A major event in world population demographics will take place over the next 15 years. This event will offer Panama a unique opportunity to capitalize on a huge market that is just beginning to emerge. This market is comprised of the growing number of baby boomers reaching retirement age around the world. It includes people born between 1946 and 1964, and represents nearly 77 million people in the United States alone. This means that 13,000 people are retiring every single day! The challenges created by this massive number of retirees have been written about in many articles over the last few years. Many of these articles discuss the tendency of this group to seek out a comfortable retirement lifestyle in a warmer climate. The areas of the southern U.S. such as Florida, Alabama and Texas have seen huge population explosions. The cost of housing has increased so dramatically, in these areas, that many can no longer afford to live there. Already many of these retirees are seeking homes in Central American countries that have safe reputations and also the infrastructure to support the lifestyles they seek.

About four years ago, we recognized the potential for the baby boomer market, and developed a plan to build a unique property that would meet their specific needs. We first began developing tourism infrastructure, in the small town of Boquete, in the form of restaurants, hotels and activities. We needed this infrastructure to support the number of people we believed would come to visit and buy in our unique project. The success of Valle Escondido is evident in the large number of new homes within the project, and in the success of the town of Boquete itself. Valle Escondido represents about $50 million in total homes built and, in the last year alone, 12 new projects have started in the area. This adds up to approximately $300 million additional foreign investment dollars in home construction. This once sleepy little town, over an hour’s flight from the Panama City, is now alive with activity and rife with promise. New hotels, restaurants and other tourist related projects are underway to cater to the increasing number of visitors that are arriving daily. In addition, both regional airlines in David are adding more aircraft to handle this heavy increase in visitors.

The current and dynamically lucrative prosperity, realized in such a relatively short period of time, creates a question heavy on the minds of many in Panama. Why aren’t we doing this type of development all over the country? Based on what is happening in Boquete, couldn’t this same prosperity be repeated and even surpassed in many other areas of the country? The answer is yes it could, but it will take a concerted effort by both the government and also the private sector to make this prosperity a reality. In order to convince these various sectors that this type of an economic program is feasible, we need to present a few important statistics.

Ruben Lashman, noted Panamanian economist, tells us that for every million dollars spent on construction, 120 new jobs are created. If Panama could build and sell 1000 new homes a year to this market it would represent 120,000 construction jobs alone. The retirees would also need cars, phones, insurance, furniture, and many other items and services that one needs when making a home in a new country. In fact, we have found the average buyer to spend nearly, $250,000.00, on their home and the other products mentioned. And because they live here, they go on to spend many additional dollars every single month on both necessities and nonessentials such as travel and entertainment.

If we were successful enough to attract 30,000 retirees to live in Panama, it would represent only 1% of the population and only two days of the 13,000 retired persons mention in the statistic above. It would bring in, however, over $6 billion dollars in initial investment and countless more dollars in tourism infrastructure supporting it.

Unlike the economic development that brings in factories or services, this type of investment does not readily pick up and leave when economic factors are more attractive elsewhere. This type of investment stays because people like to invest where they live. All people want to make the place they live better, and the retirees have both the time and money to do so. We have found that about one out of every five retirees further invests into the country. In addition, their children and friends come and visit them and capitalize on opportunities they see to make further investment as well.

The retiree not only invests in the country, but they bring an immeasurable value in what I call, brain trust. They lend their money, hearts, hands and minds. They contribute their vast experience in business related fields of their past lives in their home countries. Although retired, many want to stay active and help those around them. They have both the desire and the time to make a difference.

As you can see, this type of development far surpasses the country’s goals for economic growth in every other sector, including tourism. And yet, it is a form of both tourism and foreign investment that can be readily developed at no expense to the government or the people of Panama. It is a situation that creates prosperity for everyone involved.

Although this phenomenon is already taking on a life of it’s own in Panama, there are ways to dramatically increase the speed in which this economic powerhouse can be made a reality. We can do this by implementing an effective strategy to take advantage of both the huge retiree market and also Panama’s attractive geographic and economic position.

First of all, there are a number of Panamanian developers who have both the land and the capital to invest in building projects that are attractive to this market. Secondly, there are a few modifications needed concerning the immigration laws that could be implemented to facilitate the new immigrant’s moving process. There are also a great number of companies in the country who would directly benefit from the economic growth brought on by these same investors. These companies would willingly help monetarily sponsor a clear and concise plan that involves the right players in both the private and government sectors.

No country has ever worked together, with a clear direction and vision, in a common effort combining both private and public sectors to change its economic future. This is because most plans benefit only certain sectors of a country’s economy, and most people do not see a beneficial change to their personal situation. All you have to do is come into the small town of Boquete to see for yourself the life changing experiences people are having. It is easy to recognize that this could work all over this country. Panama is both small enough geographically and in its leadership to make this happen.

For this to succeed, those who read this article need to recognize this opportunity, and then seize the moment. If enough people will help spread the good news for this type of investment program, I genuinely believe that all people involved will benefit greatly. With the implementation of this program, the children of Panama will have a much brighter future than currently stands before them.