Panama City: A Metropolis of Contrasts and Gateway to the Americas
Welcome to Panama City, a dazzling urban jungle where glittering skyscrapers stand beside a historic colonial quarter, and a world-renowned canal connects two mighty oceans. This city is a dynamic blend of old and new, a bustling business hub and a haven for nature lovers. Our guide will help you navigate this vibrant metropolis, from understanding the currency to discovering its hidden gems, ensuring you feel comfortable and excited for your visit.
Currency & Cost of Living
Panama has a unique and convenient currency situation. The country’s official currency is the Panamanian Balboa (PAB), but it is pegged to and interchangeable with the U.S. Dollar (USD) at a 1:1 ratio. In fact, Panama does not print its own paper money and uses the U.S. dollar for all cash transactions. You will only see Panamanian coins, which are the same size as U.S. coins. This means if you are traveling from the United States, you do not need to exchange currency!
- Cost of Living: While Panama City is generally more expensive than other Central and South American cities, it remains affordable for expats from the U.S. A comfortable lifestyle for a single person can be achieved with a budget of around $2,000 per month.
- Housing: Rent varies greatly by neighborhood. A one-bedroom apartment in a central, upscale area can cost $1,000-$1,600 per month, while a similar apartment in a mid-range neighborhood might be $700-$1,300.
- Food: Eating out can be surprisingly affordable. An inexpensive meal at a local eatery is around $10, while a nice three-course dinner for two at a mid-range restaurant is about $50.
- Transportation: Public transportation is available, with bus tickets costing under a dollar. Taxis and Uber are also widely used and affordable; a 15-minute Uber ride is typically around $4.
Climate & City Vibes
Panama City has a tropical climate that is hot and humid year-round. Temperatures typically range from 75°F to 89°F (24°C to 32°C). The city experiences a distinct dry season from December to April and a wet season from May to mid-December. The rainy season is characterized by intense but brief afternoon showers, which can provide a welcome cool-down.
The vibe of Panama City is a fascinating mix of international business, historic charm, and a laid-back Latin American attitude. The city skyline, filled with modern high-rises, rivals that of many major U.S. cities, while the historic Casco Viejo district offers a journey back in time with its cobblestone streets and colonial architecture. The city is a melting pot of cultures, and you’ll find a lively, energetic atmosphere everywhere you go.
Must-Do Attractions
- The Panama Canal: A true modern marvel. The Miraflores Locks Visitor Center is a must-visit, offering a museum and an observation deck where you can watch massive ships pass through the canal’s locks.
- Casco Viejo: Explore the beautifully preserved historic quarter, a UNESCO World Heritage site. Wander through its narrow streets, admire the colorful buildings, and discover hidden plazas, boutique hotels, and some of the city’s best restaurants and bars.
- Ancon Hill (Cerro Ancón): Hike to the top of this urban mountain for the best panoramic views of Panama City, from the modern skyline to the historic Casco Viejo and the Panama Canal. You might even spot some local wildlife like toucans and sloths along the way.
- Amador Causeway: A long stretch of road and promenade connecting several small islands. It’s perfect for a bike ride, a jog, or a leisurely stroll while enjoying stunning views of the city skyline and the Bridge of the Americas.
- Biomuseo: Designed by world-renowned architect Frank Gehry, this vibrant, colorful museum tells the story of how the Panamanian isthmus rose from the sea and connected two continents, profoundly changing the world’s biodiversity.
Expat Life & Best Neighborhoods
Panama City has a well-established and growing expat community, thanks to its use of the U.S. dollar, modern infrastructure, and excellent retiree benefits. It is a city that offers a high quality of life with a lower cost of living than many major cities in the U.S.
- Casco Viejo: Ideal for those who love history, art, and a vibrant nightlife. It’s a highly walkable neighborhood with a strong sense of community, although it can be pricier.
- El Cangrejo: Known for its bohemian, eclectic vibe, tree-lined streets, and a wide variety of dining options. It’s a central and lively neighborhood popular with both expats and locals.
- Costa del Este & Punta Pacífica: These are the most upscale, modern neighborhoods, often referred to as “mini-Miami.” They feature luxury high-rise apartments, international schools, and a plethora of high-end restaurants and shopping malls. They are popular with families and those seeking a more luxurious, familiar lifestyle.
Flights & Airlines
Yes, there are many direct flights from the USA to Panama City’s Tocumen International Airport (PTY), which serves as a major hub for the region.
- Airlines: Copa Airlines is the national carrier and a dominant force in the region, offering the most direct routes to the U.S. They are a top choice for their excellent service. Other major U.S. airlines like United, American Airlines, and Delta also offer frequent direct flights from cities like Houston, Miami, and Atlanta.
Best Restaurants & Little-Known Gems
Panama City’s culinary scene is a diverse and exciting mix of fresh seafood, traditional Panamanian dishes, and international flavors.
- Best Restaurants:
- Maito Restaurante: A fine-dining experience that focuses on Panamanian fusion cuisine, using fresh, local ingredients. It’s widely considered one of the best restaurants in the country.
- Fonda Lo Que Hay: A popular, casual spot offering a creative and modern take on traditional Panamanian street food.
- Mercado de Mariscos: For a classic, no-frills seafood experience, head to the city’s seafood market. You can buy fresh fish and have it cooked on the spot at one of the many small restaurants.
- La Cuchara de Obarrio: A fantastic spot to try authentic Panamanian dishes like “sancocho” (a traditional chicken soup) and “ceviche.”
- Little-Known Gems:
- The Flat Arch (Arco Chato): Located in Casco Viejo, this beautiful, unsupported stone arch is a historical curiosity. Its survival for centuries was used to argue that Panama was not prone to severe earthquakes, a key point in the decision to build the canal there.
- Embera Indigenous Community Tours: A short boat trip from Panama City can take you to an authentic Embera village. These tours offer a unique opportunity to learn about their culture, traditions, and way of life.
- El Valle de Antón: A picturesque town located in the crater of an extinct volcano, just a couple of hours from Panama City. It offers a cooler climate and is a great escape for hiking, hot springs, and exploring.