Panama is a Central American country bridging North and South America, bordered by Costa Rica to the west and Colombia to the east, with the Pacific Ocean to the south and the Caribbean Sea to the north. The name is often traced to an Indigenous term meaning abundance of fish or trees, reflecting its rich coasts and forests. Its capital and largest city is Panama City, the region’s major financial and logistics hub. Population is about 4.4 million, with Spanish as the official language and English widely used in business and tourism. Panama is a unitary presidential republic; the president is the head of state and government, elected for five years alongside a unicameral National Assembly. The country uses the balboa and the US dollar at a 1:1 rate; coins are balboas, banknotes are US dollars. Gambling is legal and regulated, with casinos concentrated in Panama City. There is no standing army since 1990 – security is provided by the Panamanian Public Forces, including police, border and maritime services. The Panama Canal, expanded in 2016 to handle Neo-Panamax ships, is a strategic asset that shapes the economy and identity.

History
Before Europeans, Panama was home to diverse Indigenous peoples, including Ngäbe, Buglé, Guna, Emberá, Wounaan, Naso and Bribri, whose cultures still define regions of the isthmus. In 1519 the Spanish founded Panamá Viejo on the Pacific, creating the first lasting European city on that ocean. A transisthmian route soon connected Portobelo on the Caribbean with Panama City via the Camino Real and Camino de Cruces, turning the isthmus into a silver corridor where Andean bullion moved to Europe. The prosperity attracted privateers and pirates: in 1671 Henry Morgan sacked and burned Panamá Viejo, leading to the capital’s relocation to a new, fortified peninsula now called Casco Viejo. For two centuries, Portobelo’s trade fairs and the treasure fleets made the isthmus a coveted node of empire, while Indigenous and maroon communities navigated the pressures of colonial rule. In 1821 Panama declared independence from Spain and voluntarily joined Gran Colombia under Simón Bolívar’s republican project. Throughout the 19th century, the idea of a canal simmered as France launched a sea-level attempt in the 1880s led by Ferdinand de Lesseps; disease and finance doomed it. The California Gold Rush brought the Panama Railroad in 1855, drastically cutting transit times and foreshadowing the canal’s logic. After political tensions and a failed canal under Colombia, Panama declared independence in 1903 with support from the United States, which soon secured rights over the Canal Zone via the Hay-Bunau-Varilla Treaty. The US-built canal opened in 1914, transforming global trade and the Panamanian economy, but also embedding sovereignty disputes. In 1964 student protests over the flag in the Canal Zone escalated into violence, catalyzing negotiations. The Torrijos-Carter Treaties of 1977 set a path to full canal transfer, completed on December 31, 1999. Domestically, the 1968 coup ushered in military rule under Omar Torrijos, who blended nationalism with social reforms. After Torrijos’s death in 1981, Manuel Noriega consolidated power; his regime was marked by repression and international isolation. In December 1989 the United States invaded in Operation Just Cause, toppling Noriega and restoring a civilian government. The 1990s and 2000s brought democratic consolidation, growth fueled by the Colon Free Zone, banking, shipping, construction and services tied to the canal. The 2016 canal expansion opened a third set of locks, boosting capacity and reinforcing Panama as a maritime crossroads. Episodes like the Panama Papers in 2016 spurred financial reforms and global scrutiny, while nationwide protests in 2023 over a large copper mine highlighted environmental and governance concerns. In recent years, climate variability has stressed canal water levels, prompting operational adjustments and long-term watershed strategies. Today Panama positions itself as a logistics and financial platform, balancing development, biodiversity and sovereignty on a slim yet strategic land bridge.

Industry
Panama’s economy is service-heavy: canal operations, port terminals, logistics parks, the Panama Canal Railway, warehousing, and re-exports through the Colon Free Zone drive GDP. Finance, insurance and corporate services thrive in Panama City. Construction and real estate have boomed alongside metro projects and skyline growth. Agriculture produces bananas, coffee, sugar, palm oil, pineapples and seafood, including shrimp and tuna. Mining rose with the Cobre Panamá copper project, though its future has faced legal and social challenges. Manufacturing is modest, focused on beverages, food processing, cement, and light industry. Notable brands and products include Copa Airlines in aviation, Ron Abuelo rum and Seco Herrerano by Varela Hermanos, Balboa and Atlas beers by Cervecería Nacional, and world-class coffee from Boquete in Chiriquí. Industrial records center on the canal’s expansion, one of the 21st century’s signature engineering projects for maritime trade.

