Panama
Overview
Panama is the narrow land bridge connecting North and South America — 77 kilometers wide at its narrowest point, 51 miles of which is occupied by the Panama Canal, the most significant engineering project in the Western Hemisphere. The country has a population of approximately 4.4 million people, uses the US dollar (the Balboa is nominally equal but USD is the practical currency), and has two coastlines — Caribbean to the north, Pacific to the south — each with distinct marine ecosystems, island groups, and tourism infrastructure. Panama City is both the country's capital and one of the most modern cities in Latin America, with a skyline that rivals Miami.
Panama surpassed 3 million international visitors in 2025 — a major milestone that confirmed the country's position as one of Central America's emerging travel destinations. Panama City's Tocumen International Airport is the largest aviation hub in Central America, with connections to over 90 destinations and serving as the region's primary transfer point. Copa Airlines (national carrier, the most extensive Central American network) operates out of Tocumen. For 2026, tourism authorities have 60+ international events confirmed and multiple tourism infrastructure projects underway.
The country's tourism offer splits between three distinct zones: Panama City (the Canal, Casco Viejo colonial district, modern skyline, Emberá indigenous village day trips, Soberania National Park birding), the Caribbean (San Blas Islands/Guna Yala and Bocas del Toro archipelago), and the highlands (Boquete — coffee, cloud forests, hiking Volcán Barú, the highest point in Panama at 3,478 meters). Start planning at palapavibez.com.
Fast Facts
Panama has a tropical climate year-round (24-32°C). The dry season (December through April) is the best time for beach travel and hiking. The rainy season (May through November) brings daily afternoon rains but more dramatic waterfalls and lush landscapes. Bocas del Toro has its own distinct microclimate — September and October are its clearest months despite being rainy season in the rest of Panama.
Tocumen International Airport (PTY) is Central America's largest hub airport, located approximately 25 minutes from Panama City. Copa Airlines (HUB here) connects to 90+ destinations across the Americas. American, Delta, United, Spirit, and most major US carriers serve PTY directly. JetBlue, Avianca, and LATAM also operate here. The airport's strategic location makes Panama City the most practical transit hub for Central and South America.
Panama uses the US dollar — zero currency exchange required from the US. Spanish is the official language; English is widely spoken in Panama City, tourist areas, and business settings. Uber operates throughout Panama City ($4-8 typical ride). Taxis from PTY to Panama City cost approximately $30.
Top Attractions
The Panama Canal at Miraflores Locks (15 minutes from central Panama City) is the country's most visited attraction — a visitor center with a museum, IMAX theater, and observation deck overlooking the locks where the $15 entrance fee buys you the sight of ships the size of apartment buildings being lowered or raised 8.5 meters through a lock system barely wider than the ship itself. Miraflores is accessible at any time of day; early morning and late afternoon see the most ship traffic. The newer Agua Clara Visitor Center on the Atlantic side (the expanded locks that accommodate post-Panamax ships, opened 2016) shows even larger modern vessels.
The San Blas Islands (Comarca Guna Yala) are 365 Caribbean islands — the most pristine and most culturally significant island experience in Central America. The Guna people have self-governed their territory since 1925 and control all tourism entirely. Visitors sleep in thatch-roof huts on the islands, eat fresh seafood cooked by local families, snorkel crystal-clear water, and island-hop by traditional dugout canoe and motorboat. The all-inclusive packages (transport from Panama City, accommodation, meals, and activities — approximately $80-120 per person per night) are entirely operated by Guna families. There are no Wi-Fi, no resorts, and no electricity on most islands. Access is by a 3-hour 4WD drive across the mountains from Panama City followed by a boat.
Recommendations
Panama Canal (Miraflores Visitor Center)
$15 entrance — watch ships transit the locks, museum, IMAX; early morning or afternoon for most traffic
San Blas Islands (Guna Yala)
365 Guna-managed islands, ~$80-120/person/night all-inclusive — no resorts, no WiFi, pure Caribbean
Casco Viejo (UNESCO Colonial Old Town)
17th-century colonial district — boutique hotels in restored mansions, rooftop bars, finest dining in Panama
Bocas del Toro (Caribbean Archipelago)
Isla Colón + Red Frog Beach, Coral Cay snorkeling — 1-hr flight from PTY or 8-10hr bus+boat
Boquete (Cloud Forest + Coffee)
Volcán Barú hike (3,478m — see both oceans on clear day), coffee farm tours, cloud forest hiking
Coiba National Park (UNESCO Marine Reserve)
UNESCO — whale sharks, manta rays, hammerheads; accessible from Santa Catalina, 3-hr boat
Soberania National Park (Panama City)
30 min from Panama City — 525 bird species, Pipeline Road is world's best birding road by species count
Emberá Village (Chagres River)
Half-day from Panama City — boat up Chagres River, indigenous Emberá village, traditional dance
Bocas del Toro archipelago (on the Caribbean coast near the Costa Rica border — 1-hour flight from PTY or 8-10 hour bus+boat) is Panama's most developed Caribbean destination — a chain of islands centered on Isla Colón with Bocas Town as the hub. Known for surf (Playa Bluff, Wizard Beach), snorkeling (Coral Cay, Dolphin Bay), yoga retreats, and a social backpacker/expat scene. Playa Estrella (Starfish Beach) and Isla Bastimentos (Red Frog Beach, the most beautiful beach) are the most celebrated sites. The best months for visibility are January through April.
Where to Stay
Panama City accommodation divides between the modern high-rises of Marbella/Punta Paitilla (business hotels, casino resorts, the most international selection) and the boutique hotels of Casco Viejo (the most atmospheric, in restored colonial buildings, the best location for dining and walking). The American Trade Hotel (Casco Viejo — the most acclaimed boutique hotel in Panama, a restored 1917 building with jazz bar, rooftop pool, and the finest address in the old city) and Casa del Horno (a small boutique in Casco Viejo with celebrated cooking) are the most praised.
