Panama

Tourism in Panama is booming. It has maintained its growth over the last five years thanks to government taxes and discounts for foreign guests and retirees. These economic incentives have led to Panama being considered a relatively good place to retire in the world. Panama’s real estate developers have increased the number of tourist destinations over the past five years due to interest in these incentives for visitors. In 2012, 2,200,000 tourists came.

Panama City seen from the Corredor Sur motorway.

The number of tourists from Europe increased by 23.1 % in the first nine months of 2008. According to the Panama Tourism Authority (ATP), 71,154 European tourists came to Panama from January to September, 13,373 more than in the same period last year. Most European tourists were Spanish (14,820), followed by Italians (13,216), French (10,174) and British (8,833). There were 6997 from Germany, the most populous country in the European Union. Europe has become one of the key markets for promoting Panama as a tourist destination.

In 2012, 4,345.5 million flowed into the Panamanian economy through tourism. This corresponded to 9.5 % of the country’s gross domestic product, surpassing other productive sectors.

Panama enacted Law 80 in 2012 to promote foreign investment in tourism. Law 80 replaced an earlier Law 8 from 1994. Law 80 provides a 100 per cent exemption from income and property tax for 15 years, duty-free importation of construction materials and equipment for five years and an exemption from capital gains tax for five years.

Panama is located in Central America and borders both the Caribbean Sea and the Pacific Ocean, between Colombia and Costa Rica. It lies mainly between latitudes 7° and 10°N and longitudes 77° and 83°W (a small area lies west of 83°).

Its location on the Isthmus of Panama is strategic. In 2000, Panama controlled the Panama Canal, which connects the Atlantic Ocean and the Caribbean Sea with the northern Pacific Ocean. The total area of Panama is 74,177.3 ^km2.

The dominant feature of Panama’s geography is the central spine of mountains and hills that form the continental divide. This watershed is not one of the major mountain ranges of North America, and only near the Colombian border are there plateaus related to the Andean system of South America. The backbone that forms the watershed is the highly eroded arc of a seabed uplift, where the peaks were formed by volcanic intrusions.

The mountain range of the continental divide is called the Cordillera de Talamanca and lies close to the border with Costa Rica. Further east it becomes the Serranía de Tabasará, and the part closest to the lower saddle of the isthmus, where the Panama Canal is located, is often called the Sierra de Veraguas. As a whole, the mountain range between Costa Rica and the Canal is commonly referred to by geographers as the Cordillera Central.

The highest point in the country is Volcán Barú, which rises to 3,475 metres. Almost impenetrable jungle forms the Darién Fault between Panama and Colombia, where Colombian guerrillas and drug traffickers operate with hostage-taking. This phenomenon and the movements to protect the forest create a gap in the Pan-American Highway, which also forms a complete route from Alaska to Patagonia.

The fauna of Panama is the most diverse of all Central American countries. There are many South American species as well as North American species.

Waterways

Almost 500 rivers criss-cross Panama’s rugged landscape. Most are not navigable, rise in the highlands, meander through valleys and form coastal deltas. However, the Río Chagres (Chagres River) in central Panama is one of the few wide rivers and a great source of hydroelectric power. The central part of the river is dammed by the Gatun Dam and forms Lake Gatun, an artificial lake that is part of the Panama Canal. The lake was created between 1907 and 1913 by the construction of the Gatun Dam on the Río Chagres. At the time of its creation, Lake Gatun was the largest artificial lake in the world and the dam was the largest earthen dam. The river flows northwest into the Caribbean Sea. Lakes Kampia and Madden (also filled by the Río Chagres) supply the area of the former Canal Zone with hydroelectric power.

The Río Chepo, another source of hydropower, is one of more than 300 rivers that flow into the Pacific. These rivers facing the Pacific are longer and slower than the rivers on the Caribbean side. Their basins are also larger. One of the longest is the Río Tuira, which flows into the Golfo de San Miguel and is the only river in the country navigable by large ships.

Ports

The Caribbean coast is characterised by several good natural harbours. However, Cristóbal, at the Caribbean end of the channel, had the only significant port facilities in the late 1980s. The numerous islands of the Archipiélago de Bocas del Toro, close to Costa Rica’s beaches, form a large natural harbour and protect the banana port of Almirante. The more than 350 San Blas Islands near Colombia stretch for more than 160 kilometres (99 miles) along the protected Caribbean coast.

