Party Buses Hit By Unfair
Competition In Panama
Panama - Panamanians love to
party by nature, flocking to wherever they hear music or smell
alcohol. Building upon this, a group of visionary entrepreneurs came
up with the idea of modifying the oft-feared buses (Diablo rojos)
into appealing clubs on wheels.
The business, which was born in Cartagena, Colombia, now forms part
of the Panamanian nightlife entertainment. They are known as “chivas
parranderas” (party buses), a name coined after the first company
that dedicated to this business in Panama starting back in 1994.
In the last few years, other companies have joined the clubs on
wheels business, with around 10 companies, four certified and 6
without the proper licenses, now providing the service.
Yazmin Panay, general manager of “La Chiva Parrandera” believes that
her company’s service can be differentiated from that which her
competition offers.
“My business is focused on offering tours to tourist areas in the
capital, while the rest of the companies only have buses with a
dance floor.”
Panay has a fleet of four buses, in which she invested $15,000
altogether. The investments included decorating both the interior
and exterior of the bus. Today, Panay says, her buses cost 3 or 4
times its original value.
The “chivas” have a capacity for 30 people and its cost, per client,
is $20. That is, $600 per ride with a full capacity.
The main attractions of this form of entertainment on wheels is the
live music and the open bar. This business depends mainly on the
tourist sector, as 60 percent of its clients are foreigners.
However, since last year, the party on wheels has attracted more
local customers, for both personal and corporate events.
Last year, the Chiva Parrandera company increased its demand by 10
percent. But this year, Panay fears her competition might steal away
some of her business.
“We depend on the politics that the government implements to
regulate this activity because currently there are only four
companies that count with the Panamanian Tourism Institute (IPAT),
the Ground Transport and Transit Authority (ATTT) and Panama’s
Municipality’s certificates. The rest operate without certification,
turning into unfair competition,” she said.
The general manager of Chivas Fiestas Panama, Victoria Concha,
coincides with Panay saying that around six companies don’t have the
adequate permits. Concha argues that during 2008 her demand
decreased 20 percent compared to 2007, a decline she attributes to
the unfair competition.
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