A Panama vacation could offer you a nice budget travel situation—an affordable luxury. Consider three levels of comfort found several years ago on a small island along Panama's east coast.
Learn about things to do, food, taxis, snorkeling, and much more.
Great Hotel and Resort Values
On a trip to Isla Bastimentos, the Bocas Bound hostel charged $13 for an overnight dorm stay and offers access to a zip line tour, kayaking, surfing lessons, and choice snorkeling. Their private hotel rooms were $75/night.
A short distance away are the Red Frog Beach Rainforest Resort rents villas that could easily accommodate two families. They're equipped with full kitchens, a private pool, and patio, two full bedrooms. and two and a half baths. The cost during a discounted period was $176/night.
Prices during your search will be higher, but the example still merits consideration. Similar values can be found in urban areas.
As with any national capital, Panama City offers five-star hotels and prices to match. A property of that type exists in the Marbella section, with room rates that can reach $260/night. Two minutes away by foot is a series of small apartments that can be rented for as little as $60/night through services such as airbnb.com. They put you in the same upscale neighborhood with easy access to stores and restaurants. You enjoy the same safety and freedom to walk around day or night. You just don't have to pay the big-city prices.
Cheap Hostel Rooms, Some With Air Conditioning
The most frugal of budget travelers discovered Panama long ago.
They know if they visit Panama City armed with some money-saving tips, it can be among the more affordable capitals in the region.
In the resort town of Bocas Del Toro on the northeast Caribbean coast near the border of Costa Rica, you'll find a variety of offers similar to what's pictured here. At those prices, you might be sharing a room with several strangers and depending upon sea breezes to keep you cool. But if your budget is greatly limited, Panama presents the possibility of touring and lodging that is well below what most travelers find in their home countries.
There is a middle ground, too. Basic hotels with private rooms frequently charge $50 or less for an overnight stay. You might have concrete block walls and worn furniture in your room, but for travelers who spend most of their time on the run and simply need a place to sleep, Panama can be easy on the budget.
Affordable World-Class Zip Lining
Zip Lining began as a way for botanists to observe the rainforest without making damaging or personally dangerous hikes. Popularized in neighboring Costa Rica, the zipline or canopy tour experience has gained worldwide popularity.
In Panama, Boquete Tree Trek offers a three-hour trip that spans a dozen platforms. Safety is paramount in this operation, and the fee includes all the needed equipment plus a detailed safety lecture prior to arrival at the first platform.
The base camp is probably 2,000 ft. above the village of Boquete, which places its overall height at about 6,000 ft. above sea level. Fortunately, a 4x4 transport truck takes you most of the way. The 10-minute hike to the first platform is level and pleasant (at this elevation, the temperature is under 70 degrees all year).
The company also provides mountain biking, hiking, and fishing expeditions. It has its own restaurant and lodging facilities at the base camp.
An Abundance of Wide, Empty Beaches
With both Pacific and Caribbean coastlines, Panama offers an array of attractive beaches. Some appeal to surfing enthusiasts, while others are great for snorkeling and simple relaxation.
Another physical feature of the Panamanian coastlines is islands chains. Some of these islands are large enough to have landing strips, small towns, and even tourist facilities. But many others are either uninhabited or the home of indigenous people such as the Kuna on the Caribbean coast.
So there is much to explore and experience here -- and you often make those explorations without having to fight crowds. It's not unusual to visit a Panamanian beach and have it largely to yourself.
The trade-off for tourists is that many of the finest beaches are fairly remote and perhaps lacking large selections of restaurants and resorts.
Short, Cheap Flights From North America
Although Panama City isn't too far from the northern reaches of South America, it is only a three-hour flight from Miami. Panama City has become one of the most important banking cities in the western hemisphere, so business fliers have prompted a strong selection of flights to east coast cities in the U.S. as well as South America.
Sometimes, casual airfare shopping for Panama City's Tocumen Airport can turn into a budget vacation. For example, American Airlines once offered an eye-popping one-way sale fare of $84 to Panama City from either Orlando or Miami. With taxes and fees, that figure jumped to nearly $140. Typical fares today might run three times that amount. It was one of those deals that appeared and vanished in a short time.
American isn't the only airline to offer deals to Panama, so it pays to aggregate your airfare search by using a tool that reviews at multiple sources.
The so-called "Green" (read "rainy") season in Panama begins during summer and continues into the fall.
Great Wildlife Watching
Dolphin Bay is just a few miles from the village of Bocas Del Toro, and you can book an all-day porpoise watching/snorkeling trip. The best time to spot porpoises at play is in the morning. By afternoon, they've moved to deeper, cooler waters.
You probably won't be in Panama for too long before you notice people with their eyes inclined upward. They'll be looking at three-toed sloths lazing the day away in a tree branch. It's fun to see how many of these unusual sights you can spot on a hike through the rainforests and parks of Panama.
Bird watchers are unlikely to find a place much more friendly than Panama. Quetzals and macaws can be found with a little patience and local knowledge. In all, more than 900 species of birds can be seen in Panama, making it one of the best bird-watching sites in the world.