Flora and fauna
Panama is a biodiversity hotspot where North and South American species overlap. Lowland rainforests in Darién, cloud forests around Boquete and Volcán Barú, mangroves on both coasts, and coral reefs around Coiba and Bocas del Toro shelter thousands of species. Endemics include species on Coiba Island and the iconic Panamanian golden frog, critically endangered and a national symbol. The harpy eagle, one of the world’s largest raptors, is Panama’s national bird. Jaguars, tapirs, howler monkeys, sloths and resplendent quetzals inhabit protected areas like Soberanía, Chagres and La Amistad. Marine life features migrating humpback whales, sea turtles and abundant reef fish. Wildlife export is tightly regulated under CITES; taking coral, turtle products, certain hardwoods, or live animals is illegal. Some species are dangerous if disturbed, including venomous snakes like fer-de-lance and bushmaster, and crocodiles in certain rivers and estuaries.

Religion and races
Panama is multiethnic: a majority is mestizo, with significant Afro-Panamanian, Indigenous, white and Chinese communities, plus Arab and Jewish minorities. Roman Catholicism is the largest faith, followed by evangelical Protestant denominations. There are also Bahá’í, Jewish and Muslim communities, especially in Panama City. Religious festivals blend with civic life, and Indigenous comarcas maintain distinct traditions, languages and governance.

Wars and conflicts
Panama is not engaged in current wars. Historically, key conflict points include colonial-era raids, the 1903 secession from Colombia, the 1964 Canal Zone clashes, and the 1989 US invasion. Security today focuses on crime, counter-narcotics and border control in remote areas. Sites like Corozal American Cemetery reflect the canal’s international story and past military presence. Terrorism risk is considered low, though standard vigilance is advised.

Standard of living
Panama is an upper-middle-income country with one of Latin America’s higher GDP per capita figures and steady service-led growth. Inequality remains notable, with rural and Indigenous regions lagging urban centers. Global governance and corruption indicators place Panama mid-table, reflecting ongoing reforms alongside persistent challenges. In cities, consumer services and connectivity are strong.

Medicine
Healthcare combines public clinics and hospitals with high-quality private facilities in Panama City and David. Pharmacies are common and many keep extended hours; 24-hour pharmacies operate in larger cities. Travelers should carry insurance, bring prescriptions in original packaging, and consider vaccines for hepatitis A, typhoid, and yellow fever if visiting Darién or certain Caribbean areas. Dengue, chikungunya and Zika occur seasonally, so use repellents and protective clothing. Tap water is generally safe in Panama City and many towns, but bottled water is a safer choice in rural areas and islands.

Sport
Baseball is king, producing legends like Mariano Rivera, while boxing stars such as Roberto Durán are national icons. Football has surged, with Panama debuting at the FIFA World Cup in 2018 and performing strongly in regional competitions. Athletics, basketball, surfing and fishing are also popular. The country participates in the Olympics and hosts international events from baseball series to triathlons and regattas.

Holidays
Key dates include Martyrs’ Day on January 9, Carnival in the days before Ash Wednesday, Holy Week, Separation from Colombia on November 3, Flag Day on November 4, Colón Day on November 5, First Call for Independence on November 10, Independence from Spain on November 28, and Mother’s Day on December 8. Fiestas Patrias in early November fill streets with parades, pollera dresses and marching bands.

Traditions
Panama’s traditions fuse Indigenous, Afro-Caribbean and Hispanic elements. The pollera dress and montuno attire, diablos de Azuero masks, and tamborito rhythms animate festivals. In Guna Yala, colorful molas are emblematic handicrafts. Travelers should dress modestly in churches, ask before photographing people, and respect customs in Indigenous comarcas, where permits and guides are often required.

