STATEMENT: Quartier seeks to improve vacation rental regulations in Panama

(Information sent by the signatory company).

STATEMENT: Quartier seeks to improve vacation rental regulations in Panama

(Information sent by the signatory company)

Quartier proposes improving current vacation rental regulations in Panama by balancing market needs and government regulations

Panama, April 18, 2024.-

Legal restrictions and control measures on vacation rentals in Panama in 2024 In the current scenario of vacation rentals in Panama, legal restrictions, specifically in the District of Panama, have generated a challenging panorama. Article 21 of Law 80 of November 8, 2012 prohibits rentals for less than 45 days without a public tourist accommodation permit, establishing the bases for the control and regulation of unauthorized temporary accommodation. In turn, local authorities have implemented active measures to close and sanction these clandestine lodgings. The fines, which range between 5,000 and 50,000 US dollars, are applied proportionally to the seriousness of the infraction and the recurrence of the landlords. Vacation rental companies and their regulatory proposals Vacation rental companies have been protagonists in this scenario, facing criticism from the hotel industry in which it is accused of contributing to unfair competition. The exponential growth of this type of companies has intensified the debate on regulation and equity in the market. Given this situation, the regulation proposal proposes replacing the 45-day regulation with a 10% tax on rentals through these platforms in Panama City. "This tax seeks not only to control the market, but also to raise funds for the international promotion of Panama as a tourist destination." Hotel industry vs. collaborative economy The hotel industry advocates for greater international promotion as a solution to improve occupancy, while vacation rental companies such as Airbnb, Vrbo or Quartier defend the collaborative economy and the offer of unique experiences at varied prices. This divergence of perspectives raises questions about the appropriate balance between regulation and market diversity. For its part, the vacation rental company Quartier, mentioned above, continues to fight for a solution adapted to current events and the behavior of visitors. Its business model attracts both tourists and professionals who come to do business in Panama, and many of these are profiles that prefer the freedom of an apartment without giving up the comforts of a hotel. They defend that market freedom should be within the reach of companies that can offer an alternative to better satisfy the needs of those who come to visit Panama. The future of vacation rentals in Panama Apartment rentals in Panama are in an unknown state, facing regulatory challenges, but also presenting opportunities for constructive dialogue. How these issues are addressed will determine the future of the vacation rental industry in the country.

Contact Contact name: Joaquin Roca Contact description: Quartier Panamá Contact phone: 507-64728600