OBJECTIVES AND DEFINITIONS

Article 1. The objective of this Law is to establish a simple, prompt, and rational process to develop tourism activities in the Republic of Panama; grant incentives and benefits to persons engaging in tourist activities; adopt the necessary mechanisms for the public and private sectors to join and coordinate their efforts in the area of tourism; and promote tourism in Panama.

Article 2. The Executive Branch, through the Panama Government Tourism, shall assist the private sector by facilitating and expediting the required processing to establish and develop the tourist activities covered by this Law through the Executive Branch, other units of the Government of Panama and municipalities.

Article 3. Tourism is hereby declared a public service industry, and one of national interest.

Article 4. For the purposes of this Law, a tourist offering is understood to mean any commercial activity for the purpose of encouraging the stay of tourists in the country, and developing domestic tourism.
Tourist entrerprises are defined as follows:

• Hotel: An establishment whose entire structure is used for public lodging, and has been built and especially equipped to furnish continuous lodging services and, as a general rule, meals to its guests, as well as other related services such a s reception services, a lobby, public telephone, and daily cleaning rooms and its other service units. The incentives set forth in this Law are available for golf or tennis courts, sauna baths, gyms, discotheques, restaurants, discotheques, and other activities connected with investments in hotel facilities.


• Motel: A tourist lodging establishment located in rural areas, or near beaches or roads, for the purpose of providing lodging and meals for a price to motorists.


• Apartment Hotel: A building for rental or lease to domestic or foreign tourists, equipped with the required furniture and provided with daily cleaning service and individual kitchen facilities for guests to prepare their own meals.