Panama destination guide for backpackers

Panama is one of the most diverse countries in Central America, combining modern city life, tropical beaches, indigenous culture, and dense rainforest.

From cosmopolitan Panama City to the remote San Blas Islands and cloud forests in Boquete, the country offers a perfect mix for both first-time visitors and backpackers.

This Panama travel guide is based on my own route through the country and includes the best places to visit, suggested itineraries, transport tips, budget information, and practical advice.

What to do in Panama?

Panama offers a wide variety of outdoor activities, such as hiking, horse riding, rafting and tubing. Panama is popular for bird-nerds too, having up to almost 1000 species of birds.

In fact there are many wild animals in Panama in general: during my three weeks in Panama I saw sloths, toucans, a cayman and monkeys all in the wild.

If you are into water sports, Panama offers excellent diving and surf spots in both the Pacific and Caribbean. Want something more chill? Relax at the one of Panama’s bounty beaches, or just enjoy sitting in a natural hot spring.

Coffee lovers can enjoy visiting a coffee plantation. If you are more into cities Panama City is a cosmopolitan mix of old and new: skyscrapers and malls in its new part in contrast with ancient Spanish buildings (with rooftop bars!) in its old town.

How to travel around Panama?

Most travelers follow a similar route through Panama, starting in Panama City and continuing to places like San Blas, Boquete, and Bocas del Toro.

While it is possible to travel independently using public transport, certain destinations like San Blas Islands and remote jungle areas are much easier (and often cheaper in stress) with organized transport or tours.

Popular bookable experiences in Panama:

Suggested 2–3 week Panama itinerary

Example route:

Panama City (2–3 days)
San Blas Islands (2–3 days)
Boquete (3–4 days)
Bocas del Toro (3–5 days)
Santa Fe / Santa Catalina (optional)
Return to Panama City

More about each stop in detail below.

Where to go in Panama?

Panama City

Panama City will be your first stop if you are arriving Panama by flight. Stroll along the Costa Cintera and admire Panama City’s impressive skyline. Go shopping in Albrook, largest mall of the Americas. Visit Panama Viejo’s ruins or stroll around in the old renovated colonial neighborhood of Casco Viejo. Don’t miss out a drink in one of the cities countless rooftop bars, party in Calle Uruguay or Casco Viejo. Make sure to read my Panama City Travel guide to find out what to do in Panama City.

San Blas Islands

Over 350 unspoiled bounty islands: San Blas. Get away from modern civilization, don’t expect any mass tourism or wifi here. Instead, enjoy staying in one of the basic wooden shacks directly located on the beach. Snorkel and relax at the beach in daytime. Eat fresh lobster and have “coco locos” around the bonfire with the local Kuna Indians at night. Click here to read more about my experience in San Blas Islands. Or directly book your trip to these tropical islands here.

Boquete

Boquete offers countless hiking trails and outdoor activities. Go hiking by yourself in one of easy-moderate trails close to town or hire a guide for more advanced trails. Climb the Baru Volcano, go horse riding, rafting, enjoy a dip in the natural hot spring, or visit a coffee plantation. Read more in my Boquete travel guide. Or book an organized hiking tour or coffee making experience here.

Bocas Del Toro

Bocas Del Toro is Caribbean archipelago popular for backpackers close to the Cosa Rican border. Rent a quad to go around Isla Colon, go island hopping, spot dolphins, sloths, and countless starfish. Bocas del Toro has various diving and surf schools. Read more in my Bocas del Toro travel guide. Or book your Island Hopping trip in advance here.

Santa Catalina

Santa Catalina is a surfers’ paradise on the Pacific coast. Supposed to have the most amazing diving in Panama with tons of sharks around Isla Coiba. Disclaimer: I did not visit Santa Catalina myself, but it is definitely on my list for a future visit to explore the underwater world Coiba has to offer.

Santa Fe de Veraguas

Santa Fe is much like Boquete, but with almost no tourists. Small village in the highlands above Santiago, beautiful hikes and waterfalls. Go tubing on the Rio Santa Maria, it’s fun! Read more in my Santa Fe de Veraguas Travel Guide.

Lago Bayano Caves

Lago Bayano is a peaceful lake with lots of wildlife only two hours from Panama City. Amazing river tracing through caves with thousands of bats. Natural pools waiting for you to swim in at the end! Surprisingly undiscovered by tourists. Read here about my Lago Bayano Cave adventure. Or book your Lago Bayano Caves experience here.

Portobelo

Portobelo is a small ancient fisherman’s village on the Caribbean Northeast. Often combined with a visit to Isla Grande, though I combined it with a visit to the Panama Canal’s new Gatun Locks in Colon.

Panama Canal

Tha Panama Canal is perhaps Panama’s most famous attraction. Visit the Miraflores Locks close to Panama City, or take the Panama Canal Railway along the canal from Panama City to Colon and visit the new (larger) Gatun Locks that were opened in summer 2016. Read here how to [not] visit the Panama Canal Gatun Locks in Colon. Or just do yourself a favor and do it the right way by booking a proper tour in advance here.

My backpack itinerary in Panama;

Panama City – and right off to;
San Blas Islands – then back to;
Panama City – made day trips Panama City here to;
Boquete
Bocas del Toro
1. Isla Colon
2. Isla Bastimento
Santa Fe de Veraguas
Panama City

Note: it would have made sense to make a stop in Santa Catalina before going to Boquete, but I only heard about Santa Catalina later during the trip and at that point I found it too far to go from Bocas del Toro to Santa Catalina in one day. Because I did not want to go all the way from Bocas del Toro to Panama city in one leg, I decided to go to Santa Fe instead.

