Nine must-do highlights of Panama City
The district
Casco Viejo (Spanish for “old quarter” or “old town”) is the hippest part of Panama City, home to trendy restaurants, bars and boutique hotels. Settled 350 years ago, it was given UNESCO World Heritage Site status in 1997. Not too long ago it was considered a dangerous no-go zone controlled by gangs. Today, through gentrification and investment, its walkable avenues reveal centuries-old churches, cobblestone laneways, fashionable stores and rooftop bars. Take time out in one of the shaded squares to sip a local Balboa beer and indulge in some people-watching. See tourismpanama.com
The hotel
The American Trade Hotel makes a strong first impression with its grand entrance.
In a beautifully restored 1917 building in Casco Viejo, the American Trade Hotel looks like it belongs to a glamorous era of dashing explorers and sundowner-sipping patrons. Popular with Americans, the five-storey white stucco property keeps it classy with a buzzy jazz bar, Aesop toiletries, Frette linens and a can-do service attitude. There’s a small rooftop pool and a fine dining restaurant, plus an elegant lobby bar that’s worth a visit even if you’re staying elsewhere. Mid-week, the hotel can feel a bit deserted, but it comes alive with international guests on weekends and in January, when the Panama Jazz Festival hits all the right notes. See americantradehotel.com
The landmark
As you’d expect of the most-visited attraction in Panama, the Panama Canal is labelled with a long list of superlatives: One of the Seven Wonders of the Modern World, an engineering marvel, the world’s greatest shortcut. The 77-kilometre artificial waterway was constructed to connect the Pacific and Atlantic Oceans. Take a look at a world map and you’ll see why – before the canal was built, ships travelling from New York to the US West Coast had to loop around the entire continent of South America. Admire the canal up close from the Miraflores Visitor Center. See visitcanaldepanama.com
The museum
The museum resides in the former Grand Hotel, one of Casco Viejo’s most impressive historic buildings.Credit: Panama Canal Museum
By the time the massive Panama Canal project was completed in 1914, an estimated 22,000 workers had perished from accidents, tropical diseases and the punishing heat. Learn about their fate and the staggering international effort it took to build the greatest infrastructure the world had ever seen at the Interoceanic Canal Museum (known locally as the Panama Canal Museum). It’s housed in one of the most impressive of Casco Viejo’s historic buildings, once the Grand Hotel, constructed in 1874. The well-curated exhibits delve into Panama’s history and identity from ancient times to modern sovereignty. See museodelcanal.com
The beach
The nearby island of Taboga is where travellers can get their beach fix.Credit: iStock
Despite its waterfront location, Panama City isn’t blessed with a lot of clean, swimmable beaches. Choose a hotel with a pool because the humidity can be intense. The alternative is an excursion to the fishing island of Taboga, just 30 minutes by fast ferry. It’s a pretty island, home to Playa Restinga, where visitors can enjoy beachside dining, swimming, kayaking and snorkelling. If you’re up for a hike, the lookouts at Cerro Vigia and Cerro de la Cruz reward the effort with fantastic views of Panama City. The beach and the hills are far less crowded on weekdays. See tourismpanama.com
The restaurant
Chef Jose Olmedo Carles daily-changing menu of modern Panamanian cuisine is about as fresh as it gets.
The name, Fonda Lo Que Hay (“Whatever’s Available”), says a lot about what you can expect at this wildly popular Old Quarter restaurant. Sparks fly in the open kitchen as chef Jose Olmedo Carles and his team turn the day’s market finds and fresh catch into dishes that celebrate modern Panamanian cuisine in surprising ways. The menu changes daily, but a few favourites are usually available, including the tuna carpaccio with house ceviche sauce, served on a mat of toasted yucca. For dessert, a mound of crushed ice – hand-cranked in a vintage crusher – comes with fresh fruit syrups, condensed milk, honey and other toppings. See fondaloquehay.com
The way to get around
Uber is widely available in Panama City at prices so low you won’t believe your eyes. A 25-minute ride from the Financial District to the Old Quarter costs less than $5 (don’t forget to tip). Coming from Tocumen International Airport, expect to pay a bit more, around $20. Cars are less frequently available outside the capital city, but most drivers won’t mind taking you anywhere within the relatively small country. The distance from Panama City to the cruise port in Colon, for example, is approximately 74 kilometres and typically takes an hour. See uber.com
The souvenir
Known throughout the world as the Panama hat, the ubiquitous straw hats are in fact made in Ecuador. Legend has it that during the years it took for the Panama Canal to be constructed, workers needed lightweight head coverings to protect them from the harsh Central American sun. Hats woven from toquilla straw in Ecuador filled the bill perfectly. Today the stylish, sun-smart accessories are sold all over Panama City, from boutiques in the Old Quarter, to the airport and shopping malls of downtown. No longer confined to traditional white or natural straw shades, they come in a rainbow of colours and can be rolled up for easy packing.
The side-trip
A day trip out to the idyllic San Blas Islands is a must.Credit: iStock
While it’s possible to see at least some of the San Blas Islands in one (very long) day trip from Panama City, it would be a shame to rush by all the stunning natural beauty and toes-in-the-sand serenity. The islands, located in the north-west of the country, facing the Caribbean Sea, are mostly uninhabited. The larger islands are home to the indigenous Kuna people, who carefully manage visitor access and have so far avoided the pitfalls of over tourism. Best way to get around is by boat, so join a sailing tour or charter a private vessel. See sanblas-islands.com
One more thing
Cruises departing from Panama City head to interesting ports in Central America and the Caribbean, including Aruba, Costa Rica and Colombia. A shiny new cruise terminal, Fuerte Amador, opened at the end of 2022, with plans to welcome mega-ships and other vessels (an existing port terminal is an hour’s drive away in Colon). Just a few minutes from the port, Biomuseo is dedicated to Panama’s natural history and environment. The colourful Frank Gehry-designed building is worth a look. See biomuseo.org
The writer was a guest of NCL’s Panama Canal & Caribbean cruise. See ncl.com
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