Panama is one of those countries that looks fairly small on a map but can take you surprisingly far from one type of experience to another. You can be looking at skyscrapers and the Pacific Ocean in Panama City in the morning, walking through rainforest in the afternoon, drinking coffee in the mountains the next day and then sitting on a Caribbean island a few days later. Panama is also relatively easy to travel through compared with many countries in the region, which is one reason it works so well for both first time visitors and backpackers. But there are a few things that are really useful to know before you arrive, and understanding them can make your trip considerably easier.
The Basics
Panama is in Central America and connects North and South America. It borders Costa Rica to the west and Colombia to the southeast, with the Caribbean Sea on the north side and the Pacific Ocean on the south side. One of the country's great advantages for travelers is its geography. You can actually travel from the Pacific side to the Caribbean side in a relatively short amount of time, and the country has an enormous variety of landscapes despite its relatively compact size. Panama City, the Panama Canal, Caribbean islands, Pacific beaches, cloud forests, tropical lowlands, mountains and huge areas of rainforest can all be part of the same trip.
Panama uses the US dollar alongside the Panamanian balboa. The balboa has the same value as the US dollar, and US dollar bills are what you will normally use. Panamanian coins circulate alongside American coins and have the same denominations and value. You therefore do not have to worry about exchanging money into a completely different currency when you arrive, which is one of those small things that makes traveling in Panama wonderfully uncomplicated.
English is widely understood in many tourist areas, particularly in Panama City, Bocas del Toro, popular beach destinations and hotels and hostels that receive international travelers. But Spanish is the national language, and knowing even a little Spanish will make your experience considerably better. Being able to say hello, thank you, please, how much, where is, and a few basic questions can take you a surprisingly long way. Outside the major tourist areas, Spanish becomes much more important.
How Long Should You Spend in Panama?
You can technically see some of Panama in a long weekend, but you will barely scratch the surface. A week gives you enough time to experience Panama City and add one or two other destinations. Ten days to two weeks is much better if you want to combine the city, mountains, beaches and rainforest without spending your entire vacation sitting on buses.
If you have three weeks or more, Panama becomes much more interesting because you can slow down. You could start in Panama City, visit the Pacific coast, head toward the mountains around El Valle or Chiriquí, spend time in Boquete or at Lost and Found, and continue toward Bocas del Toro. You can also build a trip around surfing, diving, wildlife, hiking, coffee, islands or simply finding places where your phone barely gets a signal.
The biggest mistake people make is trying to squeeze too many destinations into a short trip. Panama looks small on the map, but roads, mountains, boats, traffic and tropical weather can make journeys considerably longer than the straight line between two places suggests.
When Should You Visit Panama?
Panama is warm throughout the year, but the country generally has a dry season from December through April and a wetter green season for much of the rest of the year. The dry season is popular because there are generally more sunny days, while the green season can bring heavier rain but also spectacularly lush vegetation and excellent conditions for experiencing Panama's forests and wildlife.
Do not automatically assume that rain means your vacation is ruined. Panama's rainy season can be fantastic. Tropical rain often arrives dramatically, dumps an enormous amount of water on everything, and then moves away. You can have sunshine again surprisingly quickly. The rain is also one of the reasons Panama is so green. If you want endless blue skies every day, the dry season may suit you better. If you want waterfalls flowing strongly, incredibly green forests and fewer travelers in some destinations, the wetter months can be very rewarding.
There is also a major difference between weather on the Pacific and Caribbean sides. Do not assume that the forecast for Panama City tells you what the weather will be like in Bocas del Toro or the mountains of Chiriquí. Panama is tropical, but local weather can vary considerably.
How Much Does Panama Cost?
Panama can be surprisingly affordable, particularly if you travel like a backpacker rather than as a luxury tourist. You can spend a fortune here if you want to, but you absolutely do not have to. There are inexpensive local restaurants, public buses, hostels, simple hotels, apartments and guesthouses, as well as luxury resorts and expensive restaurants.
