Panama is working to position itself on the global map of events and conventions with a new incentive in place that offers free convention center access for qualifying events.
Gatherings generating 7,500 to 9,999 hotel room nights receive two free days at the Panama Convention Center, scaling up to additional personalized incentives for events exceeding 15,000 room nights.
In addition, a food and beverage incentive provides a 50% to 100% discount on meeting room rental, based on total F&B consumption during the event.
The ATLAPA Convention Center is offering two free days for events generating 2,000 to 3,499 hotel room nights, scaling up to four free days for events generating more than 5,000 room nights.
Tax Advantage Appeals to U.S. Planners
In addition, Panama’s designation as “part of North America” for U.S. tax purposes provides American companies with tax benefits when hosting events there.
Under the U.S. Internal Revenue Code, U.S. companies can only deduct expenses for meetings and conventions held outside the U.S. if they’re conducted in the “North American area,” which includes Panama.
According to a tax agreement between the U.S. and Panama, “expenses incurred by U.S.-based companies related to the organization of business conventions, conferences, and meetings in Panama are tax-deductible.”
This tax deductibility gives Panama a competitive advantage over other Latin American destinations not included in the North American area designation.
“We have not done a good job telling the story about Panama,” said Jim Pebbles, AGM, Panama Convention Center. “Planners are more used to Brazil or Costa Rica. When they think of Panama, they think of a canal, not our incentives and conventions business.”
One of the reasons the incentive is in place is to fill hotel rooms. “We have a surplus of hotel supply. Our occupancy is in the 60% range and we have to get that up,” said Pebbles. “Supply has increased far faster than demand. It will catch up as we push our events business, which will make a strong economic impact on the destination.”
He said the convention center incentive program will continue until at least 2027.
SMG Latin America started managing the Panama Convention Center in September 2021, with the venue opening that same year.
In 2024, Legends acquired ASM Global, the parent company of SMG Latin America. The following year, the combined entity officially rebranded as Legends Global, which now manages more than 450 venues worldwide.
Next year, Panama City will be hosting the ICCA World Congress.
