Old Panama blooms again

An elegant neighborhood is being revitalized by private investors

By Paul Constance

When Rubén Blades buys a house in Panama City, people notice. That is especially true if the famous singer, actor and former presidential candidate chooses a neighborhood that is supposed to be less than fashionable.

Blades' three-story home, which he bought and beautifully renovated starting in 1993, stands on a prominent corner in Casco Antiguo, a historic district on a small peninsula that juts out into the Pacific Ocean at the southwestern end of the city.

Founded in 1673, the district boasts numerous old mansions and public buildings such as the Presidential Residence and the National Theater. In addition to Spanish colonial and neoclassical architecture, it has several unique French colonial buildings that date from that country's failed attempt to build a trans-isthmus canal in the 19th century.

For centuries, Casco Antiguo was the most fashionable residential area in Panama. But by the 1950s, the district had fallen out of favor as wealthy families moved to neighborhoods offering new houses with modern amenities. Valuable buildings quickly fell into disrepair, and many were taken over by squatters.

Local leaders soon began looking for ways to restore Casco Antiguo to its old glory. In 1977, with help from a $24 million IDB loan for an urban tourism development project, Panama became one of the first countries in the hemisphere to invest seriously in historical preservation. Some $7 million were devoted to restoring historical monuments in Casco Antiguo and upgrading the district's water supply network.

Today, Casco Antiguo is undergoing a new wave of revival. But this time, much of the money is coming from private citizens like Blades and companies that see big potential in the area's rebirth.

A second look. "This neighborhood is going to bloom again," says José Carranza, director of the National Theater. "It is going to be known as it was years ago, as an elegant neighborhood full of beautiful houses, and it is going to add an important tourist attraction to Panama."

The most concrete evidence of change, according to Carranza, is the current boom in the Casco Antiguo real estate market. "Broken-down houses that couldn't be sold a few a years ago are now selling for $50,000," he says. "A finished two-bedroom apartment costs $80,000. This shows that wealthy people are coming back."

There are other signs: trucks loaded with construction supplies rumble up and down narrow streets on their way to renovation sites. The streets themselves, once infamously potholed, are gradually being repaved with bricks to match the originals.

Fresh coats of paint are beginning to brighten formerly drab façades. Even the imposing National Theater has received a face-lift. "The Panama division of the Glidden paint company donated supplies and paid for the entire building to be painted," says Carranza.

A few blocks away, in Plaza Bolívar, the grand old Hotel Colombia is swarming with workers. Restauro S.A., an architectural and construction firm that specializes in restoration projects, is converting the old building into an upscale apartment complex while preserving its unique original façade.

Several factors have fueled the revival. One was Casco Antiguo's designation as a World Heritage Site by UNESCO in 1997, a development that increased awareness of the area's riches among Panamanians themselves. Another was the passing of a law later that year that offers tax breaks and low-interest loans to people who buy properties in Casco Antiguo and begin restoring them within two years. Restoration plans must be approved by a public committee that ensures that proposed works meet historical, architectural and design criteria.

"The government is very interested in turning Casco Antiguo into a significant tourist attraction," says Francisco Rodríguez, a consultant to the Panamanian Tourism Institute. Recognizing the success historic districts in cities like Cartagena, Colombia, and San Juan, Puerto Rico, have had in drawing visitors, Panamanian officials hope to use Casco Antiguo to encourage foreigners to stay longer in Panama City.

"Around 60 percent of the foreign tourists visiting Panama today come to shop or do business," says Rodríguez. "The average stay for these visitors is very short, between 2.5 and 2.8 days. Our goal is to increase that average to five days, but in order to get there, we need to offer them something unique, something they can't get anywhere else." With the help of a $2.5 million IDB loan approved in 1998, the Panamanian Tourism Institute is now developing a national tourism strategy that will integrate Casco Antiguo with other attractions including ecotourism, the country's ethnic and indigenous communities, and under-exploited Caribbean and Pacific beaches.

To date, only around 5 percent of the buildings in Casco Antiguo have been restored, and the district still lacks the kinds of hotels necessary to attract most foreign visitors. The area's residents know that a great deal remains to be done, but they are emphatically upbeat in their outlook.

"We're very optimistic about the future," says Mery Troya, manager of Las Bóvedas, an upscale restaurant and jazz club housed in a building that once served as a Spanish munitions depot. "At first we had trouble getting people to come here," she says, "but now the streets are well lighted and there are good police patrols, and each day we're getting more customers. They like the food, they like the music, and they love this one-of-a-kind setting."

Date posted: June, 1999

Prominent renovation...

From the ground up...