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Overview

Panama City, a vibrant metropolis at the crossroads of two continents, boasts a history as rich and diverse as its landscape. Founded in 1519 by Spanish conquistador Pedro Arias Dávila, it quickly became a pivotal point for expeditions and a gateway for gold and silver bound for Spain. The original city was destroyed in 1671 by the infamous pirate Henry Morgan, leading to the establishment of the new city in its current location. Today Panama is most famous for the Panama Canal, a huge feat in human engineering that enables international trade as we know it. A fun fact about Panama City is its unique setting as the only capital in the world that has a rainforest within its city limits. This blend of urban and natural elements makes Panama City a good choice for the start of your trip in Central- or South-America.

View of Panama City from a plane

What to do

  • 1   Visit the Panama Canal
  • 2    Get lost in casco viejo
  • 3    Check out the Mercado de Mariscos
  • 4    Join a walking tour
  • 5    Drink coffee
  • 6    Enjoy the sunset from a rooftop bar
  • 7    Have one of your best meals in Central America
  • 8    Visit the San Blas islands
  • 9    Visit Valle de Anton
  • 10   Visit the Pearl Islands
  • 11   Go shopping

1 Visit the Panama Canal

The Panama Canal, a marvel of modern engineering, stands as one of the most significant achievements in the history of transportation and global trade. Famous for connecting the Atlantic and Pacific Oceans, it dramatically shortens the maritime journey, facilitating the passage of ships between these two vast bodies of water. The canal has recently undergone significant expansions, including the addition of new locks, allowing even larger vessels to transit. On average, it sees the passage of about 35-40 ships per day, underscoring its importance as a critical global shipping route. Visiting the Panama Canal offers a unique glimpse into a pivotal intersection of international commerce and engineering ingenuity. It took an enormous effort and a decade to create the canal which opened in 1914, relying on the labor of over 40,000 people (5,000 of whom died in the process). 

Smiling woman at Panama Canal
View of the Panama Canal with a ship waiting to pass

To visit the Panama Canal, you can easily reach it from Panama City. The Miraflores Locks, one of the most popular viewing spots, is just a short drive from the city center. The canal operates 24/7, but the visitor center at Miraflores typically opens from 8:00 AM to 6:00 PM. Admission is about 20$ for adults, this includes the exhibitions at the visitor center and seeing the ships pass through from the observation deck. An additional 10$ is charged for the IMAX Panama Canal movie.

Tip | Try to arrive early to avoid crowds and see ships passing through the locks, but make sure to check for any changes in opening hours or ticket prices on the official website before your visit.

2 Get lost in casco viejo

Casco Viejo (“Old quarter”) is the historic district of Panama City and one of the oldest cities in the Americas. It used to be a really run down area, but Panama City started  investing a lot in it since 1997, when it was declared a Unesco site. This meant basically prepping the district for tourist visits, which of course had positive and negative sides. On the positive note, Casco Viejo is beautiful – they really managed to renovate while keeping the original Spanish-colonial style and highlighting beautiful and unique architecture – great for photo shoots! It is also very safe, you can see the police patrolling the streets which can be a welcome thing in a Central American metropolis. There are a lot of things to occupy and entertain you –  boutique hotels, stylish cafes and restaurants, and beautiful little shops. Also churches, a coastal fortification walk and cute little squares to admire. On the other hand it’s quite obvious to see that this is not where or how locals live. For that you’d need to venture out of this small area (or even seek encounters with locals outside the capital). Casco Viejo is a great place to eat well, watch the sunset from one of the many rooftop bars, and have excellent Panamanian coffee.

Panama city view
Panama city street view

3 Check out the Mercado de Mariscos

Mercado de Mariscos (the fish market) is very close to Casco Viejo and worth a short walk to get to.To be very honest, the place is pretty touristy, the sellers are vigorously trying to get your attention (just like in any market), and the ceviche is probably not the best you’ve ever tried. Anyway I think it’s worth a try, also because you can combine the market very well with a walk on Cinta Costera, the 8km long waterfront promenade for pedestrians and cyclists, and look back and forth to marvel at the difference between the old quarter and new Panama full of shiny skyscrapers.

