Thanksgiving weekend is upon us, and aside from the feasts and family, this traditional holiday is also famous for one major aspect: shopping. What started just a few decades ago in the US as a way to boost Christmas sales, Black Friday has become an international sensation. In Panama, it’s one of the biggest single drivers of commerce and tourism throughout the year. And while Thanksgiving isn’t celebrated in Panama, Black Friday weekend has become somewhat of a national holiday. In fact, this year, Panama’s Independence from Spain holiday actually falls on the Saturday after, meaning that this weekend has two major contributors for both shopping and travel.
Why Panama?
Shopping is big in Panama, and Panama City and its suburbs have become a major regional shopping destination over the past ten years. Panama is home to Central America’s biggest, more comprehensive malls and shopping centers, and is home to nearly every luxury, electronic, and budget retail brands. Due to its growing economy, and its citizens relatively high spending power, Panamanians do a great deal of retail shopping over the holidays. But shopping in Panama isn’t just for the locals. Due to a strong US dollar, low import tariffs, and logistically beneficial location, many people from all over Latin America and the Caribbean travel to Panama with the intention of shopping. And this group grows by a huge margin during Black Friday weekend.
How Black Friday contributes to Panama’s economy
According to Panamanian economic analysts, Black Friday (last Friday in November) is the single biggest shopping day in the nation. It’s followed closely by the Saturday, Sunday, and Monday (Cyber Monday) that follow. This essentially makes Black Friday weekend a prime tourism time in Panama as well. According to the Ministry of Tourism, Panama receives around 50,000 extra visitors on Black Friday weekend alone. Tourists from countries like Brazil, Argentina, Colombia, and Venezuela take advantage of Panama’s comparably low prices, as taxes make certain items nearly double (or even triple in some cases) in their home countries.
Essentially, for many Latin Americans, it’s cheaper to fly to Panama for the weekend to shop, dine, and stay, than it is to shop in their home countries. This creates a healthy seasonal boost for not only malls and retail shops, but also restaurants, hotels, airlines, and tourist excursions.
Keeping Panama’s economy healthy by expanding its market
The fact that 50,000 tourists come to Panama to shop on Black Friday weekend is no coincidence. Because of its strategic advantage in the region, Panama’s tourism board and travel agencies feverishly market Black Friday internationally for months before the shopping weekend arrives. Many tour companies even offer package deals that include airfare, hotel, transportation to and from shops, and even special discounts. This is huge for Panama’s economy because despite a relatively high buying power from the locals, the population isn’t quite big enough to fill the volume of supply presented by the multitude of malls and stores.
Billing Panama as a shopping-specific destination is a critical factor in building and keeping Panama’s service economy healthy. It helps bring foreign generated income into the country, increases sales tax revenue, and encourages competition. All in all, a win/win situation for Panama.
