Tourism in Panama is increasing, and with good reason. You can base yourself in a city with a surprisingly modern skyline, then easily escape to mountain hikes, jungle views, or tropical islands at a fraction of the price of Europe or America. Panama City is the hub that makes all of that possible, blending history, culture, and everyday life with relatively easy transportation and real value. This post focuses on Panama City as a starting point, but stay tuned for more posts to explore the islands and mountains.
While Panama overall is a great budget destination, there’s no doubt that parts of the country have gone upscale to meet the demand of foreigners and a growing expat presence. In touristy places like Casco Viejo, a latte will run $5-6, but outside of that, $1.25 or $1.50 gets you the same drink. There’s two-dollar ceviche at a seafood stand right next to touristy restaurants at the fish market, charging $8.
First Impressions of Panama City
My first impression of Panama City, on the Uber ride from the airport, was amazement at how big and modern the skyline is. The city is divided into the old town and the business district, and the business district is dominated by one high-rise after another, giving it an incredibly modern feel.
Many tourists stay in the old town, known as Casco Viejo, which is a fantastic place to stay, but it also tends to be the most expensive. I stayed in El Cangrejo, a neighborhood just a couple of miles away. From there, you can access the old town either by subway (which is very easy to use) or by Uber.
Most of my Uber rides averaged around $4–$5 (about $20 to the airport). There’s also another app called InDrive, which is even less expensive. Uber does more background checks and safety precautions, so that’s what I used as a solo female traveler, but I heard from several people who used InDrive and had no issues at all.
Visiting the Panama Canal (Without an Expensive Tour)
My first stop in Panama City was the Panama Canal. You can take tours of the canal, and you even ride a boat through it, but both of those options are pretty expensive, and it’s quite easy to visit on your own.
The canal isn’t accessible by subway, but as I mentioned, Ubers are relatively inexpensive, so that’s how I got there. I bought my ticket for the Miraflores Locks Visitor Center in advance for US$17. The recommendation was to buy ahead of time, but when I arrived, the lines were long for both the “with tickets” and “without tickets” lines. In fact, the line for people buying tickets on-site was actually shorter, so you might be better off just showing up and buying when you arrive.
The visitor center has viewing areas where you can watch ships pass through the canal with a narrator explaining how it works. Ship crossings are most frequent early in the morning and later in the afternoon. I watched a couple of smaller boats as well as a cruise ship go through, and it’s pretty impressive to see how quickly the locks work, lowering and equalizing the water levels so ships can pass through a series of very narrow chambers. Small locomotives guide the ships, but don’t actually pull them.
There’s also an excellent 45-minute IMAX movie narrated by Morgan Freeman in 3D, which provides a great history of the canal, the failed attempts before the successful one, and the history between Panama and the U.S. in terms of canal ownership.
Free and Inexpensive Things to Do in Panama City
Beyond the canal, there are so many free and relatively inexpensive things to do in Panama City. Panama City’s Line 1 subway is only $0.35 per ride and very easy to use. That said, many places you may want to go, like the Amador Causeway or Punta Pacífica, don’t have direct subway stops.
Hiking Cerro Ancón
One of my favorites was hiking Cerro Ancón, the hill in the middle of the city. Once you get to the start of the hike, it’s only about a mile to the top, and the panoramic views are incredible.
From the summit, you can see the Panama City skyline, the Cinta Costera (the semi-circular highway built out over the water to alleviate traffic), the Amador Causeway, a scenic road connecting the Amador Islands, and even the Panama Canal. It’s a great place to get a true perspective on the city — and of course, it’s completely free.
You can walk there from Casco Viejo, or take an Uber or the subway to 5 de Mayo and walk about 3km from there.
Exploring Casco Viejo
Wandering Casco Viejo is a must. The old town is filled with quaint squares, beautiful churches and cathedrals, and a ton of history. You can still see remnants of the old city walls, and historically, there was very much an “inside the walls” and “outside the walls” class system.
One of the highest-end hotels in Casco Viejo, the American Trade Hotel, right by the walls, used to be a crack house. The area is extremely safe and heavily monitored by police now, but it wasn’t that way just 25 years ago.
There are relatively inexpensive walking tours and bike tours that are a great way to learn the history. I did a bike tour that included Casco Viejo, surrounding neighborhoods, the Canal Monument, part of the Cinta Costera, food markets, and the Mercado Público del Marisco (the seafood market). Pro-tip: Between the market itself and all the restaurants is a take-out shop called Olivares with incredible ceviche for just $2.
At night, Casco Viejo becomes an incredibly lively place. There are great rooftop bars with stunning views of the city, including Sama Sky Lounge and Tantalo Rooftop.
Cinta Costera and the Amador Causeway
The bike company let me keep the bike at no extra cost after the tour, so I continued riding along the Cinta Costera and out to the Amador Causeway. It was a fantastic way to spend an afternoon with amazing coastal views and quite a bit of history. The BioMuseo on the Causeway is highly recommended, but has limited hours, so check before you go. Even checking out the outside of this building is worthwhile. The Causeway connects 4 islands that were formerly used as military bases, but now hold shops, restaurants, and hotels.
Where to Stay
Casco Viejo is the most popular place to stay, but it’s not the cheapest. Viajero Casco Viejo Hostel is a well-located option with a strong community feel, co-working space, rooftop pool, and bike rentals.
More affordable hotel options can be found in El Cangrejo, including Hotel Principe or Hotel Coral Suites.
While Panama overall is a relatively inexpensive destination, Casco Viejo has definitely become more touristy, and prices there are much higher than in other parts of the city. I could get empanadas in El Cangrejo for $1, but meals in Casco Viejo often ran $15–$20. There are dining bargains to be found, but far fewer in the old town.
Currency in Panama
The U.S. dollar is accepted everywhere in Panama. The country also has its own currency, the Balboa, which is pegged 1:1 to the U.S. dollar. You may receive change in either currency, so be sure to use up any Balboas before leaving (Balboas are coins only, no bills). If you’re carrying U.S. dollars, you never need to worry about exchange rates.
Easy Excursions From Panama City
Panama City also makes a great base for day or multi-day trips. You can visit Gatun Lake, the man-made lake that feeds the canal, or use the city as a jumping-off point for destinations like the San Blas Islands or Bocas del Toro for gorgeous beachfronts or Valle de Antón or Boquete for mountains and volcanoes.
The Thrifty Gist
- Panama City can still be done on a budget despite rising tourism and some upscale prices in high tourist areas.
- Casco Viejo is the most popular place to stay, but it’s also one of the more expensive. Nearby neighborhoods like El Cangrejo and Bella Vista offer a wide range of hotels at better value with easy access via Uber or subway.
- Ubers are cheap and plentiful, usually costing $4–$5 per ride in-town. Or try the InDrive app. The subway is even cheaper at $0.35 per ride, though stops are limited.
- You don’t need an expensive tour to visit the Panama Canal. The Miraflores Locks Visitor Center provides a great way to really understand the history and operations of the canal at a fraction of the price.
- Cerro Ancón offers one of the best free views in the city, with panoramic sights of the skyline, Cinta Costera, Amador Causeway, and the Panama Canal.