Panama City Travel Guide: What to Know Before You Go

Panama City is a city of around 880,000 people on the Pacific end of the Canal, the waterway that cuts 80 kilometres across the isthmus and handles about 14,000 ships per year, or roughly 5% of global maritime trade. The skyline is disproportionately dramatic for a city this size: glass and steel towers that reflect Panama’s status as a regional financial hub, rising next to the ruins of the original Spanish colonial city and the cobblestone streets of Casco Viejo. Most visitors give it two days as a transit stop. Those two days, done properly, are more than a consolation prize.

Casco Viejo

Casco Viejo (also called Casco Antiguo or San Felipe) is the UNESCO-listed historic quarter on the peninsula at the south end of the city, founded in 1673 after pirates destroyed the original Panama City (Panamá Viejo, now a ruin 8km east). The current district has been under gradual restoration since the 1990s: a mix of completed colonial buildings converted to boutique hotels and restaurants, and still-crumbling structures awaiting their turn.

The Plaza de la Independencia, the Metropolitan Cathedral, and the Palacio Presidencial are the centrepieces. The Palacio de las Garzas (presidential palace) has white herons in its courtyard, a tradition going back to the presidency of Belisario Porras in the 1920s.

Rooftop bars in Casco Viejo offer the best available views of the modern skyline rising above the old quarter; the visual contrast between them is the defining image of Panama City. The Tántalo Hotel rooftop is one of the most consistently recommended.

The neighbourhood has changed rapidly; most of the restoration has displaced the original lower-income residents, and the current Casco Viejo is expensive by Panamanian standards. It’s beautiful and worth knowing the context.

The Panama Canal

The Canal is the reason Panama City exists in its modern form. It was built by the United States between 1904 and 1914 (after a failed French attempt in the 1880s), and was returned to Panamanian sovereignty in 1999.

Miraflores Locks, 10km from central Panama City, is the most accessible viewing point. The four-storey observation deck gives direct views of ships being raised and lowered through the locks. There’s an on-site museum explaining the engineering and history. Go on a morning when multiple ships are transiting (check the ACP’s published ship schedule before visiting). Allow 2–3 hours.

Agua Clara Locks on the Atlantic side (near the city of Colón) is the visitor centre for the expanded canal (the New Panamax locks, which opened in 2016 and handle larger vessels). It’s 80km from Panama City, doable as a day trip but requires early departure.

Gamboa, 30km north of the city in the Canal watershed, sits at the confluence of the Chagres River and the Canal. Boat tours of the Canal and the lake above it (Lago Gatún) depart from here. The surrounding rainforest is accessible. Soberanía National Park has over 500 bird species.

When to go

Panama City’s climate is tropical: hot and humid year-round, with a clear wet/dry season.

January to April is the dry season: temperatures around 28–32°C (82–90°F), lower humidity, clearer skies. The best time to visit.

May to December is the rainy season. The city’s afternoon rains can be very heavy. December sees the rains ease. The Canal and the surrounding forest are greener and more lush; the birding in the Canal watershed is exceptional in the rainy season.

The heat is year-round and significant. Panama is close to the equator. Mornings are the time for outdoor activity.

What to see beyond the Canal

Panamá Viejo (Panama Viejo): the ruins of the original city destroyed by the pirate Henry Morgan in 1671. A UNESCO World Heritage site alongside Casco Viejo. The tower of the old cathedral and the surrounding foundations are accessed via a museum that contextualises the colonial period. 8km east of the centre.

Biomuseo: a museum of biodiversity in the Amador Causeway, designed by Frank Gehry. The building’s colourful folded planes are visible from a distance. The content covers Panama’s role as the land bridge that allowed North and South American species to interchange when the isthmus formed 3 million years ago. Good for families, interactive and well-presented.

Metropolitan Nature Park is 265 hectares of protected tropical forest within the city boundaries, one of the few urban national parks of its size in any capital city. Trails are accessible; the birding is genuinely good.

Amador Causeway, a road and promenade built from the rock excavated during Canal construction, connects four small islands in the Pacific bay, with views back to the city skyline and the Canal entrance. Good at sunset.

Getting around

Panama City lacks a comprehensive public transit system. The Metro de Panamá has two lines and is useful for the corridor between Tocumen Airport and parts of the city, but doesn’t serve Casco Viejo or Miraflores directly.

Taxis are widely available and inexpensive. Establish the price before getting in. Uber operates.

The heat makes walking limited to early mornings and evenings. Most inter-neighbourhood movement is by taxi or Uber.

Practical information

Currency: US dollar (USD). Panama has used the US dollar since 1904. No currency exchange needed.

Language: Spanish. English is spoken in major hotels and in Casco Viejo, less so across the city.

Safety: Casco Viejo and the main tourist areas are generally safe. Some areas of the city (El Chorrillo, adjacent to Casco Viejo) have higher crime rates. The main risks for tourists are petty theft and taxi overcharging. Use Uber where possible.

Cruise port: Panama City’s Amador cruise terminal, opened in 2024, is at the Pacific entrance to the Canal. Cruise ships transiting the Canal do not stop for long shore visits; those doing partial transit or using Panama as a port call are the typical visitor.

Airport: Tocumen International Airport (PTY) handles international flights and is about 35 minutes from the city centre by taxi or Uber.

Frequently asked questions

Is Panama City worth visiting beyond the Canal? Yes. The Canal is the primary draw, but Casco Viejo alone would justify a day. The combination of the UNESCO quarter, the Miraflores locks experience, and the accessible tropical rainforest at Gamboa or Metropolitan Park makes two full days genuinely rewarding.

How do I visit the Panama Canal? Go to Miraflores Locks, 10km from the city centre. The observation deck gives direct views of ships transiting. Check the ACP’s official schedule to plan your visit when multiple ships are passing. Tickets include museum access.

How many days do you need in Panama City? Two days covers Casco Viejo, Miraflores Locks, and the Biomuseo or Panamá Viejo. Three days adds Gamboa and a boat tour on the Canal. More than three days requires specific interests: birding, day trips to the San Blas Islands or Boquete.

Is Panama City safe for tourists? In Casco Viejo and the main tourist corridor, yes. Petty theft happens; use Uber rather than hailing taxis from the street; keep valuables out of sight. Avoid El Chorrillo and Curundú.

What is the currency in Panama? US dollars. Panama has used the dollar since 1904 alongside the nominally equivalent balboa, though balboa coins (1 balboa = 1 USD) are the only local denomination in circulation. No currency exchange is needed.

What is the best time to visit Panama City? January to April, the dry season. Lower humidity, clearer skies. The Canal operates year-round; rainy season visits are perfectly functional but hot and wet.

Can I take a cruise through the Panama Canal? Yes, several cruise lines offer full or partial transit cruises. A full transit takes about 8–10 hours. Partial transit sailings (into the Gatún Locks from one side) are common on Caribbean itineraries. Miraflores and Agua Clara visitor centres serve shore visitors who are not on a transiting ship.

What day trips are possible from Panama City? Gamboa (Canal watershed, 30 minutes) for birding and river tours. Panamá Viejo ruins (20 minutes). San Blas Islands (accessed by charter flight, 45 minutes) for the Guna Yala indigenous community and Caribbean beaches. Boquete (mountain coffee town, 6 hours by road or 1 hour by small plane) for cooler temperatures and hiking.