WYD payback in doubt as predictions falter
Views on the payback from the $61 million price tag attached to hosting Word Youth Day vary widely from the ultra optimism of the Tourism Authority and Finance Ministry seeking to boost declining visitor rates, to the caution of the hotel industry which has had to lay off over,6,000 workers as occupancy rates hover around 40%.
Predictions of the number of pilgrims attending have shrunk from early blue-skying of 400,000 to as low as 100,000. Many of the arrivals are billeted with families or in schools, and a large number from neighboring countries are living on tight budgets.
According to the latest figures from the Ministry of Economy and Finance (MEF), the World Youth Day (WYD) will have a direct impact of 3$88 million, while the indirect could reach 7$00 million, which is equivalent to 1.5% of the nation’s gross domestic product.
With this figure, the investment would be easily recovered says an EFE News Agency report. Perhaps the MEF is relying on the predicted 3,000 journalists, a dozen or so heads of state or substitutes, and a bevy of bishops to make up the shortfall.
Otherwise, the incoming government after the May elections will be left to pick up the pieces of the Castles in the sky.
The Panamanian hoteliers maintain a moderate expectation of having the “full “ sign hung on the front desk during the visit of Pope Francis. In any event, prices have been jacked up, which will not do much to encourage return visits.
The Government speaks of an 80% percent of hotel occupancy, but the Hotel Association remains cautious mentioning 60% reservations in the capital; except in the smaller lodging places on the outskirts where 100% occupancy is possible
In a search of online hosting pages, rates for one to five-star hotels range from $50 to $ 350; and in special packages, costs vary from $ 90 to $ 175 per night. And if savings are talked about, with luck you can find spaces in hostels at less than $20 dollars.
The Tourism Tourism administrator Gustavo Him told Efe that although the predicted numbers will not arrive, in the failure pf the corporative market to develop packages of trips, he remains positive about the arrival of visitors.
He added that activities such as the International Flower Fair and the Parade of the Thousand Polleras, regional activities full of folkloric color, have given good results because of the large number of new visitors including pilgrims.
Meanwhile, in the well-trodden attraction, centers like the Panama Canal, Casco Viejo and shopping centers, groups of young people identified with the flags of their countries are doing their best to make the host country get some return on investment
Other sectors that will take advantage of the one-week windfall are the souvenir shops selling items featuring WYD and the pontiff