Currently, the terminal ports at both ends of the Panama Canal, the Port of Cristobal and the Port of Balboa, rank second and third respectively in Latin America in terms of the number of container units (TEUs) handled. The Port of Balboa covers 182 hectares and includes four container berths and two multipurpose berths. In total, the berths are over 2,400 metres long and 15 metres deep. The Port of Balboa has 18 super post-Panamax and Panamax dock cranes and 44 gantry cranes. The Port of Balboa also has 2,100 square metres (23,000 square feet) of storage space.

The ports of Cristobal (which include the container terminals of Panama Ports Cristobal, Manzanillo International Terminal and Colon Container Terminal) handled 2,210,720 TEU in 2009, which is second in Latin America after the port of Santos in Brazil.

Excellent deep-water ports that can handle large VLCCs (Very Large Crude Oil Carriers) are located in Charco Azul, Chiriquí (Pacific) and Chiriquí Grande, Bocas del Toro (Atlantic), near Panama’s western border with Costa Rica. The Trans-Panama Pipeline, which crosses the isthmus over a length of 131 kilometres (81 miles), has been in operation between Charco Azul and Chiriquí Grande since 1979.

Panama recorded a population of 3,405,813 in the 2010 census. The proportion of the population under 15 years of age was 29 % in 2010. 64.5 % of the population was between 15 and 65 years old, and 6.6 % of the population was 65 years or older.

More than half of the population lives in the Panama City-Colón metropolitan corridor, which spans several cities. Panama’s urban population is over 70%, making it the most urbanised in Central America.

Ethnic groups

In 2010, the population was 65% mixed race (white and Indian), 12.3% Indian, 9.2% black/multi-white and 6.7% white.

Panama’s ethnic groups include mestizos, who are a mixture of European and indigenous ancestors. Blacks, or Afro-Panamanians, make up 15 to 20 per cent of the population. Most Afro-Panamanians live in the Panama-Colón metropolitan region, Darien province, La Palma and Bocas Del Toro. Neighbourhoods in Panama City with a large black population include: Curundu, El Chorrillo, Rio Abajo, San Joaquin, El Marañón, San Miguelito, Colón and Santa Ana. Black Panamanians are the descendants of African slaves brought to the Americas as part of the Atlantic slave trade in the 1500s. The second wave of blacks brought to Panama came from the Caribbean when the Panama Canal was built. Panama also has a large Chinese and Indian (India) population. They were used for labour in the construction of the canal. Most Chinese-Panamanians live in Chiriquí province. Europeans and white Panamanians are a minority in Panama. They are the descendants of the people who colonised Panama, worked on the canal and settled in the country. Panama is also home to a small Arab community that has mosques to practice Islam.

The indigenous population comprises seven ethnic groups: the Ngäbe, the Kuna (Guna), the Emberá, the Buglé, the Wounaan, the Naso Tjerdi (Teribe) and the Bri Bri.

Religion

The government of Panama does not collect statistics on the religious affiliation of its citizens, but various sources estimate that 75-85% of the population identifies as Roman Catholic and 15-25% as Protestant.  The Bahá’í Faith in Panama is estimated at 2.00% of the national population, or about 60,000 people, of whom about 10% are Guaymí.

The Church of Jesus Christ of Latter-day Saints (LDS Church) claims over 40,000 members. Smaller religious groups include Seventh-day Adventists, Jehovah’s Witnesses, Episcopalians with 7,000 to 10,000 members, Jewish and Muslim communities with about 10,000 members each, Hindus, Buddhists and other Christians. Indigenous religions include Ibeorgun (Kuna) and Mamatata (Ngobe). There are also a small number of Rastafarians.

When you cross the border between Costa Rica and Panama, you will notice a distinct change in dialect. True to its Caribbean orientation, Panamanian Spanish is much closer to Puerto Rican than to Tico or Nicaraguan. For students with Mexican or European Spanish, this may take some getting used to. However, it is very easy to understand and not at all more difficult than that of other Spanish-speaking countries. Panamanians tend to pronounce the “h” instead of the “s” and not pronounce certain Ds at the end of certain words. This is part of their dialect, but Panamanians are quite capable of speaking Spanish in a way that is more understandable to students of Mexican or Castilian Spanish, and they are aware of their regional peculiarities.

Panama City has a different dialect in which they mix English and Spanish words. Although educated Panamanians try to speak proper Spanish, they are very proud of their dialect and prefer to use it unless it is a formal conversation or public speech.

