Chapter I
Objectives & Definitions
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| Article 1. |
This Law is intended to establish a simple,
swift and rational process for the development of tourist activities in the
country; grant incentives and benefits to those persons who are dedicated to
tourist activities; adopt the necessary mechanisms to obtain the joint and
coordinated action of the public and private sectors in the area of tourism
and to promote tourism in Panama. |
| Article 2. |
The Executive Branch, through the Panamanian Tourism Institute,
shall serve as the catalyst of the private sector, to facilitate and hasten the
necessary applications, before itself or other governmental or municipal bodies,
in order to establish and develop the tourist activities which this law
regulates. |
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Article 3. |
The tourism industry is declared to be of public
use and national interest. |
| Article 4. |
For the purposes of this Law,
tourist offer shall be understood as all commercial activity which has the
purpose of stimulate the remaining of a tourist in the country, as well as
the growth of internal tourism.
For these purposes, the law
defines the tourism enterprises as: |
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Hotel: |
Establishment whose total structure is dedicated to public lodging
which is constructed and equipped especially for providing to its guests, on a
permanent basis, the remunerated service of lodging, and generally the services
of alimentation and like services such as reception offices, salons, public
phones and the offering of a daily cleaning and maintenance service of the rooms
and on-suites.
Investments in golf courses, tennis courts, saunas, gymnasiums, restaurants,
nightclubs and all other activities which are integrated in the hotel investment
shall be benefited by the incentives of this Law. |
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Motel: |
Tourist lodging establishment located in rural
areas or close to beaches or highways and which provides remunerated lodging
and nourishment for travellers. |
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Apart-Hotel: |
Building equipped with the necessary furniture
to be rented to national and foreign tourists, with daily cleaning services
and with individual kitchen facilities so that lodgers can prepare their own
meals. |
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Cabins: |
Group of individual buildings, aimed at
providing lodging in rural, beach, and lake areas or ecotourism sites. |
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Time Shares: |
A form of lodging in which one or more co-owners
of a property, earmarked for public tourist lodging, place the property
subject to a contractual arrangement whereby rights to the use of the
property, by different personas at different times of the year is acquired. |
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Tourist regime for condominiums: |
Buildings in which each lodging unit
is acquired by a different owners, insofar as the entire building is
earmarked to provide the service of public tourist lodging. |
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Campsites: |
Areas earmarked for use for
ecotourism, which are equipped with bathrooms, drinking water and first aid
materials. |
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Restaurant: |
Commercial establishment dedicated
to the sale of food and beverages, whose minimum investment in
infrastructure is one hundred and twenty thousand dollars (B/.120,000.00) in
the metropolitan area and twenty thousand dollars (B/.20,000.00) in the rest
of the country, excluding the value of the land. |
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Theme park: |
That park in which certain themes
are developed in defined areas and with an image which is easily
identifiable, from history, fantasy or the future world. |
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Family Bed and Breakfast ("Hostal
familiar"): |
Is a tourist facility operated by
an individual or a family, together with their own rooms or house of the
owners, characterised by being small establishments which offer personalised
service, offering homemade food of the region and in which the buildings are
closely linked with the popular architecture of the area. |
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Lodge ("Albergue"): |
Is a lodging facility located in a
tourist site aimed at travellers, where the visitor is responsible for the
"do it yourself" facilities of food and lodging. |
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Convention Centre: |
Adequate and equipped facility for
conferences, meetings and technological, cultural and tourist events, with
facilities of office personnel and simultaneous translations to various
languages, prepared for running various events at the same time. |
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| Article 5. |
Those natural or legal persons who
are dedicated to tourist activities, as defined in this law and who are
registered in the National Tourist Registry, may receive the incentives and
benefits of this Law. |
| Article 6. |
For the purposes of this Law,
activities of tourist promotion and development shall be understood to be
those which effectively contribute to the increase of foreign visitors to
this country and the diversification of the tourist offer; as well as the
investments in activities which encourage such an increase of visitors. |
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1. |
The constructions, fitting out,
rehabilitating and operation of hotels, motels, apart-hotels, boarding
