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Spain-based cruise company Pullmantur has confirmed plans to operate year-round out of Colón, a significant increase in its commitment to Panama.

The decision by the subsidiary of Royal Caribbean Cruises Ltd. will increase traffic out of Colón by 30 percent, company officials said at a press conference. The announcement comes after Pullmantur announced plans to increase its Latin America capacity by 40 percent, a move described by industry publication Cruise Business as a reversal in strategy. The Spain market failed to “stage a desirable recovery,” while Latin America and the Caribbean is seen as a growth market.

“Latin America is a region extremely important for Pullmantur,” company V.P. José Blanco told reporters in August. “For this reason we are going to increase our capacity in this market year round.”

During the press conference for the Colón expansion, the director of Panama’s Tourism Authority, Gustavo Him, also announced plans to invest $600 million to renovate the port city and make it more attractive for tourists. The plan includes improving hotels, leisure facilities and shopping for Colón.

The total economic impact for Colón from the 56 operations by the Pullmantur ships is estimated at about $18 million for 2017.

Pullmantur will operate two ships from Colón-the Monarch and Zenith. The Monarch will initially travel a route that will include Jamaica, Grand Cayman, Costa Rica and Cartagena, the company’s primary home port in the region. The Zenith will travel a southern route including Aruba, Bonaire and Curacao

Colón typically attracts travelers from Mexico, Peru, Brazil, Ecuador, Argentina, Colombia and Venezuela.

“The Caribbean is an excellent destination,” said Blanco, “the most important in the world, not only in terms of cruise passenger numbers, but also its cultural, beach and gastronomical attractions.”