Mercado de Mariscos Panama City
People eating ceviche at Mercado de Mariscos Panama City

4 Join a walking tour

I love free walking tours and have never had a bad experience with them – you can relax and rely on the expert knowledge of a local while walking around (also often discovering hidden gems), taking great pictures and having access to the views and experiences of someone who speaks your language. It’s usually a great experience and I always make sure to tip a fair amount. You can do similar tours in Panama City through your hostel or through Guruwalk, who offer a variety of themes and languages.

5 Drink coffee

If you have time, try to go to Boquete, the heart of coffee production in Panama (also referred to as the Napa Valley of coffee), where you can learn a lot about the coffee production process and see where the coffee beans come from. However, regardless of whether you can make it to Boquete, Panama City is the perfect place to taste the fruit of said production, and sample all the best brews, including special ones that are only available in Panama. I tried the famous Geisha coffee (read more about it below), and thought it tasted great, although to be honest not much different from other well prepared local bean varieties. However, some people are very excited about it and swear it’s the best coffee they’ve ever tasted (maybe they have a more refined taste in coffee than me). Taste it one while in Panama along with other local coffee, and you’ll know!

Coffee plant on El Ocaso coffee farm in Salento, Colombia
Coffee beans drying on El Ocaso coffee farm in Salento, Colombia
Coffee bean machine on El Ocaso coffee farm in Salento, Colombia
Coffee plant on El Ocaso coffee farm in Salento, Colombia
Person's hand picking a coffee plant on El Ocaso coffee farm in Salento, Colombia
Coffee bags on El Ocaso coffee farm in Salento, Colombia

Geisha coffee

One of the unique local coffees is the famous Geisha coffee, which is renowned for its exceptional qualities and unique flavor profile, making it one of the world’s most sought-after and expensive coffees. Here’s why it’s special:

  • Unique Flavor: Geisha coffee is celebrated for its aromatic, almost tea-like flavor. This Arabica hybrid subspecies, cultivated in the Panamanian highlands at altitudes over 5,000 feet, is difficult to grow, adding to its exclusivity. It exhibits a light body accompanied by highly aromatic flavor notes like jasmine, tart fruits, papaya, mango, berries, and oranges, with a bergamot aftertaste​​​​.
  • Historical and Geographical Significance: The beans were initially isolated in Gesha, Ethiopia, in 1936 and later exported to Central America. The farm Hacienda la Esmeralda in Panama played a pivotal role in popularizing Geisha coffee by growing it at higher altitudes, which enhanced its elegant and unique flavor​​.
  • Impact of Terroir: Like wine, Geisha coffee’s flavor is profoundly influenced by its terroir – the natural environment where it’s grown. Factors such as the coffee’s growing location, processing, roasting, and even the season of picking can impact the beans’ final flavor​​.

6 Enjoy the sunset from a rooftop bar

There are some serious views from Panama city rooftops, and good cocktails to be had. Here are my top 4 suggestions for a relaxing evening in Casco Viejo:

Selina Rooftop (6th floor) | Located on the 6th floor of the Selina Casco Viejo hostel, this rooftop terrazza is vibrant and tropical-chic, complete with a rooftop pool and lots of greenery. It hosts weekly events like acoustic concerts and live DJs. Enjoy craft beers and refreshing cocktails with fantastic views over Casco Viejo and the city skyline​​.

Sama Sky Lounge (4th floor) | Situated in Casco Viejo, this rooftop bar offers stunning views of the city skyline and the sea. It’s known for its unique vibe, oriental accents, and electric atmosphere, where locals and tourists alike can enjoy live performances. It’s a perfect spot for unwinding after a day, enjoying a romantic evening, or dancing the night away​​.

CasaCasco (5th floor): Set in the heart of Casco Viejo, this venue spans 5 floors of entertainment, food, and drinks. The rooftop bar on the 5th floor, along with the 360º Terraza, provides panoramic views of the sea and Panama City skyline. The setting is stylish and luxurious, offering a wide selection of drinks and smaller bites from the three restaurants below​​.

Vista Corona (3rd floor): Situated on the 3rd floor in Casco Viejo, this vibrant, lush, and modern rooftop terrace offers great views over the Casco Viejo rooftops and the ocean. It’s a great place to enjoy crafted cocktails, Latin American bites, and dishes in a tropical setting​​.

