Panama City, Panama: The Ultimate Travel Guide

Welcome to the vibrant metropolis of Panama City, where the Pacific and Atlantic Oceans are connected by one of mankind's greatest engineering marvels, and where colonial history meets ultra-modern architecture. As Central America's most cosmopolitan capital, Panama City offers travelers an intoxicating blend of history, culture, gastronomy, and natural beauty that few other destinations can match.

Whether you're planning a quick stopover or an extended stay, this comprehensive guide will help you navigate and explore the best that Panama City has to offer. From the cobblestone streets of Casco Viejo to the skyscrapers of the banking district, from rainforest hikes to island escapes—Panama City truly has something for everyone.

When to Visit

Panama City enjoys a tropical climate with two distinct seasons:

Dry Season (December to April): The most popular time to visit with sunny days, lower humidity, and minimal rainfall. Expect larger crowds and higher prices during this peak tourism period.
Green Season (May to November): Characterized by afternoon showers and higher humidity but fewer tourists and better deals on accommodations. The rain rarely lasts all day, typically falling in short, heavy bursts that quickly clear up.

Pro Tip: If visiting during green season, plan outdoor activities for mornings when the weather is typically clearer, and keep a lightweight rain jacket handy.

Getting Around

Panama City offers various transportation options:

Public Transportation

Metro: Clean, efficient, and inexpensive ($0.35 per trip). Currently consists of two lines connecting major areas of the city.
Metrobus: Covers routes the metro doesn't reach. You'll need to purchase a rechargeable "Tarjeta Roja" card.

Other Options

Taxis: Abundant and relatively inexpensive. Always agree on the fare before getting in, as they don't use meters.
Uber: Widely available and often more convenient than taxis.
Rental Cars: Recommended only if you're comfortable with aggressive local driving habits and plan to explore beyond the city.
Walking: Feasible in certain neighborhoods like Casco Viejo, but the city isn't particularly pedestrian-friendly overall.

Top Neighborhoods to Explore

Casco Viejo (Old Quarter)

The historic heart of Panama City and a UNESCO World Heritage site, Casco Viejo is characterized by:

Colonial architecture with colorful buildings
Cobblestone streets and historic plazas
Trendy restaurants, rooftop bars, and boutique hotels
Artisanal shops and local markets
Street performers and vibrant nightlife

Don't miss Plaza de la Independencia, the Metropolitan Cathedral, and the panoramic views from Paseo de Las Bóvedas.

Banking District (Área Bancaria)

Panama City's gleaming financial center showcases the country's economic prosperity with:

- Modern skyscrapers create an impressive skyline - Luxury shopping malls like Multiplaza and Multicentro

- High-end restaurants and international hotel chains

- The iconic F&F Tower (El Tornillo) and other architectural marvels

Amador Causeway (Calzada de Amador)

A palm-lined road connecting the mainland to four small islands, offering: - Spectacular views of Panama City's skyline and the Bridge of the Americas - Recreational spaces for walking, cycling, and skating - The Biomuseo (Biodiversity Museum) designed by Frank Gehry - Marina, restaurants, and departure point for boat tours

Ancon Hill

A 654-foot hill in the heart of the city that provides:

The best panoramic views of Panama City
Nature trails with wildlife spotting opportunities
A giant Panamanian flag at the summit
Historical significance as a former U.S. Canal Zone territory

Must-See Attractions

1. Panama Canal

The engineering marvel that changed global commerce

No visit to Panama City is complete without witnessing the Panama Canal in action. The Miraflores Visitor Center offers:

Observation decks to watch ships transit the locks
A comprehensive museum explaining the canal's history and operation
A documentary screening
A restaurant with canal views

Visiting Tip: Arrive early (around 9am) or in the afternoon (around 3pm) to maximize your chances of seeing ships pass through the locks.

2. Casco Antiguo (Casco Viejo)

Beyond just a neighborhood, this is Panama's most important historical district, featuring:

The Presidential Palace (Palacio de las Garzas)
The National Theater
The Panama Canal Museum
The Golden Altar at the Church of San José

3. Panama Viejo

The archaeological remains of the original Panama City, founded in 1519 and destroyed by pirate Henry Morgan in 1671. This UNESCO World Heritage site includes:

The cathedral tower
Ruins of convents, churches and houses
An on-site museum
Historical significance as the oldest European settlement on the Pacific coast of the Americas

4. Biomuseo

Frank Gehry's colorful biodiversity museum explores Panama's natural history through eight galleries highlighting:

Panama's role as a land bridge between North and South America
The country's extraordinary biodiversity
Environmental conservation efforts
Interactive exhibits suitable for all ages

5. Metropolitan Natural Park

A tropical forest within city limits offering: - Hiking trails of varying difficulty levels - Wildlife viewing including sloths, monkeys, and tropical birds - Plant species native to the Panama isthmus - Panoramic lookout points over the city

Day Trips from Panama City

Panama City makes an excellent base for exploring nearby attractions:

Monkey Islands and Gatun Lake

Distance: 45-minute drive plus boat tour
Highlights: Wildlife spotting, particularly monkeys, sloths, and tropical birds
Activities: Boat tours through the rainforest portions of the Panama Canal

Taboga Island

Distance: 30-minute ferry ride
Highlights: Beaches, hiking, village life, and views of Panama City
Known as: "Island of Flowers" for its abundant flora

Soberania National Park

Distance: 30-minute drive
Highlights: Pipeline Road (world-famous for birdwatching), hiking trails
Activities: Wildlife photography, guided nature tours, boat safaris