houses, lodges, family bed and breakfasts, condominiums which are completely
earmarked for offering public tourist lodging, whether managed or used by
the co-owners or by third parties, time-shares earmarked to tourism, cabins,
camping sites dedicated to the development of ecotourism and theme parks. |
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2. |
Construction, fitting out, access
infrastructure, rehabilitation and operation of convention centres, craft
workshops of national tourist interest, recreational parks, zoos, centres
specialising in tourism, ecotourism and marinas. |
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3. |
The services of land, sea and air
transfer of passengers, within the Republic of Panama, aimed principally at
tourist service. |
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4. |
The construction, fitting out and
operation of restaurants, discotheques and night clubs dedicated to tourist
activities. |
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5. |
Construction, rehabilitation,
restoration, remodelling, and expansion of buildings, for commercial or
residential use, which are within the Historical Monuments Projects in which
this type of activities are authorised. The National Department of
Historic Assets of the National Cultural Institute shall be the organisation
in charge of authorising and regulating every regarding the projects which
shall be undertaking, to preserve the historic value of the monuments. |
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6. |
The operation of agencies for
tourist collection which are exclusively dedicated to this activity. |
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7. |
Every company which within the
national territory undertakes activities of filming of full-feature films
and international artistic or sporting events, which are transmitted
directly to overseas, via a closed circuit television or via satellite,
which project, during or at the end of the event, images which promote
tourism in the Republic of Panama. |
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8. |
The investment in the undertaking,
restoration, construction, maintenance and illumination of historic
monuments, municipal parks, national parks or any other public site, under
the auspices of the Panamanian Tourism Institute (IPAT) in coordination with
the National Cultural Institute (INAC). |
| Article 7. |
The right to receive the benefits
established by this Law are recognised upon the registration of the company
in the National Tourism Registry and the issuance of a certification by the
Panamanian Tourism Institute which shall specify the rights and obligations
of the beneficiary. |
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| Article 8. |
With the objective of encouraging
investment in new projects and in activities designated to offer tourist
facilities, the following tax incentives are granted to the natural or legal
persons who take advantage of the provisions of this Law: |
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1. |
Public tourist lodging service:
for the construction, fitting out, rehabilitating and efficient development
of public lodging establishments indicated in subsection 1 of article 6 of
this Law, whose minimum investment is three hundred thousand dollars
(B/.300,000.00) in the metropolitan area and, in the rest of the Republic,
whose minimum investment is fifty thousand dollars (B/.50,000.00) excluding
the value of the land, with the exception of the lodges and family bed and
breakfasts, whose minimum investment shall be set by the Panamanian Tourism
Institute. The mentioned areas shall enjoy the following incentives: |
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a. |
Complete exemption for a period of twenty (20)
years from import duties, levy, encumbrances or rights of any denomination
or class, which may be imposed on the introduction of materials, utensils,
furniture, equipment, boats and automotive vehicles with a minimum capacity
for eight (8) passengers. The latter shall be declared to be
indispensable for the normal development of the tourist activity by the
Panamanian Tourism Institute The materials and equipment to be
exempted must be used in the construction and fitting out of the public
lodging establishment. This incentive shall be granted if these
articles are not produced in this country or are not produced in the
required quantity or quality. Likewise, all equipment which is
introduced by the company to contribute to saving energy or which is
necessary for the security of the project area shall be exempted. In
the case of ecotourism activities, indicated in Article 6 of this Law,
automotive vehicles with four-wheel drive with a minimum capacity for five
(5) passengers shall be permitted to be imported exempt from import duty. |
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b. |
Exemption from land tax, for a period of twenty
(20) years counted as of the date of registration in the National Tourism
Registry. This exemption shall cover all the real property, belonging
to the company, insofar as these are totally used for tourist activities. |
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c. |
Exemption of the company from all tax or
encumbrance on its capital. |
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d. |
Exemption from the payment of docking taxes or
any rates for landing in docks, airports or heliports of their property,
built or rehabilitated by the company. These facilities may be used
for free by the State. |
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e. |
Exemption from the payment of income tax on the
interest earned by creditors in operations designated to investments in