View of Panama City from a rooftop bar

Here are some suggestions for a relaxing evening in the modern parts of the city:

Panaviera (66th floor) | Located on the 66th floor in Punta Pacifica, this is the highest rooftop bar in Central America. It offers breathtaking panoramic views over the ocean and Panama City. The menu includes a fusion of local and international cuisine, as well as a wide selection of drinks​​.

Wet Deck Bar at W Panama (15th floor) | Situated on the 15th floor in Campo Alegre, this stylish bar offers a mix of drinks and a fantastic rooftop pool with panoramic city views. It’s open to hotel guests all week and to the public on weekends, serving fruity drinks and international bites​​.

Luna Rooftop (31st floor) | Set on the 31st floor in Obarrio, this modern sky bar restaurant offers some of the best views in Panama City. The terrace is lush and stylish, providing a range of crafted cocktails, beers, wines, and tapas-style dishes, perfect for sunsets or special nights out​​.

7 Have one of your best meals in Central America

…If not the best. I’ve been to Panama City 3 times and never missed a chance to eat in Fonda Lo Que Hay. This is not a promotion, I’m just personally a massive fan. The first time I visited the place was tiny, we were very happy to have half of a square meter each at the bar. Since then they doubled in size and kept the amazing quality and atmosphere. The best thing they have is the Cassava Tostada with Tuna. Just order one when you arrive to Panama City, you will dream of it for the rest of your trip. Fonda Lo Que Hay offers popular Panamanian food at affordable prices in a casual setting. The concept is rooted in traditional ‘fondas’, which are small, economical eateries known for their no fixed menu approach. This means that the restaurant offers whatever is available, distinguishing it from typical restaurants and cafeterias​. It is also featured on the Latin America’s 50 Best Restaurants list. You can either reserve, or be prepared to wait (possible with a drink in the over-air-conditioned waiting area).

Fondo lo que hay restaurant in Panama City
Fondo lo que hay restaurant food in Panama City
Fondo lo que hay restaurant in Panama City

8 Visit the San Blas islands

Visiting San Blas is a wonderful experience and can be done on a day trip, but I don’t recommend it as it will be very hectic and less fulfilling. Before deciding to go it’s important to know that the islands are an adventure destination, not luxurious at all! Tourism on the San Blas Islands is strictly controlled by the Guna, the indigenous people owning the archipelago. They only allow certain islands to be visited, only serve a few kinds of food, and do not have many luxuries or amenities like in-room electricity or hot water. Essentially you have 3 options to visit:

Day Trip to San Blas | Your journey begins at 5 AM from Panama City, with a 2.5-hour drive to the water taxi. A 30-minute boat ride later, you’ll arrive at the beach by 9:30 AM. Spend the day swimming, snorkeling, and unwinding. Enjoy an included lunch, visit another island, and start your return around 4 PM, arriving back in Panama City by 7 PM.

Overnight Stay on the Islands | After arriving via flight or drive and a boat trip to your island, you’ll check into your room. Start your morning tour soon after arrival, visiting another island for swimming or snorkeling. Post-lunch, you have time to relax, followed by an optional afternoon tour. EYou can enjoy dinner and a stunning sunset, and fall asleep to the sound of waves and wake up to another day in paradise. You can book this as a tour or accommodation for a similar experience.

Sailing Through the Islands | Depart from Panama City to the port and board a sailboat or catamaran. Spend each day gliding across the Caribbean Sea, docking at new islands for adventures like kayaking, snorkeling, beach volleyball, hiking, or participating in traditional dances in a Guna community. Enjoy fresh seafood, learn about the Guna people, gather around a beach bonfire, and sleep in a hammock. Your guide will accompany you, offering a chance to bond with them and other travelers. After four days of relaxation, you’ll return to Panama City.

If you are planning to continue to Colombia after your stay in Panama, you have an additional option, to take a boat tour instead of flying. During this tour you will also spend days in paradise on the San Blas islands, just like in the sailing trip mentioned above. Read the detailed post about it here.