Interesting facts
At Volcán Barú, conditions can allow seeing sunrise over the Pacific and sunset on the Caribbean. Casco Viejo and Panamá Viejo together form a UNESCO site showcasing the old and new colonial capitals. The Portobelo-San Lorenzo fortifications are also UNESCO-listed. Quantum of Solace used Panama City as a filming location. Theodore Roosevelt famously visited during canal construction, and Pope Francis led World Youth Day in 2019. Birders flock to Pipeline Road in Soberanía National Park, one of the world’s premier urban-adjacent birding sites.

Money
Currency is the balboa and the US dollar at a fixed 1:1 rate. Cards are widely accepted in cities; cash is necessary in markets, small towns and islands. ATMs are common in urban areas. Exchange houses operate in Panama City and airports, but many travelers simply use USD. Tipping is customary at about 10 percent in restaurants if service isn’t included. Carry small bills for taxis and street vendors.

Household details
Electricity is 110 V, 60 Hz, with Type A and B outlets. Mobile coverage is strong around cities and tourist areas; eSIMs and local SIMs are available. Public smoking restrictions apply in enclosed spaces. Internet speeds are reliable in urban centers and tourist hubs.

Clothing
Wear light, breathable fabrics for tropical heat, with a rain jacket in the wet season. In highlands like Boquete, evenings can be cool, so bring a layer. Shorts and short sleeves are fine in most casual settings; modest attire is recommended for churches and formal venues. Sun hats, sunglasses and reef-safe sunscreen are essential.

Tourism
A well-paced first trip is 10-14 days. Start in Panama City for Casco Viejo, the Canal visitor centers at Miraflores or Agua Clara, the Amador Causeway and the Biomuseo. Add day trips to Soberanía National Park for birding and to Taboga Island for beaches. Then choose the Caribbean or Pacific: Bocas del Toro offers laid-back islands, snorkeling and surfing; Guna Yala’s San Blas archipelago delivers postcard cays under Indigenous stewardship and requires authorized tours. On the Pacific, Santa Catalina is a launchpad for Coiba National Park scuba diving and Isla Iguana near Pedasí has white sands and reef fish. In the highlands, Boquete brings coffee estates, hanging bridges, waterfalls, and a Volcán Barú summit hike. More adventurous travelers head to Darién with specialist guides. Infrastructure is solid where tourism is established, and logistics between hubs are straightforward by air or road.

Types of tourism
Beach and island escapes, eco and wildlife tourism, birdwatching, diving and surfing, cultural and historical city stays, coffee and agrotourism, adventure trekking and rafting, sportfishing, business and convention travel, and transit tourism focused on the canal.

Tourist attractions
– Panama Canal visitor centers at Miraflores and Agua Clara – ship transits, exhibits, observation decks
– Casco Viejo, Panama City – colonial quarter with plazas and museums – UNESCO
– Panamá Viejo – ruins of the original 1519 city – UNESCO
– Portobelo and San Lorenzo fortifications – Caribbean forts and history – UNESCO
– Biomuseo – Frank Gehry-designed biodiversity museum on Amador Causeway
– Soberanía National Park and Pipeline Road – premier birding trails near the canal
– Bocas del Toro Archipelago – beaches, coral reefs, laid-back Caribbean vibe
– Guna Yala – San Blas Islands – Indigenous-governed cays with turquoise waters
– Coiba National Park – marine reserve with top-tier diving – UNESCO
– Boquete and Volcán Barú National Park – cloud forests, coffee farms, hikes
– Pearl Islands and Taboga Island – Pacific beaches and whale watching
– Metropolitan Natural Park – rainforest trails within Panama City
– Chagres National Park – river trips and rainforest scenery
– Isla Iguana Wildlife Refuge – white-sand beach and coral near Pedasí

Non-tourist attractions
– Panama City Wholesale Food Market – bustling produce and seafood hub at dawn
– City of Knowledge, Clayton – former Canal Zone base turned research and education campus
– Panama Canal maintenance docks and logistics yards – industrial operations visible from public viewpoints
– Coffee processing mills in Chiriquí – seasonal activity on working estates
– Colon Free Zone periphery – glimpse of re-export logistics from public roads

