ATP Cracks Down on Illegal Lodgings with More Actions

The illegal lodging wave is hitting public security, that of visitors and represents an act of tax evasion, so Panama’s Tourism Authority (ATP is the Spanish acronym) stressed Thursday that those who foster and commit this violation of the law will be fined from $5,000 to $50,000.

ATP Director of Tourism Investments, Nadgee Bonilla, warned that "strong measures will be taken" as established by Law 80 enacted on November 8, 2012, whose 21st article "prohibits the renting in buildings or residences without the tourism lodging permit issued at Panama District for 45 days or less. This activity shall be related to apartment hotels, hotels, hostels, motels and guesthouses”.

Bonilla pointed out that, since the enactment of Law 80, "there have been eleven cases of people that have been fined by ATP with $5,000, and two cases of recidivism that would face fines of $10,000 if proven to be true”.

Illegal lodgings are affecting public security and that of visitors. This reality has become an unfair competition that evades taxes as tourism accommodations do pay taxes to the nation.

The ATP’s Director of Tourism Investments explained that when this type of crime is reported, the institution opens the file and investigates it; but the Tourism Authority is also empowered to act on its own.

By means of advertisements on newspaper, the ATP also detects messages related to illegal lodging in buildings or residences that are not officially authorized to accommodate tourists, Bonilla stressed.

Other countries have reported that the legally-established hotel activity has been pounded by illegal and fraudulent lodgings that have a negative impact on currency income linked to the travel industry.

This is not the only aspect that matters, since any criminal can use illegal lodgings as a base to commit crimes.

Bonilla emphasized that Panama’s Tourism Authority is going to redouble its campaign to raise public awareness on the danger and illegality entailed by illegal lodging. That’s the reason why further advertisement will be displayed in airports, ports, hotels and other public spaces.

Denunciations related to illegal lodgings can be sent to inversiones@atp.gob.pa or reported to 526-7040.