Panama

Panama Travel Guide for First-Time Visitors

Panama is where Central America narrows, the Pacific and Caribbean sit less than an hour apart, and skyscrapers, cloud forests, and tropical islands all fit into one small, easy-to-travel country. Most people know it for the world-famous Panama Canal and the banking towers of Panama City, but travelers quickly find there is much more: the San Blas (Guna Yala) archipelago with turquoise water and Indigenous culture, coffee and hiking around Boquete, laidback Caribbean towns in Bocas del Toro, and off-the-radar Pacific beaches for surfers and snowbirds. Because Panama is compact, safe by regional standards, and uses the U.S. dollar, it is an excellent choice for first-time visitors to Central America. This guide gives you the practical details—money, language, transport, and safety—so you can focus on the fun.

Cities, Towns & Attractions Popular with Tourists

Panama City: Modern skyline, historic Casco Viejo, the Miraflores/Agua Clara Canal locks, Amador Causeway, and nearby rainforest (Metropolitan Park, Soberanía NP).
Casco Viejo (Old Quarter): Restored colonial area with boutique hotels, rooftop bars, plazas, and photo spots—great base for first-time visitors.
Panama Canal: A must-see. Most visit Miraflores Locks near the city; full or partial canal transits are also popular.
San Blas / Guna Yala Islands: Idyllic Caribbean islands run by the Guna people—boat transfers from the mainland, rustic stays, crystal-clear water.
Bocas del Toro: Caribbean archipelago near the Costa Rica border—overwater stays, beaches, nightlife, surfing, dolphin tours.
Boquete (Chiriquí highlands): Coffee farms, cool weather, Volcán Barú hikes, hanging bridges, canyon river tubing.
Pacific beaches (Playa Blanca, Santa Catalina, Pedasí, Venao): Resorts, surf, and whale-watching in season.
Coiba National Park: Top diving/snorkeling area reachable from Santa Catalina.

Good to Know

When to go: Dry season is roughly Dec–Apr and best for Panama City, beaches, and highlands. Rainy/green season (May–Nov) can still be great—expect afternoon showers, greener scenery, and fewer crowds. Caribbean islands can get rain anytime.
Size & connectivity: The country is small enough that you can combine city, islands, and mountains in 1–2 weeks.
Health: Tap water is generally safe to drink in Panama City and many towns, but check locally, especially on islands.
Costs: Panama is not as cheap as some neighbors; the capital can feel U.S.-priced.
Respect for Guna Yala rules: In San Blas you are in an autonomous Indigenous territory—follow local rules on photos, drones, and alcohol.

Currency & Budget

Currency: Panama uses the U.S. dollar (USD) as legal tender. There is also the Balboa (PAB), but it is pegged 1:1 to the dollar and mostly used for coins. This makes money handling very easy for U.S. travelers.

Exchange rate: 1 USD = 1 PAB. If you bring USD, you can spend it directly.

Average daily budget (approx.):

Backpacker: 45–70 USD/day – hostels/guesthouses, local buses/metro, cheap eats, shared island tours.
Midrange: 90–170 USD/day – good hotels in Casco Viejo or Panama City, domestic flight to Bocas or David, canal visit, nicer restaurants.
Luxury: 200–350+ USD/day – boutique stays, overwater bungalows in Bocas, private San Blas trips, diving, guided nature experiences.

Tipping: Many restaurants add a 10% service charge. If not, 10% is appreciated; more for excellent service. Tip guides, boat captains, and drivers, especially on the islands.

Credit card acceptance: Very good in Panama City, airports, malls, and mid-to-upscale restaurants. Outside the capital—on islands, in small towns, or with boat operators—cash is still king.

ATMs: ATMs are common in Panama City (use those inside banks/malls). In Bocas, Boquete, and smaller beach areas, there may be fewer machines or they can run out—bring enough cash for a couple of days.

Best way to get cash: Bring a no-fee debit card, withdraw USD from bank ATMs, and carry small bills (1, 5, 10) for taxis, tips, and island fees.

Language & Communication

Official language: Spanish.
English: Widely spoken in Panama City’s tourism sector, by Canal staff, and in Bocas del Toro; less so in purely local neighborhoods and rural areas.
Other languages: Indigenous groups (e.g. Guna, Ngäbe-Buglé) have their own languages in their territories.

SIM cards / eSIM

Main providers: +Movil (Cable & Wireless), Digicel, and Tigo.
Where to buy: Tocumen International Airport on arrival, official operator stores in malls, and some convenience shops. Bring your passport for registration.
Tourist eSIM: Easiest option—buy online before you land and activate instantly.
Coverage: Good in and around Panama City, the main highway, and bigger towns. Can be weaker in remote islands and some mountain areas.

Power Plugs & Voltage

Voltage: 110–120V, 60 Hz (same as U.S./Canada).
Plugs: Type A and B. Travelers from North America usually do not need an adapter; others should bring a simple North American adapter.

Getting Around

Flights: Domestic flights from Panama City (PAC or PTY) to Bocas del Toro or David (for Boquete) save time.
Buses: Comfortable, inexpensive intercity buses leave from Albrook Bus Terminal in Panama City to almost everywhere; buy tickets in advance for popular routes.
In Panama City: Modern metro, city buses, and taxis. You may need a rechargeable card (Metro/Metrobus).
Boats: Essential for San Blas and Bocas del Toro—use recommended operators and wear lifejackets.
Car rental: Good if you plan to explore beaches on the Pacific, Azuero Peninsula, or highlands; driving in Panama City can be hectic.

Safety

Overall: Most visitors have a trouble-free trip. Panama is considered relatively safe for tourists compared with some neighbors.
Petty theft: The most common issue. Keep valuables out of sight, especially in Casco Viejo at night, on buses, and in busy downtown areas.
Taxis & rides: Use official taxis, your hotel’s trusted drivers, or ride-hailing apps where available—especially at night.
Remote areas: On islands or in autonomous territories, follow local guidance and stay with reputable tour operators.
Weather & boating: Sudden storms can make sea crossings rough—listen to your captain.

Common Tourist Scams & Annoyances

Taxi overcharging: Some taxis try to overcharge foreigners or “forget” the meter—ask the price before getting in.
Unofficial Canal tours / city tours: Book through your hotel or a known agency to avoid rushed or incomplete tours.
ATM/card skimming: Use machines inside malls/banks and check for tampering.
Island extras: In San Blas or Bocas, confirm what is included (meals, island fees, snorkeling gear) before paying.

Base yourself in Panama City, add a few days in Bocas or San Blas, and finish in the highlands—you’ll get a perfect first taste of Panama.