One of the best ways to control your budget is to eat where locals eat. A basic local meal can be dramatically cheaper than eating every meal in tourist restaurants. Public transportation is another major money saver. Panama also has a large accommodation industry, meaning you can choose between hostels, hotels, guesthouses, apartments and vacation rentals depending on your budget.
The important thing is not to assume that everything in Panama is cheap. Some tourist activities, island trips, diving, private transportation and high end restaurants can become expensive very quickly. Panama is a country where you can travel cheaply or spend serious money. You get to decide which version of Panama you want.
Do You Need a Visa?
Visa requirements depend on your nationality, so this is something you should check before booking your trip rather than assuming everyone has the same rules. Panama's tourism authorities currently state that citizens of most countries do not need a visa for tourist visits of up to 90 days, although some nationalities have different requirements.
Panama currently lists a passport with at least three months of validity, proof of onward or return travel and evidence of financial solvency among its entry requirements. The stated minimum financial solvency is US$500, although immigration authorities can request additional evidence depending on circumstances and nationality.
This is one area where you should not rely on something you read in a five year old travel blog. Immigration rules change. Check the current requirements before flying, particularly if you have a less common passport or are planning to enter Panama by land.
Do You Need Proof of an Onward Ticket?
You should have proof of onward or return travel available. Immigration can ask for it, and airlines may also want to see evidence before allowing you to board your flight. It is one of those things that is much easier to have ready than to argue about at an airport check in counter.
If you are backpacking around Central America and do not know exactly when you will leave Panama, having an onward ticket is still something worth planning before you arrive.
What Is the Main Airport?
Tocumen International Airport, known as PTY, is Panama's principal international airport and one of the major aviation hubs in the Americas. Panama has an unusually extensive network of direct flights, with connections across North America, Central America, South America and Europe.
There are also domestic airports, including Albrook Airport in Panama City and airports serving places such as David and Bocas del Toro. This can make flying within Panama useful when time is more important than saving every dollar.
For backpackers, however, buses are often the more interesting option. You see more of the country, spend less money and sometimes end up having the most memorable conversations with complete strangers.
Is Panama Easy to Travel Around?
Generally, yes, but you need to understand that Panama is not Europe with palm trees.
Distances can be deceptive. A destination that looks close on a map can take considerably longer than expected because of mountain roads, traffic, local buses, road conditions or boat connections. Some destinations also require a combination of bus and boat.
Panama City has taxis, ride sharing, buses and the Metro. Between major cities and regions, buses are generally the backbone of affordable travel. Domestic flights can save a lot of time when traveling between Panama City and destinations such as David or Bocas del Toro.
If you are traveling slowly, public transportation can be an excellent way to experience the country. If you have only seven days and a long list of destinations, flying may make more sense.
Do You Need to Rent a Car?
Not necessarily.
If you are staying in Panama City, you probably do not need one. If you are backpacking through the country, you can also get around without a car. Panama has buses, taxis, ride sharing, domestic flights, tourist shuttles and boats.
A rental car becomes much more useful if you want to explore rural areas independently or create your own road trip. It gives you flexibility, but remember that driving in Panama can be very different from driving at home. Traffic in Panama City can be intense, motorcycles appear from places you didn't know existed, and rural roads can have their own personalities.
If you are driving through the mountains, give yourself extra time. Fog, rain, winding roads and slower traffic can turn a seemingly simple journey into a much longer adventure. Panama's tourism authority specifically advises travelers on mountain routes to check weather conditions and avoid driving in foggy conditions or late at night.
What Should You Pack?
Pack for heat, humidity and rain.
Lightweight clothing is essential, but bring something that dries quickly. A good rain jacket or lightweight poncho is extremely useful. Comfortable walking shoes are much more important than fashionable shoes, particularly if you plan to explore waterfalls, forests or mountains.
