Panama’s tallest mountains, longest rivers and most fertile valleys are here. The province is also home to spectacular highland rainforests and the country’s most productive agricultural and cattle-ranching regions.
Bordering Costa Rica to the west, Chiriquí is often the first province in Panama encountered by overland travelers and serves as a subtle introduction to Panama’s immense beauty.12
1.1.1.7 Panama’s Economic Indicators and Trends
The economy of Panama is a fully dollarized free market economy with a history of low inflation. It is based mainly on the services industry, heavily weighted toward banking, commerce, and tourism. The hand-over of the canal and military installations by the US has given rise to new construction projects.
Panama's economy is based primarily on a well-developed services sector that accounts for nearly 80% of its GDP. Services include the Panama Canal, banking, the Colón Free Trade Zone, insurance, container ports, and flagship registry, medical and health, and other business.
11 The World Factbook, 2013-2014. Retrieved from: https://www.cia.gov/library/publications/the-world-factbook/geos/pm.html
12 http://www.lonelyplanet.com/panama/chiriqui-province#ixzz3Y2O7QpA9
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The country's industry includes, manufacturing of aircraft spare parts, cements, drinks, adhesives, and textiles. Also the leading exports for Panama are bananas, shrimp, sugar, coffee, and clothing.
Panama has the second largest economy in Central America13 and is also the fastest growing economy and largest per capita consumer in Central America. In 2013, Panama ranked 5th among Latin American countries in terms of the Human Development Index, and 59th in the world.14 Since 2010, Panama remains the second most competitive economy in Latin America, according to the World Economic Forum's Global Competitiveness Index.
Economic Growth
Panama's economy has been growing as an impressive rate in the wake of the world’s economic turmoil. Panama's GDP has been growing between 7-10% since 2009. It's Law 41, modeled on Singapore's law that gives tax breaks, hiring privileges and other incentives, has convinced many corporations to make their regional headquarters in Panama.
In 2011, the Panamanian economy grew by 10.6%, continuing the high growth rates it has seen in recent years. The expansion was driven mainly by public and private infrastructure megaprojects such as the expansion of the Canal and a new city subway system. Over the past 10 years, Panama has grown at an average annual rate of 7.3%.
Numerous sectors showed vigorous growth in 2011, in particular mining (18.4%), construction (18.2%), commerce (15.9%) and transport and communications (13.7%). By contrast, activity in the fishing sector slumped by 21.9% owing mainly to weather events.
Between January and March 2012, the monthly index of economy activity measured in terms of the original series went up by 9.2% (9.1% adjusted for trend and cycle). The sectors having
13 CIA – The World Factbook – Field Listing – GDP (official exchange rate)". CIA. Retrieved January 12, 2010. And: "CIA – The World Factbook – Country Comparison – National product". CIA.
Retrieved January 12, 2010.
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the greatest impact on the economy were the same sectors that recorded strong growth in 2011.15
Unemployment and Inflation Rates
High activity levels brought the jobless and open unemployment rates down sharply in 2011, to 4.5% and 2.9% respectively. However, the inflation rate measured by the variation in the consumer price index between December 2010 and December 2011 rose to 6.3%.
1.1.1.8 Local Housing Incentives
The Panamanian government established the Preferential Interest Rate Law (“Ley de Interés Preferencial”, in Spanish) which subsidizes up to two percentage points (2%) the market rate for houses up to $ 120,000; i.e. if the market rate is at 5% annual interest, this incentive is reduced to 3% for these homes.