All of these pleasures come at relatively little expense. Shop carefully: Tours designed to reveal the various habitats can be expensive.
Snorkeling Near Bocas Del Toro
Diving and snorkeling enthusiasts will find Panama offers fine opportunities on both coasts.
On the Caribbean side, the area around Bastimentos Island is known for its snorkeling options. There are shallow reefs protected from ocean waves by mangroves that make for wonderful snorkeling. At the southern end of Bastimentos (which is a maritime preserve) are the Zapatilla islands, which feature some of the best snorkeling in Central America.
At certain times of the year, snorkeling here can be difficult. Wave action in the channel between Bastimentos and these smaller islands can make for poor visibility and require some strong swimming skills. It's best to go with a guide, who will be well-versed on the current conditions and take you to spots that are most likely to be interesting.
In Bocas Del Toro, consider Jampan Tours. There is a lunch stop at a seafood restaurant, but the food is not included in the tour price. Also not included is a government fee per person for entering the marine reserve.
Taxi Cabs Without Meters
We've all dreaded cab rides in unfamiliar cities, where we fear the driver will take the long route to run up a bigger bill. Such mishaps are far less likely in Panama.
Cabs here do not have meters, so it's essential that you agree to a price for the ride before you get in and shut the door.
Within Panama City, even rides across town can the for less than $10; and most are $5 or less. One notable exception is the ride between Tocumen Airport and the city center, which can cost $25-$30.
It's best to leave the driving in Panama City to professionals. Traffic moves fast and drivers rarely yield the right of way. When you combine these rather treacherous driving conditions with people who don't know where they are going, it creates some big potential problems for those planning a car rental. Unless your trip dictates otherwise, avoid a car rental.
Outside of Panama City, driving is far less difficult. But cabs remain fairly cheap across the country.
Cheap Cross-Country Flights
Two of the nation's most interesting destinations are more than 250 miles to the west of Panama City: Bocas Del Toro, which is situated on an island along the coast, and Boquete in the mountainous area near the border with Costa Rica.
The Pan-American highway covers much of that distance, but there are secondary roads through the mountains that can be slow to cross.
Budget travelers who want to save time during their stays can book a domestic flight between Panama City and Bocas Del Toro or David (south of Boquete) for as little as $80 before taxes. The flights generally last about an hour. The domestic airport in Panama City is located in the Albrook section of what was once the Canal Zone, so you'll be treated to a nice aerial view of the canal if the weather is cooperative.
David is the second largest city in the country and offers several hotel and car rental choices for air travelers.
Cheap Cross-Country Bus Ride
If you're traveling with several members in your party, a one-way airline ticket will save time, but you might not have the money to access that speed.
Much like public transportation in Costa Rica, bus fares in Panama are priced to serve the citizens, not gouge the tourists. Many in this country labor for less than $10/day in wages. So it shouldn't be too surprising that a bus trip from David (near the Costa Rican border) to Panama City sometimes is priced at less than $20/person.
This 260-mile trip takes 6-7 hours and includes a 20-minute lunch stop in Santiago, which is roughly the halfway point in the journey. The trip provides a close look at life in rural Panama. If you know Spanish, it can be an opportunity to make new friends and learn much about this country.
The bus isn't exactly luxurious, but it certainly doesn't fit the "chicken bus" stereotype so many travelers carry about Central American public transportation. You'll have a comfortable seat, a restroom aboard and, even a full-length movie to watch in transit.
Cheap, Filling and Tasty Meals
In Boquete, you can eat lunch in trendy bistros where the surroundings and prices resemble what Americans expect to find at home.
Let's employ a basic technique for finding affordable food in another country by eating where the locals choose to dine.
A typical Panamanian plate is stocked with rice, beans, and meat. A small salad and some plantains round out the meal.
You won't need a guidebook to find affordable food finds -- they are on the main street and frequently crowded with local repeat customers at meal time.
Currency: The U.S. Dollar
Currency exchanges can be costly during a trip. You're often converting several times, losing a percentage of your cash with each transaction. But such exchanges for U.S. tourists visiting Panama are unnecessary.
Technically, Panama's unit of currency is the Balboa, named in honor of the famous explorer. But since one Balboa equals one U.S. dollar, the government no longer prints its own currency. Thus, U.S. currency is used for all of your transactions in Panama.
Coinage is another matter, but you'll find that the pennies, nickels, dimes, and quarters are similar in size to their counterparts in the United States and Canada. Tourists try to spend their change because it generally is not accepted elsewhere. Some bring home souvenir pocket change.
Cosmopolitan Panama City
Panama City is a diverse metropolis. Many here trace their ancestries through people who arrived to help build the Panama Canal nearly a century ago. It was a project of worldwide significance, and it drew workers from around the globe.
Today, the city continues to draw investors from throughout Latin America and beyond. Evidence of this rapid economic growth can be seen in the picture. Imagine this: Prior to the toppling of the Noriega regime in the late 1980s, there were no buildings here taller than 20 stories. Today, Panama City's skyline ranks among the most impressive in the Western Hemisphere.