Bring sunscreen, insect repellent, a reusable water bottle, sunglasses and a small dry bag for electronics. A waterproof phone pouch can be surprisingly useful when you are traveling by boat or hiking in wet conditions.
If you are visiting the mountains, bring something slightly warmer. Places such as Boquete and the higher areas of Chiriquí can feel considerably cooler than the lowlands.
And bring a little patience.
It is not technically something you can put in your backpack, but it is useful in Panama.
Should You Drink the Tap Water?
Tap water is generally considered safe to drink in Panama City and many developed areas, but conditions can vary by location. When traveling into more remote areas, asking your accommodation whether the local water is safe is sensible. Bottled water is widely available if you have any doubts.
A reusable bottle is a good idea because you will quickly discover that buying tiny plastic bottles all day is both expensive and environmentally annoying.
What About Mosquitoes?
Yes, there are mosquitoes.
Panama is tropical. This should not come as a shocking development.
The number of mosquitoes varies dramatically depending on where you are and the time of day. Forest, wetlands, rivers and rural areas can have considerably more insects than urban areas. Bring repellent and use it, particularly around dawn, dusk and in areas where mosquitoes are active.
You do not need to spend your entire vacation hiding indoors. Just be sensible.
Is Panama Safe?
Panama is generally a very manageable destination for tourists, but like anywhere else, common sense matters. In Panama City, pay attention to where you are walking, particularly at night. Keep your phone and valuables secure in crowded areas and avoid displaying large amounts of cash.
Outside the city, the risks are often different. You need to think about tropical weather, rivers, slippery trails, boats, ocean currents, wildlife, heat and getting lost rather than just petty theft.
One of the biggest mistakes visitors make in tropical countries is assuming that nature is harmless because it looks beautiful. Rivers can become extremely powerful after heavy rain, trails can become slippery and the ocean can have strong currents. Respect the environment and listen to local advice.
Panama Has Serious Wildlife
If you like wildlife, Panama is an incredible country.
You can encounter monkeys, sloths, toucans, hummingbirds, iguanas, caimans, crocodiles, snakes, frogs, butterflies, bats and an enormous variety of insects. Panama is also an important destination for birdwatchers, with an extraordinary diversity of species.
But wildlife is exactly that, wild.
Do not feed monkeys. Do not try to pick up unusual frogs. Do not put your hand into holes in trees or under rocks. Do not assume a snake is harmless because it is small. And do not get close to animals simply because another tourist is taking a photograph.
The best wildlife encounters are usually the ones where the animal has absolutely no idea you are there.
Panama Is Fantastic for Nature
One of the biggest mistakes a visitor can make is spending the entire vacation in Panama City.
The city is fascinating, but Panama's real superpower is its biodiversity.
Rainforest, mountains, coral reefs, mangroves, islands, cloud forests, rivers and beaches are all within reach. Panama City itself even has substantial areas of nature nearby, including Metropolitan Natural Park and the forests around the Panama Canal.
You do not have to be an extreme hiker either. There are easy nature walks, wildlife tours, boat trips, waterfalls, beaches and viewpoints suitable for people who would rather not climb a mountain before breakfast.
Panama City Is Worth More Than One Night
A lot of backpackers treat Panama City as an airport with skyscrapers attached.
That is a mistake.
Give the city at least a couple of days if your itinerary allows it. Explore Casco Viejo, see the modern skyline, visit the Panama Canal, walk around the waterfront and explore some of the city's food scene. Panama City combines modern architecture with colonial history and tropical nature in a way that is unusual for Central America. It is also a UNESCO Creative City of Gastronomy.
The Panama Canal is obviously worth seeing, but the city itself is more interesting than many first time visitors expect.
Don't Forget the Caribbean Side
Bocas del Toro is probably the best known Caribbean destination in Panama, but the Caribbean experience goes far beyond one group of islands.
Bocas offers beaches, snorkeling, diving, surfing, boat trips, nightlife and a huge international backpacker scene. It can be lively, social and extremely easy to meet other travelers.
