Panama City is the capital and largest city of the Republic of Panama. It has a metro population of 1,5 million, and is located at the Pacific entrance of the Panama Canal, in the province of Panama. The city is the political and administrative center of the country, as well as a hub for international banking and commerce. It is considered a “beta-” world city, one of three Central American cities listed in this category. The city of Panama was founded on August 15, 1519, by Spanish conquistador Pedro Arias Dávila. The city was the starting point for expeditions that conquered the Inca Empire in Peru. It was a stopover point on one of the most important trade routes in the history of the American continent, leading to the fairs of Nombre de Dios and Portobelo, through which passed most of the gold and silver that Spain took from the Americas. On January 28, 1671, the original city was destroyed by a fire when privateer Henry Morgan sacked and set fire to it. The city was formally reestablished two years later on January 21, 1673, in a peninsula located 8 km (5 miles) from the original settlement. The site of the previously devastated city is still in ruins and is now a popular tourist attraction known as Panama Viejo.
Panama’s old quarter (or Casco Viejo) features many architectural styles, from Spanish colonial buildings to French and Antillean townhouses built during the construction of the Panama Canal. The more modern areas of the city have many high-rise buildings, which together form a very dense skyline. There are more than 110 high-rise projects under construction, with 127 already built. The city holds the 45th place in the world by high-rise buildings count. The Centennial Bridge that crosses the Panama Canal earned the American Segmental Bridge Institute prize of excellence, along with seven other bridges in the Americas. The city is located in Panama District, although its metropolitan area also includes some populated areas on the opposite side of the Panama Canal. As in the rest of the country, the city is divided into corregimientos, in which there are many smaller boroughs. The old quarter, known as the Casco Viejo, is located in the corregimiento of San Felipe. San Felipe and twelve other corregimientos form the urban center of the city, including Santa Ana, El Chorrillo, Calidonia, Curundú, Ancón, Bella Vista, Bethania, San Francisco, Juan Diaz, Pueblo Nuevo, Parque Lefevre, and Río Abajo.
The construction of the Panama Canal was of great benefit to the infrastructure and economy. Of particular note are the improvements in health and sanitation brought about by the American presence in the Canal Zone. These include the eradication of yellow fever and malaria and the introduction of a first-rate water supply system. However, most of the laborers for the construction of the canal were brought in from the Caribbean, which created unprecedented racial and social tensions in the city. As the economic and financial center of the country, Panama City’s economy is service-based, heavily weighted toward banking, commerce, and tourism. The economy depends significantly on trade and shipping activities associated with the Panama Canal and port facilities located in Balboa. The city has benefited from significant economic growth in recent years, mainly due to the ongoing expansion of the Panama Canal, an increase in real estate investment, and a relatively stable banking sector. There are around eighty banks in the city, at least fifteen of which are national. Panama City is responsible for the production of approximately 55% of the country’s GDP. This is because most Panamanian businesses and premises are located in the city and its metro area. It is a stopover for other destinations in the country, as well as a transit point and tourist destination in itself.
Tourism is one of the most important economic activities in terms of revenue generation. The city’s hotel occupancy rate has always been relatively high, reaching the second highest for any city outside the United States in 2008, after Perth in Australia, and followed by Dubai. However, hotel occupancy rates have dropped since 2009, probably due to the opening of many new luxury hotels. Several international hotel chains, such as Le Méridien, Radisson, and RIU, have opened or plan to open new hotels in the city, along with those previously operating under Marriott, Sheraton, InterContinental, and other foreign and local brands. Also, the Trump Organization has built the Trump Ocean Club, its first investment in Latin America, and Hilton Worldwide recently opened its first Garden Inn Panama, at Eusebio A. Morales Avenue and 49A Street West, and more recently The Panamera, the second Waldorf Astoria Hotel in Latin America.
