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Capital city: Panama City
Government system: Unitary presidential constitutional republic
Surface Area: 75,417 km²
Population: Around 4.5 million
Languages Spoken: Spanish (official), English widely understood in tourist areas
Major Religions: Roman Catholicism, Protestantism, smaller groups of other faiths
Country Profile
Panama is a narrow land bridge connecting Central and South America, bordered by Costa Rica to the west and Colombia to the east, with the Caribbean Sea to the north and the Pacific Ocean to the south. Its most famous landmark is the Panama Canal, an engineering marvel that transformed world trade by linking the Atlantic and Pacific Oceans. The country offers a blend of bustling modern cities, tropical rainforests, and traditional villages, making it a fascinating destination for visitors seeking both culture and nature.
The people of Panama are known for their warmth and hospitality, reflecting a blend of cultures from Indigenous groups, African heritage, and Spanish colonial history. The population is relatively small compared to its neighbours, yet the country has a vibrant character shaped by its global significance as a hub of trade and travel. English is widely spoken in business and tourist areas, although Spanish remains the dominant language, and visitors may find that learning a few phrases helps them connect more closely with locals.
Tourism in Panama has grown steadily in recent years, with highlights including Bocas del Toro on the Caribbean side, the San Blas Islands, and the lush highlands around Boquete. Panama City itself offers a striking contrast between the gleaming high-rise skyline and the historic district of Casco Viejo, where cobbled streets and colonial architecture tell stories of the past. For travellers, Panama provides both adventure and comfort, with eco-tourism, cultural experiences, and luxury options all readily available.
USEFUL INFORMATION
Currency & banking
💵 Currency Overview
Panama has a unique currency system, as it officially uses the Panamanian Balboa (PAB) but in practice the US dollar (USD) is the most widely used and accepted form of money. The Balboa is pegged 1:1 with the dollar, and the two currencies circulate side by side. Balboas are issued only in coins, while paper banknotes are all US dollars.
🪙 Denominations
The Balboa exists only in coin form, with denominations of 1, 5, 10, 25 and 50 centésimos, as well as a 1 Balboa coin. They are identical in value and size to their US equivalents, meaning that travellers will often find Panamanian coins mixed in with US coins in their change. For paper currency, all notes are US dollars, ranging from $1 up to $100, with $20 bills being the most common for everyday use. It is advisable for tourists to carry smaller notes, as change for larger denominations can be difficult in small shops or rural areas.
💱 Currency Exchange
Currency exchange is straightforward in Panama due to the US dollar being legal tender. Travellers arriving with dollars will not need to convert money at all. Those carrying euros, pounds, or other currencies can exchange them at banks, exchange bureaus, and hotels, though rates and commissions vary. In Panama City and other large towns, exchange facilities are easy to find, but in remote areas they may be scarce. It is wise to exchange or withdraw sufficient money before heading to islands or rural destinations.
🏧 Credit Cards & ATMs
Credit and debit cards are widely accepted in Panama City, larger towns, and tourist resorts. Visa and MasterCard are the most commonly used, while American Express and Discover may be accepted in some places. ATMs are plentiful in urban areas and generally dispense US dollars. It is worth noting that some ATMs charge additional fees, so checking with your bank in advance can save costs. In rural regions and on islands such as San Blas, ATMs are either rare or non-existent, making it essential to bring enough cash.
Tipping
🍽️ Tipping in Restaurants
In most restaurants, service charges are not automatically included, so it is customary to leave around 10% if you are satisfied with the service. In higher-end establishments, some bills may include a service charge, so it is always worth checking before adding more. Casual eateries and cafés do not usually expect tips, though rounding up the bill is appreciated.
🏨 Tipping in Hotels
Hotel staff such as porters, cleaners, and concierge staff often rely on tips. A dollar or two per bag for porters and a similar amount per day for housekeeping is considered fair. Higher-end hotels may expect slightly more, particularly if staff go out of their way to assist with special requests or bookings.
🚕 Tipping Taxis
Taxis in Panama do not generally expect tips. Fares are negotiated in advance in most places rather than metered, so it is common to round up to the nearest dollar as a gesture of appreciation. If the driver assists with luggage or provides particularly good service, an extra dollar or two is welcomed.
🚌 Tipping Guides & Drivers
Tour guides and drivers rely on tips as part of their income. For group tours, $3–$5 per person for a half-day and $5–$10 for a full day is the norm. Private guides generally expect more, often around $10–$20 depending on the length and quality of the tour. Drivers on longer transfers appreciate $2–$5 per person.
Communications
📶 Public WiFi
Panama offers public WiFi hotspots in some city areas, particularly in Panama City. While convenient, they are not always reliable and should not be used for sensitive transactions such as online banking. Security-conscious travellers should consider using a VPN if connecting to public WiFi.
🏨 Hotel WiFi
Most mid-range and higher-end hotels in Panama provide free WiFi, although speeds and reliability can vary. In some budget hotels or guesthouses, WiFi may only be available in common areas rather than rooms. Remote lodges, especially in the rainforest or islands, may not have internet access at all, giving travellers a chance to disconnect.
