Tourism Sector Fights to Recover After the Powerful Earthquake.
Panama remains open to international tourism following a powerful 7.5 plus magnitude earthquake that struck on October 9, 2026. While a national state of emergency was declared, the vast majority of the country’s tourism infrastructure is fully operational with over 90 percent of hotels open nationwide. However, recovery speeds vary drastically depending on the region. The natural disaster took its toll on tourism, the capital barely managed to scrape together a 4 percent increase in hotel bookings, while the interior of the country is still waiting for bookings and facing localized challenges.
The general administrator of the Panama Tourism Authority (ATP), Gloria De León, acknowledged that the recovery is progressing at different speeds. While the capital shows some signs of improvement, the central provinces and beach destinations have not yet achieved the expected level of activity following the earthquake. The official’s remarks came during the official ceremonies on November 5th in Colón. There, she described the overall tourism figures as “positive,” despite the blow dealt by the earthquake.
Some hotels in heavily impacted beach and surf towns like Santa Catalina are structurally ready to operate but are facing staffing challenges because employees are focused on rebuilding their own homes. Isla Iguana, which was not affected by the earthquake is experiencing a severe economic downturn due to visitor fear. Despite local park rangers confirming that the island and its surrounding beaches are perfectly safe, visitor numbers dropped from hundreds a week to nearly zero, heavily affecting local boat operators and businesses.
Panama Tourism Authority is revitalizing its tourism sector by prioritizing immediate road and infrastructure repairs, launching targeted domestic travel campaigns, maintaining pre-planned international events, and collaborating with global financial institutions. Several international events and conventions are scheduled between now and December, with the aim to attract visitors and stimulate the economy. As Panama is heading into the peak holiday season the ATP is rolling out dedicated hotel promotions, custom travel routes, and vacation packages designed for residents.
