Article written: October 16, 2026
Is Panama still open to tourists after the October 9 earthquake? Yes. The Autoridad de Turismo de Panamá (ATP) says the capital and most of the country’s tourism infrastructure are operating normally, and the national tourism chamber, Camtur, reports that more than 90% of the country’s hotels are open with an average occupancy of 67%. The damage that did occur was concentrated in the interior, and it arrived in the middle of the strongest tourism year Panama has ever recorded.
How Big Is Tourism in Panama’s Economy?
The figures were presented on October 14 and 15 at the second Tourism Training Forum, organized by Copa Airlines with ATP support. Daniel Arévalo, senior investment officer for tourism at IDB Invest, said the sector could close 2026 above 16% of GDP, or more than $15 billion.
| Indicator | Figure |
|---|---|
| Tourism’s current economic weight | About $14 billion, or 15.5% of GDP |
| 2026 projection (IDB Invest) | Above 16% of GDP, more than $15 billion |
| Direct and indirect jobs | About 423,000, close to 20% of national employment |
| Visitor spending | About $9.7 billion, roughly 25% above 2019 |
| International visitors, January to July 2026 | 2,040,781, up 18.15% year over year (ATP) |
| Economic impact of those visitors | $4,449 million (ATP) |
| Average spend per visitor | More than $3,200 (IDB Invest) |
| Top source markets | United States 22%, Colombia 14% |
| Panama Stopover conversions through September | 206,700 visitors |
| Congresses and conventions booked for 2026 | 177 events, more than 200,000 visitors, about $196 million |
Copa Airlines CEO Pedro Heilbron added that the airline is growing seat capacity by 15% this year and expects to receive an average of 10 new aircraft a year going forward.
Which Tourist Areas Did the Earthquake Affect?
ATP Administrator Gloria de León toured the affected provinces and reported damage at a short list of properties:
- Playa Venao Hotel Resort and El Sitio, in Playa Venao, Los Santos
- Hotel Dos Continentes, in Penonomé, Coclé
- Hotel Mykonos, in Santiago, Veraguas, where damage was limited to the ceiling and the main structure held
Access was also a problem. Damage to the bridge over the Oria River cut the road into Playa Venao, and Camtur reported that a television production occupying more than 100 rooms in Pedasí was cancelled. In Chiriquí, the regional chamber of commerce reported that Hotel Gran Vía in David remained closed and that six events had been cancelled.
In Panama City, early ATP inspections found no structural damage at the major hotels. De León said cancellations of hotel rooms and flights between Friday and Sunday were few, and that 35 international events remain confirmed between October and December. Camtur President Nadkyi Duque said she visited Playa Venao and Santa Catalina herself and found hotels and restaurants still operating.
Casa Solution’s View: Do Not Cancel Your Trip
Casa Solution is still evaluating how the earthquake will affect tourism in the coming months, and it is too early to measure the full impact on bookings. What is already clear is that the country is running. Airports, highways, hotels, restaurants and tour operators across Panama City, the Pacific beaches, Boquete, Bocas del Toro and the rest of the main tourist circuit are open.
The communities that suffered the worst damage were mostly rural towns in Herrera, Los Santos, Veraguas and Coclé that see few tourists. The main exception was Playa Venao, where the damage hit a handful of isolated tourism properties rather than the destination as a whole.
If you have a trip booked, the most useful thing you can do is keep it. Confirm with your hotel that it is open and has been inspected, and then travel. Tourism supports roughly one in five jobs in Panama, and many of the workers in affected areas are dealing with damage to their own homes. Visitor spending is part of how these communities recover.
Private-sector groups are also pushing to bring travelers back to the interior, with a campaign offering discounts of up to 30% at participating hotels, restaurants and local operators, according to La Estrella de Panamá.
What Is the IDB’s $150 Million Guarantee Fund, and Who Can Use It?
La Prensa noted that the earthquake exposed how vulnerable small tourism businesses are to natural disasters. One tool already available to them is a $150 million guarantee fund created by the Inter-American Development Bank (IDB) with Banco Nacional de Panamá.
Christian Schneider, the IDB’s lead financial markets specialist, explained how it works:
- The fund is held in a Banco Nacional trust and operates through 19 banks in Panama.
- It can provide additional loan coverage of up to 50%. A business that needs a $100,000 loan but only has collateral for $50,000 could use the guarantee to close the gap.
- Because it issues guarantees rather than direct loans, it can be leveraged to back two or even three times its face value.
- It is open to all micro, small and medium-sized businesses, but the IDB is specifically trying to steer it toward tourism businesses in the interior.
- Applicants must be established in Panama, hold the permits and licenses required for their activity, and qualify for credit. The first step is to ask your own bank.
IDB Invest is also supporting a separate $100 million tourism infrastructure program covering roads, sidewalks, governance and training. Arévalo said one priority now is reconnecting affected destinations such as Playa Venao so visitors can reach them easily.
Arévalo’s advice to small operators was practical: prepare proper financial statements and be able to support the numbers in front of a bank. He cited the Panamonte hotel in Boquete, which attracted investment from Grupo Verde Azul in 2024 and grew from 14 to 33 rooms.
What Does This Mean for Rental Property Owners?
For owners of vacation rentals and small hospitality properties, the fundamentals behind the market have not changed. Arrivals are up by double digits, spending per visitor is high, and air capacity is expanding. At the same time, the earthquake is a reminder to review insurance coverage, keep maintenance documented and, for businesses in the interior, to know what financing options exist before they are needed.
Owners should also follow the proposed changes to how short-term rentals are taxed, covered in our recent article on Airbnb’s response to Panama’s proposed 15% tax.
Whether you own a rental on the Azuero Peninsula, are considering a vacation rental near the Pacific beaches, or are looking at a hotel property, Casa Solution can help you understand how current tourism trends affect a specific property or community.
