In many ways, Panama City could be described as the center of the world. It forms the bridge of the Americas, and connects the Atlantic and Pacific Oceans. 600 years as ‘The Crossroads of the World’ has stamped its unique mark on this metropolis, sculpting its extraordinary cocktail of cultures.
By far the wealthiest city of Central America, the capital of Panama combines historic and modern life in a fascinating blend of colonial antiquity, modern America and the commercial bazaars of the East. From the historical ruins of Panama Viejo, to the colonial heart of Casco Viejo, to the affluent highrises of the city center, there’s plenty to discover.
A fluid hub of immigration, trade and tourism, Panama City wears many faces. The result is a refreshing, chaotic and cosmopolitan melting pot pulsing with vitality – and crying out to be explored.
The Republic of Panama is a largely mountainous and forested country. It occupies the thin strip of land (known as an isthmus) that connects North and South America, bordered by Colombia to the East and Costa Rica to the West. The country has a highly unique and strategic location between the Caribbean Sea and the Pacific Ocean.
Panama City is found in the center of the country on the Pacific side of the isthmus. It was built on a natural harbor that feeds into the Panama Canal, both of which have been instrumental in the burgeoning economy of the city. It’s home to 1 million people, with 1.5 million residents in the wider metropolitan area.
Dense tropical forests surround this vibrant and modern Latin American city, and are bursting with life and diversity, from pumas, tapirs and caimans to sloths and toucans. These rich forests are invaluable ecosystems that have an important role in the water management of the city.
To gain a great perspective and get your bearings—or if you’re only there for just a short time—a trip up Ancon Hill is worth the effort – you’ll get a breathtaking view across the city.
At the mercy of two main climatic seasons, Panama has both a dry and a rainy season. Most travelers prefer to visit in the dry season, which runs from the end of December through to late April.
It’s easy to get to with an international airport (Tocumen International) just on the outskirts of the city’s metropolitan area, by far the biggest and busiest airport in Central America.
Well and truly the country’s most well-known landmark is the almighty Panama Canal, which opened in 1914. This artificial waterway cleaves the nation in two, from the Caribbean Sea and the Atlantic in the North to the Pacific Ocean in the South. It is now owned by the Republic of Panama itself but up until 1999 it was the United States that controlled the waterway.
It is really quite something to behold. Often described as ‘one of the seven wonders of the modern world’ the canal is an impressive piece of engineering that has utterly transformed Panama City’s economy. Shifting boats through twelve locks in total, from Pacific waters up to Gatun Lake, then lowering them down again to the Atlantic side, it really needs to be seen to be believed.
Visitors can take a tour of the Canal area which usually lasts about two and a half hours, or a transit cruise and sail part (or even the entirety) of the canal by boat. There are also trans-isthmus railway rides along the canal, or you can simply drink it all in (figuratively speaking of course!) from one of the many view-points on its banks.
The Panama Canal visitor’s center at the Miraflores lock has plenty of information and is a great spot to watch the freight ships pass right in front of you! Alternatively, a short drive outside of the city will get you to Soberania National Park which offers breathtaking views of the canal as well as soaring turkey vultures overhead.
Panama City has a complex and colorful past. It’s often described as ‘the movable city’ because it has shifted location many times since its founding years.
It all dates back to 1519 when Spanish conquistador Pedro Arias Dávila moved the original Spanish headquarters from Acla near the San Blas islands on the Atlantic coast to a drier and more sensible location on the Pacific coast. Here he established what is now Old Panama.
Old Panama prospered and became an important port on the gold and silver trade route until 1671 when it was ransacked and burned down by Welsh privateer and pirate Henry Morgan – to this day it remains in ruins for all to see. The Spaniards relocated to a more strategic spot 8 kilometers away – the walled city that is now called Casco Viejo.
The following centuries saw political turmoil and economic chaos, with Panama becoming part of Colombia in the 18th century. In 1903, Panama reclaimed independence from Colombia, and following the construction of the Panama Canal in 1914, its capital city’s economy blossomed and it finally emerged onto the world stage as an important commercial hub.
It hasn’t been an easy journey, with tumultuous events like the deposition of dictator Manuel Noriega in 1989. The area around the canal called the Canal Zone used to be owned and administered by the U.S., but in 1999 control was handed over to Panama. Since then, the city has undergone rapid growth, with shopping centers and residential areas spreading out and the economy flourishing.
Today, Panama City is a cosmopolitan mecca with a fascinating old town and lively city center. The people (self-dubbed capitalinos) are dynamic and forward thinking, a delightful mosaic of cultures made up of Iberian-descended citizens (criollos), people of combined European and indigenous descent (mestizos) to Afro-Panamanians and white and Asian minorities.
