The only city in the Americas where you can watch container ships cross between oceans — a vertical skyline above a colonial quarter, with a canal that still stops traffic.
Quick Picks: Best Hotels in Panama City, Panama
Best Value
Best for Families
Bristol Panama
Best Overall
Best Boutique / Unique Stay
Panama City's original Spanish colonial settlement, founded in 1673 after the original city was destroyed by pirates. Casco Viejo is the cultural and social heart of the city — a peninsula of cobblestone streets, crumbling churches, restored mansions, and some of the best restaurants and bars in Central America. The renovation that began in the 2000s has made it the most compelling urban neighborhood between Mexico City and Bogotá. Stay here if you want character over convenience.
The Miraflores Locks are the most accessible point to observe the Panama Canal in operation — the visitor center has an excellent museum on the canal's history and engineering, and the observation decks look directly onto the locks where Panamax vessels pass within meters of the concrete walls. The expanded Agua Clara Locks on the Atlantic side offer an even more dramatic view of the larger New Panamax ships. No visit to Panama City is complete without spending at least half a day here.
Panama City's financial district rises along the Bay of Panama in a dense cluster of glass towers that would not look out of place in Miami or Dubai — a result of the country's status as a global banking and logistics hub. The Causeway (Amador Causeway) connects three former US military islands and offers the best panoramic view of the city skyline and the Canal entrance. Most international luxury hotels are concentrated here.
San Felipe sits between Casco Viejo and the financial district — a working neighborhood with the Mercado de Mariscos (seafood market), where locals eat ceviche and fresh fish at plastic tables for a fraction of restaurant prices. The market is an authentic food experiences in Central America and a necessary counterpoint to Casco Viejo's gentrified restaurant scene. Best visited at lunch.
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Casco Viejo · Autograph Collection · 50 Rooms · Jazz Bar · Best Address in Old Panama
A premier hotel in Panama City — a restored 1917 trading company building in Casco Viejo's most prestigious corner, with 50 rooms, a jazz bar that draws the city's creative class, and a rooftop pool overlooking the Pacific skyline. The American Trade sets the standard for historic restoration in Central America.
From $250 / night
Casco Viejo · Boutique · Rooftop Bar · Most Atmospheric in the Quarter
a deeply atmospheric boutique hotel in Casco Viejo — a beautifully restored colonial building with a rooftop bar that is the best outdoor drinking spot in the city, with views across the ruined towers of Panama Viejo and the Pacific beyond. Twelve rooms; perpetually full on weekends.
From $180 / night
Playa Bonita · Beach Resort · Near City
A 342-room resort on Playa Bonita, 20 minutes from the city, with private beach access, multiple pools, and a full spa. The only genuine beach resort within the Panama City metro area.
From ~$200 / night
Financial District · Tower Hotel · Casino · Rooftop Views
A sleek tower hotel in the Panama City financial district with a casino, spa, and the best city-and-ocean views from the rooftop bar.
From ~$150 / night
Financial District · IHG Registry Collection · Panama's Most Storied Luxury Hotel · Spa & Fine Dining
Panama City's most storied independent luxury hotel — the original five-star in the city, now part of IHG's Registry Collection. Soundproofed rooms with state-of-the-art electronics, a spa with sauna, an acclaimed restaurant serving gourmet Panamanian cuisine, and a lounge bar specializing in tapas. The standard-bearer for Panama City luxury since before the international brands arrived.
From $250 / night
Casco Viejo · UNESCO World Heritage · 159 Rooms · Former Union Club · Pool & Spa
The most historically significant new luxury hotel in Panama — a 159-room Sofitel Legend in the UNESCO World Heritage district of Casco Viejo, built within the former Union Club (visited by monarchs and world leaders). Pool, spa, fine restaurant, and a French pastry café with locally grown coffee. The sixth property to join Accor's prestigious Legend portfolio.
From $350 / night
Financial District · Waldorf Astoria · Spa · Matiz Restaurant · City & Ocean Views
Hilton's flagship luxury brand in Panama City — 153 sleek rooms in a modern tower a few blocks from the sea, with Pacific and city views, a pool, spa, the acclaimed Matiz restaurant for Spanish cuisine, and the Peacock Alley cocktail bar. One of the few Waldorf Astoria properties in Latin America and the most polished business luxury hotel in the city.
From $300 / night
Costa del Este · Luxury Collection · Jack Nicklaus Golf · 3 Restaurants · Indigenous-Inspired Spa
Panama City's premier golf and luxury resort — an 18-hole par-72 Jack Nicklaus championship golf course at your doorstep, an indigenous culture-inspired spa, three restaurants including the grill and Mestizo with outdoor terrace, and a sprawling pool with open-air bar in the upscale Costa del Este district. Marriott Bonvoy redeemable.
From $280 / night
Casco Viejo · Highly Rated Hostel · Colonial Building · Best Budget Casco Address
Rated a top hostel in Central America — a colonial mansion in Casco Viejo with dorm and private rooms, a rooftop terrace, and a lively social scene. The location in the historic quarter at hostel prices is the best accommodation value in Panama City.
Dorms from $18 / Private from $60
Casco Viejo · Design Hostel-Hotel · Pool · Best Value in the Quarter
The best value accommodation in Casco Viejo — Selina's Panama outpost in a restored colonial building with private rooms, a pool courtyard, a co-working space, and the social atmosphere that the brand does well. The location inside the historic quarter at this price point is exceptional.