Indigenous languages

Panama has much more indigenous culture than some neighbouring countries. In Kuna Yalay you will hear the indigenous Kuna language spoken. In the Comarca Ngöbe-Buglé, as in Chiriqui or Bocas del Toro, you can hear the indigenous Ngöbe-Buglé (Guaymí) language, although the Ngöbe and Buglé are very quiet with foreigners. If you ask one of them for directions, he will probably point you in the right direction with a wave of his hand or his lips.

English

Much of Panama’s Caribbean coast was settled by people from Jamaica and Barbados. In more recent times, the descendants of these settlers seem to speak more Spanish, but many still speak English, albeit a very Caribbean variety called Guari Guari.

Until a few years ago, the canal was controlled by the United States. The United States gave the canal back to Panama, but many people in Panama City and other areas near the canal still speak English as their first or second language. Surprisingly, English is not as widely spoken as one might think, considering how much time Americans have spent in the country. It’s not that common for people who work in shops or are on the street to speak English. There are a number of news sites and blogs in English to help you with your travels.

The most popular app for calling and texting in Panama is WhatsApp. Viber is also used. With these apps you can call and text for free with people who use the same app. This is the case for many Panamanians.

Panama has one of the most advanced telecommunications systems in Latin America. This is because most of the major undersea fibre optic cables run through the Panama Canal, either by land or by sea. Calls to the United States and Europe cost between 4 and 10 cents per minute. The best way to call abroad from Panama is to buy prepaid phone cards, which are sold on every corner. The most popular is the TeleChip card. These cards work everywhere, including the United States, Mexico, Europe, Brazil, Costa Rica, Colombia, etc.

The country code for Panama is 507. All mobile phone numbers start with the number 6 and have 8 digits. Landline numbers have 7 digits.

According to the CIA World Factbook, Panama had an unemployment rate of 2.7% in 2012. A food surplus was recorded in August 2008. On the Human Development Index, Panama ranked 60th in 2015. In recent years, Panama’s economy has boomed, with real gross domestic product (GDP) growth averaging more than 10.4% in 2006-2008. Panama’s economy is among the fastest growing and best managed in Latin America. The Latin Business Chronicle predicted that Panama would be Latin America’s fastest-growing economy in the five-year period 2010-14, on par with Brazil’s 10% rate.

The Panama Canal expansion project and the free trade agreement with the United States are expected to boost economic expansion and prolong it for some time.

Despite its higher average GDP per capita, Panama remains a country of stark contrasts. Due to dramatic educational disparities, more than 25% of the Panamanian population lived in national poverty and 3% of the population lived in extreme poverty in 2013, according to recent World Bank reports.

Economic sectors

Panama’s economy is mainly based on a well-developed service sector, including trade, tourism and commerce, due to its key geographical position. The handover of the canal and military installations by the United States has led to major construction projects.

The project to build a third set of locks for the Panama A Canal was overwhelmingly approved in a referendum on 22 October 2006 (albeit with a low turnout). The official cost of the project is estimated at $5.25 billion. The canal is of great economic importance, bringing millions of dollars in toll revenue into the national economy and creating massive employment. The transfer of control of the canal to the Panamanian government was completed in 1999, after 85 years of US control.

Copper and gold deposits are exploited by foreign investors, much to the displeasure of some environmental groups, as all projects are located in protected areas.

Panama, a tax haven

Since the early 20th century, Panama has gained a worldwide reputation as a tax haven. In 2016, the publication of the Panama Papers triggered a huge global financial scandal.

Countries whose citizens have a passport valid for at least 6 months at the time of entry do not require a visa for entry to Panama: (among others) Andorra, Argentina, Austria, Belgium, Bolivia, Brazil, Germany, Ireland, Israel, Malta, Netherlands, Portugal, San Marino, Singapore, Sweden, Switzerland, United Kingdom and Uruguay. For more information, please visit the website of the Embassy of Panama.

The law on tourist visas for entry into Panama. Executive Decree No. 248 states that “Those holding a passport valid for at least 3 months and a valid visa from ONE of the following countries: United States, the United Kingdom, Canada, Australia or one of the member countries of the European Union, which has been used at least once to enter these countries, may enter the Republic of Panama by purchasing a tourist card, regardless of their nationality.”

Citizens of certain countries, including Australia, Canada, Japan and the United States, can enter with a tourist visa that is stamped on arrival (the cost is automatically included in the airfare and is valid for a stay of 180 days, as of August 2010). The cost of a visa stamp to enter Bocas del Toro is $13 (US) if arriving by air (as of May 2008). Entry requirements are proof of :

• a return ticket from Panama City
• 500 USD in cash or traveller’s cheques
• Recommended yellow fever vaccination – only if you are coming from a country where yellow fever is present (including most countries in South America and Africa, but not the United States).