1.1.1.9 Volcan to become the head of the new “Tierras Altas” district
As of Tuesday, September 13, 2013, Volcan is no longer in the Bugaba District of Chiriqui Province. Volcan and Cerro Punta have been included in the new Tierras Altas District of Chiriqui Province, Republic of Panama. The Law 55 of September 13, 2013 created the new Tierras Altas district in the province of Chiriqui, comprising the townships of Solano, Costa de Piedra, Nueva California and Paso Ancho. The new township of Solano is secreted from the former townships of Volcan and Cerro Punta, and will become the township header.16 This Act was introduced in 2012 to the National Assembly, and responds to a request from the people who inhabit this sector, one of the agricultural cots in the country, fulfilling the
15Macroeconomic Report on Latin America and the Caribbean. June 2012
(http://www.cepal.org/en/publications/macroeconomic-report-latin-america-and-caribbean-june-2012#)
16 http://impresa.prensa.com/nacionales/Tierras-Altas-nuevo-municipio-chiricano_0_3755624441.html
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1.1.1.10 Development of new health facilities in Volcan
Currently a hospital and several Primary Care Centers for Innovative Health MINSA-CAPSI are under construction in and around Volcan. According to the Minister of Health, Dr. Javier Diaz,18 they will be ready this year.
The MINSA-CAPSI centers provide general medical care and nursing, radiology (x-rays, electrocardiograms, ultrasound), outpatient specialties such as internal medicine, family medicine, psychiatry, gynecology and physiotherapy.
Besides the MINSA-CAPSI provides other special health services including Sanitation, Health Promotion, Vector Control, Zoonosis and Epidemiological Surveillance. Also features a modern laboratory where you can confirm diagnosis of dengue, influenza, HIV-AIDS and hepatitis, and other diseases.
The construction of these health facilities represents another step towards development of Volcan, becoming more convenient for its inhabitants and more attractive for tourists.
1.1.1.11 Advantages of Living and Retiring in Panama (for foreigners)
According to Panamainfo.com, a popular website among foreigners who migrate to panama, numerous USA publications have called Panama one of the best places in the world to retire.
Some examples: "Panama is the world's top retirement haven. Panama City no longer qualifies as cheap, but other spots in this country certainly do. Panama continues to offer the world's gold standard program of special benefits for retirees. The currency is the U.S. dollar, so there is no exchange rate risk if your retirement savings and income is in dollars. The climate in Panama City and on the coasts is tropical, hot, and humid. However, the climate in the highlands can be temperate and tempting. Panama is the hub of the Americas, meaning it's
17 http://www.capital.com.pa/crean-distrito-de-tierras-altas-en-la-provincia-de-chiriqui-2/
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easily accessible from anywhere in North and South America and Europe." U.S. News, March 2012
In the following I employed Panamainfo.com19 to point out the advantages of living and retiring in Panama from a foreigner’s perspective. I have selected the ones that apply both for Panama in general and also for the project in Volcan, Chiriqui.
Low Living Cost
A 2012 report by the Economist's Intelligence Unit on the cost of living in cities around the world found Panama to be one of the ten least expensive cities for foreigners. For retirees it is even cheaper- Panama has the best Retired Persons discount program in the world.20
Now at days, Panama City is becoming expensive, but there are way cheaper options in the countryside, such as the province of Chiriqui where the project will be developed.
The Dollar as Currency
Panama has the US dollar as its currency, a great convenience.
The dollar as currency contributes to Panama's low inflation rate and its status as the most stable economy in Latin America.
The Best Retiree Benefit Program in the World
The Panamanian government encourages retirees to retire here with one of the world's most generous programs with many benefits and discounts. To qualify for a retiree visa the only requirements are a proven monthly income of $1000 (plus $250 for each dependent), a health certificate, and a police report.
Some of the benefits for retirees:
50% off entertainment including movies, concerts, theater etc.
25% off restaurants
19 http://panamainfo.com/en/advantages-living-and-retiring-panama#sthash.S1azeVek.dpuf
20 http://panamainfo.com/en/advantages-living-and-retiring-panama#sthash.S1azeVek.dpuf
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50% off hotel accommodations from Monday-Thursday
30% off bus, boat and train fares
25% off domestic and international airline tickets
10% off prescription medicines (much cheaper than US prices to begin with)
15% off dental and eye exams
50% off closing costs for home loans
Panama is Safe: Lowest Crime Rate Against Tourists in the Region, Hurricane Free Panama is one of the safest countries in the region for tourists. In Panama City, like every big city, there are some neighborhoods to avoid, but in general, you can go about it without worry.
