Panama City & Canal Zone

Panama City is the most cosmopolitan city in Central America — and the only one that can compete with the metropolises of South America. The glittering skyline of over 300 skyscrapers stretching along Panama Bay has earned the city the nickname "Dubai of Central America". Yet behind the glass facades lies a city full of history, contrasts, and surprises.

Panama City is more than glass and steel. The historic Casco Viejo (UNESCO World Heritage) with its colonial palaces and rooftop bars, the lively Cinta Costera waterfront promenade, the legendary Panama Canal just 15 minutes from the center, and the tropical Parque Natural Metropolitano right in the city make Panama City one of the most diverse capitals in the Western Hemisphere.

Plan at least 2–3 full days for Panama City. One day for Casco Viejo and the canal, one day for Gamboa and the rainforest, and one day for strolling along the Cinta Costera, shopping, and dining. The city alone justifies the trip to Panama.

The Colonial Heart of Panama

Casco Viejo (also Casco Antiguo or San Felipe) is the historic center of Panama City and has been a UNESCO World Heritage Site since 1997. The old town was founded in 1673 after the notorious pirate Henry Morgan burned down the original city (Panamá Viejo, 8 km away). A peninsula was chosen that could be better defended — and today it has become the most atmospheric district in all of Central America.

Today, Casco Viejo is a fascinating mix: pastel-colored colonial houses with wrought-iron balconies stand next to ruins that are slowly and lovingly being restored. In the alleys, boutique hotels, art galleries, jazz clubs, specialty coffee shops, and some of Panama's best restaurants mingle. Gentrification is visible, but the charm and vibrancy remain.

Highlights in Casco Viejo

• Plaza de la Independencia: The central square where Panama declared independence from Colombia in 1903. Surrounded by the Metropolitan Cathedral (with mother-of-pearl towers) and the Canal Museum.
• Iglesia de San José: The church houses the famous Golden Altar (Altar de Oro) — it allegedly survived Morgan's plundering because a priest covered it with black paint to hide it from the pirates.
• Plaza de Francia: At the southern end of the peninsula, with the monument to the 22,000 French canal workers who died during the first construction attempt. From here, you have the best view of the Amador Causeway and the ships waiting to enter the canal.
• Rooftop Bars: Tantalo Hotel (legendary sunset), CasaCasco (stylish with pool), Amarula (cocktails with skyline view) — Casco Viejo has the best bar scene in Central America.
• Panamá Viejo: The ruins of the original city (founded in 1519, destroyed in 1671) are located 8 km east and are also a UNESCO World Heritage Site. The cathedral tower offers a panoramic view.

The Eighth Wonder of the World

The Panama Canal is one of the greatest engineering feats in human history — an 82 km long canal connecting the Atlantic with the Pacific and annually handling over 14,000 ships. Since its opening in 1914, it has revolutionized global trade: instead of traveling 15,000 km around Cape Horn, ships cross Panama in 8–10 hours. The revenue (over 3 billion dollars annually) makes the canal Panama's economic lifeline.

Miraflores Locks — A Must-See

The Miraflores Locks are the best and most accessible place to experience the canal up close. The excellent visitor center offers:

• Observation Deck (4th floor): Huge container ships and cruise liners glide through the locks — just 20 meters away. The Neopanamax ships fill the chambers to within a few centimeters. It's a fascinating, almost surreal spectacle.
• Museum (3 floors): The history of the canal's construction — from the failed French attempt (22,000 dead!) to the American completion in 1914 and the handover to Panama in 1999. Interactive and excellently presented.
• IMAX Theater: Documentary film about the canal's construction and the 2016 expansion.

Admission: $15 (adults), $10 (children). Open: 9 AM–5 PM daily. Best time: Mornings 9–11 AM or afternoons 2–4 PM, when the big ships pass through. You can find the current schedule on pancanal.com.

Canal Transit — Experience the Canal Yourself

You can also transit the canal yourself! Partial Transit (halfway, 5h, from $185) from Panama City through the Miraflores and Pedro Miguel Locks to Gatún Lake. Full Transit (entire canal, 8–10h, from $250) — a unique experience, but only available to tourists on a few days per month. Book early!

Rainforest at the Gates of the Metropolis

Gamboa is located at the mouth of the Río Chagres into Gatún Lake — and thus right in the tropical rainforest, just 40 minutes from Panama City's skyscrapers. It is one of those contrasts that make Panama so unique: in the morning, you stand between glass facades, in the afternoon, howler monkeys swing through the trees above your head.

Pipeline Road — Birding Mecca of the World

The Pipeline Road (Camino del Oleoducto) in Soberanía National Park is one of the best birding spots in the world. Over 400 bird species have been documented on a road that runs through dense rainforest — including toucans, macaws, motmots, and the elusive Harpy Eagle, the largest and most powerful raptor in the Americas. Even without binoculars, the Pipeline Road is impressive: howler monkeys roar from the treetops, squirrel monkeys scurry across the path, iguanas bask, and giant butterflies flutter by.

Entrance to Soberanía NP: $5. Best with a local guide (from $50/person) who finds and identifies the animals. Early morning (6–9 AM) is the most active time.

Gatún Lake — Kayak, Canoe & Islands

The Gatún Lake (Lago Gatún), once the largest artificial lake in the world, was created for the canal's construction and is now a biotope of incredible biodiversity:

• Kayak Tours: Paddle through the flooded forests, surrounded by howler monkeys, caimans, and hundreds of bird species. From $40 for a half-day tour.
• Barro Colorado Island: The famous research island of the Smithsonian Institute — one of the most studied tropical forests on earth. Day tours with biologists from $100 (book well in advance!).
• Monkey Island: Small islands in the lake where capuchin and howler monkeys live. Accessible by boat, from $30.

Emberá Villages

Travel up the Río Chagres by dugout canoe to a community of the Emberá Indigenous. Traditional dances, crafts, Jagua tattoos (plant-based dye, lasts about 2 weeks), and swimming in the waterfall. This is not a staged tourist program but a respectful cultural exchange — the communities control the tourism themselves. Day trip from Panama City: from $100.

Food Scene

Panama City has the best restaurant scene in Central America. The culinary range spans from a $3 fonda menu to world-class fine dining. The restaurant Maito (Chef Mario Castrellón) regularly ranks among the 50 best restaurants in Latin America and interprets Panamanian cuisine at a modern level.

Must-Try in Panama City

• Mercado de Mariscos (Fish Market): The legendary fish market on the Cinta Costera. Below are the stalls with the freshest ceviche in the city (2–4$ per cup — eat there, NOT in the expensive restaurant upstairs!). Corvina ceviche, octopus ceviche, shrimp cocktail — all freshly caught and delicious.
• Fondas in Calidonia: Around the metro stations, you'll find local eateries: rice, beans, chicken, salad, drink for $3–5. It doesn't get more authentic than this.
• Casco Viejo: Bajareque Coffee House (best specialty coffee), Donde José (Panamanian tasting menu), Super Gourmet (sandwiches and salads at a fair price).
• El Cangrejo: Naki Sushi (Japanese-Panamanian), New York Bagel (breakfast), and the many international restaurants along Via Argentina.

Nightlife

Panama City has the best nightlife in Central America — diverse, safe, and lasting until the early hours:

• Casco Viejo: Rooftop bars (Tantalo, CasaCasco), jazz clubs (Danilo's), wine bars — chic and atmospheric.
• Calle Uruguay: The city's party mile — clubs, bars, reggaeton, and Latin music until dawn. It buzzes here on Fridays and Saturdays.
• Zona Viva (El Cangrejo): International bars, craft beer spots, and the Rana Dorada brewery.