In practice, border officials may be lax in checking blameless travellers from the United States and other industrialised countries.

As your tourist visa will be stamped in your passport, it is also important to carry at least one photocopy of the ID page and the page with the tourist visa stamp.

International flights arrive at Tocumen International Airport (IATA: PTY), located about 30 kilometres east of Panama City (from all countries) or at David Airport (from Costa Rica with AirPanama). PTY Panama City is well connected to the Americas and offers non-stop flights to almost 20 countries in the region. Neighbouring Colombia is particularly well connected with daily flights to more than 7 cities, including Bogota, Medellín, Cali and Cartagena. Local travellers and tourists can also reach Bocas del Toro via Costa Rica.

From Tocumen you will need to take a taxi, bus or hire a car to get into the city. Taxis at the airport have fixed rates and can be shared – the transport information desk in the lobby will help you organise this. There are a few hotels near the airport where you can stay at relatively high prices (US$60).

If you are short of money, you can take a bus to the city centre for 0.25 Balboa. Just walk towards the motorway and cross the road towards the bus shelter. Make sure you take the bus that says “Via España”.

The country has more private airstrips per square mile than any other country in the world, and it is technically possible for the adventurous private pilot to get to any of them, either directly or via Central America. Most of the remote inland areas are most easily reached by private plane, although a combination of hiking and canoeing can also get you to most places. If you are flying to Panama by private plane, it is important to check where you can clear customs and immigration – not all airstrips are equipped for this.

FBO services for corporate jets are available in Panama City (Albrook and Tocumen), David (by appointment), Howard and Bocas del Toro.

• From Costa Rica: You can cross by car at Paso Canoas (Pacific side), which closes at 11pm (Panama side) or 10pm (Costa Rica side), but be aware that this is one of the busiest (if not the busiest) and unorganised border crossings in Central America. It is very easy to accidentally cross the border without realising it. The various border offices are scattered haphazardly around the border town, and you may have to walk a bit to find them, as they are in no way distinguishable from the surrounding buildings. This is one border crossing where it is definitely worth hiring a “tramitator” or assistant to help you through the stations if you do not speak Spanish.

There are also road crossings at Rio Sereno (Pacific side) and Sixaola/Guabito (Atlantic side). The Rio Sereno border crossing is not very busy, so make sure all your papers are in order as the police can be very strict.

• From Colombia: Attention: There is no road connecting the two countries.

You may not leave the country without your car (i.e. change your mind, ditch the car and fly home) without a stamp in your passport proving that you have paid the appropriate impuestos (import taxes) on your vehicle. Expect to be stopped frequently by the police, but don’t worry, they are usually more curious about a foreign car than a bribe.

If you have problems with your car in Panama, you will find dealers with service departments for almost all major car manufacturers in the USA (all of them), Europe (almost all of them) and Japan (all of them). Most of them, like in the US, require an appointment to service your car. Most service staff at all dealerships are certified by the manufacturer. If you need to repair your car and don’t want to go to a dealership to save money, or if you have an emergency repair, you can find good independent mechanical services/garages in all major cities by looking in the Yellow Pages (paginas amarillas), as well as towing services. If you need parts for your vehicle, you will also find a large number of spare parts shops for all major car manufacturers in the Yellow Pages.

The use of “shadow mechanics” and parts from junkyards is the same as in the US; these options are for the do-it-yourselfer.

Many cruise lines have the Panama Canal in their itineraries. You can make excursions to Panama City or Colón City and take part in many packages.

It is possible to arrange the crossing on banana boats from Ecuador, Colombia and Venezuela, but this type of crossing is only recommended for the truly adventurous, as the boats are often structurally defective, horribly overloaded and most likely also loaded with drugs.

Private sailboats also operate between Panama and Cartagena, Colombia. Prices range from US$400 to US$500 and the trip usually takes four nights/five days, including a two-day stopover in the San Blas Islands (Carti Islands). The best places to find a boat are the hostels in Panama City or Portobelo, which are popular with backpackers.

The cheapest way to get to Panama by boat from Colombia is to take the ferry from Turbo to Capurganá (COP$55,000, daily around 8am) and the small boat from Capurganá to Puerto Obaldia (COP$25,000, daily around 7am). From there, fly to Panama City (USD 95) or take a boat to Colon and the Carti Islands (USD neg).