public lodging establishments. |
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f. |
For the purposes of the calculation of the
depreciation of real property, a rate of ten percent (10%) per annum shall
be permitted, excluding the value of the land. |
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2. |
Investments in Historic Monument
Projects: for the activities contemplated in subsection 5 of Article 6 of
this Law, which shall be located in the Historic Monument Projects in which
the National Cultural Institute authorises the constructions of works within
its properties, whose minimum investment is one hundred thousand dollars
(B/. 100,000.00), excluding the value of the land, the following incentives
shall be granted: |
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|
a. |
Exemption for a period of ten (10) years from
the land tax over the land, and for a period of thirty (30) years, over the
improvements made on the property. |
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b. |
Exemption from income tax on the profits of the
company, during the first five (5) years of commercial activity. At
the end of this term and for the following five (5) years, it may deduct as
expenses the losses suffered during the three (3) tax periods following the
tax period in which such losses were produced. |
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c. |
Exemption, on time only, from import duty on the
equipment and materials which are used in the construction, remodelling and
equipping, insofar as the merchandise is not produced in the country in
sufficient quantity or quality and are not destined for sale to the general
public. |
| Article 9. |
Every natural or legal person who
invests in the restoration or maintenance and illumination of the Historic
Monument Projects, municipal parks, national parks, o any other public site;
as well as the promotion and tourism training, which in the opinion of the
Ministry of Economy & Finance (previously Exchequer & Treasury) and under
the coordination of the Panamanian Tourism Institute, considers that this
encouraged the development of tourist activity, may consider the investment
in such projects as a deductible expense. |
| Article 10. |
The companies which are dedicated
exclusively to the collection of tourist in the Republic of Panama shall be
granted the following tax incentive: |
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Exemption every three (3) years form
the import duty on micro-buses, limousines, omnibuses, boats and the spare
parts for this equipment, insofar as they are declared by the Panamanian
Tourism Institute, as indispensable for the adequate operation of the
tourism service. This equipment may be sold after the payment of the
corresponding import duties. |
| Article 11. |
The natural or legal transport
providers who proffer the service of collective transport in tourism in the
airports, docks and hotels, shall be exempted from the import duties on the
automotive vehicles earmarked exclusively to tourist activity, insofar as
these are approved by the Panamanian Tourism Institute. |
| Article 12. |
Those companies dedicated to
restaurant, discotheque and night club activities, who are declared by the
Panamanian Tourism Institute to be of tourist interest and whose minimum
investment is one hundred and twenty thousand dollars (B/. 120,000.00) in
the metropolitan area and of twenty thousand dollars (B/.20,000.00) in the
rest of the Republic, excluding the value of the land, shall be exempted for
a period of three (3) years, counted as of the date of registration in the
National Tourism Registry, of the import duty on the materials, equipment
and utensils which are used in the construction and fitting out of the
establishment, insofar as they are produced din the country, or are not
produced in sufficient quantity or quality and are considered by the
Panamanian Tourism Institute to be important for the development of the
activity. |
| Article 13. |
Every company that within the
national territory undertakes filming activities of full-feature films, of
an international nature, of international artistic or sporting or other
events which are transmitted overseas, which project before, during or after
the event images which promote tourism in the Republic of Panama, shall
enjoy the following benefits: |
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1. |
Total exemption from the payment of
income tax on the profits from said event, other than when the tax due in
Panama is considered to be a tax credit in their respective countries. |
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2. |
Total exemption from any national
tax which is imposed on such an event. |
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3. |
Temporary exemption from import
duties, rates, encumbrances, excise duty or rights of any class or
denomination which may be imposed on the introduction of equipment,
utensils, spare parts, technical material which the communication company
introduces for the transmission to other countries and all the material
which is used during the event, which must be re-exported when the activity
is over. |
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4. |
Exemption from the income tax to
sportspersons and national or foreign artists who participate in the event. |
| Article 14. |
All tourist publicity materials are
exempted from import duties, insofar as they are distributed freely,
following inspection by the Panamanian Tourism Institute. |
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The Panamanian Tourism Institute
shall have a period of fifteen (15) working days in which to approve or take