📱 Mobile Networks & SIM Cards
Panama has several mobile network providers, including +Movil, Claro, and Digicel. SIM cards are widely available at airports, shopping centres, and convenience stores. They are inexpensive, and prepaid packages for data and calls are popular with tourists. A local SIM can be a cost-effective way to stay connected, especially for navigation and messaging.
Getting around
🚌 Buses
Buses are the most common form of transport for Panamanians. They range from large modern coaches on intercity routes to the colourful and noisy “Diablo Rojo” buses, which are a cultural experience in themselves. Fares are low, but comfort levels vary widely.
🚕 Taxis
Taxis are plentiful in cities and are generally inexpensive. Fares should always be agreed upon in advance, as meters are rarely used. For tourists, arranging taxis through hotels is often safer and more reliable.
🚝 Metro
Panama City is home to the only metro system in Central America. It is modern, clean, and efficient, making it a good option for avoiding the capital’s traffic. Tickets are inexpensive and can be purchased with a reloadable card.
🚤 Boats & Ferries
For island destinations such as Bocas del Toro or the San Blas Islands, boat travel is essential. Services range from small local ferries to private charters. It is advisable to book in advance during peak times and to be prepared for weather-related delays.
✈️ Domestic Flights
Panama has several domestic airlines offering flights between Panama City and remote areas, including the Caribbean and Pacific coasts. This is the fastest way to reach destinations that would take many hours by road. Tickets are affordable compared to international fares.
Health advice
💉 Vaccines Recommended for Panama
| Vaccine | Reason |
|---|---|
| Hepatitis A | Food and water safety |
| Hepatitis B | Risk through medical procedures or intimacy |
| Typhoid | Common in food and water |
| Yellow Fever | Required if arriving from certain countries |
| Rabies | Risk in rural or wildlife areas |
| Tetanus | General travel precaution |
🦠 Diseases
Travellers should be aware of mosquito-borne diseases such as dengue fever, Zika, and malaria in certain regions. Preventive measures such as repellents, long clothing, and bed nets are strongly recommended. Drinking tap water is safe in Panama City but not in many rural areas, where bottled water is a better choice.
🏥 Healthcare Standards
Panama City boasts excellent private healthcare facilities, often staffed by English-speaking doctors trained abroad. Outside the capital, standards vary and facilities may be basic. Travellers should consider private clinics for reliable care.
🛡️ Insurance
Comprehensive travel insurance covering medical expenses, evacuation, theft, and cancellations is highly recommended. Medical costs in private hospitals can be high, and air evacuation may be necessary in severe cases from remote areas.
Safety
🚨 Crime
Panama is safer than many Central American nations, but petty crime such as pickpocketing and bag snatching occurs in busy areas. Tourists should take standard precautions, such as not flashing valuables and being cautious at night.
🛑 General Safety Issues
Traffic can be chaotic, and road conditions vary, so travellers should take care when crossing roads or driving. Natural risks include strong ocean currents on the Pacific side and sudden rainstorms in the wet season.
⚖️ Local Laws
Drug laws in Panama are strict, and possession of even small amounts can lead to severe penalties. It is illegal to remove certain Indigenous artefacts or wildlife from the country. Respect for Indigenous communities and their land is essential.
📞 Emergency Numbers
| Service | Number |
|---|---|
| Police | 104 |
| Fire Brigade | 103 |
| Ambulance | 911 |
Climate
🌴 Dry Season (December – April)
The dry season is considered the best time to visit Panama, with sunny weather and little rainfall. It is the peak tourist period, especially around Christmas and Easter, so prices are higher.
🌧️ Wet Season (May – November)
The rainy season brings heavy afternoon downpours but mornings are often dry. It is less crowded and more affordable, though some roads and rural areas can be affected by flooding. The landscape is lush and green at this time.
🎒 Packing Tips
Light, breathable clothing is essential year-round due to the tropical climate. A rain jacket and sturdy footwear are advisable, especially during the wet season. Sun protection, insect repellent, and swimwear are musts for most travellers.
🗓️ Best Time to Visit
| Time of Year | Conditions |
|---|---|
| Dry Season | Best weather, busiest, higher prices |
| Wet Season | Lower prices, lush scenery, afternoon rains |
Visa information
🛂 Visa Types
Many nationalities, including those from the UK, EU, USA, Canada, and Australia, can enter Panama visa-free for up to 90 days. Others may require a visa in advance, depending on their nationality. Extensions can sometimes be arranged with immigration authorities.
🌐 Useful Links
Official Immigration Website: https://www.migracion.gob.pa
UK Government Travel Advice: https://www.gov.uk/foreign-travel-advice/panama
Electrical
Which power plugs and sockets are used in Panama?
In Panama, the power plugs and sockets are of type A & B. All power sockets in Panama provide a standard voltage of 120V with a standard frequency of 60Hz.
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