But Panama's Caribbean coast also includes quieter islands, indigenous communities, rainforest and remote areas where the experience can feel completely different.
If you have the time, do not simply fly into Bocas, spend three nights partying and fly back out. Look around.
Don't Forget the Mountains
The mountains of Chiriquí offer another side of Panama entirely.
Boquete is famous for coffee, cool temperatures, hiking and mountain scenery. The highlands around Volcán offer farms, forests and spectacular views. Then there are places such as Lost and Found Hostel where you can be surrounded by tropical forest and wildlife while still being part of a social backpacker environment.
This is where packing that light jacket becomes a very good decision.
Learn to Use Panama's Bus System
If you are traveling on a budget, buses can be your best friend.
Do not expect every bus station to operate like an international airport. Local buses can be basic, schedules can change and sometimes the easiest way to figure out where to go is simply to ask someone.
Learn the Spanish names of your destination and your route.
Keep small bills.
Carry some cash.
Arrive with a little extra time.
And if you're unsure where to get off, ask.
Panamanians are often much more helpful when you make the effort to communicate in Spanish, even if your Spanish consists mostly of five words and a very optimistic pronunciation.
Cash Is Still Useful
Even though cards are widely accepted in Panama City and tourist areas, do not assume you can travel entirely without cash.
Small restaurants, local buses, roadside shops, markets and rural businesses may prefer cash. Carry some smaller denominations rather than a wallet full of large bills.
ATMs are common in populated areas, but if you are heading somewhere remote, withdraw enough money beforehand. Finding out that the only ATM in town is broken is not the kind of adventure anyone puts on Instagram.
Panama Is Not Just a Beach Destination
This is perhaps the most important quick fact of all.
Panama has beaches, but it is much more than beaches.
You can spend your trip surfing, diving, hiking, birdwatching, looking for monkeys, exploring indigenous culture, drinking coffee, visiting islands, learning about the Canal, eating seafood, exploring rainforests or simply moving slowly from one interesting place to another.
That variety is what makes Panama so good for independent travel.
You can build almost any kind of vacation here.
Don't Overplan Every Day
This is particularly important in Panama.
Leave gaps in your itinerary.
If you meet somebody interesting at your hostel and they are heading somewhere you had not considered, you might want to join them. If you discover a waterfall, beach or mountain town you love, you might want to stay another night. If it rains all afternoon, you may not want to follow the carefully constructed schedule you created six months ago.
Panama is a country where flexibility can make a trip better.
Some of the best travel experiences happen because you didn't leave enough room in the schedule for them.
Hostels Can Be a Great Way to Travel
If you are traveling alone, hostels can make Panama much more enjoyable. They are social places where you can meet other travelers, find people heading in the same direction, share transportation, discover activities and sometimes end up with travel companions you never expected to have.
A place like Lost and Found Hostel is a perfect example because the social experience is combined with nature and adventure. You can arrive alone, sit down at dinner, meet travelers from around the world and suddenly find yourself planning the next day's adventure with people you met only an hour earlier.
That is one of the great advantages of traveling through Panama by hostel rather than simply moving from hotel room to hotel room.
The Most Important Panama Travel Tip
Do not try to see everything.
Panama rewards travelers who slow down.
Spend a few days in Panama City. Go into the mountains. See the rainforest. Visit the Caribbean. Spend time on the Pacific if you can. Eat local food. Take a public bus at least once. Talk to people. Learn a little Spanish. Get out of the obvious tourist areas. Follow a road because somebody told you there was something interesting at the end of it.
And leave some space for the unexpected.
Panama is remarkably easy to visit, but it is even better when you stop treating it like a checklist. The country is small enough to move around relatively easily, diverse enough to keep surprising you and connected enough that you can build a trip around almost any interest. With the right amount of planning and the right amount of willingness to throw the plan out the window, Panama can be one of those trips where you arrive with an itinerary and leave with a completely different story.