exception to the documents referred to in this Article. |
| Article 15. |
Income tax is exempted for income
derived from: |
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1. |
The use of ships or airplanes
registered in foreign countries, if in those countries there is reciprocity
with respect to taxing the income obtained in that country for ships of the
Panamanian merchant marine or airplanes registered in Panama; |
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2. |
The use of ships or airplanes of any
nationality, by foreigners whether resident or not in the national
territory, as long as the country of which the person is a national or under
which Laws the corporate entities exists, grants an equivalent exemption to
corporate entities established according to the Laws of the Republic of
Panama, or to those persons who have established their domicile in the
Republic of Panama, under the Principle of Reciprocity. |
| Article 16. |
For the construction, equipping,
access infrastructure, rehabilitation and operation of convention centres,
recreational parks, zoos, centres specialising in tourism, ecotourism and
marinas, the following tax incentives shall be granted: |
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1. |
Exemption for three (3) years from
the import duty on the materials and equipment used in the constructions and
fitting out, as long as the merchandise is not for sale, and are not
produced in the country and are considered by the Panamanian Tourism
Institute as important for the development of the activity. |
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2. |
Depreciation of the real property
for a period of ten (10) years. |
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3. |
Exemption from real property tax on
the improvements for a period of twenty (20) years. |
| Article 17. |
The Cabinet Council, upon request by
the Panamanian Tourism Institute, may pronounce those areas which meet the
special conditions for tourism attraction as tourism development zones of
national interest, even if they lack the basic infrastructure for the
development of this activity. Those persons that invest in the tourism
development zones and who make the minimum investment indicated for the
zone, shall enjoy the following tax incentives: |
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1. |
Total exemption for a period of
twenty (20) years from the payment of land tax over the property and the
improvements, for those properties which they own and are used in the
tourism development activities. |
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2. |
Total exemption for a period of
fifteen (15) years from the payment of income tax on income derived from the
company's activity. |
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3. |
Total exemption for a period of
twenty (20) years from import duty, rates or levies, as well as sales tax (ITBMS)
which are due on the import of materials, equipment, furniture, accessories,
and spare parts which are used in the construction, rehabilitation and
fitting out of the establishment, insofar as the merchandise is not produced
in Panama or is not produced in sufficient quality and quantity.
Equipment for the purposes of this Law shall be understood to be vehicles
with a minimum capacity of eight (8) passengers, airplanes, helicopters,
motor boats, boats or sports utilities, dedicated exclusively to tourist
activities. |
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4. |
Exemption for twenty (20) years from
the taxes, rates, levies or rights of any class or denomination which are
imposed on the use of docks or airports built by the company. These
facilities may be used for free by the State and in accordance with the
corresponding regulations. |
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5. |
Exemption for twenty (20) years from
the payment of income tax over the income generated by interest which
creditors earn in operations destined to investment in the tourist activity
to which they are dedicated. |
| Article 18. |
If the tourism company
for public lodging or restaurants does not apply for the tax exemptions
listed in the previous Articles, any company whose sole activity is
tourism, as established in this Law, and which develops outside of the
metropolitan area, shall have the option of receiving a Tourism Employment
Certificate (Certificado de Empleo al Turismo - CET) in the company's
favour, equivalent to 21.5% of the gross monthly salary general as of the
promulgation of this Law, as long as said gross monthly salary does not
exceed $400.00 |
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Restaurants shall have this option
for three (3) years. |
| Article 19. |
The CET (Tourism Employment
Certificates) referred to in this Law, shall be issued by the Ministry of
Treasury, in local currency and shall be applicable to the payment of
income, dividend, complimentary, land, import and land transfer
taxes.
These shall be registered documents, transferable upon endorsement,
which shall be exempt of all types of taxes and not generate any
interest.
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| Article 20. |
The companies which have the right
to be issued the CET (Tourism Employment Certificates) must fulfill all
the requirements indicated in this Law and may use them within six (6)
months of their issuance, but they may not be used in the same year as
their issuance. The CET shall be valid for three (3) years as of their
issuance. |
| Article 21. |
For the effects of the CET, under
this Law, employment generated shall not include the case of foreign
employees or where the labour relationship is less than twelve (12)
months.
