About Panama

Panama has a cosmopolitan capital city, incredible rainforest and some of the finest snorkeling, birding and deep-sea fishing in the world, so it's hard to figure out why travelers tend to steer clear of this country or just whiz through. It may have something to do with the fact that Panama is known internationally for its canal, the 1989 US invasion and the name it donated to a style of headgear, but this does it no justice.

The reality is a proud prosperous nation that honors its seven Indian tribes and its rich Spanish legacy and embraces visitors so enthusiastically that it's difficult to leave without feeling that you're in on a secret that the rest of the traveling world will one day uncover.

Warning

Since the handover of the canal and a corresponding decrease in tourism, crime has been on the increase in Panama. Panama City is safer than most capital cities, but some parts of it (particularly the district of Chorrillo) should not be strolled around at night. The city of Colón has a major crime problem and absolutely shouldn't be strolled around day or night. The area of Darién Province between Yaviza and the Colombian border along the upper Tuira River is extremely unsafe due to the presence of smugglers, bandits and Colombian guerrillas and paramilitary forces. However, the vast majority of Darién National Park is relatively safe, though it's advisable to visit the park with a guide due to the inherent risks of travel in remote jungle with ill-defined trails. As the situation in Colombia continues to destabilize, it's advisable to keep your ear as close to the ground as possible while planning any off-the-beaten-path expeditions.

Destination Facts

Full country name: Republic of Panama

Area: 78,000 sq km (30,420 sq mi)

Population: 2.8 milion (growth rate 1.3%)

Capital city: Panama City (pop 700,000)

People: 65% mestizo, 14% African descent, 10% Spanish descent, 10% Indian

Language: Spanish, English and Indian languages

Religion: 85% Roman Catholic, 10% Protestant, 5% Islamic

Government: Constitutional republic

President: Mireya Moscoso

Economy Facts

GDP: US$8.8 billion

GDP per head: US$3200

Annual growth: 4.1%

Inflation: 1.1%

Major industries: Banking, construction, petroleum refining, brewing, cement and other construction materials, sugar milling, shipping and agriculture

Major trading partners: USA, EU, Central America & Caribbean, Japan

Currency

US dollar (known as 'balboa')

Relative Costs

Meals

Budget: US$2-5

Mid-range: US$5-10

Top-end: US$10+

Lodging

Budget: US$7-16

Mid-range: US$16-20

Top-end: US$20+

Money Advice

Accommodation tends to be more expensive in Panama than in other parts of Central America; a hotel room that might cost US$6 in Nicaragua or Guatemala might cost US$10 here. If you're traveling on a budget, you'll pay at least US$15 per day for a room and three meals. A moderate budget will be in the range of US$20-30 a day.

Panama uses the US dollar as its currency. The official name for it is the balboa, but it's exactly the same bill. Panamanian coins are of the same value, size and metal as US coins; both are used. In most of Central America, US dollars are the only currency exchanged. In Panama City, however, you can exchange currencies from almost anywhere in the world at a casa de cambio, due to the city's large international offshore banking industry.

You can tip some small change, or around 10% of the bill if you're feeling affluent, in fancier restaurants; in small cafes and more casual places, tipping is not necessary. Haggling over prices is not the general custom in Panama.