It is possible to cross the Darien Gap from Colombia on foot with the help of qualified guides, but this route is generally considered one of the most dangerous in the world. Many attempts have ended in the deaths of hikers, victims of Colombian guerrillas and paramilitaries or the oppressive environment of the jungle, considered the densest and most difficult to cross in the world. Despite the bravado of backpackers who will try to convince you that real travellers are not afraid to cross the Gap, it is in fact a very dangerous journey and the Panamanian police are not interested in picking you up if you have problems.

Michele Labrut’s Getting to Know Panama gives the following tips for surviving in the Darien:

“Do not go naked into the water, very undesirable protozoa can get into you. Do not drink untreated water. Never stray from the group, you can easily lose your bearings and get lost. If this happens, stay where you are and do not panic. Shout or yell at regular intervals.”

The rest of Panama has clean water.

There are two types of buses in Panama: those on the highway and the “city buses” (metro buses) that have replaced the Diablos Rojos (Red Devils).

The highway buses run constantly between the terminals in Panama City and various destinations along the Pan American Highway and then return to the terminal. The buses run relatively frequently and will pick you up or drop you off at any point along their route. The roughly linear shape of the country is ideal for a bus system, so ideal that you don’t really need a car to get to most areas. Take a bus to the intersection you want on the Pan American Highway. You can get on a bus anywhere on the Pan American Highway heading to Panama City, but a ticket is required for all trips out of the city. The city’s Grand Terminal is large and modern and will remind you of an American mall or airport (it is actually a mall too, the Albrook Mall). Timetables for all buses in Panama City can be found at HorarioDeBuses.com/pa.

When you want to get on a bus, stand at the side of the road, stretch out your arm and make clear gestures towards the ground. When you are on the bus and want to get off, shout “parada!” or tell the driver beforehand. You will get used to it very quickly. Locals are very helpful when it comes to tourists on the bus and may offer to help.

Buses on the highway are very cheap, costing about US$1 per hour of travel, sometimes less. An exception is the fare from Tocumen airport, for which buses and taxis charge a lot of money (by Panamanian standards) simply because they can.

The city’s buses are modern, air-conditioned and form the government-regulated metro bus system, which has been in operation since December 2010, replacing the old “Diablos Rojos” or “Red Devils” buses. Passengers must purchase a Metrobus card ($2), which can be loaded with amounts ranging from $0.50 to $50. A ride costs $0.25, or $1.25 if you use the Corredor Highway (south or north).

If your destination is far from the bus line, or if you just want to be lazy, taxis are also a decent way to get around Panama. Taxi fares are negotiated and vary by location. Most short taxi rides cost $2.5 and trips across town cost around $5. Unlike the city taxis you may be used to, they can take you far into the countryside.

A taxi ride from Tocumen Airport to Panama City can easily exceed the cost of the rest of your combined trip at a minimum of US$30. If you share a taxi ride with other passengers travelling from the airport to the city, the fare per person can be cheaper, at around US$12. You can save quite a bit of money by taking the bus to the Gran Terminal, but bus fares will also be higher than normal.

Panama is located in the south of Central America and can easily be discovered on your own. Panama’s road network is in very good condition (by Central and South American standards). You can rent a car and drive it around the country if you are an excellent defensive driver. Travelling by car allows you to discover attractions that are difficult or impossible to reach by public transport.

Panama City is more difficult to navigate than any other major city in the United States, with terrible rush hour traffic, few street name signs, poor street design and no traffic lights at busy intersections. You have to position your car aggressively to get ahead, while being very aware of the unpredictable and irrational behaviour of others. Drivers have little or no respect for the rules of the road, and drivers from North America or Western Europe will be amazed at their recklessness. In the rest of the country, driving is generally stress-free.

The Pan-American Highway is paved throughout the country and has many roads that branch off to towns outside the highway. Most of these roads are paved and most others are still easily navigable by sedan chair. However, road engineering standards are low, so watch out for undriveable curves, deep potholes and sharp turns without warning. It is strongly recommended to drive with good route knowledge. Use the detailed information on the Cochera Andina website to plan your trip and check road conditions, distances and driving times. Don’t forget to take a good road map with you on the way.

To drive in Panama, you need your country’s driver’s licence, but to avoid problems with police checks, it is best to carry an international driver’s licence as well. Traffic rules are almost the same as in Europe or the United States. Traffic signs are frequent. The speed limit is 40 km/h in the cities, 80 km/h outside the cities and 100 km/h on the highways. You will find petrol stations everywhere in Panama. Many stations are open 24 hours a day. Three types of petrol are available: unleaded, premium and diesel.

