Panama City catches most people off guard. Travelers passing through on a Copa stopover, or bookending a Panama trip with a few days in the capital, tend to arrive expecting a transit city and leave surprised by how much they actually liked it.
The skyline is genuinely striking: glass towers rising above the Pacific, a UNESCO-listed colonial neighborhood at the water’s edge, and the Panama Canal a forty-minute drive from your hotel. It is one of the most manageable cities in Latin America, compact, easy to get around, and calm compared to Bogota or Mexico City.
Two to three days is enough to do the city justice, but Panama City rewards more time than that. Each neighborhood has its own character, and the city sits within reach of an extraordinary range of day trips: Pacific islands, Caribbean coastline, rainforest reserves, and the Canal itself. Few cities in the Americas give you that kind of range without a long-haul flight.
This guide covers everything you need to plan your time well: what to do, where to eat, which neighborhood to stay in, and the day trips that make Panama City one of the best bases in the region.
Quick Resources to Plan Your Trip to Panama
Highlights
Things to do in Panama City
Panama City has more going on than most first-timers expect. These are the experiences worth prioritizing, from the two unmissable highlights to the neighborhoods that reward a slower afternoon.
The Panama Canal
The Panama Canal is one of those rare things that genuinely lives up to the hype, but how much you get out of it depends on how you approach it. The Miraflores Visitor Center puts the whole operation in context. From the observation deck you can watch vessels pass through the locks in real time. Or you can choose to take a boat through the locks to discover the engineering feat for yourself.
Casco Viejo
Casco Viejo is the part of Panama City that stays with you. The UNESCO-listed colonial quarter sits on a small peninsula at the edge of the bay, its churches and weathered facades backed by the glass towers of the modern skyline. Spend time walking without a fixed itinerary. Find a cafe on Plaza Bolívar. Come back in the evening for the rooftop bars.
Mercado de Mariscos
Mercado de Mariscos is where Panama City eats seafood. The ground floor is a working fish market and the outdoor stalls on the upper level sell ceviche, cocteles, and fresh seafood at prices that bear no relationship to the quality. Go at lunch when the stalls are busiest and the catch is freshest.
Amador Causeway
The Amador Causeway extends into the Pacific from the base of the Canal zone, connecting a series of small islands with a wide promenade. It is one of the best spots in the city for views of the skyline and the queue of ships waiting to enter the Canal.
Panama Viejo
Panama Viejo (not to be confused with Casco Viejo) is the site of the original city founded by the Spanish in 1519. Henry Morgan sacked and destroyed it in 1671. The tower at the center of the ruins gives you a panoramic view of both the ruins and the modern skyline behind them.
Biomuseo
The Biomuseo is housed in a Frank Gehry building and the exhibits explain how the formation of the Isthmus of Panama triggered one of the most significant biodiversity events in the planet’s history. Worth an hour if you are already walking the causeway.
Where to Stay
Where to stay in Panama City
Panama City is more spread out than it looks on a map, and where you base yourself shapes the experience. The main areas are easy to navigate between, and each one has a distinct character worth understanding before you book.
Casco Viejo
Best for: Short stays, first-time visitors, atmosphere
Casco Viejo is the historic heart of the city: cobblestone streets, colonial architecture, and rooftop bars. If you have two days or less, this is where to stay. It is atmospheric and walkable, with great restaurants and nightlife right outside your door. Keep in mind that much of the dining here caters to visitors, and hotels carry a premium.
El Cangrejo
Best for: Local feel, longer stays, budget-conscious travelers
El Cangrejo is the pick for travelers who want something more local. It is a lively, central neighborhood with strong cafe culture, good transit connections, and restaurants that locals actually eat at. It feels more like the real Panama City than Casco Viejo does, and the prices reflect that.
San Francisco
Best for: Food-focused travelers, repeat visitors
San Francisco has arguably the best dining scene in the city, with a stretch of restaurants along Calle Uruguay covering everything from Peruvian ceviche to wood-fired pizza. It works well as a base if food is your priority, though it lacks the character of Casco Viejo or El Cangrejo.
Punta Pacifica
Best for: Views, upscale stays, business travel
Punta Pacifica is where you go for views. The JW Marriott sits right on the water with floor-to-ceiling windows overlooking the Pacific and the ships queued to enter the Canal. It is the most resort-like option in the city and worth it if that is the experience you are after.