From $80 / night
Panama City's most important restaurant — chef Mario Castrellón's exploration of Panamanian culinary identity, using indigenous ingredients, Afro-Caribbean techniques, and coastal produce in a tasting menu that makes the case for Panamanian cuisine as a serious subject. Listed on Latin America's 50 Best.
Learn MoreThe most authentic food experience in Panama City — a working seafood market on the waterfront where vendors sell ceviche, corvina, octopus, and fresh fish at plastic tables for $5–10. The fish arrived this morning; the ceviche is made to order. Go at lunch, eat at the market, and skip the tourist restaurants nearby.
Learn MoreThe best traditional Panamanian restaurant in the city — a no-frills lunch spot in Casco Viejo serving sancocho (chicken broth soup), ropa vieja, and rice and beans at prices that remind you that not everything in Panama City is gentrified. A local institution.
Learn MoreA casual Casco Viejo restaurant serving creative Panamanian street food. Ceviche, patacones with different toppings, and fresh canelazo cocktails. The best value meal in the Historic District.
Learn MoreWatching a container ship navigate the Miraflores Locks from the observation deck is an extraordinary engineering spectacles in the world — vessels with clearances of centimeters on each side pass through in a process that has operated continuously since 1914. The canal museum is excellent. Allow three to four hours.
Learn MoreThe UNESCO-listed colonial quarter is the most rewarding urban walk in Central America — the ruins of the original 17th-century city walls, the Metropolitan Cathedral, Plaza de Francia, and the waterfront promenade with views across the bay to the modern skyline. Best walked in the morning before the heat.
The Guna Yala archipelago — 365 coral islands in the Caribbean, governed autonomously by the indigenous Guna people — is a strikingly beautiful and most intact indigenous territories in the Americas. A three-hour drive and short boat ride from Panama City delivers you to a remote Caribbean.
Learn MoreOne of Panama City's best-kept secrets — a protected tropical forest that begins where the financial district ends, with trails through primary rainforest, a canopy observation platform, and wildlife that includes three species of monkey, sloths, and nearly every bird species found in the surrounding Canal Zone.
Learn MoreBest Time
December–April (dry season) for the most reliable weather — sunny, low humidity, manageable heat. This is also when the San Blas Islands are calmest for day trips. May–November (rainy season) brings daily afternoon downpours that cool the city and leave mornings clear. Prices are 20–30% lower in rainy season and the landscapes are dramatically green. There is no truly bad time to visit — rain is predictable and the city functions normally.
Language
Spanish (official). English widely spoken in hotels, restaurants, and the tourist industry. Casco Viejo has a significant English-speaking expat community.
Currency
Panamanian Balboa (PAB) — pegged 1:1 to the US Dollar. USD is the practical currency for all transactions; Balboas and US dollars are interchangeable. Credit cards accepted everywhere in tourist areas; ATMs plentiful. Panama is the easiest country in Latin America for US visitors.
Visa
No visa required for US, EU, UK, Canadian, and Australian citizens — free entry up to 180 days on arrival. Onward ticket required at immigration — have a return or onward flight ready to show.
Getting There
Tocumen International Airport (PTY) — the major hub for Latin America. Direct flights from most US cities: ~3h from Miami, ~3.5h from Houston, ~5h from New York. Copa Airlines connects Panama City to 80+ destinations in Latin America. Airport is 25km east of Casco Viejo — taxi ~$35–45, Uber cheaper and reliable.
Time Zone
Eastern Standard Time (EST, UTC−5) year-round. Panama does not observe daylight saving time.
FAQ
Yes — the combination of Casco Viejo, the Panama Canal, a interesting food scene, and straightforward logistics from the US makes it an underrated city trips in the Americas. Three days is the minimum; five days adds the San Blas Islands and more of the restaurant scene.
Three days covers the essentials: Casco Viejo and the food scene, Miraflores Locks, and one day for a San Blas Islands day trip. Five days allows a more relaxed pace and the full restaurant circuit — Maito, Donde José, and Caliope are worth separate evenings.
Casco Viejo — the UNESCO colonial quarter — for the best atmosphere and restaurant access. The American Trade Hotel and Tantalo Hotel are the best options; Selina Casco Viejo is the best value. The financial district (Marbella, Punta Pacífica) works for business travelers but lacks the character of Casco Viejo. Bristol Panama is the best option if you need full-service hotel amenities.
The Panamanian Balboa is pegged 1:1 to the US Dollar — in practice, USD is the currency used for all transactions. Panama doesn't print paper bills (only coins); US paper currency circulates instead. Credit cards accepted everywhere in tourist areas; ATMs are plentiful. Panama is the most straightforward country in Latin America for US visitors on currency.
No — US, EU, UK, Canadian, and Australian citizens enter visa-free for up to 180 days. Immigration requires an onward or return ticket — have it ready to show on arrival. No advance application needed.
Maito (chef Mario Castrellón) is the most important — Latin America's 50 Best ranked, with the strongest case for Panamanian cuisine as a serious culinary subject. Donde José for the most intimate experience — 10 seats, counter service, a tasting menu focused on indigenous Panamanian ingredients. Mercado de Mariscos for the most authentic local experience — a working waterfront fish market with incredible cheap seafood and ceviche.
December–April (dry season) for the clearest weather and the best conditions for day trips to San Blas. May–November (rainy season) for 20–30% lower prices and dramatically green landscapes — rain is typically a daily afternoon event that clears quickly. There's no truly bad time to visit; Panama City functions normally year-round.
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