Panapass

For driving on the Corredor Sur and Corredor Norte motorways, both of which are toll roads, the only means of payment accepted is the Panapass card; if you do not have one, you will have to pay a fine.

Local airlines serve many airports in Panama. Aeroperlas and AirPanama are the two local airlines. Flights from Panama City depart from Marcos Gelabert Airport in Albrook.

Private aircraft charters can be booked online and through local companies.

It is advisable to check the tail number of any aircraft chartered in Panama. All registered aircraft approved for public charter (air taxis) have a letter after their registration number (e.g. HP-0000TD). This means that the aircraft is insured for charter operations and is subject to more inspections and maintenance requirements.

Take the Panama Canal Railway from Panama City to Colón or vice versa. The first train ran on this line in 1855 (although the line has since been abandoned and rebuilt in standard gauge) and it was the first interoceanic railway in the Americas, preceding the transcontinental railway in the US by a decade and a half. Although the main purpose of the railway is freight, a passenger train runs once a day in each direction and is marketed as a luxury train to justify the $25 one-way fare.

• Central Panama
  Panama City and the provinces of Colon and Cocle.
• Western Caribbean
  The province of Bocas del Toro and the province of Ngöbe-Buglé as well as the northern part of the province of Veruguas.
• Western Pacific
  Most of Panama’s main attractions are located in the province of Chiriqui, as well as throughout the provinces of Herrera and Los Santos and the southern part of the province of Veraguas.
• East Panama
  The forests and swamps of Darien Province, part of Panama Province, Kuna Yala and the San Blas Islands.

• Panama City – the capital with 3 districts of interest: the New Town, the Old Town and the Colonial Town.
• Balboa
• Boquete – Panamanian capital of coffee cultivation, in the highlands of Chiriquí.
• Boca Chica- in the Gulf of Chiriquí
• Colón
• David
• Gamboa
• Portobelo – Historic Spanish forts, boats to Colombia and diving centres.

• Coiba National Marine Park – often referred to as the Galapagos of Central America because of its abundance of rare species in the water and on land. Here you can dive and snorkel and see some of the rarest pelagic species of marine life in the world.
• La Amistad International Park is the second largest park in Panama, covering over 207,000 hectares (850 square miles). It is a bi-national park, with an additional 193,929 hectares (1,840,000 acres) on the Costa Rican side. Amistad is the Spanish word for friendship and was created to promote friendship between the two countries.
• Parque Nacional Marino Golfo de Chiriquí – in the Gulf of Chiriqui, is dotted with dozens of small islands and islets, including Boca Brava, Isla Palenque and Islas Secas. The area offers some of the best sport fishing and whale watching in the region, and several resorts and boutique hotels have opened in the area since the mid-2000s.
• El Valle – a charming little town nestled in the second largest inhabited volcanic caldera in the world.
• Pearl Islands
• San Blas Islands
• Taboga
• Volcan Barú National Park – 14,325 hectares in size, and the highest peak in Panama at 3,475 metres is located here.
• Miraflores Locks – A good place to see the ships going up and down as they pass through the Panama Canal.

Panama’s hotels are as diverse as its geography. Panama City has as much glamour and glitz as New York, without the high prices. You can find 5-star hotels in the heart of the city or venture into the smaller neighbourhoods where former canal barracks have been converted into guesthouses. In terms of an authentic Panama experience, the historic Casco Viejo district offers the charm of times past with the modern amenities of today. Because tourism is so new to the area, accommodation is largely limited to the fleet of short-term rentals in Los Cuatro Tulipanes.

In Bocas del Toro there are island-style cabanas and small hotels, some of which are literally on the water (like the cabanas in Bali). In Chiriqui province, in the western lowlands, there are small hotels on some of the outer islands and an ecological reserve in Chorcha where you can spend the night in hammocks with the monkeys. In the western highlands, around Boquete, there are hostels for $5 a night and 5-star hotels for $300 a night or more. There are no skyscrapers here, but small charming hotels and very artistic casitas. David Panama, the capital of Chiriqui province, has become a destination and hub for backpackers travelling from Panama City to Bocas Del Toro and Costa Rica.

In the big cities you will find all kinds of food, from French haute cuisine to the freshest sushi. There are Arabic, Italian, Chinese, Indian, Mexican restaurants… whatever you feel like.