Local cuisine
Expect sancocho de gallina – a light chicken soup with culantro, arroz con guandú y coco – rice with pigeon peas and coconut on the Caribbean side, patacones – twice-fried plantains, carimañolas – yuca fritters stuffed with meat, hojaldres – fried dough for breakfast, ceviche panameño with corvina, and ropa vieja and tamales as common staples. Drinks include chicheme – a sweet corn beverage, fresh batidos, Seco Herrerano mixed with milk or tropical juices, and rums like Ron Abuelo. Meal times are typical Latin hours with a big lunch and late dinners in cities. Tipping 10 percent is customary. Street food is popular; choose busy vendors, and wash or peel fruit.

Why visit
Few places pack world-class engineering, two-cean horizons, rainforest wildlife and island escapes into such short travel times. Panama mixes cosmopolitan ease with authentic culture, making it ideal for first-time Latin America travelers and seasoned explorers alike.

Safety for tourists
Exercise standard urban caution in Panama City and avoid high-crime pockets, especially in parts of Colón and outlying barrios at night. Terrorism risk is low. Natural hazards include strong currents, jellyfish and occasional crocodiles in estuaries, plus snakes on jungle trails. During the rainy season, localized flooding and landslides can occur. Mosquito-borne illnesses are present, so use repellent. Respect Indigenous territories and obtain permits. Emergency number is 911.

Tourist infrastructure level
Service levels are high in established destinations, with a wide range of hotels from boutique to international brands and a strong restaurant scene in Panama City and Boquete. English is commonly spoken in tourism and business, while Spanish dominates elsewhere. Tours are readily available and logistics are efficient.

Entry rules
Many nationalities enjoy visa-free entry for 90 days; passports should have at least 3 months’ validity and a return or onward ticket. Proof of funds may be requested. A yellow fever certificate is required if arriving from certain countries. Customs prohibits narcotics, certain plants and animal products, and artifacts. Drones may require permits in protected and Indigenous areas.

Transport
Panama City has a modern Metro and a Metrobus system requiring a reloadable card. Long-distance buses depart from Albrook Terminal. Domestic flights link Panama City with Bocas del Toro, David and other hubs. The Panama Canal Railway offers a scenic weekday run between Panama City and Colón. Taxis and ride-hailing apps like Uber operate in major cities; confirm fares or use apps.

Automobile
Car rental is easy with a valid foreign license and credit card. Driving is right-hand, roads are generally good on main routes, and 4×4 is recommended for remote coasts or during the rainy season. Urban traffic can be heavy; parking in Casco Viejo is limited. Toll roads – Corredor Norte and Sur – use electronic tags, though some lanes accept cash. Police enforcement is active, with speed cameras on highways. The legal blood alcohol limit is low; avoid driving after drinking. Obey speed limits and carry required documents; fines are payable through official channels.

Noise regime
Residential areas observe quiet hours at night; keep music and gatherings low after about 22:00. Hotels may enforce stricter policies.

Daily tourist budget
Shoestring: 40-70 PAB – 40-70 USD
Mid-range: 100-180 PAB – 100-180 USD
Comfort: 250+ PAB – 250+ USD

What is not recommended or prohibited
Do not photograph sensitive infrastructure or security personnel without permission. Do not remove wildlife, shells or coral. Drone use is restricted in national parks and Indigenous regions without permits. Avoid entering Indigenous comarcas without authorization and a guide. Drug laws are strict.

Climate
Tropical climate with a dry season roughly December to April and a rainy season May to November. The Caribbean side is wetter year-round, while the Pacific has a marked dry period. Temperatures are warm and humid at sea level and cooler in the highlands. The best time for most travelers is the dry season, with shoulder months offering good value.

Tips for tourists
Book canal visits when ships are transiting for the best experience. Carry small bills for taxis and markets. Use reef-safe sunscreen on islands. For Darién, Guna Yala or remote treks, hire authorized guides. Vaccinate appropriately, pack repellent and a light rain jacket, and avoid swimming at river mouths where crocodiles may be present.