Procedural controls shall be used to verify payrolls. |
| Article 22. |
Those natural or legal persons who
undertake tourist activities may use their vehicles to transport their own
materials, furniture and equipment. Likewise, they may offer
tourists transport services, to their location, to and from the airports
and ports. |
| Article 23. |
In order to augment investment and
financing for the development of the tourism industry and the construction
of hotels outside of the metropolitan area, tourism companies for public
lodging may issue registered tourism investment instruments until January
1, 2000. Investors, who are not directly or indirectly linked
to public lodging tourism companies, and which are not the result of the
fractioning of a company in various legal persons, nor affiliates or
subsidiaries of the tourism companies, shall be granted the following
incentives, in these instruments: |
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For effects of income tax, fifty
percent (50%) of the investment made by natural or legal persons made in the
purchase of bonds, shares and other registered instruments issued by a
tourism company shall be considered a deductible expense. The Ministry
of Exchequer and Treasury (now the Ministry of Economy and Finance) shall
regulate the application of this Article.
The bonds, shares and other financial instruments shall be registered in
the National Security Commission and should be issued by the companies which
are registered in the National Tourism Registry for the first three (3)
years of their registration.
The company that issues such bonds, shares and other registered
instruments shall not, in any way, redeem such investment for a minimum
period of ten (10) years. the bonds or financial instruments which the
tourism company issues shall be for a minimum period of ten (10) years, and
shall not be subject to prepayment. Such companies shall not acquire
their own shares or participation quotas o convertible bonds, nor may they
issue loans to the holders of said bonds, shares or registered instruments
not may they use any other means to purchase or pay for those financial
instruments for a minimum period of ten (10) year. |
| Article 24. |
Tourism yachts which visit
Panamanian ports and whose stay does not exceed ninety (90) days, shall be
exonerated from the payment of any types of rates, taxes and duties, of
arrival and anchorage, including those indicated by custom.
Customs authorities shall merely comply with their routine duties of
registration. It shall not be necessary to process the agency's
documentation. The Executive Branch shall regulate this provision. |
Chapter IV
National Tourism Registry
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| Article 25. |
The National Tourism Registry is
hereby created, assigned to the Panamanian Tourism Institute, in which all
natural or legal persons who wish to be subject to the incentives regime
referred to in this Law shall be registered. |
| Article 26. |
In order to request registration in
the National Tourism Registry, the applicants shall fill in a registration
form which shall be presented to the Panamanian Tourism Institute, at a cost
of Ten Balboas (B/. 10.00), which shall contain the following information: |
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1. |
Name and surname, nationality and
personal identity card or passport number of the applicant. If a legal
person, the name, the country of incorporation and the registration details
from the Public Registry as well as the name and details of the legal
representative. |
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2. |
Domicile of the applicant. |
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3. |
Detailed and precise description of
the tourism activity developed or to be developed by the company. In
the case of a tourism project which shall have an initial investment of more
than three hundred thousand balboas (B/. 300,000.00) this should be
accompanied by a feasibility study, blueprints and the technical studies
which the project requires and deserves. |
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4. |
Value of the investment undertaken
or proposed to be undertaken by the applicant. |
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5. |
Number of employment vacancies to be
created by the project. |
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6. |
Any additional information which,
due to the nature of the proposed tourism activity, may be required by the
Panamanian Tourism Institute; as long as it is necessary to evaluate the
merits of the application. |
| Article 27. |
The registration form shall be
accompanied by a copy of the personal identity card or passport of the
applicant, if a natural person; or, copy of the personal identity card or
passport of the legal representative of a legal person, as well as a
Certificate of Good Standing from the public registry which shall include
that the company is duly registered and in good standing, the names of the
directors, officers and legal representative, the authorised capital and the
duration of the company. |
| Article 28. |
The Board of Directors of the
Panamanian Tourism Institute shall be the only entity in charge of approving
the registration of a company in the National Tourism Registry and issuing a
certificate of the same, indicating the date from which the company is
registered in the National Tourism Registry and that it therefore enjoys the
benefits established in this Law. The General Manager of the
Panamanian Tourism Institute hall sign such certifications. |
| Article 29. |
Upon receipt of the registration
form with all the required information and documentation, the Panamanian
Tourism Institute shall proceed, in a period which shall not exceed sixty
(60) calendar days, to consider the technical, economic, legal and tourism
aspects of the project presented; and, if appropriate, register the company
in the National Tourism Registry and issue a certification which states the
date of registration of the company in the National Tourism Registry and,
therefore, that it enjoys the benefits established in this Law.