Outside the cities, the choice is largely Panamanian, with seafood and beef in abundance, thanks to the many livestock farms and fantastic fishing in the region. Panamanian cuisine is a blend of many cultures. Reminiscent of the country’s Afro-Caribbean, French and Spanish influences, the dishes have a character all their own. If you are tired of eating beans or gallo pinto in the rest of Central America, you can go to Panama. Since Panama is a bit more Caribbean than other Central American countries, you will see a lot more plantains than beans. Most dishes are served with coconut rice and some kind of squash or other native vegetable. If you had to sum up Panamanian food in one word, that word would be culantro, a native plant that tastes like coriander, except it has a much stronger flavour.

A typical meal at a humble family restaurant can range from $1.25 to $5.00 and includes meat of choice: mondongo (beef stomach), fried or baked chicken, pork, beef and sometimes fried fish; rice, beans, salad: cabbage, carrots and mayonnaise; beet salad; green salad; potato or macaroni salad; and patacones (fried green bananas). The Panamanians also enjoy their “chichas” (fruit, water and sugar), of which there is always a choice, ranging from tamarindo, maracuya (passion fruit), mango, papaya, jugo de caña (sugar cane juice) or agua de pipa (young green coconut juice). If you like spicy food, Panama may not be for you. They do have several hot sauces, but the emphasis is not on spiciness.

If you look carefully, you can find excellent and cheap food. A quick and cheap lunch can be found in the “fondas”, which are small restaurants near schools, stadiums and in industrial areas where workers and students have their afternoon meal. There are often several of these fondas in groups, so look for the one with the longest queue and you can be sure it offers the best food for the price. A full plate of rice and beans with a large piece of chicken and a small salad will cost around $2-$2.50 plus the price of a Coke (Squirt is very popular at lunch). If you choose to eat at La Fonda, you’ll get a real plate and silverware and a glass soda bottle with a straw (be sure to return the bottle empty). The local food is much tastier than the typical Subway sandwich, Whopper or KFC meal and much cheaper. If you eat at the same place often enough, you will go from being a crazy gringo who must have got lost on the way to Burger King to another local enjoying a casual lunch and conversation (in an industrial area, the customers will be mostly men and the topic of conversation will mostly be football and women).

The equivalent of a 5-star meal with drinks can cost between $8 and $30 in some places.

National beers are produced (Balboa, Atlas, Soberana, Panamá) but do not meet the standard of a good import. Balboa is probably the best of the national brands, but Atlas is the most popular; many women prefer Soberana. Beer can be bought for as little as 0.30 cents per 12 oz. Can in a supermarket or between $0.50 in a local city bar and $2.50 in the higher-end bars.

Carta Vieja and Ron Abuelo are the main rums produced in the country. Seco, a very raw white rum, is the national drink. Seco con leche (with milk) is a common drink in the countryside.

Nightlife

How the Panamanians love their “fiestas”! They know how to let loose and have a good time dancing, talking and drinking.

Carnival is the most important festival in the country. It takes place 40 days before the Christian Holy Week, lasts the whole weekend and ends on Ash Wednesday (21-24 February 2009). The biggest celebration takes place in the province of Azuero, in the town of Las Tablas, where two streets compete with their own queens, activities, parades and musical performances.

The party starts on Friday with a presentation, a parade and the crowning of the queens, fireworks; as the consumption of alcohol on the streets is legal, the party starts and does not stop until 5am.

Each day of the carnival has a theme: Friday is the opening, Saturday is the international day, Sunday is the day of the pollera, Monday is the day of the costumes, Tuesday is the day of the queens and Wednesday is the “entierro de la sardina” (the burial of the sardine) before 5am.

The capital is full of discos and bars. The area known as “Calle Uruguay” has probably a dozen cool discos and bars within a two-block radius and is the best place to party.

The bar area of Calle Uruguay is a very trendy scene. Here you will find numerous restaurants such as La Posta, Peperoncini, Habibis, Tomate y Amor, Madame Chang, Burgues or Lima Limon, which are great for a great pre-party. After dinner, head to Prive, Pure, Loft, Guru or People to experience the fashionable club scene. If you want a more relaxed bar, Sahara and The Londoner offer retro music and pool tables.

Another great place for bar-hopping is Zona Viva, in Amador Causeway. Zona Viva is a closed area, so it is very easy for you to find everything in one place. Here you will find clubs like Jet Set Club, Building, Chill Out Zone, X Space.

Casco Viejo is a rather cultural area in Panama. The art galleries in the neighbourhood coordinate Art Block Parties once a month and there are always exhibitions. The National Theatre offers ballets, operas and concerts every week. The restaurants in this area are highly recommended. After dinner you can go to Relic, La Casona, Mojitos sin Mojitos, Platea, Havana Cafe or Republica Havana.