In addition, you won't experience any of the hurricanes that other countries in the region suffer from.
Many Activities and sightseeing spots
Although Panama is a small country, it has a great variety of world-class attractions: exotic tropical rainforests, beautiful mountain refuges, two coasts for both Caribbean and Pacific type beaches, more than a 1000 islands, seven living indigenous cultures, a fun Miami-style sophisticated capital city, a vibrant nightlife, full service resorts, exotic off-the-beaten-path getaways, scads of Spanish colonial historical sites, world class golfing, diving, sport fishing, and surfing, not to mention that 8th wonder of the world and engineering marvel, the Panama Canal.
A Foreign Investor and Retiree-Friendly Government
Panama has a relatively investor and foreigner friendly government. Panama is about business.
Former President Martinelli implemented changes needed to attract investors and retirees. His goal was to make Panama "the best place to do business in Latin America", with Singapore as a model.
The fastest growing economy in the Americas
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Located in Central America, Panama is easy to get to. A quick 3-5 hour non-stop flight away from major North American cities: Miami, Atlanta, Houston, Boston, Tampa, Dallas, Newark, Los Angeles, New York, Washington D.C., Orlando, Chicago, Ft. Lauderdale, and Toronto.
The Panamanian people are "globalized", peaceful, friendly and fun-loving
Panamanians are friendly. Due to Panama's position as a world business and transportation crossroads there's a long history of living and working with foreigners. Panamanians actually enjoy foreigners. There's a saying that Panama was "born globalized". Historically a crossroads, Panama is home to immigrants the world over. Different nationalities and peoples get along. Most common are "mestizos" or persons who are a combination of Spanish and native Indian and blacks. There are also sizable European, American, Chinese, Jewish, Hindu and Arabic communities.
Panamanians are a fun-loving people; parties are a national pastime, evident in their carnival celebrations and lively nightlife. They also have a predilection for beauty and elegance, visible in the delicacy of their Indigenous handicrafts, their beautifully groomed women and Panama City's many attractive neighborhoods, most especially the current restoration of the Casco Viejo historic sector.
Modern Infrastructure, a by-product of an Important Historical Relationship
Panama has an American-style infrastructure and a people who know how to get along with Americans and foreigners-the by-product of an American community (the Canal Zone) for 80 years.
Panama took control of the Panama Canal region in 1999 but it has left its mark. 50,000 Americans still live in Panama (some of are Panamanians with American citizenship).
Panama also has a long history as a crossroads for Europe beginning from Spanish colonial times. The culture has a distinct, delightful Latin-Caribbean culture, but you feel at home because American and foreign influences abound.
Inexpensive, Top-Notch Health Services and Medical care
Both health insurance and health care are inexpensive and good quality. You can readily find English speaking trained doctors and dentists. Several hospitals are equipped with the latest in
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diagnostic testing and services. Prescriptions and over-the-counter medication are cheap. Full coverage health insurance policies are very reasonably priced for any age.
Another big health plus is that you can drink the tap water, a rarity in Latin America.
Sanitation is good as well.
High Speed Internet and Telecommunication Services
Panama is a so-called developing country but the high-speed Internet access could be considered even better than in the US. Phone service and other basic services are also cheaper than USA.21
Convenient International Banking and a Strong Financial Services Sector
ATM machines providing access to your USA bank account are located throughout Panama City and in locations outside Panama City. Panama has a sophisticated banking sector with over a hundred banks.
Variety of Residential Areas to Choose From
The most popular places to live are Panama City, the beach areas near Coronado and mountains near Panama City, the high lands of Chiriqui province, and the rural town of Pedasi.
Panama's mountain areas like Boquete, Volcan, Sora and El Valle offer perfect all-year-round spring weather. Bargain basement deals are a thing of the past for Boquete and El Valle, but prices are still pretty good in Volcan.