Bordered by Costa Rica from the west and Colombia from the southeast, Panama enjoys a strategic geographical location. It’s best known for its canal, which connects the Atlantic and Pacific Oceans.
If you’re heading to Panama and want to make the most of your trip, you’ll want to learn a bit about the country before you go! Understanding its history and culture will make you enjoy your visit all the more.
Here, we’ve put together a list of 20 things to know about Panama before you go. It’s basically a list of all the things that we wish we’d known before we moved there!
1. Panama is most famous for its canal
Panama is best known for the Panama Canal, an engineering marvel that connects the Pacific and Atlantic oceans.
The Canal has been crucial to maritime trade ever since it first opened in 1914. It cut 5,000 miles from the journey between the Atlantic and Pacific Oceans, saving both fuel and time. With lower shipping prices and faster shipping times, merchants can charge less at the store!
If there’s one thing you must do on your trip to Panama, it’s definitely visiting the Panama Canal. The Miraflores Locks are only a few minutes outside of town, and it’s an easy day trip from Panama City.
The Miraflores Visitor Center documents the canal’s construction process. If you visit it, you’ll be able to watch ships pass through the locks, and you’ll come to appreciate just how difficult it was to build it.
Digging a channel across the isthmus of Panama was so challenging that the first builders actually gave up. Thousands of workers died from diseases and accidents during its construction, and the financial cost was exorbitant.
Interesting fact: About 14000 ships pass through the Panama Canal every year—it takes about 8 to 10 hours to complete the journey.
2. Panama runs east-west
One of the most surprising facts about Panama is that it’s the only Central American country that doesn’t run north to south. The country is shaped like an almost perfect sideways “S,” with the Atlantic/Caribbean to the north and a large peninsula that juts south into the Pacific Ocean to the south.
The highest point in Panama is Volcan Baru, an inactive volcano in Boquete. If you climb to the top, you can see both oceans, the Atlantic and Pacific, at the same time. The volcano is one of the central spine of mountains that run through the country.
3. Panama uses the U.S. dollar.
Believe it or not, Panama doesn’t have its own paper currency. Instead, the country uses the US dollar as the legal tender.
Panama does have its own coins, and they come in 1-, 5-, 10-, 25-, and 50-cent denominations. There’s also a one-Balboa coin. These coins are the same size, color, and weight as U.S. coins, and you can use both to pay for things.
Sure, foreign exchange sites may say that Panama uses the Panamanian Balboa as the official currency, but that’s not the reality. Nearly everyone in Panama pays in U.S. currency, and the ATM machines even spit out U.S. dollars!
Prices may be listed with either a “$” (dollar) or a “B/” (balboa) symbol. It doesn’t matter either way because both mean the same thing and have the same value. The Panamanian Balboa is pegged to the US dollar, so their value is the same.
Here’s a pro tip for shopping in Panama: bring some cash from home, and try to have as many small bills as you can. You can always use an ATM, but it’ll charge you to withdraw cash, and even though you’re getting U.S. bills, banks may charge an exchange fee. Having cash on you will save you a lot of hassle, not to mention money.
4. You can see a lot of Panama without changing hotels
One of the best things about Panama is that many of its best attractions are within an hour or two of the capital. This means that you can take day trips from Panama City to see a large part of the country without wasting time packing and moving.
Trust us; staying in one place is a game-changer! Not having to change hotels means you’ll have a lot more time for sightseeing, which is the thing that truly counts.
If you want to visit places that are further away, such as Boquete, Bocas del Toro, the Pearl Islands, or San Blas, consider renting a car. Driving in Panama is easy. But if that intimidates you, there are also some fantastic tours available at affordable prices.
5. Panama’s tap water is safe to drink
Unlike most countries, you don’t need to worry about the local tap water in Panama. It’s chlorinated and is perfectly safe. Feel free to shower, brush your teeth, and drink to your heart’s content.
However, the water can be questionable in the more remote villages. If you’re traveling off the beaten track, it’s probably better to play it safe and rely on bottled water.
6. You can’t drive to Colombia from Panama
If you think you can drive from the U.S. to Colombia through Panama, you have another thing coming!
Colombia is bordered by the infamous Darién Gap, which is pretty much impossible to cross. Not only is it a 60-mile stretch of impenetrable jungle and swamp, but it’s also a favorite hangout for people that you never want to meet.
