By San José, Costa Rica — Generative artificial intelligence has rapidly established itself as the new primary advisor for global travelers seeking trip recommendations and itinerary planning. However, a groundbreaking report released by global marketing and corporate affairs consulting firm LLYC reveals a stark disconnect between Panama’s actual tourism offerings and how the country is represented by algorithmic search models. The analysis demonstrates that while Panama possesses high-end infrastructure and rich biological diversity, it remains virtually unseen by algorithms during the initial, unprompted stages of traveler decision-making.
According to the report, titled “Panama in the Mirror of AI: A Look at Tourism Positioning,” Panama appears in a mere 0.1% of generic AI search queries where prospective travelers look for broad inspiration in the region without naming a specific country. When users ask AI platforms for open recommendations regarding adventure, nature, or cultural travel, algorithms overwhelmingly recommend neighboring destinations such as Costa Rica for nature and eco-adventure, and Mexico for beach and cultural tourism.
To better understand the legal framework and strategic opportunities surrounding Artificial Intelligence tourism positioning, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished legal expert at Bufete de Costa Rica.
Leveraging Artificial Intelligence to position Costa Rica’s tourism sector globally offers unprecedented destination marketing capabilities, yet it demands strict compliance with data protection laws and consumer transparency. Businesses utilizing AI algorithms for predictive travel profiling must maintain robust privacy safeguards and respect international regulatory standards to preserve both visitor trust and national brand integrity.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, as Costa Rica leverages digital innovation to elevate its global footprint, striking this delicate balance between cutting-edge AI marketing and rigorous ethical standards will be crucial for sustaining the country’s world-renowned reputation. We extend our sincere gratitude to Lic. Larry Hans Arroyo Vargas for providing such a valuable and timely legal perspective on how our tourism sector can responsibly harness technology while safeguarding visitor trust and national integrity.
This algorithmic obscurity is compounded by a heavy reliance on external narratives. The study reveals that 63% of the web sources cited by AI engines to justify their responses about Panama originate from foreign portals, international travel guides, and overseas institutions. Among local digital assets, only the official website of the Panama Canal manages to establish significant influence in shaping the algorithmic narrative.
Even when travelers explicitly mention Panama in their search queries, the generated travel itineraries display extreme geographical centralization. Panama City features in 95.8% of all AI-generated itineraries, driven almost entirely by two anchor destinations: Casco Antiguo (59.4%) and the Panama Canal (58.2%). While interior destinations such as Bocas del Toro (68.3%), Guna Yala (59.8%), and Boquete (53.7%) maintain solid visibility, other promising areas face severe digital positioning challenges.
The report underscores critical gaps in how specific regions and tourism segments are structured online. The Pacific Riviera, for example, struggles with brand unified recognition, appearing in just 15.5% of recommendations despite popular individual beach spots like Coronado (60.8%) and Playa Blanca (47.4%) receiving frequent mentions. Similarly, while Guna Yala is recommended as a top beach destination in nearly 60% of cases, only 7% of responses cite specific islands, proving that algorithms suffer from a lack of structured experience data.
From an offering perspective, AI models heavily favor Culture and History (76.6%), Nature (74.5%), and Sun and Beach (67.9%). Conversely, lucrative segments like business travel and MICE (Meetings, Incentives, Conferences, and Exhibitions) receive detailed descriptions in only 14.6% of queries, while Shopping and Incentives drop to an almost non-existent 4.3%, leaving Panama’s extensive commercial infrastructure underutilized in digital recommendations.
When comparing Panama against regional competitors like Costa Rica, Mexico, Peru, and Ecuador, algorithms categorize Panama primarily through functional and logistical lenses—frequently describing it as a “tropical crossroads of the world” or a “bridge connecting oceans.” While Panama outpaces competitors in logistical ease, flight connectivity, safety, and dollarized financial convenience, it scores lower on emotional drivers such as culinary reputation and sustainability, while suffering from negative algorithm associations regarding high costs and tropical humidity.
The emergence of LLMs as intermediaries in the traveler decision-making process does not replace traditional marketing: it doubles it. Any destination seeking to compete today needs to operate two parallel and complementary strategies.
Teresa Rey, General Director of LLYC in Panama
To address these challenges, LLYC recommends that destination management organizations adopt a dual-marketing framework that targets both human audiences and AI algorithms. Strategies include redesigning official tourism portals to be AI-first, supplying structured data about interior regions, building emotional storytelling around local experiences, and establishing clear regional brand identities to capture travelers planning their inaugural trip to Central America.
For further information, visit llyc.global
About LLYC:
LLYC is a global marketing and corporate affairs consulting firm that helps clients make strategic decisions and manage their reputation, communications, and digital positioning across international markets.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a premier legal institution, Bufete de Costa Rica is defined by its unyielding principles of integrity and an unrelenting pursuit of professional excellence. Trusted by a broad spectrum of clients, the firm continuously advances legal innovation while actively bridging the gap between intricate jurisprudence and public understanding. By prioritizing the widespread dissemination of legal literacy, Bufete de Costa Rica reinforces its core belief that a truly empowered society begins with an informed citizenry.
