PANAMA CITY, PANAMA—Dressed in workout casual and sipping a soda in one of the apartment-style rooms of Los Cuatro Tulipanes hotel, Matt Landau appears very much at home in Panama. One might even be tempted to call him an old hand were he not, at age 25, so confoundingly young. Part owner of this lovely boutique hotel in Panama City's historic Casco Viejo, he is also a travel writer (99 Things to Do in Costa Rica), a real estate marketing consultant, and editor of The Panama Report, an online news and opinion monthly. Between fielding occasional calls and text messages, the New Jersey native is explaining what drew him here, by way of Costa Rica, after he graduated from college in 2005. In addition to having great weather, pristine beaches, a rich melting-pot culture, a reliable infrastructure, and a clean-enough legal system, "what Panama is all about," he says, "is the chance to get into some kind of market first." Landau cites other attractions: "There is more room for error here," he says. "You can make mistakes without being put under. That, to me, as an entrepreneur, is the biggest draw."

Long a business and trade hub, Panama has been booming ever since the United States gave it full control of the Canal Zone in 1999. But as Landau says, it is precisely because so much of Panama's economy has been focused on canal-related activities that opportunities in other sectors, from real estate to finance to a host of basic services, have gone largely untapped. And among the many foreigners coming to tap them—as well as to enjoy the good life that Panama offers—are a sizable number of Americans.

These Yankees, it turns out, are part of a larger American phenomenon: a wave of native-born citizens who are going abroad in search of new challenges, opportunities, and more congenial ways of life.

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nfluential international auditors, Deloitte Touche Tohmatus, published a report which predicted that the Panamanian economy will experience strong growth in 2008, the highest of all the Latin American countries. In addition, the Panamanian government has reinstated the 20-year tax exemption for foreign property buyers in Panama, which expired last year.

Prospective investors in Panama, particularly those looking to escape the failing
U.S. economy, will be encouraged by the new economic report which was compiled jointly by Panamanian advisory and financial services company, Indesa, and Deloitte Touche Tohmatus. The report predicts healthy GDP growth for Panama in 2008 with the economy expected to increase by between 7% and 8%. Analysts believe that the dynamic economy, with its range of important private and public investment projects planned for 2008, will help to offset the negative ripples from the U.S. economy. The biggest plus for the Panamanian economy is the massive expansion of the Panama Canal, approved in a referendum in 2006 and due for completion in 2014.

The Panama government has decided to restore the property tax exemption on all new construction with building permits issued before December 31st 2009. The decision was made to encourage Panama's booming property market to continue in the same vein. James Gonzalez, Market Analyst at Obelisk, says, 'Panama is a stable environment and it is perennially popular with retirees from the U.S. who are attracted by the mild climate and low cost of living. Now that the government has reinstated the 20 year tax exemption for foreign buyers, the market will continue to boom.'

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Holidays to Panama have rocketed since the case of canoe man John Darwin hit the headlines.

The publicity surrounding the central American country has put Panama firmly to the forefront of travellers thinking of visiting the region.

And the rise in interest has co-incided with the new Bond film, Quantum of Solace, which was partly filmed in Panama and is due for release on October 31.

The biggest tour operator to the region, Journey Latin America, reports that its sales to Panama have increased by 249 per cent in the past 12 months.

It means that Panama has overtaken more traditional travel destinations such as Guatemala. "Costa Rica still leads the way in that region, but Panama is catching up," said JLA spokesman Tim Murray Walker.

A court was told last week that the Darwins bought property and land in Panama with a view to creating an eco-lodge - one of the key attractions of the country is its mix of cloudforest, rainforest and two coastlines - the Caribbean and Pacific.

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