So since the Pan-American Highway doesn’t span this section of the world, you’ll have to fly or take a boat if you want to head south.
7. Panama has a good transportation system
Contrary to most Central American countries, Panama’s infrastructure is pretty good, and it’s easy to get around it.
The capital city has local buses as well as a nice metro system.
If you want to get out of town, there’s an extensive bus system with cheap long-distance buses that go to most parts of the country. The main bus terminal is next to Albrook Mall.
Panama also has two international airports:
- Tocumen International Airport (PTY)—where most international flights arrive. It’s a modern airport that seems to always be expanding.
- Marcos A. Gelabert International Airport (PAC) – served by Air Panama. Often called Albrook Airport, it serves Bocas del Toro and Guna Yala, as well as San Jose (Costa Rica) and Medellin (Colombia).
Panama City’s two airports are at opposite ends of the city. Ground transport between airports is available, although flight schedules are weird, so coordinating flight times rarely works out. You’ll do well to spend some time in Panama City before heading out of town.
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8. Not everyone speaks English
Despite more than 100 years of U.S. presence, it’s still hard to find English speakers in many parts of Panama. The country’s national language is Spanish, and the people there will love you if you try to speak a few phrases in their language.
However, if you don’t know any Spanish, you can make do with the Google Translate app or even sign language.
If you’re lucky, you’ll find Panamanians who can speak English, but those are mostly in the capital and Boquete.
9. Panama has amazing weather
As a tropical country, Panama enjoys hot weather throughout the year. Its wet season is from May to November, but heavy downpours can also occur during the dry season, between December and April.
The dry season is considered the best time to visit Panama because you won’t have to suffer heavy downpours every day. Most tourists visit during that time to avoid the rain and enjoy the country’s tropical nature.
If you’re often worried about hurricanes before traveling, Panama is your best destination. It’s so far out south and luckily outside the hurricane belt. So, you won’t have to worry about any unfortunate weather surprises during your trip.
10. Panama is more than a tropical beach vacation
Sure, Panama has an iconic manmade canal, plenty of idyllic beaches, and islands with resorts, cocktail bars, and spas. However, there’s so much more to the country than that.
Panama City caters to all tastes; it has everything from colonial ruins to skyscrapers.
The country is also a haven for nature lovers. Like its next-door neighbor Costa Rica, Panama is also famous for having one of the most biodiverse rainforests in the world, as well as some of the most beautiful beaches in Central America.
Not far away from Panama City, you can swim with sharks off Isla Coiba, laze in a hammock in the San Blas islands, or kick back in a Bocas cocktail bar (our favorite snorkeling spot).
Or, if you want the ultimate adventure, you can head to the depths of the Darién jungle and see what Panama was like before they built the Canal.
11. Panama is safe
According to the 2020 Global Peace Index of 163 countries, Panama is the fourth safest country in the Western Hemisphere and the 56th safest country in the world.
Only Canada, Uruguay, and Chile are considered more safe in the Western Hemisphere.
Family and solo female travel in Panama is perfectly safe. Just remember to follow standard safety precautions.
12. Panama produces some of the world’s best coffee
Panama is known for its excellent coffee worldwide. It’s so good that people drink it around the clock, not just at breakfast.
The best beans in the country are grown around Boquete, in Chiriqui Province.
Coffee growers produce plenty of varieties, but the most coveted so far is the Geisha coffee bean. It’s one of the most sought-after varieties on the planet, so much so that auction prices have topped $1,000 per pound!
13. There’s no such thing as personal space.
The concept of personal space is unknown in Panama.
To a Panamanian, asking personal questions like “Are you married?” and “How old are you?” shows friendly interest in you as a person. While it may seem like intruding in other countries, the Panamanians don’t view it that way.
And forget about being politically correct. We Americans are used to treating everyone equally, but in Panama, they see no problem with charging higher prices to foreigners.
We had no problems with that, though, because it’s the same case in many foreign countries.
14. Panama has two independence days
Panama gained independence twice: first from Spain, and then later from Colombia.
Since both events occurred in November, the country celebrates its separation from Spain on the 3rd and marks its emancipation from Colombia on the 28th.
During that time, Panamanians enjoy fiestas and often celebrate with fireworks and parades.
