La Estrella Panama reports that a price war is taking place between Panama hotels trying to entice tourists.
The relatively high hotel prices in Panama (compared to other destinations in the region) have been on a downward trend, dropping by as much as 30% in the past three years, according to Jorge Campuzano, president of Panama’s Chamber of Tourism.
The downward pressure on hotel prices has mainly been a result of the hotel construction boom in the country. According to Ernesto Orillac of the Tourism Authority of Panama, the hotel supply has increased by 100% in the past three years.
The average occupancy rate in Panama for 2014 stands at 59.3%, down from 68.6% in 2011.