Food
Where to eat in Panama City
Panama City’s best eating is not in Casco Viejo. The old quarter has plenty of solid restaurants, but most are priced for visitors and the menus tend toward the familiar.
For the best food in the city, head to the San Francisco neighborhood.
Calle Uruguay is the street to know: a dense stretch of restaurants covering Peruvian ceviche, wood-fired pizza, craft cocktails, and Panamanian classics done properly. It is where locals eat on a Friday night, and the quality is consistently high across the board. If you want one specific reservation to make before you arrive, Cantina del Tigre is an elevated Panamanian restaurant in San Francisco that is worth going out of your way for.
Mercado de Mariscos is a different kind of experience and essential in its own right. The ceviche stalls are one of the best value meals in the city.
M
From the field · Melina
From the field · Melina · San Francisco neighbourhood, Panama City
Calle Uruguay on a Friday night sounds like the kind of place you would walk past rather than into. It is louder than you expect, fuller than you expect, and the food is better than either of those things suggests. Cantina del Tigre made me reconsider what Panamanian food could be. It is a reservation worth making before you land.
First-Hand Observation
Safety
Is Panama City safe?
Panama City is generally safe for travelers sticking to the main tourist areas. The neighborhoods covered in this guide, including Casco Viejo, El Cangrejo, San Francisco, and Punta Pacifica, are all fine to walk around with normal awareness. A few areas are best avoided: El Chorrillo, Curundú, Calidonia, San Miguelito, and parts of Santa Ana. For getting around, Uber is the recommended option over local taxis and public buses.
Beyond the City
Day trips from Panama City
Panama City is one of the best-positioned capitals in Central America for day trips. Within a few hours in any direction you have Caribbean islands, Pacific islands, rainforest, a crater town, and the Canal itself.
San Blas Islands
3 hr + boat · Best overall
The San Blas archipelago is governed by the Guna people: white sand, turquoise water, and zero resort infrastructure. A day trip is possible but three to four days does it justice. If you can only do one day trip from Panama City, this is the one.
Valle de Antón
2 hr drive
Valle de Antón sits inside the crater of an extinct volcano about two hours from the capital. Hot springs, waterfalls, and cloud forest trails make it one of the most complete day trips available from Panama City.
Gamboa Rainforest
1 hr drive · Wildlife
Gamboa is the closest rainforest to Panama City and a great place for wildlife and birdwatching. The Gamboa Rainforest Resort sits directly on the Canal and combines jungle access with visits to indigenous villages.
Portobelo and Isla Grande
1 hr 45 · Caribbean
Portobelo is a full day rather than a quick stop. The Spanish colonial forts are among the best-preserved in Latin America, and Isla Grande is a short boat ride away for a Caribbean island experience. Go with a guide to get the most out of the history.
Las Perlas Islands
1 hr boat · Pacific
Las Perlas is Panama City’s Pacific island escape, accessible by boat from the Amador Causeway. Calmer water, less wind, and a more relaxed visitor demographic than the Caribbean side.
Embera Villages
Guided tour from hotel
A visit to an Embera village along the Chagres River is a culturally rich day trips available from Panama City. The Embera have maintained their way of life and welcome visitors for guided experiences covering food, craft, and daily life.
On the Ground
Getting around Panama City
Uber is the default recommendation. It is reliable, widely available across all main neighborhoods, and removes the price negotiation that comes with unmetered taxis. Fares between Casco Viejo, El Cangrejo, and San Francisco typically run under five dollars.
The Metro is clean and safe for the routes it covers, though most visitors will not need it beyond a few specific lines.
From the airport: Tocumen International Airport sits on the eastern edge of the city. The drive to Casco Viejo or El Cangrejo takes 30 minutes to an hour depending on traffic. Book an Uber from the arrivals hall rather than taking a taxi at the curb.
Planning
What does Panama City cost?
Panama City is more expensive than most of Central America, but less expensive than most people expect for a capital city of its size and quality. A mid-range trip — good accommodation, meals at local restaurants, a Canal visit, and one day trip — typically runs USD 150 to 250 per person per day.
Panama uses the US dollar as its official currency, which removes currency exchange entirely for American travelers. Credit cards are accepted at most hotels, restaurants, and larger businesses in Panama City. Bring cash before heading to San Blas, Bocas del Toro, or Santa Catalina, where ATM access is limited or nonexistent.