For projects relating to the National or Historic Monuments, Historical
Monuments Groups, and protected wild-lands areas relating to the National
Cultural Institute or the National Environmental Authority (previously
the National Renewable Natural Resources Institute), a resolution from
the respective entity shall be required, which shall remit its decision to
the Panamanian Tourism Institute, in a period of thirty (30) calendar days
as of the date of receipt of the project documents. |
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| Article 30. |
Every person that accepts the
benefits of this Law shall: |
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1. |
Invest in the proposed tourist
activities the amount indicated in the respective application and maintain
said investment for the corresponding term, according to this Law. |
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2. |
Begin the construction, remodelling,
rehabilitation o restoration of the real estate destined to the proposed
tourism activities within no more than six (6) months, as of the date of
registration in the National Tourism Registry, except in those cases where
the nature of the tourism activity requires a longer period, according to
the Panamanian Tourism Institute. |
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3. |
Begin to provide the tourism
services within a period of no more than three (3) years, a of the date of
registration, except in those cases in which the nature of the tourism
activity requires a longer period, according to the Panamanian Tourism
Institute. |
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4. |
Undertake the tourism activities in
accordance with the regulations issued by the Panamanian Tourism Institute. |
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5. |
Keep an exact log in a register of
the exempt Articles, which shall be available to the officials of the
Ministry of Economy and Finance, Ministry of Commerce and Industry and the
Panamanian Tourism Institute. |
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6. |
Present a bond to the Panamanian
Tourism Institute and the Comptroller General of the Republic, equivalent to
one percent (1%) of the amount of the investment. This bond shall
never be for more than Three Hundred Thousand Balboas (B/. 300,000.00) |
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7. |
Hire Panamanian employees in the
proportion established by the Labour Code, except for experts or technical
specialists as required, having the prior authorisation of the appropriate
national authorities. |
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8. |
Technically train Panamanian
nationals and provide scholarships so that they may receive training courses
overseas if it is not possible to get this in national industrial or
training institutions. |
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9. |
Waive any diplomatic recourse in the
event of differences and conflicts with the nation and submit any
differences to the national courts of the country. |
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| Article 31. |
Breach of the obligations indicated
in Article 30 of this Law shall result in the cancellation of the
registration and the loss of the respective bond, unless it is shown that
the breach was due to force majeur or Act of God. |
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The cancellation of the registration
in the National Tourism Registry shall be ordered by means of a resolution
issued by the Board of Directors of the Panamanian Tourism Institute, which
shall be notified to the interested party. Nevertheless, those persons
that consider they are affected may intercede with a request for
reconsideration before the same authority. This recourse must be
submitted within five (5) days of the service of notice of the resolution of
the cancellation of the registration. |
| Article 32. |
The articles which are imported
under this Law may not be sold or transferred without first paying the
corresponding taxes and assessments, calculated on the basis of the value of
the articles at the moment of the sale or transfer. |
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The sale or transfer of the imported
articles, between companies covered by the provisions of this Law, shall
only require the approval of the Ministry of Economy and Finance (previously
Exchequer and Treasury). |
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Except as provided herein, any
person that imports articles exempted under this law and sells, leases,
transfers, disposes or in any other way gives them a different use from that
for which the exemption was given, shall be sanctioned with a fine
equivalent to three times the value of the import duty which would have been
payable on the articles should this have been paid at the moment of the
sale, lease, transfer or disposition. |
| Article 33. |
Whoever breaches the provisions
indicated in this Law shall be sanctioned with a fine equivalent to five (5)
times the value of the benefit they intended to obtain and the cancellation
of any other benefit to which they may have had a right shall be ordered,
notwithstanding other legal sanctions. |
Chapter VII
Concessions to Develop Tourism
Articles 34 - 39 were repealed by Law 2 (2006) |
| Article 34. |
REPEALED.
