About Panama

Tourism Potential

The country has 1,398 tourism attractions currently registered, from which 1,005 representing 71.9% are natural sites
and 393 representing 28.1% are cultural and historic expressions.

Panama’s Tourism Development Master plan has delimited the National Tourism Space, based on the location and
importance of the attractions, achieving the decentralization in nine Tourism Zones, 20 Tourism Centers and other units
convenient or apt for tourism development, For this purpose, equipping these nine zones is scheduled to obtain the
development of different regions in the countryside cooperation with other jurisdictions.

Cruise Ships

One of the tourism sectors that have experienced a recent growth is cruise ship activity. Panama has developed the
proper infrastructure to accommodate this industry, including two ports in the Atlantic side of the Canal and one in the
Pacific entrance.

Two (2) brand new cruise passenger terminals have been built on the Atlantic and Pacific entrances of the Panama
Canal representing in investment of US$100MM and opening more opportunities for cruises and mega-yachts docking
in Panama for services and pleasure.

In the 2001-2002 season, 85 cruise ships with more than 115,000 visited Panama City and Colon, where the passenger
terminals are located. The Panama Canal is the No. 1 destination for cruise passengers according to recent surveys.
Shopping for tourists will just get better with the opening in 2003-2004 of three (3) new mega shopping malls at a cost
of US$100MM each one.

Additionally, Panama signed an agreement with Florida Caribbean Cruise Association (FCCA) to promote our country as
one of the best destinations in the region and as a Cruise Ship hub.

All these efforts have resulted in the recognition of Panama by Porthole Cruise Magazine as “Best Adventure
Destination for the Year 2000”.

Panama Facts

Some Facts about Panama

Population	2.7 million
Climate	Tropical
Rainy season	May to January
Dry season	January to May
Size	29,208 sq. miles, about the size of South Carolina
Language	Spanish, English a strong second language
Government	Democratic
Religion	85% Catholic, 15% Protestant
Ethnic groups	70% mestizo, 14% black, 10% white, 6% Amerindian
Currency	US dollar
Economy	75% services, l6% industry, 10% agriculture
Inflation rate	1.5%
Unemployment rate	14%
Major trade partners Exports	USA, Germany, Sweden
Imports	USA, Japan, Ecuador
Key domestic industries	Financial services, Free Zone operations, Tourism, Transshipment-related (Canal, Ports, logistical center activities) construction, insurance, manufacturing
Exports	Bananas, shrimp

Geography

The Republic of Panama with an area of approximately 29,700 sq. Miles (76,900 sq. km.), located between Costa Rica
and Colombia, forms the narrowest and lowest portion of the Isthmus that links North and South America.

Shaped like a letter “S”, which extends west to east some 420 miles, the country has a width that varies between 31
and 115 miles and has a coastline of 490 miles on the Atlantic Ocean and 870 miles on the Pacific Ocean. The Canal,
which joins the Atlantic and the Pacific Oceans, is about 50 miles long. Because of the lateral nature of its extension
and its curved contour, directions are often surprising. A transit of the Canal from the Pacific to the Atlantic involves
traveling not to the East but to the North-West; in Panama City the sun is seen to rise out of the Pacific.

History and Government

The Isthmus of Panama was discovered in 1501 by Rodrigo de Bastidas and Vasco Nuñez de Balboa, who had a leading
part in the establishment of Santa María La Antigua del Darién in 1510, the first permanent settlement on the mainland
of the Americas. In 1513, Balboa led an expedition, in Panama, that discovered the PacificOcean.

Panama City was founded by Pedro Arias Dávila on August 15, 1519, almost a hundred years before Jamestown, first permanent English settlement in North America was founded. Panama was a Spanish colony until 1821 when it became part of the Gran Colombia of Simón Bolivar. In 1903, Panama broke its alliance with Colombia and became an independent republic and promptly signed a treaty with the US allowing for the construction of a canal and US sovereignty over a strip of land on either side of the structure (the Panama Canal Zone).

The Panama Canal was built by the US Army Corps of Engineers between 1904 and 1914. On 7 September 1977, an agreement was signed for the complete transfer of the Canal from the US to Panama by the end of 1999. Certain portions of the Zone and increasing responsibility over the Canal were turned over in the intervening years. With US help, dictator Manuel NORIEGA was deposed in 1989. The entire Panama Canal, the area supporting the Canal, and remaining US military bases were turned over to Panama by or on 31 December 1999.

The executive branch of the Government is at present composed of a President and two Vice-Presidents, democratically
elected for a five year term by direct vote.

Population and Language

The population of Panama is approximately 2.8 million, about 52 percent of which is urban.
Spanish is the Official language of the country, but many of the people in Panama City and Colón speak English. Most
businessmen, top government officials and executive staff are fully bilingual.

Education and Religion

More than 80% of the population over ten (10) years of age is literate. School attendance is compulsory between the
ages of seven (7) and fifteen (15) or until the six grades of primary school have been completed. The educational system
provides for the free schooling of all children. An excellent parallel private school system exists primarily in Panama City.

The main universities are the University of Panama, a state institution, with six campuses, and the University of Santa
Maria La Antigua, a Catholic institution. There are more than five other private universities, plus the recently created City
of Knowledge.

Panama City boasts an excellent private school system. Education is offered in English, French, Italian, Mandarin and
there are several bilingual schools (Spanish/English).

The predominant religion is Roman Catholic. However, there is no prohibition against the practice of any religion, and
churches of other denominations are to be found in the country.

Weights and Measures

The metric system is the official unit of measurement in Panama. However, many units of the English system, such as
pounds, ounces, gallons, inches, and yards, are still used.

Business Hours

Panama’s time is five hours behind Greenwich Mean Time (GMT). Thus, Panama is on Eastern Standard Time (EST); it
does not have daylight saving time.

Most private business offices are open from 8:00 a.m. until 5:00 or 6:00 p.m. It is customary for all offices and stores to
close for the lunch period for at least one and a half hours. Banks are open from 8:00 a.m. to 1:00 p.m., Monday through
Friday. Office hours for government offices vary and it is advisable to check prior to visiting any government office.
If a holiday falls on Sunday, it is observed on the following day. The executive branch is authorized to designate days of
national mourning on which all offices and commercial businesses are closed.

Environment

Panama is the only city in the world in which a protected, tropical rainforest can be found within city limits. The country
has many and varied outdoor attractions from the mountain region of Chiriquí to the beaches on the Caribbean coast.

Attractions & Entertainment

The country’s most famous attraction is, of course, the Panama Canal. There are several superb tourism activities
that can be easily reached from Panama City. There are five golf courses in or near the city and beach areas. Dining is
excellent in Panama City, and there are numerous bars, discos and cafes. Evening entertainment may include live music,
movies (in English with Spanish subtitles) or dancing.

Standard/Cost of Living

In Latin America, Panama ranks as one of the best places to live, according to a business survey of 192 cities worldwide
by the Corporate Resources Group. Panama ranked among the top three cities in which to live in Latin America next
to Buenos Aires and Montevideo.

The survey takes into account transportation, crime rate, arts and entertainment. In
executive living expenses, recreation and entertainment costs and prices of basic goods, Panama ranks well below
Buenos Aries, Sao Paulo, Santiago and Caracas (EIU, Worldwide Cost of Living Survey).