By Catherine Deshayes-With the extension of the Panama Canal, Panama is set to grow from strength to strength and can already lay claim to being Latin America's fastest growing economy...
Last year, visitor numbers increased by an impressive 27 per cent and tourism is already the country's biggest contributor to gross national product.
Few locations can stack up as well as the fast growing hub of Panama City with its low levels of consumer debt, a GDP growth expected to exceed 8.7 per cent this year and the world's second highest rate of hotel occupancy in the world.

With current hotel occupancy running at 84.7 per cent, second in the world only to Perth and a rapidly increasing influx of flights and employment comparable to Dubai five years ago, the demand for hotel accommodation in Panama City is at a premium.
Nations Hotel --Nations Hotel is located in the key financial district of Panama City - Bella Vista - a hotspot for nightlife, shopping and restaurants. This five star hotel is a short walk from the ocean and harbour and is ideal for both international holidaymakers and the business community.
Nations Hotel will offer a range of rooms throughout its impressive 26 storey structure designed by renowned national Architect Musa Asvat Kasu.
Investors can choose between varying sizes of one bedroom hotel rooms and also one and two bedroom apartment units. Each room and unit comes with a unique furniture package while all rooms have ceilings of 10 foot in height ensuring a feeling of space.
The hotel boasts a restaurant, bar and lounge, business centre, conference space and parking garage. You can also enjoy a pool deck, fitness centre and spa, flat screen TVs, outdoor terraces, 24 hour security, valet parking, laundry service and high speed Internet access.
One bedroom hotel rooms, (from 34 square metres) start at £95,245; one bedroom apartments (from 52 square metres) start at £142,865 and two bedroom apartments (from 86 square metres) start from £357,972.

Investments start from just £37,801 with a 60 per cent LTV mortgage and the expected net yields are in excess of 12 per cent.
The payment schedule starts with a £5000 reservation fee and then a payment of 15 per cent on the signing of the sale and purchase agreement, minus the reservation fee.
Panama looks like such a solid bet as staggering tourism growth looks set to increase demand further and the rental potential looks extremely strong for the future.
Ben Jefferis, Sourcing Manager at Property Frontiers, said, "We have always believed that South America will escape the wider reaches of the global credit crisis.
"Due to its very low level of consumer debt, Panama, along with Brazil, offers the greatest long term potential for growth and security.
"Panama has very few rivals in its potential for economic expansion. A combination of infrastructure, finance, tourism, taxation and the second highest hotel occupancy rate in the world make this a country worth serious consideration," added Mr Jefferis.

What to Do: Panama might be best known for a 94-year-old canal, but the city itself is a burgeoning tourist destination. The old and new converge in Casco Viejo, a colorful Unesco World Heritage Site. Stroll the colonial quarter's narrow stone streets, where decrepit 19th-century mansions abut sidewalk cafes, chic shops and galleries. Don't miss the Baroque golden altar at Iglesia San José or the African herons outside the presidential palace. Tropical Panama is the only Latin American metropolis with a rainforest within city limits. Take an early hike at Parque Natural Metropolitano, a 655-acre park about 15 minutes from downtown. The most strenuous trail, La Cieneguita, is the best for bird and wildlife watching (Tel. 507-232-5516, www.parquemetropolitano.org). After dark, Panama's nightlife is vibrant -- and doesn't get going until at least midnight. The Calle Uruguay district is packed with restaurants, bars and dance venues. For something mellow, nurse a glass of French wine at Ma Maison lounge bar (Calle 49 near Calle Uruguay, Tel. 507-264-4608). No visit to Panama is complete without seeing the Panama Canal. Watch tankers and container ships transit the narrow passage at Miraflores Visitors Center, which has observation decks and a multimedia museum. Call ahead for scheduled crossings ($8 adult admission, Tel. 507-276-8325, www.pancanal.com).

What to Eat: Located on the Pacific coast, Panama City is rich in seafood. The boisterous Mercado del Mariscos has more fishmongers than tourists, and the seafood is as fresh as it gets. Ceviche is available in the stalls of the fish market; in the casual second-floor restaurant, seafood entrees are about $5 to $9 (Avenida Balboa and Calle 15 Este). Book a table at the popular Restaurante Tinajas for traditional Panamanian dishes such as yucca country pie or chicken pot tamale. There's a lively folkloric dance performance five nights a week (Calle 51, Bella Vista, Tel. 507-263-7890, tinajaspanama.com). Manolo Caracol is ideal for adventurous diners. There is no menu; sit back and wait as the chef sends out a surprise lineup of up to 12 dinner courses, all for $25 (Calle 3 at Avenida Central Sur, Tel. 507-228-4640, manolocaracol.com). For an ocean breeze and spectacular views, dine at Mi Ranchito on the Amador Causeway (Isla Naos, Tel. 507-228-4909).
Where to Stay: Centrally located in the financial district, the five-star Bristol Panama has 56 rooms with decor from Panamanian artists. There's also an acclaimed restaurant, Las Barandas (Rooms from $200; Aquillino de la Guardia at Obarrio; Tel. 507-265-7844; thebristol.com). Originally built in 1893, the renovated Canal House Panama in Casco Viejo offers spacious rooms with exposed brick walls and plush beds (Rooms from $155; Calle 1RA and Avenida A; Tel. 507-228-1907; canalhousepanama.com).