The Executive Branch is authorised,
through the Ministry of Economy and Finance (formerly Exchequer and
Treasury), upon recommendation of the Board of Directors of the
Panamanian Tourism Institute and subject to the ratification of the
Exchequer, Planning and Economic Policy Commission of the Legislative
Assembly, to grant for up to twenty (20) years the concession of islands,
without affecting pre-existing rights which belong to the State and lands
which require land fills which are destined to tourism development,
according to the Master Plans of the Panamanian Tourism Institute; and areas
for the construction of marinas and docks which the States decides to
dedicate to public tourism activity. |
| Article 35. |
REPEALED.
Notwithstanding the provisions of
the previous Article, the concession contracts may be celebrated for up to
forty (40) years, when in the opinion of the Board of Directors of the
Panamanian Tourism Institute, provided by reasoned resolution, duly ratified
by the Exchequer, Planning and Economic Policy Commission of the Legislative
Assembly, the projects are of such magnitude of investment, economic impact
and potential for the generation of employment that they require a
contractual relationship for a longer duration, except the concession of
reverted lands subject to the Interoceanic Regional Authority, in which case
this authority shall be in charge of granting the respective concessions.
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| Article 36. |
REPEALED.
Failure to fulfil the tern indicated
for the development of the tourist activity which is granted to the
concessionary company shall result in the loss of the concession, in which
it is understood that all improvements built on the land shall pass to the
State without indemnification at all, without prejudice to any other
corresponding legal sanctions. |
| Article 37. |
REPEALED.
In order to grant a concession, the
following requirements shall be met: |
| |
1. |
A budget assigned to the project,
its technical specifications and the corresponding work program; |
| |
2. |
The payment of indemnification where
necessary; |
| |
3. |
The type of services to be offered
and the benefits for the customers; |
| |
4. |
The financial capacity of the
offeror and the source of their funds; |
| |
5. |
The experience of the offeror in
similar projects; |
| |
6. |
The responsible entity for granting
the concession shall permanently undertake inspections in all stages of the
concession of the project, to ensure that the terms of the agreement are
met. |
| Article 38. |
REPEALED.
The concessionary and where
applicable, their subcontractors shall meet the work program agreed to until
the project is finished. If the program is not met or the project is
not completed according to the technical specifications agreed, the contract
shall be declared terminated and the loss of the bond issued and the rights
of concession shall ensue. |
| Article 39. |
REPEALED.
The concessions which are granted in
accordance with this law, including the conditions to which they are
subject, shall be published for fifteen (15) consecutive days in national
newspapers, before declaring that said concessions are finalised.
|
|
|
| Article 40. |
The State shall take into account
the Indigenous Reservations as Tourism Development Zones and shall promote
the folklore of the indigenous and rural culture and tradition as a centre
of tourist attraction. |
| Article 41. |
(Transitory). The requests for
contracts with the nation which are in process at the promulgation of this
Law may continue the procedure established in Cabinet Decree No. 102 of the
20th of June, 1972, in order to request the benefits indicated in that
Decree, which shall remain in effect for these cases. |
| Article 42. |
(Transitory). The contracts
for the operation of tourist activities, existing at the promulgation of
this Law, shall be valid until the expiration of their respective terms. |
| |
Nevertheless, if the company wishes
to make additional investments, it may be granted the incentives covered by
this Law, if it fulfils the requirements listed herein. |
| Article 43. |
This law repeals Decree Law No. 26
of the 27th of September 1967 modified by the Law No. 81 of the 22nd of
December 1976, the Cabinet Decree No. 77 of the 18th of March, 1971, Cabinet
Decree No. 102 of the 20th of June 1972 and all the legal provisions and
regulations which are contrary hereto. |
| Article 44. |
This law shall come into effect as
of its promulgation. |