When to go?

Panama has two main seasons: dry season from December till March, and wet season from March till December (December and March are so called “transition months”, where both seasons may overlap). The Caribbean coast (Bocas del Toro, San Blas Islands) has a different climate, and it can be visited all year round (a bit of rain can be expected no matter which season). The highlands of Boquete and Santa Fe can also experience short and heavy showers during dry season.

Personally I visited Panama in December, and the weather was mostly sunny. However nearly every day there would be some rainfall in the afternoon. After rain come sunshine definitely applies in Panama though, usually these afternoon showers were followed by sunshine quickly.

Panama Travel Budget

Panama is one of the more expensive countries in Central America, but it is still very manageable for backpackers depending on your travel style.

Accommodation:
Dorm beds typically range from budget hostels to mid-range stays, with private rooms costing more in tourist areas like Bocas del Toro and Panama City.

Meals:
Expect affordable local food options such as “menu del día” lunches, while restaurants in tourist areas and rooftop bars in Panama City are significantly more expensive.

Transportation:
Public transport between major cities is generally cheap, but reaching remote destinations like San Blas Islands or certain jungle areas usually requires organized transport or tours.

Drinking water in Panama

Tap water is safe to drink in most major cities, including Panama City, Boquete, and Santa Fe.

In more remote or island regions, such as Bocas del Toro and San Blas Islands, tap water quality can vary, so bottled water is often the safer option.

Transportation in Panama

How to get to Panama?

Panama City’s Tocumen Airport is well connected with flights all over the world. Read here how to get from Tocumen Airport to Panama City by bus or shared taxi (colectivo).

Transportation within Panama City

For transportation in Panama City you can either Metrobus (from $0.25, but you will need a Metrobus card though, no cash accepted), metro (from $0.35 so far there is only one line), or taxi (from <$2, though taxis are unmetered, so you will have to agree on a price) or Uber. Read more about transportation in Panama City in the Panama City destination guide.

Transportation around Panama

There are air-conditioned (bring warm clothes!) big buses between major cities. Nearly all buses leave from Panama City’s Albrook terminal. A ticket for the overnight express bus from Panama City to David (for Boquete) costs about $18, to Santiago (for Santa Fe) is about half the price. I was unable to buy the bus ticket from Panama City to David in advance, but there are many buses a day. For the bus from Panama City to Almirante (for Bocas del Toro) you should try to book ahead, as there are only two direct buses a day. From major cities it’s usually easy to catch a minibus to your final destination. Transportation in Bocas del Toro is common by taxi-boats.

San Blas Islands and Lago Bayano are harder to access by public transportation and most easily accessible by tour.

Air Panama has several domestic flights, however I did not makes use of these as they were very high priced for someone that’s used to travel on low cost airlines in Europe or Asia.

Transportation from Panama to Costa Rica

There are direct express buses between Panama City (Albrook) and San José, one of the bus companies that provides this service is called Tica Bus. Small buses run from Almirante (Bocas del Toro) to the border from where you can take another minibus to Puerto Viejo.

Transportation from Panama to Colombia

The notorious Darién Gap lies in between Panama and Colombia, the Pan-American Highway stops here for about 160km and it is not possible to cross the border through the Darién Gap. El Machico and several other hostels in Panama City offer sailings to Colombia (mostly Cartagena), via several San Blas Islands. Otherwise the easiest option is to fly. Low cost airline VivaColombia offers affordable flights between Panama City (Pacifico International Airport which is different from Tocumen Airport) and Colombia (Bogota and Medellin).

Where did I stay in Panama?

Location	Name
Panama City	El Machico Hostel
Panama City	Lemon Inn
San Blas Islands	Cabañas Eneida (same island as Ina’s)
Boquete	Hostel Mamallena
Bocas del Toro: Isla Colon	Hotel Las Brisas
Bocas del Toro: Isla Bastimentos	Beverly’s Hill
Santa Fe (de Veraguas)	La Qhia Eco Retreat (formerly Hostel La Qhia)

Staying connected in Panama (prepaid data sim)

All three main carriers in Panama offer prepaid SIM cards (“prepago”) with mobile data. Availability, prices, and bundles change regularly, so it’s best to check the latest options once you arrive.

In practice, most travellers either:

buy a local SIM card in Panama City, or
use an eSIM, which can be activated before arrival

Buying a SIM in Panama City is usually straightforward. You’ll find official stores in shopping areas, and you will need your passport for registration.

If you prefer to be connected immediately upon landing, an eSIM is the easiest option. Services like Airalo allow you to install a data plan before your trip, so you’re online as soon as you arrive in Panama.

Recommended option for most travellers: eSIM for convenience + local SIM only if you need a longer-term stay or larger data packages. I recommend buying your eSIM from Airlo in advance, that way you will be connected as soon as you land!

Liking my photos of Panama? Be sure to follow me on Instagram and have a look at my print shop for prints of Panama on canvas and other materials!

Visited: December 2016. Updated in 2026.

2 comments

Kyle says:

December 4, 2019 at 11:00 pm

I’m headed to Panama in February and reading your guide just got me even more excited!

I like your backpack itinerary, looks like you squeezed in the major spots in a week.

Boquete, Bocas Del Toro, Santa Fe and San Blas Islands all look incredibly beautiful.

1. michiel says:
  
  December 5, 2019 at 9:03 am
  
  So happy you like it Kyle, I am sure you are gonna have a wonderful trip!