For Bocas del Toro: The Palmar Tent Lodge (eco-lodge on a private island, the most acclaimed), Gran Kahuna Hostel (Bocas Town, the most social backpacker hub), and multiple boutique hotels on Isla Bastimentos (Red Frog Beach area — quieter and more beautiful). For San Blas: all accommodation is Guna-operated basic thatch huts — book through Guna-run packages (San Blas Dreams, Yandup Lodge are the most organized). For Boquete: Tinamou Cottage (boutique, coffee farm setting) and Los Establos (horse ranch turned luxury retreat).
Recommendations
American Trade Hotel (Casco Viejo)
Restored 1917 building, jazz bar, rooftop pool — finest boutique in Panama, UNESCO district
Bocas Town (Isla Colón)
Most restaurants, bars, boat tours — Gran Kahuna Hostel (social) or boutique hotels on waterfront
San Blas (Guna-Operated Huts)
$80-120/person/night all-inclusive — Yandup Lodge most organized; no electricity, pure Caribbean island
Boquete Boutique Lodges
Coffee farm setting — Tinamou Cottage or Los Establos, 30 min from Volcán Barú trailhead
Food & Drink
Panamanian cuisine is a blend of Spanish, Afro-Caribbean, indigenous, and North American influences shaped by the Canal Zone's international population. Ceviche de corvina (raw sea bass marinated in lime juice, served with onion, celery, and ají chombo chili — the national snack, found at every cevichería) and sancocho de gallina (chicken stew with corn on the cob, yams, plantain, and culantro — the national dish, described as the Panamanian soul food) are the most quintessentially Panamanian foods.
Casco Viejo has Panama City's finest and most diverse dining — Maido (the Panama outpost of Lima's world-famous Nikkei restaurant), Central (the most acclaimed Panamanian fine dining), and dozens of rooftop bars with views of the skyline and the Pacific. Bocas del Toro has a strong Caribbean-influenced food scene — coconut milk rice, fresh lobster, and the specific Ngöbe-Buglé cuisine of the indigenous community.
Recommendations
Ceviche de Corvina
Raw sea bass, lime, onion, ají chombo — at every cevichería, the most quintessentially Panamanian food
Sancocho de Gallina
Chicken stew, corn, yam, plantain, culantro — the Panamanian soul food, at any local restaurant
Casco Viejo Rooftop Bars
Old colonial mansions, views of modern skyline — Maido (Nikkei), Central (Panamanian fine dining)
Seco Herrerano
Sugar cane liquor from Herrera — traditionally with milk, now in craft cocktails throughout Panama City
Seco herrerano (sugar cane liquor from Herrera province) is Panama's national spirit — historically drunk with milk and ice, though craft cocktail culture has now elevated it into more sophisticated preparations. Balboa beer is the national lager.
Getting There
Tocumen International Airport (PTY) is the most connected airport in Central America and one of the largest in Latin America — the headquarters of Copa Airlines (with routes to 90+ destinations across North, Central, and South America). American, Delta, United, Spirit, JetBlue, Avianca, and LATAM serve PTY. From the US, direct flights operate from Miami (2.5 hours), Houston (3.5 hours), Atlanta (3.5 hours), New York (5 hours), and many other cities. The airport is approximately 25 minutes from central Panama City by taxi ($30) or Uber ($15-20).
For Bocas del Toro: Air Panama operates 1-hour domestic flights from PTY to Bocas del Toro (BOC) — the most practical option (~$150 round trip). The bus+boat option (8-10 hours) is dramatically cheaper (~$30) but exhausting. For San Blas: 4WD transport from Panama City (approximately 3 hours via a mountain road) + boat — most visitors book this through a Guna package that includes transport, accommodation, and meals. For Boquete: 1-hour domestic flight to David (DAV) + 40-minute bus/taxi, or 8-hour bus from Panama City.
Practical Info
Classic 10-day Panama itinerary: Days 1-3 Panama City (Miraflores Canal morning, Casco Viejo afternoon, Soberania birding day 2, Emberá village day 3). Days 4-6 San Blas Islands (3-day all-inclusive Guna package — island hopping, snorkeling, cultural immersion). Days 7-9 Bocas del Toro (fly BOC — Red Frog Beach, Coral Cay, Playa Bluff surf). Day 10 return to PTY, depart.
San Blas booking tips: book directly through Guna-operated agencies (San Blas Dreams, Guna Yala Trips) to ensure money goes directly to communities. The mountain road to San Blas (the Llano-Cartí Road) requires a 4WD and is impassable in very heavy rain. Book during the dry season (December-April) for the most reliable crossing. Prices (~$80-120/person/night all-inclusive) include transport, food, and accommodation.
Recommendations
Classic 10-Day Panama
Panama City/Canal → San Blas (3 days) → Bocas del Toro (3 days) → depart PTY
Book San Blas Through Guna-Run Agencies
Money goes directly to Guna community — San Blas Dreams or Guna Yala Trips, dry season only
Soberania National Park Birding
30 min from PTY — Pipeline Road has most species per km of any road in the world, dawn only
PTY as Hub — Extend the Trip
Most Copa flights connect through PTY — consider adding Colombia or Costa Rica before/after Panama
Panama City practical notes: Uber is the most practical and cheapest transport within the city ($4-8). Street taxis should be negotiated before entering. The Causeway (the 3-kilometer causeway connecting 4 islands in the Pacific Bay) is the most scenic evening walking and cycling route in the city. The Biomuseo (Frank Gehry-designed natural history museum on the Causeway) is Panama City's finest single museum.
