Minister Blades corrects "residential tourism" aberration

Tourism Minister Ruben Blades explains in a letter published in the July 8 La Prensa (with an English translation in the IPAT site), how he has tried to correct the aberration which the term "residential tourism" has become.

The Former Papa Egoro Presidential candidate blames daily La Prensa for being an example of how twisted ("enredados") some people still are when trying to report about tourism, and about second residence; the mistake is made of affirming the "new tourist visa affects real estate sector". His response is addressed at July 5 articles by La Prensa journalist Raul Bernal and PrimaPanama general manager Paul McBride.

He points out that the insistence in confusing both circumstances, that of tourism and that of who seeks a temporary or permanent residence in Panama, is responsible for all the confusions and apparent contradictions which circulate on the Internet.

This blogger is concerned that the Minister will have an uphill battle in correcting the aberration which residential tourism. The term has 89, 400 hits in Google, quoted by sites such as:

Wikipedia: the economy of the region is turning towards "residential tourism" in which many people from northern European countries have a second home in sunny Murcia.
Government of Montserrat National Environmental Action Plan (NEAP): Much good land has been transferred for residential tourism and other development but there remains an ample supply for agriculture.
Egyptian officials: The minister added that obstacles surrounding visas, property ownership and even public transportation have all been eliminated, fuelling increased interest in residential tourism offerings, new luxury resorts and recently introduced services.
World Wildlife Fund: Second-house tourism has the greatest growth potential in the tourist industry of the Spanish southeast: of every 100 houses built in Alicante, 60 are for the second house market. Foreign tourists (80% from Germany and UK) own 240,000 houses in the province of Alicante, which is the province in Spain with the highest numbers of residents coming from other EU countries. This residential tourism, is normally characterised by high acquisition power.
Governor General of Antigua & Barbuda: My government also recognises that a huge opportunity exists for residential tourism. Both wealthy persons and retired persons in North America and Europe are seeking residences in tropical countries to escape harsh winters. In this connection, one hundred acres of land will be identified for development by major developers with the capacity to build and market such homes. Similar developments have taken place in Barbados, Jamaica and The Bahamas and they have resulted in large scale employment for locals in the service industry, expanded sales to the business community for the supply of goods, and increased and sustainable revenue to the government from property taxes. My government expects to launch this development project within the next few months bringing over thirty million dollars in revenue after all the lands are sold and earning almost four million a year in property taxes once the project is completed.
My government's objective for land-based tourism is to position Antigua and Barbuda so that within the next few years it emerges as one of the principal tourism destinations in the world. It recognises that, to do so, we need a trained and competent work force in all aspects of the hospitality industry including fluency in languages, expertise in the highest levels of culinary art, catering and management. .... The Investment Promotion Agency will work closely with our missions abroad to promote Antigua and Barbuda as a centre for foreign investment in tourism, residential tourism, financial services, e-commerce including internet gaming, and niche agriculture production.
Dimitris Avramopoulos, Tourism Development Minister, Greece: he and other senior officials or businessmen in the tourism industry believe that a largely untapped potential for development exists in integrated resort complexes, combining health tourism (thalassotherapy, spas, beauty parlours, rehabilitation facilities), conference centres, marinas, residential tourism (real estate sales or leases, including group retirement schemes), casinos and golf courses.
Invest in Golf: It is not rocket science, which is why other counties are starting to develop their residential tourism markets. Croatia, Turkey, Egypt and Bulgaria are all trying to develop their residential markets and attract foreign investors.
ProExport Colombia: FID and Residential Tourism: Seeking Retirees
Amazon: Books
III Conference on Residential Tourism: 1 whole day of panels and speakers about this aberration.
Cajamar Institute: Study on possibilities of residential tourism in Malaga
Tax Studies Institute: Study on tax barriers to residential tourism
Malaga on the web: Study on residential tourism
University of Madrid: Online course on residential tourism in Andalucia
Promotur: Powerpoint presentations and news from the Andalucia Association of Residential Tourism

Obviously, governments in Greece, Antigua, Colombia and other countries do believe in the benefits of residential tourism. We truly believe that taxpayer moneys would be better spent in immigration control technologies which do not require prospective buyers of US$250K homes to spend 4 hours every 30 days sitting at the overcrowded Avenida Cuba facilities of the Immigration department, if these controls are truly necessary to deter illegal immigration.

Term of Tourist Visa reduced to 30 days

... or how to shoot the hen which lays the golden eggs...

Law 15 of 2007, entered into force upon its publication on May 25, 2007, which reduces the duration of Tourist Visas from 90 days, with a 90 day extension (originally in force since 1995), to 30 days with a 60 day extension. While European Union Schengen Treaty citizens are exempt from a visa requirement to enter and US citizens are sold a $5 "tourism card" as reciprocity visa upon entry, all foreigners are subject to this 30 day limit. The Immigration website has a list of the current visa requirements by country. http://migracion.gob.pa/eng/servicio.php?cont=paisvisa

The Law was submitted as Bill 292 of 2007 http://www.asamblea.gob.pa/buscador/2007/2007_P_292.pdf "whereby measures are enacted for the protection of citizen safety" by Olga Golcher, Minister of Government, in April 3, 2007. The Bill had measures to counter the rising power of juvenile gangs, and buried into the text was a new definition of Tourist Visas:

Artículo 36. El numeral 1 del artículo 1 del Decreto Ley 16 de 1960 queda así:
Artículo 1. Los extranjeros que ingresen al territorio nacional serán clasificados como
turistas, transeúntes, viajeros en tránsito, viajeros en tránsito directo, visitantes
temporales e inmigrantes:
1. Son turistas los que llegan con fines exclusivos de recreo u observación por un
lapso de treinta días, prorrogable hasta por sesenta días.