Reflecting this wonderful hotchpotch of cultures is the unique culinary scene. Prepare yourself for an assault on the senses – a wondrous mix of Spanish, African and Native American dishes. The name ‘Panama’ comes from the native Indian term for ‘many fish’ and this becomes quite apparent from the capital’s gastronomy – the fruits of the seas and rivers (and there are certainly plenty to choose from) dominate the menus of hundreds of restaurants.
For a bit of old world charm head to the picturesque Casco Viejo, Panama City’s historic district. Casco Viejo is a designated World Heritage Site and is now home to many prime tourist attractions, including the Golden Altar, a sacred item that miraculously survived the fires of Old Panama and is today housed at the Church of San José for tourists to visit. Other popular attractions here are the President’s Palace of the Herons and the National Theater.
To go even further back in time, take a trip to the photogenic ruins of Old Panama, the first city on the Pacific Coast built by Europeans. There are plenty of city tours that take about 2 and a half hours that take in the ruins of Old Panama as well as Casco Viejo and the modern cultural center.
The streets come alive after dark – Panama City has a thriving nightlife scene! Boutique hotels with rooftop bars dance overhead while casinos clink with coin machines and clubs and bars pulse to the rhythm of tropic tamboritos. It remains one of the safest cities of Latin America where residents and tourists alike drink and dance the night away.
There’s no doubt that trade and commerce are at the heart of life in Panama City, and its spurt of economic growth in the last one hundred years has brought a thriving shopping scene, with numerous free trade zones! From the Centro Comercial Los Pueblos (the biggest Central American Shopping Mall) to the more authentic wharfside market at Salsipuedes (get up early for this), you’re sure to come away with heavier luggage after a trip to Panama City.
From the fragrant ceviche at open-air seafood stalls to rich tamales tucked into antique pastries, the city’s cuisines reflect centuries of exchange, where Spanish, Afro-Caribbean, and indigenous influences converge in each bite. In Casco Viejo especially, there are plenty of places to sip single-origin Panamanian coffee, artisanal rum, or cold chicha in intimate bars and cafés framed by colonial arches, and a wealth of fine-dining options on rooftop terraces to savor the flavors and views simultaneously.
For travelers seeking intimacy and luxury, Panama City offers plenty of accommodations that blend elegance with authenticity. In Casco Viejo, boutique hotels occupy restored colonial mansions, offering rooftop havens and a footstep’s distance from cafés, galleries, and storied streets. In contrast, along the canal’s edge or near Amador Causeway (discussed below), modern lodgings deliver sweeping water views, with excellent dining options and noteworthy museums nearby.
It doesn’t have to all be about the urban city experience – one of the best things about Panama City is its proximity to the beauty of nature. Its unique geography means that the capital city is surrounded by thick tropical rainforest with an astonishing diversity of life.
Parque Metropolitano (Metropolitan National Park) is a large reserve that lies just outside Panama City. It has four walking trails and a bike trail that you can wander at will, or visitors can join an eco tour of the park. There’s also a library and a souvenir shop.
The fact that the rainforest is literally within the bounds of the Panama City metropolitan area makes it one of a kind. It is a refuge for wildlife, with over 200 species of birds and four species of bat. Other creatures include two- and three-toed sloths, brown-throated sloths, geoffroy’s tamarins, white-nosed coatis, orioles, agoutis, parakeets and much more.
There are a couple of raised viewing points – Cerra Cedro and Los Caobos lookout point – but there’s also the rather exciting option of going up in the Smithsonian Tropical Research Institute’s crane to get above the canopy and see jaw-dropping views across the forest and city.
This unique park forms part of the Interoceanic Biological Corridor that ranges from the Atlantic to the Pacific Oceans. Other green spaces that are worth a trip are the Camino de Cruces and the Soberanía national parks further North.
It’s named after the first president of Panama – Manuel Amador Guerrero. The Amador Causeway is a 6 kilometer-long road that extends out into the Pacific Ocean and connects the city to four islands offshore. This land bridge is man-made, built from the material excavated in the construction of the canal.
The causeway is lined with palm-trees, benches and a cycle-path and is a great place to get a real feel for the busy hustle and bustle of the canal as you can watch the water traffic entering the waterway. It’s also home to numerous fine restaurants, museums, yacht clubs, souvenir shops, cruise ports and hotels.
The wonder of Panama City lies not only in its skyline but also in the untamed worlds at its doorstep. A short step or flight beyond the urban rhythm reveals landscapes of astonishing contrast—serene beaches, volcanic isles, and rainforests alive with wildlife and whispers of ancient life.
If you want a break from city life, you could consider an excursion by boat to the volcanic Isla Taboga that lies off the coast for some glorious Pacific sandy beaches, or take a short flight to the stunning archipelago of Bocas Del Toro. Many travelers use Panama City as a springboard to explore the rest of the country, and it’s the base for many tours—and expedition cruises—that run from there.
Visiting Panama City can feel like standing in a mirror maze, with several different cities reflected back at you. But this is what makes it such a unique destination to travel to.
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