Short term apartment renters could face $50,000 fines

HOTEL owners in Panama are complaining of unfair competition from apartment owners who rent their properties to tourists at low prices.

Hoteliers say that the property owners do not pay tourist tax and work illegally.
Although there is a law that prohibits renting apartments to tourists for less than 45 days and which is punishable with a fine $50,000 for repeat offenders, apartment owners who have failed to sell their properties see in the vacation rentals a way to recover their investment says a report in CentralAmericaData.
"On the Internet you can find hosting offers for less than $80 per day, in exclusive areas of the city such as San Francisco, Paitilla and Punta Pacifica, while city hotels offer rates ranging from $99 to $130 on average", said Prensa.com.
Ernesto Orillac, Deputy Administrator of the Tourism Authority of Panama (ATP), "there is a security issue. The people who rent these apartments pay cash and it is not known what their movements in the country are. "
He said that they would hire more inspectors to intensify operations, due to the impact of this activity on the hotel sector.
Residents who own and live in buildings where short term rentals are common have also complained as temporary visitors often ignore administration rules designed to enable owners to enjoy shared facilities. In many cases the visitors have not been made aware of the “house rules”. Other concerns relate to possible criminal activity by fly-by-nights.