Pier in San Blas islands Panama

9 Visit Valle de Anton

Only two and a half hours by bus from Panama City, you’ll find the charming town of El Valle de Anton, nestled amidst verdant hills and cascading waterfalls. Originally a modest settlement, El Valle de Anton has expanded within the confines of a crater, now brimming with numerous homes as it’s become a favored getaway for affluent Panamanians. Beyond its appeal to hiking enthusiasts, who can enjoy several trails, El Valle de Anton is also an ideal destination for families and nature lovers. It offers unique attractions like an orchid garden, a butterfly haven, and soothing hot springs. It is possible to visit Valle de Anton on a day trip, but it’s much better to stay overnight, and even spend a few days hiking and relaxing in the area. I stayed in Casa Mariposa, a hotel that is also a sloth sanctuary, which was an amazing experience – finally I got to see sloths from up close, and learned a lot about their nature and habits. Also the hosts Harry and Ursula were incredibly kind and caring.

Sloth in Valle de Anton, Panama
Plants in Valle de Anton, Panama

10 Visit the Pearl Islands

You can visit the Pearl Islands as a day tour from Panama City, but it is much more recommended to stay at least for one night, preferably more. The Pearl Islands is considered an insider’s favorite – many locals and expats regularly visit, but it’s not a big hit with international tourists (who tend to quickly leave for Bocas del Toro or the San Blas islands). It’s very easy and quick to visit, as transport is really well organized. I stayed in Isla Contadora for a few days, in a small and cozy boutique hotel. Contadora is one of the smaller islands in the archipelago, there aren’t any shops and only a few restaurants, so be prepared when you go.

View of the ocean with palm trees in the Pearl Islands, Panama

11 Go shopping

There are several options to choose from. You can do fancy overpriced shopping in beautifully presented designer spaces in Casco Viejo, you can visit a local market with local prices for  handicrafts, or you can even go to one of the massive shopping malls in Panama. Each of these options is fun in its own way.

Albrook mall | You’re most likely to encounter Albrook mall if you’re leaving Panama City by bus, because it’s directly next to the bus station. Navigating from one end to the other takes about an hour. Spread over two levels, it houses a cinema and an expansive food court dominated by fast food options and a full-sized carousel at its center. The shopping variety is extensive and generally pretty affordable. While international brands like Casio, Adidas, Converse, etc. are present, the more interesting ones are the local Panamanian shops, and just the overall atmosphere in general. It’s not worth coming here just for the mall, but if you’re headed to the bus station, make sure to stop by!

Santa Ana market | Going from Casco Viejo towards Avenida Central, you’ll arrive in Santa Ana. Adjacent to the church, there’s a quaint covered market. This is a great spot for authentic local handicrafts, which are offered at more reasonable prices than the upscale tourist shops in the Old City.

Panama hat | Shopping for the iconic Panama hat is also possible of course. The experience will be very different if you’re looking to buy a cheap hat as a souvenir or if you’re looking for the real deal – a good quality handcrafted hat. If you’re keen on the latter, look for Victor’s Panama Hats in Casco Viejo, and read a bit online about how to spot quality.

Fun fact –  the Panama hat that was worn (and made famous) by US President Roosevelt at the opening of the Panama Canal, is originally from Ecuador,  the only place in the world that has a long lasting weaving tradition. Despite their name, Panama hats have never been made in Panama. The construction workers building the Panama canal used Ecuadorian Hats as protection from the harsh sun. Ecuadorians themselves call their hats “sombreros de paja toquilla”, or “hats of toquilla straw” (or simply “Toquilla”), but historically, throughout Central and South America, people also referred to Panama hats as “Jipijapa” or “Montecristi” hats.

Woman looking at souvenirs in an outdoor market in Panama City
Local seller woman with her ware in a food market in Panama City

How much time you need

I spent about five days total in Panama City and have been several times (due to flights). I always try to stay at least one night, to be able to walk around a bit and eat at some of my favorite places. I like Panama City, I think it’s one of the more enjoyable bigger cities in Central America and there’s plenty to occupy you for 2-3 days for sure!

How to get around

Panama City boasts a comprehensive public transportation network, including buses and a metro system. To utilize these services, you first need to purchase a rechargeable card for $3 at any subway station. You can then load it with the amount needed for your planned journeys (the minimum top-up is $1). Metro rides cost $0.35 each, while bus fares are $0.25 per trip. An exception to this system are the older, often crowded ‘chicken buses,’ which accept cash payments. Uber is a convenient alternative, particularly for airport transfers, as it is significantly cheaper than traditional taxis. For local cabs, it’s advisable to agree on the fare beforehand.