Panama’s Tourism Authority (ATP) is working to secure funding this month to activate a long-delayed tourist insurance program. The initiative promises free medical coverage for international visitors and Panamanians living abroad during their first ten days in the country. This effort forms a core part of the nation’s strategy to boost its competitive edge in regional tourism promotion.
Gloria De León, the administrator of the ATP, confirmed the agency must return to the National Assembly’s Budget Commission to request the necessary funds. The allocated budget for 2025 was reallocated to other state expenses after contract signing delays. De León now projects a potential launch window between late February and early March 2026 if the budgetary process proceeds smoothly.
The insurance policy represents a significant marketing tool for Panama. It is designed to attract more visitors by offering a tangible safety net. The coverage includes medical attention for accidents or non-preexisting illnesses, hospitalization, medication, and emergency dental care. It also provides for internal transfers, repatriation, accidental death indemnity, and support for family travel in severe cases.
“It is a marketing tool, a product that Panama will have to help us position ourselves internationally,” said ATP Administrator Gloria De León. [Translated from Spanish]
De León emphasized the competitive pressure Panama faces from other destinations. She argued this insurance could serve as a key differentiator. The program aims to reassure travelers and enhance Panama’s appeal as a secure and visitor-friendly destination.
Contract Award and Budgetary Hurdles Delay Implementation
The path to activating the tourist insurance has been complex. The ATP recently concluded a Public procurement (Licitación) process that experienced multiple delays. Four insurance companies initially submitted proposals. Technical observations and formal complaints from one bidder, Mapfre Panama, required the ATP to re-evaluate three of the offers.
After this review, Internacional de Seguros S.A. was confirmed as the winning bidder. The company had presented the lowest reference price at $1.59 per person. This compared to proposals from Aliados Seguros at $1.76 and Mapfre Panama at $1.85. The adjudication process, however, was not finalized until late 2025.
This timing created a critical budgetary problem. Funds specifically approved by the National Assembly for the insurance program in the 2025 fiscal year could not be used. The contract was not yet signed, and the corresponding administrative procedures remained incomplete. With the fiscal period ending, the ATP requested and received authorization to redirect those funds to other urgent state commitments.
“It was finally awarded to Internacional de Seguros and now we have to go again to the Budget Commission to request the funds for that law,” De León explained. [Translated from Spanish]
De León detailed the sequence of events that led to the current delay. She noted that without a fully executed contract, launching the program immediately was impossible. The ATP is now tasked with restarting the funding request from scratch.
Insurance Coverage Details and Target Beneficiaries
The tourist insurance policy offers broad coverage with specific eligibility rules. It provides free medical care for up to ten days. Both foreign tourists and Panamanian citizens residing overseas can access the benefit. They must enter the country legally through authorized ports of entry to qualify. Coverage extends to individuals up to 86 years of age.
Authorized entry points include the main internacional airport in Tocumen and regional airports in Río Hato, David, and Bocas del Toro. The policy includes 24-hour medical assistance and legal guidance related to thefts or accidents. It also covers forced rest lodging and support for an early return to the home country if medically necessary.
Like all insurance products, it carries explicit exclusions. The policy will not cover pre-existing medical conditions or congenital disorders. It also excludes injuries that are self-inflicted or from suicide attempts. Participation in criminal acts, consumption of drugs or alcohol, and incidents from unauthorized high-risk activities are not covered. Epidemics, pandemics, and acts of war or terrorism are also excluded from coverage.
This is not Panama’s first attempt at a tourist insurance program. A similar policy ran from 2011 to 2014 under a four-year contract. That earlier initiative benefited more than 7,000 people. It cost the ATP over eight million dollars. The new program seeks to revive and modernize that concept for the current tourism market.
Strategic Importance for Panama’s Tourism Sector
Private tourism sector leaders have anxiously awaited this program’s activation. They view it not just as a safety backup for visitors but as a powerful international promotion instrument. Panama competes with regional destinations that often have higher visitor numbers and more established reputations. The insurance is positioned as a unique value proposition.
The Panama Tourism Authority (ATP) is betting this added layer of security will make the country more attractive. The goal is to convert curiosity into visits by reducing a traveler’s perceived risk. In a global market where destinations fiercely compete for attention, such tangible benefits can influence travel decisions.
De León framed the insurance as a critical piece of a larger promotional puzzle. She pointed out that Panama is competing against hundreds of countries worldwide. Every tool that enhances the visitor experience and provides peace of mind is considered an asset. The program’s success hinges on effective communication to potential tourists abroad.
“We are competing against hundreds of countries,” De León stated, highlighting the need for competitive differentiation. [Translated from Spanish]
The immediate next step is the budgetary request before the National Assembly commission. ATP officials are preparing their submission with the hope of a swift approval. Once funding is secured, the contract with Internacional de Seguros can be finalized. System setup and training for personnel at entry points would then follow.
If the current timeline holds, Panama could see the tourist insurance program go live within weeks. Its implementation will be closely watched by the tourism industry. Many hope it will mark the beginning of a new, more competitive chapter for attracting international visitors to the country. The program’s ultimate impact will be measured in visitor numbers and their feedback in the months and years ahead.