Panama offers $500 to encourage longer hotel stays

24-09-25

The Government of Panama, through Promtur—the country’s national tourism promotion agency—will launch in October a bold new initiative designed to motivate visitors to extend their stays. The measure consists of a digital voucher worth more than US$500, available to travelers who book at least four nights in participating hotels. This voucher can be redeemed in affiliated hotels and local businesses. In a second phase of the campaign, benefits could rise to US$800 in savings if visitors choose to use more than 60 participating establishments.

This strategy is part of Panama’s wider effort to increase both the average length of stay and the amount of tourist spending. Although the country welcomed 1.49 million visitors in the first six months of the year, it still lags behind regional competitors such as Costa Rica, the Dominican Republic, and Mexico. Recent studies show that while Panama enjoys relatively high global name recognition—about 47% of people surveyed are aware of it as a destination—only 11% have ever visited, and just 4% have done so recently.

Beyond attracting more travelers, the initiative seeks to address another challenge: the perception of safety. Salomón Shamah, Promtur’s director, has noted that only 21% of surveyed travelers consider Panama to be a safe destination. “Panama is a known name, but it is not a well-understood destination,” Shamah explained, highlighting the gap between international awareness and actual visitor experience.

For that reason, Panama’s international promotion campaign will intensify its focus on key markets in Europe and Latin America, working closely with travel agencies, which account for around 32% of global tourism sales. At the same time, the country aims to diversify its offerings by strengthening the meetings, incentives, conferences, and exhibitions (MICE) segment. This will help stabilize tourism revenues and reduce the seasonality that often affects the sector.

The incentive program represents a strategic opportunity for Panama: to lengthen average stays, boost per-capita spending, and attract higher-spending travelers who seek more complete experiences. By engaging both hotels and participating retailers, the campaign is expected to generate a positive economic impact beyond the lodging industry, benefiting restaurants, shops, and service providers throughout the country.

However, success will depend on more than discounts. Improving the perception of safety remains essential, requiring visible actions to reassure visitors. Infrastructure for tourism—covering transportation, accommodations, and complementary services—must meet high standards to satisfy increasingly demanding travelers. Moreover, the digital voucher must offer real value and easy access so that the incentive is not just symbolic but effectively changes visitor behavior by encouraging longer, more immersive stays. Consistency in promotion and the ability to deliver on promises will be key to sustaining momentum.

By introducing this initiative, Panama signals its determination to transform its tourism model from quick stopovers into longer, higher-value stays. This approach aims to close the competitive gap with other regional destinations and position the country as a complete, safe, and attractive destination for both those who already know it and those who only recognize the name.

The program could provide a significant boost to Panama’s tourism economy, creating new opportunities for local businesses and helping the country capture a larger share of international travel markets. In the long run, it offers the chance not only to increase visitor numbers but to strengthen Panama’s reputation as a destination of choice, where natural beauty, culture, and value combine to create a rich and rewarding travel experience.

In collaboration with:

This site uses cookies from Google to deliver its services and to analyze traffic. Information about your use of this site is shared with Google. By using this site, you agree to its use of cookies.

Legal notice