Over-zealousness at all levels

Obviously, nobody foresaw the effect this will have on residential tourism, since it takes more than 30 days to have a feel for the country, look at properties, purchase a home, and THEN decide to apply for a residence visa. The April 18 "Technical Report" made by legislative staffer Agapito González Gómez says that "the costs of the implementation of the bill will be compensated with the benefits that its special measures produce. However, given the provisional character of said measures, it would be convenient to take into consideration that all the costs of its application, in the end, may exceed the material benefits they may produce." Translation: We are worried about gang warfare and we have doubts about whether increased prosecutorial powers may have lasting benefits (forget about the tourism aspect).

The Technical Report recommended calling to committee hearings several government entities and child welfare instutions (UNICEF Panama, Alianza Ciudadana Pro Justicia, Pastoral Penitenciaria) and NGOs in general but flatly excluded the Panama Tourism Institute IPAT, Ministry of Commerce and did not identify real estate and tourism industyr associations. Eventually, Union Nacional de Abogadas, Asociacion Panama Verde, Consejo Nacional de Juventud, Creation Associates International and other child welfare and criminal law groups participated in the Committee hearings. The April 19 Minority Report by opposition legislator Jose Blandon only mentions "the lonely immigration provision" to criticize the PRD for not voting on an Immigration Bill submitted in 2004 (which also reduced the 90 day tourism term).

Only when the final Law was published in the official gazette as Law 15 of 2007 "whereby measures for the speeding of the prosecution in ordinary criminal procedures and special procedures for criminal liability of teenagers and other measures are enacted" (in Spanish "que dicta medidas para la agilización de la instrucción sumarial en los procesos penales ordinarios y en los especiales de responsabilidad penal de adolescentes, y otras disposiciones") and La Prensa http://www.prensa.com/hoy/panorama/997953.html printed the results of a press conference by the Immigration director did most of the non-criminal law community learn about the 30-day tourist visa.

3 days later, the Tourism Minister issued a press release announcing that "the project “Tourism, a reason to create business ventures and decrease poverty” was launched by Minister of Tourism Ruben Blades before hundreds of micro-entrepreneurs at the inaugural ceremony of the AMPYME National Meeting that took place at the ATLAPA Convention Center."http://www.ipat.gob.pa/eng/page.php?page=news&art=44 We presume that the 30 day limit will discourage those who may take longer than that to buy a property and thereby help businesses which reduce poverty. The Ministry has a "Contact Us" http://www.ipat.gob.pa/eng/page.php?page=contact_us page where comments can be sent.


More legal trivia

In the haste to approve the law (52 days), Article 3 of Law Decree 16 of 1960 on Immigration was left without alteration, which provides that
"tourism cards will be valid to remain in the country for ninety (90) days until completing one hundred and eighty (180) days".,
as well as Article 5 ("The Panamanian Consulates shall issue tourism cards valid for ninety (90) days, after paying five" balboas). Under Article 14 of the Civil Code ("Cuando las disposiciones tengan una misma especialidad o generalidad y se hallaren en un mismo Código, se preferirá la disposición consignada en el artículo posterior"), these 2 provisions prevail over the amendment to Article 1, so... tourist cards (not necessarily those tourist visas without a card) should be granted for 90 days...



The other side of Panama friendlyness

So what can a violator of the 30-day rule expect? Tourists exceeding their visa term are apprehended and taken to a small cell at the Immigration offices to determine their status. In the best case, their lawyer is allowed 24 hours to submit all papers for a visa where he/she can qualify for. In the worst case, it would be a weekend or evening, so the tourist is taken to the untouristy Directorate of Police Investigations (DIIP). Depending on the perception of how dangerous the tourist is, he/she will be held separately from the other violent criminals held for felonies from all over the city. It is not the Turkish Express, but certainly not a night at Waldorf. If the tourist does not qualify for any visa, he/she is deported and not allowed back into the country.

In the meantime, the government still refuses to demand visas from countries with high immigration rates, such as Colombia. Actual criminals will not be deterred and will continue using the shipping lanes into Colon and other routes to enter the country. A user-friendly system for granting of multiple-entry tourist visas for financially sound citizens of Dominican Republic, Venezuela and Colombia (just show passport, tax return and valid credit cards at the consulate to get the equivalent of B-1/B-2 US visa) is a necessity to bring investment into the country and discourage criminal elements.

Options when being close to the end of the 30-day period

So the legal alternatives when the 30-day term comes are:

1) Separate 2 mornings at Panama Immigration and file for a final 60-day extension form http://migracion.gob.pa/eng/documentacion/corregidos/prorroga_de_turista.pdf along with
a. Valid passport, tourist visa/card and 2 copies of its ID page and Panama entry stamp
b. Return airplane ticket valid for a flight in 60 days or more
c. Letter from Panamanian or legal resident who will sponsor and assume responsibility for the applicant, with copy of the signor's ID.
d. Proof of economic solvency of the applicant or the sponsor : tax return, credit card or bank reference letter showing more than $500 monthly available.
e. 3 passport-size pictures
f. Magazines and newspapers to read while you wait

2) File an appeal under Articles 3, 5 and 86 of Law Decree 16 of 1960,

3) Head to Costa Rica http://www.migracion.go.cr/visas/DirectricesvisasMayo2007.doc, where a tourist visa for US, European Union / Schengen and Central American citizens lasts 90 days Sounds brutal, but that is how tourists think and their pockets move.