Visitors arrive to find a surprising array of restaurants and shopping opportunities. How about a shopping mall in the middle of the city with its own casino and health spa? Would you have guessed that a quality chain restaurant specializes in Middle Eastern dishes? Or that there is a sizable Chinese community here?
Panama City is full of pleasant surprises, which helps explain why it is becoming a popular destination for North American retirees.
Some of the World's Best Coffee
Coffee beans grow best within latitudes about 25 degrees north or south of the equator. Many countries produce larger coffee crops than Panama.
But few countries can compete with this small nation when it comes to international competitions that measure the quality of the coffee product. Geisha coffee from Chiriqui province has won some prestigious awards and has commanded some exclusive prices in the marketplace.
The unofficial center of the coffee business in Panama is Boquete, a mountain village that Modern Maturity recently ranked among the world's best retirement locations. Some of the coffee plantations in this region offer picturesque settings and are therefore bought and converted to private estates.
But Richard and Dee Lipner decided they would continue growing coffee on their property, even though they arrived from Berkeley, California with little knowledge about the business. Their Cafe De La Luna brand is named to describe this organic farm, which operates in conjunction with lunar phases for top results. Beyond his methods, Lipner sees Boquete as the "Napa Valley of coffee growing," with soil and climatic conditions that are ideal for producing the best product.
Lipner sells tours of his operation that will leave you fascinated with the subject of coffee and perhaps a bit envious of his adventuresome spirit. His is one of several tours in the area that allow visitors to sample the product and even take some home. Tours are typically 2-3 hours in duration and include transportation from the center of Boquete.
The Panama Canal
There are a variety of options for visiting the Panama Canal.
The basic, low-cost option is a stop at the Miraflores Locks, located just a few miles from the center of Panama City. Transportation here usually can be arranged for about $25 round trip. Be sure to opt for a full-visit ticket that grants admission to the observation deck, the well-designed museum and its theater for viewing a movie (in several languages) describing the canal's history and operation.
As you watch from the observation deck, giant container vessels slowly rise or fall 45 feet in about 10 minutes. Whether they rise or fall depends upon the direction of travel. Those bound for the Pacific will be dropping. Operations continue here around the clock.
For those who want more than just a look, there are small-boat partial- and full-transits available on certain days of the week. Ancon Expeditions is a trusted company offering these trips and tours of the nearby rainforests. These transits start at about $150/person; keep in mind that smaller tour boats do not have top priority in the canal. For that reason, this 80 km trip will often take a full day.
Intriguing Indigenous Art
A converted YMCA in the Balboa section of Panama City has become a destination for shoppers interested in Panamanian art. It's called Centro Artesanal and although some of what's for sale here is clearly junk aimed at tourists, you will also find native craftsmanship that will be of interest even if you are not a buyer.
The Kuna people have established an autonomous region along the Caribbean coast northeast of Panama City. These indigenous tribes live as they have for centuries, raising crops and fishing. Women continue to create the colorful embroidery that is traditional, but these days they sell their creations to tourists.
One traditional wrap is called a mola. It comes in various sizes and quality of the stitching varies. You will also find paintings and carvings throughout Panama that are worth considering, and prices are usually negotiable. But keep in mind that some of the sellers are struggling to feed their families. Weigh that sad fact against the bargain price you'd like to pay for their meticulous work.
Cool Mountain Retreats
Did you expect advice for visiting Panama to include the phrase "pack a sweater?"
Many people do not realize that Panama is a rugged, mountainous country. There are peaks that rise to 11,000 ft. above sea level. The inactive Volcano Baru's summit affords a view of both the Caribbean and the Pacific from the same vantage point. If the weather cooperates and you're in good physical condition, it's a rare geographic opportunity.
Even at lower altitudes, one can enjoy springlike weather throughout the year in parts of Panama, especially the mountainous area in Chiriqui Province near the town of Boquete. Temperatures in the 70s are common there, even though the area is at about 9 degrees north latitude.
You'll still need sunscreen, but you might not want to spend the money on an air-conditioned room. Nighttime temperatures can be downright chilly.
Within walking distance of the center of Boquete, there is a place with a name that translates as "My garden is your garden." It is a palatial estate with a number of large buildings and a series of impressive, well-tended gardens.
The buildings are naturally off-limits to visitors, even though the owners of the property do not reside here. But the gardens are free to explore to your heart's content, and there's no admission charge.
It's possible to spend an hour or more just making a quick survey of the various plants and exhibits. There is even an observation tower for taking aerial photography.
This has been a free attraction for many years, and the owners are said to take great pleasure in sharing it with strangers at no cost. Such hospitality is typical of Panamanians.
Many speak only Spanish, but I've found most are more than willing to attempt to communicate with visitors using non-verbal language and a smile. It is polite to learn some Spanish -- the numbers and a few key phrases are easy to learn. Your efforts will be appreciated.