15. You must pack for the climate
Regardless of what month you travel, Panama will be hot. Make sure to pack lightweight clothes and a pair of durable sandals. You’ll also need a hat, sunglasses, and sunscreen.
If you plan to do any trekking, a good pair of hiking shoes will make your experience that much more enjoyable.
Always bring a jacket, too!
Even if you don’t plan to visit mountainous spots like Boquete, El Valle de Anton, and Santa Fe, air conditioning can be quite cold and drafty.
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16. Taxis can be pricey.
In our experience, it’s better to use Uber rather than taxis to get around in Panama.
For starters, you’ll be sure you’ve communicated your destination correctly, thanks to the mobile app. More importantly, Panamanian taxi drivers are notorious for overcharging tourists.
If you need to take a taxi, agree to a price before you get in. Taxis aren’t metered, so drivers can charge what they want.
ⓘ TIP: Taxi drivers tend to charge more when they pick you up at a hotel. If you want to save money, hail a taxi from a block away.
17. Panama has amazing wildlife
As the land bridge between North and South America, Panama is one of the most biodiverse places on earth, with 125 animal species found nowhere else in the world.
We were blown away by the variety of wildlife we saw while living in the country.
From howler monkeys to poison dart frogs, sloths, blue morpho butterflies, and coatimundis, Panama is a land made for nature lovers and bird watchers.
It’s one of the world’s best birding sights, thanks to the 940 bird species living in it, including rare birds like the quetzal and harpy eagle.
18. Don’t expect fast service
Panama’s Spanish heritage shows at mealtimes. Dining out is an occasion to be enjoyed, not rushed. When you arrive at a restaurant, the table is yours for as long as you wish.
We’ve seen tables order a single course, sit for an hour chatting and drinking, then ask for the menu so they could order something else, and this went on all night.
Don’t expect anyone to bring your check as soon as you finish your entrée. You’ll have to signal your waiter when you’re ready to settle the bill.
ⓘ TIP: To avoid stress about being late, don’t book a tour that will start right after lunch!
19. No one is ever in a hurry in Panama
North Americans and Europeans consider time a valuable commodity, but not so in Panama.
When we lived there, the cable installer shrugged when we complained he’d missed three appointments. We quickly learned that Panamanians have perfected the concept of “island time” and have a leisurely attitude toward getting things done.
Don’t be surprised if a show or bus departure doesn’t happen when it’s supposed to. Things move at their own pace, and there’s no way to speed things up. This might stress you out if you tend to be “type A,” so be prepared.
20. There’s no North American tipping in Panama
Panamanians view tips as a reward for good service, so they don’t always expect it like they do in the States.
It’s normal to leave a 10% tip at restaurants, especially if you’re there for the evening.
You should be aware, though, that some restaurants will sneak in an automatic 10% for service—so check your bill carefully before paying.
Generally, porters only expect tips in more expensive hotels. In that case, tipping $1-$2 per bag is sufficient.
Taxi drivers don’t expect tips, but you might consider rounding up the fare if the taxi driver was extra helpful.
ⓘ CULTURAL TIP: Speaking as one who lived in Panama for years, don’t be a clueless tourist and leave a North American 20% tip! You might think you’re being generous, but this practice upsets the natural balance of the local economy and damages the culture in unthinkable ways.
Bonus Section: Do’s and Don’ts in Panama
Since you reached as far as here, here’s a bonus section about what to do and what to avoid doing in Panama!
- Don’t walk in unfamiliar streets at night or alone. The country is safe, but there are still some danger zones that you should avoid altogether.
- Do carry a bottle of water all the time. The weather in Panama is blazing, so it’s better to keep a bottle of water on you to stay hydrated.
- Do expect sudden downpours, even when the forecast doesn’t say anything about it. During the wet season, heavy rain occurs nearly every day, so you better be prepared.
- Don’t forget to carry a safe case to keep your belongings dry when it starts raining.
- Do use bug spray if you’re exploring tropical areas. You don’t want to go home with a couple of bites from mosquitoes or other critters—those are quite common in Panama!
- Don’t use a taxi unless you confirm the fare first. As I mentioned earlier, taxi drivers can overcharge tourists.
- Do expect to hear a lot of fireworks during your time in Panama. Those folks love celebrations, and they often use fireworks at random times without any indication of a festival. So, don’t let it creep you out!
Thank you so much for the in-depth review on Panama.
My pleasure!