Panama City, the vibrant capital of Panama, is a dream destination for backpackers seeking a mix of adventure, culture, affordability, and connectivity. From its stunning skyline to the historic Casco Viejo, Panama City offers an ideal balance between modernity and tradition. This guide covers everything backpackers need to know, including places to visit, local cuisine, transportation, hostels, nightlife, and co-working spaces, making it the perfect destination for budget-conscious travelers.
A Taste of Culture in Panama City
Panama City is a melting pot of cultures, influenced by its Spanish colonial history, Afro-Caribbean heritage, and modern international communities. The city thrives with lively markets, street performers, and cultural festivals that showcase traditional Panamanian music and dance. Wander through the streets of Casco Viejo, where colonial architecture meets contemporary urban art, or visit the Biomuseo, designed by Frank Gehry, which tells the story of Panama’s rich biodiversity.
Must-See Attractions in Panama City
1. Casco Viejo
Casco Viejo is the heart and soul of Panama City. This UNESCO-listed historic district is packed with colorful colonial buildings, boutique hotels, trendy cafés, and rooftop bars offering spectacular views of the skyline. Take a walking tour to learn about its history and hidden gems.
2. Panama Canal
A trip to Panama City would be incomplete without witnessing one of the world’s greatest engineering marvels—the Panama Canal. Visit the Miraflores Locks Visitor Center to watch ships navigate the locks and learn about the canal’s importance in global trade.
3. Amador Causeway
This scenic causeway connects four small islands and offers stunning views of the city. Rent a bike or take a leisurely walk along the coastline, stopping at waterfront restaurants and duty-free shops.
4. Metropolitan Natural Park
For those who love nature, this urban jungle provides a quick escape from city life. The park is home to sloths, toucans, and howler monkeys, offering a perfect mix of hiking and wildlife spotting.
5. San Blas Islands
While not in Panama City itself, the San Blas Islands are a must-visit for any backpacker. Just a few hours from the city, these islands offer pristine beaches, crystal-clear waters, and a chance to interact with the indigenous Guna Yala people.
Best Food Places to Explore
Panama City has a diverse food scene, offering everything from street food to fine dining. Backpackers should check out:
Mercado de Mariscos – The city’s famous seafood market, where you can grab fresh ceviche at affordable prices.
Fonda Lo Que Hay – A trendy spot serving creative takes on traditional Panamanian dishes.
El Trapiche – A great place to try local classics like sancocho (chicken soup) and carimañolas (stuffed yuca).
Mahalo – A chill café with delicious smoothie bowls, perfect for health-conscious travelers.
Getting Around Panama City
Panama City is well connected and easy to navigate. Here are the best ways to get around:
Metro – The most efficient and cheapest way to travel within the city. Fares are as low as $0.35.
Uber – Safer and more reliable than taxis.
Buses – Affordable but can be challenging for non-Spanish speakers.
Walking – Ideal for exploring Casco Viejo and the Amador Causeway.
Biking – The Cinta Costera and Amador Causeway are bike-friendly routes.
Best Hostels for Backpackers in Panama City
Panama City has some amazing hostels catering to all kinds of travelers. The best ones can be booked through Hostelmatch.com, which guarantees the lowest prices and the best backpacker vibes. Some top-rated hostels include:
Selina Casco Viejo – A lively hostel with a rooftop bar, coworking spaces, and social events.
Luna’s Castle – A historic mansion-turned-hostel known for its vibrant atmosphere and free pancake breakfast.
El Machico Hostel – A great option with a pool and friendly staff.
Zebulo Hostel – Perfect for a laid-back stay with a community feel.
Who is Panama City Best Suited For?
Panama City is perfect for:
Adventure Seekers – With nearby beaches, jungles, and islands, the city is a great base for outdoor exploration.
Budget Travelers – Affordable food, transport, and hostels make it easy to travel on a budget.
Digital Nomads – The city has great internet, coworking spaces, and a solid expat community.
Party Lovers – The nightlife scene is buzzing with clubs, rooftop bars, and beach parties.
How Expensive is Panama City?
Compared to other Central American capitals, Panama City is moderately priced. Budget travelers can expect to spend:
$10–$15 per night in a hostel dorm.
$3–$7 per meal at street vendors or budget restaurants.
$0.35–$2 for local transportation.
$5–$10 for drinks at bars.
Best Activities for Backpackers
Explore the street art in Casco Viejo.
Join a Panama Canal boat tour.
Party on a rooftop overlooking the skyline.
Take a day trip to Taboga Island.
Go surfing at Playa Venao or Santa Catalina.
Learn Spanish in one of the local schools.
Nightlife and Connectivity in Panama City
Panama City has a dynamic nightlife scene, with something for everyone:
Casco Viejo Rooftop Bars – Places like Tantalo and CasaCasco offer great views and music.
Calle Uruguay Clubs – The city’s main party district, with clubs like Teatro Amador.
Live Music Venues – Check out El Sotano or Danilo’s Jazz Club for live performances.
The city is also well-connected with international flights and has strong internet infrastructure, making it ideal for remote workers.
Best Co-working Spaces for Digital Nomads
For those working while traveling, Panama City has excellent coworking spaces:
Selina Cowork Casco Viejo – A trendy space with a mix of private offices and shared workspaces.
Workings – A professional co-working hub with multiple locations in the city.
My Office Panama – A quiet spot with strong Wi-Fi and comfortable workstations.
Best Practices for Traveling to Panama City
Book hostels in advance using Hostelmatch.com to find the best deals.
Carry cash, as some places don’t accept cards.
Learn basic Spanish for easier communication.
Be mindful of safety – Stick to well-lit areas at night and avoid sketchy neighborhoods.
Respect local customs – Panamanians are friendly but value politeness and personal space.
Conclusion
Panama City is an amazing destination for backpackers looking for a mix of history, adventure, and nightlife. With affordable hostels available through Hostelmatch.com, budget-friendly food, great transportation, and a vibrant social scene, it’s the ultimate spot for travelers seeking both relaxation and excitement. Whether you're a digital nomad, a party lover, or an explorer, Panama City has something for you.
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