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Panama City Overview

Few cities in the world have a history, fortune, and character so intimately and singularly related to their geography. Permanently marked by the canal and the commerce it brings, not mention a century of partial US occupation, Panama City (pop. 800,000) is unlike anything else you’ll find in the country or in the rest of Central America. It’s a surprising and welcoming combination of the historic and ultra-modern, where Spanish and indigenous traditions coexistwith immigrant cultures from the world over. The result is a metropolis that defines “cosmopolitan.”

Panama City’s location, a calm harbor on a narrow bridge between two continents, has made it a transit point for people and currency for over 300 years. Originally the gateway for all the gold from Spain’s Pacific colonies, the first Panama City, known as Panamá Viejo (Old Panama), was founded by the Spanish in 1519 on the site of an Indian village. In the late 17th century, pirate invasions, infertile swamps, and numerous fires forced residents to move 8km west, to modern-day San Felipe. There, the city flourished under Spanish, French, and American occupations. During the California Gold Rush, hordes of prospectors flowed in from North America, fattening the pockets of steam-ship barons and resulting in the construction of the first railway joining the Pacific and Atlantic Oceans. The French dreamed of more ambitious inter-oceanic connection; their attempt to build a canal at the end of the 19th century ended in failure. By the early 20th century, US plans for a water passage were complete. During the canal’s construction the city began to expand and spread eastward, moving to its current site. The first ship passed through the canal’s Miraflores Locks in 1914. Since then, Panama has gained control over the canal, and its favorable tax regulations have made Panama City an international banking and commercial center. Today, Panama’s relative stability compared to other Latin American countries continues to attract people and money. The low cost of living here has drawn retired Americans by the thousands. This influx of wealthy residents is reflected across the city, from the international cuisine to the rapidly expanding skyline.

With its first-world infrastructure, diverse population, continuing international influence, and lively nightlife, Panama City boasts all the advantages of a large, modern city. Be sure to take time and explore Panama’s rainforests, Indian villages, and beautiful beaches, which are all just an hour from the city.


  • Intercity Transportation
  • Flights: Tocumen International Airport (☎ 238 2600) lies 30min. east of the city and can be reached by cab (US$15-20) or any bus marked Tocumen Corredor (US$0.35), which leave from the bus terminals ...more

  • Orientation
  • From the international airport, take a taxi (30min.; US$28, shared taxi US$11). To find a bus, walk out of the parking lot where the cars exit, and walk through the roundabout. On the other side of the ...more

  • Local Transportation
  • Buses: Stops are often unmarked, and there aren’t any route maps. Still, buses are the cheapest way to get around. City buses (old American school buses with loud mufflers) have their final destination ...more

  • Practical Information
  • Tourist Information: Autoridad de Turismo Panama ( ATP; ☎ 526 7000; www.visitpanama.com). National office in a large black building on Av. Samuel Lewis, in front of the Comosa building, though this ...more

  • Accommodations
  • Accommodations in Panama City run the gamut, from dark and dreary pensiones that do business by the hour to glitzy glass high-rises catering to the jetset crowd. Quality hostels and establishments on ...more

  • Food
  • Given the variety of cultures that have left their mark here, it isn’t surprising that Panama City is the capital of international cuisine in Central America. Prices are diverse, from the cheap (US$1-2) ...more

  • Sights
  • Most travelers pass through Panama City to see other parts of the country, but for history buffs and art-lovers Panama City is the place to be. Casco Viejo has the greatest concentration of museums, ...more

  • Nightlife
  • Whether you’re looking to strut your stuff on the dance floor or to just sit back and watch the locals, Panama City has it all. Panamanians dress well most of the time, especially so for nightlife ...more

  • Outdoor Activities
  • Metropolitano is within walking distance of the Albrook Mall and the bus station, and is easily accessible by bus. Take any Albrook Station bus headed for the Gran Terminal (US$0.25) and ask the driver ...more



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For 52 years, we have published the world’s favorite budget travel guides, written entirely by students and updated every year. With pen and notebook in hand and a few changes of underwear stuffed in our backpacks, we spend months roaming the globe in search of travel bargains.

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