Accommodation
$80-150 per night
Accommodation ranges from around USD 80 to 150 per night for a solid mid-range hotel or boutique guesthouse. Casco Viejo and Punta Pacifica sit at the higher end of that range. El Cangrejo and San Francisco offer better value for equivalent quality.
Meals
$10-50 per person
Meals vary considerably by neighborhood. A ceviche at Mercado de Mariscos runs under USD 10. A full dinner at a San Francisco restaurant on Calle Uruguay lands between USD 20 and 50 per head including drinks. Casco Viejo restaurants are priced similarly but the quality-to-price ratio is lower.
Activities
$20-150 per tour
Activities are reasonable. Entry to the Miraflores Visitor Center runs around USD 22 for adults. Guided day trips from the city typically range from USD 80 to 150 per person depending on the destination and group size and may include meals. These can be reserved in advance to help you determine your budget.
Tipping
Tipping is standard and expected. Ten percent at restaurants if a service charge is not already included, and USD 5 to 10 per person per day for guides.
Planning
When to visit Panama City
Panama City works year-round in a way that most of Panama does not. The main attractions, Casco Viejo, the Canal, the food scene, are all fully accessible regardless of season.
Dry season (January to April)
Dry season brings reliably clear skies and lower humidity. If you are combining Panama City with other regions, this is the most straightforward window for a first trip.
Wet season (May to November)
The wet season handles better than you might expect. Rain arrives in afternoon bursts while mornings stay clear, which means outdoor activities and day trips remain practical if you plan them in the morning.
Practical tips for Panama City
Language
Spanish is the official language throughout Panama. English is widely spoken in Panama City, particularly in Casco Viejo, tourist-facing restaurants, and most hotels. Outside of those areas, a few basic Spanish phrases go a long way.
Cash and ATMs
ATMs are widely available throughout Panama City's main neighborhoods. Use ATMs inside banks or shopping malls rather than standalone street machines. Notify your bank before travel if you plan to use a foreign card.
Metro fare
The Metro costs less than USD 0.5 per ride, making it one of the better-value transport options in the city for the routes it covers. Cards are purchased and topped up at station machines. You can also use a tap credit card to pay for the metro.
Drinking water
Tap water is safe to drink in Panama City. You do not need to buy bottled water for the duration of a city stay.
Electricity
Panama uses 110V with US-style two-pin and three-pin plugs. American travelers need no adapter.
For a full country-level overview of practical information including domestic travel, health, and entry requirements, see our Panama travel guide →.
Planning
How long to spend in Panama City
2
days
Covers the highlights without rushing: Casco Viejo, the Canal, and a meal at Mercado de Mariscos. Add one evening in San Francisco for dinner on Calle Uruguay.
3-4
days
Opens up Panama Viejo, a proper wander through El Cangrejo, and one day trip. San Blas or Gamboa works well as a single-day addition to a three-day city stay.
5+
days
Is the right length if Panama City is your base for exploring the country. You can take two or three day trips, eat through San Francisco over multiple evenings, and move at a slower pace through the neighborhoods.
5-Day Itinerary
Panama City and San Blas
The complete day-by-day plan built from personal travel
Getting Here
Getting to Panama City
By air
Tocumen International Airport (PTY) handles nearly all international arrivals. Direct flights connect Panama City to most major US cities including Miami, New York, Houston, Atlanta, Los Angeles, and Chicago. Copa Airlines operates the most frequent schedules and uses Tocumen as its Latin America hub. Flight times from the US East Coast run around three hours; from the West Coast, around six.
Domestic connections
Air Panama operates flights to Bocas del Toro, David (gateway to Boquete), and other regional destinations in under an hour. Book early as capacity is limited and prices rise significantly closer to the date.
From the airport to the city
Uber is the simplest option. The drive takes 30 to 60 minutes depending on traffic and time of day.
More Panama City guides
Where to stay in Panama City
Panama City is more spread out than most first-timers expect. Where you stay shapes your entire experience.
Day trips from Panama City
Panama City is a base, not just a destination. Here is what to do with a free day.
How to visit the Panama Canal
Planning a Panama Canal tour? We visited both Miraflores and Agua Clara locks and did a partial transit. Here's exactly what to expect, when to go, and whether it's worth it.
Things to do in Panama City
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Best time to visit Panama
The dry season is not the only season worth going. Here is what the calendar actually looks like, region by region.
Is Panama safe?
Panama is one of the safest countries in Central America. But the answer shifts considerably depending on where you are going.