San Blas Islands

Distance: 2.5-hour drive plus boat transfers
Highlights: Indigenous Guna Yala culture, pristine beaches, island hopping
Note: Requires overnight stay and advance planning with authorized operators

Where to Eat

Panama's culinary scene blends indigenous, Spanish, African, and Caribbean influences:

Local Dishes to Try:

Sancocho: A hearty chicken soup with root vegetables and herbs
Ceviche: Fresh seafood "cooked" in lime juice
Patacones: Fried green plantains, often served as a side dish
Ropa Vieja: Shredded beef in tomato sauce
Arroz con Guandú y Pollo: Rice with pigeon peas and chicken, a national favorite

Recommended Restaurants:

High-End:

Donde José - Creative Panamanian cuisine in Casco Viejo
Maito - Innovative fusion featuring indigenous ingredients
Azahar - Elegant dining with panoramic city views

Mid-Range:

Fonda Lo Que Hay - Modern takes on traditional dishes
El Trapiche - Authentic Panamanian food in a casual setting
La Vespa - Italian cuisine with Panama influences

Budget-Friendly:

Mercado de Mariscos - Seafood market with on-site eateries
Coca Cola Café - Historic diner serving local comfort food
Esa Flaca Rica - Hearty Panamanian plates at reasonable prices

Foodie Tip: Don't miss the Mercado de Mariscos (Fish Market) where you can enjoy fresh ceviche from various vendors on the second floor.

Shopping Guide

Traditional Crafts:

Look for these authentic Panamanian items:

Molas: Colorful textile art made by the Guna indigenous people
Tagua: Carvings made from palm nuts, known as "vegetable ivory"
Panama Hats: Despite the name, these are actually from Ecuador but are widely sold throughout Panama
Coffee: Panama produces some of the world's finest coffee, including the prized Geisha variety

Where to Shop:

Markets:

Mercado de Artesanías de Balboa: Handicrafts from across Panama
Mercado 5 de Mayo: Local products and street food
AMANO Marketplace: Curated artisanal products

Shopping Malls:

Albrook Mall: The largest in Central America with over 700 stores
Multiplaza Pacific: Luxury and international brands
Multicentro: Convenient downtown location

Accommodation Options

Luxury:

The American Trade Hotel - Historic building in Casco Viejo
The Santa Maria, a Luxury Collection Hotel & Golf Resort - Urban resort with golf course
W Panama - Modern luxury in the heart of the banking district
Bristol Panama - Elegant hotel that captures the rich cultural heritage while offering modern luxury (read more about my stay here)

Mid-Range:

Central Hotel Panama - Historic hotel in Casco Viejo
Hard Rock Hotel Panama Megapolis - Contemporary hotel with entertainment focus
Sortis Hotel, Spa & Casino - Sleek design with excellent amenities

Budget-Friendly:

Selina Casco Viejo - Trendy hostel with private rooms
Luna's Castle Hostel - Backpacker favorite in a historic building
Magnolia Inn - Restored colonial building with affordable rates

Practical Information

Safety Tips:

Stick to tourist areas, especially after dark
Use registered taxis or ride-sharing apps
Keep valuables secure and be aware of your surroundings
Carry limited cash and keep a photocopy of your passport

Language:

Spanish is the official language, but English is widely spoken in tourist areas and among younger Panamanians, especially in the business sector.

Currency:

Panama uses the U.S. dollar (officially called the Balboa, but it's the same currency). Credit cards are widely accepted in hotels, restaurants, and shops.

Tipping:

Restaurants: 10% service charge is usually included; additional tips are appreciated
Taxis: Not expected, but rounding up is common
Tour guides: 10-15% for good service

Connectivity:

Free WiFi is available in most hotels, cafés, and restaurants. Local SIM cards are inexpensive and provide good coverage.

Health:

Tap water is generally safe to drink in Panama City
Hospitals are of high quality, especially in private facilities
No special vaccinations required, but travelers should be up-to-date on routine immunizations

Itinerary Suggestions

3-Day Itinerary:

Day 1: City Highlights

Morning: Panama Canal Miraflores Locks
Afternoon: Panama Viejo ruins
Evening: Dinner and drinks in Casco Viejo

Day 2: Nature and Culture

Morning: Metropolitan Natural Park hike
Afternoon: Biomuseo visit
Evening: Amador Causeway sunset and dinner

Day 3: Local Experience

Morning: Ancon Hill climb
Afternoon: Mercado de Mariscos and local food sampling
Evening: Shopping and entertainment in the Banking District

5-Day Itinerary:

Add to the 3-day itinerary:

Day 4: Day Trip

Full day excursion to Monkey Islands or Taboga Island

Day 5: Relaxation and Last-Minute Experiences

Morning: Shopping for souvenirs
Afternoon: Spa treatment or pool time
Evening: Farewell dinner at a rooftop restaurant in Casco Viejo

Final Tips

Pace yourself in the heat - Panama City is hot and humid year-round. Stay hydrated and plan indoor activities during the hottest hours.
Embrace "Panama time" - Service can be slower than what you might be used to. Relax and enjoy the laid-back atmosphere.
Look beyond the tourist trail - Some of Panama City's best experiences are found in less-visited neighborhoods like El Chorrillo and Santa Ana.
Connect with locals - Panamanians are generally friendly and proud of their country. Don't hesitate to ask for recommendations.
Learn basic Spanish phrases - Even simple greetings and thank-yous go a long way.