Panama is home to the largest free trade zone in the hemisphere, the Colon Free Trade Zone. There are also a number of large American-style shopping malls, such as Multicentro, Albrook Mall, Multiplaza Pacific and the newest Metromall. However, prices vary considerably from mall to mall – Albrook is quite cheap, while Multiplaza houses designer shops and very high prices. In general, Panama is a good place to shop for consumer electronics, clothing and cosmetics.

Traditional Panamanian handicrafts are cheaper at the handicraft markets, such as the YMCA in Balboa and the market in Panama Viejo. In Panama City, the best handicrafts can be found at REPROSA. Panama’s most famous handicraft is the mola, an intricate handicraft with an inverted arrangement made by the Kuna people. Molas can also be bought from vendors on the Casco Viejo waterfront. Other Panamanian crafts include carved tagua nuts, carved cocobolo animals and woven palm fibre baskets. In El Valle there is a smaller handicraft market specialising in soapstone carvings and other handicrafts from central Panama.

• REPROSA Treasures of Panama. Since 1975, REPROSA has been dedicated to promoting Panama’s history, cultural traditions, ecological beauty and ethnic diversity. All handmade products are made in Panama by Panamanian artisans, and there is something for every budget. REPROSA has three locations: Costa del Este Industrial Park (271-0033), Ave. A in Casco Viejo (228-4913), and Ave. Samuel Lewis in Obarrio (269-0457). REPROSA also offers a tour of their award-winning workshop, where visitors can see up close how Panama Treasures are made. Their factory is located in the Costa del Este Industrial Park, just minutes from Panama Viejo. Tour $10 per person, Monday to Friday at 9:30am and 2pm.
• Country Store & Café, 583 Cl Tomás Guardia, Altos de Balboa, Ancon (near the Canal Administration Building), (507) 232-7204. 8 a.m. TO 6:30 p.m. Offers fresh organic food in a natural setting where you can easily observe local wildlife. The shop offers fresh produce and crafts. 12 $.

Panama has used the US dollar as its sole currency since 1904, although Panamanians often refer to it as the “Balboa”. If you are from the United States, the only peculiarity of Panama will be its currency. Panama mints its own coins in the same weights and sizes as US coins, but with Panamanian stamps. Due to a legal agreement (1904) between the United States and Panama, Panamanian currency is fully interchangeable with standard American currency in Panama. You can get a handful of coins with a conquistador on the quarter and an Indian on one of the pennies, but Lincoln on the other penny and Roosevelt on the dime. Panama also continues to mint half dollars. You may hear these half dollars called pesos, so don’t think you’ve accidentally ended up in Mexico.

Panama coins are produced by the US Mint. And if you run out of change in the US, Panama coins work in parking meters, payphones, vending machines, etc.

You can usually use a credit card in all hotels in the capital and in the medium-sized regional towns (David, Las Tablas, Colon, Santiago, Bocas del Toro, etc.). Restaurants, grocery shops and department stores in the larger towns also usually accept credit cards and even debit cards. Outside the capital, however, it may be difficult to use your card.

Although Panamanian ATMs work with the Cirrus/Plus system, they cannot accept cards with the Interlink symbol. Make sure you carry plenty of cash (especially small notes) and know how to withdraw cash advances with your credit card. Travellers’ cheques are not widely available.

Many shops do not accept 50 or 100 US dollar notes at all. Most of those that do ask for your passport and keep your note data/serial number in a special booklet. The reason for this is that many 50 and 100 US dollar notes have been counterfeited.

There are 91 banks in Panama. Opening hours vary greatly from bank to bank. On weekdays, all banks are open at least until 3 pm, some until 7 pm. On Saturdays, many banks are open until noon, and some branches in shopping centres are also open on Sundays. Note that you are not allowed to enter most banks in shorts and/or flip-flops.

• 1 January, New Year’s Day
• 9 January, Martyrs’ Day (Panama)
• Shrove Monday. The Monday before Ash Wednesday.
• Shrove Tuesday. The Tuesday before Ash Wednesday.
• Good Friday – Death of Christ
• 1 May, from 1 May to Labour Day
• 1 July. (every 5 years) Inauguration of the President
• 3 November. Separation Day (from Colombia).
• 4 November. Flag Day
• 5 November. Colón Day
• 10 November. “Primer Grito de Independencia de la Villa de los Santos” (First Salute to Independence of Villa de los Santos) to celebrate the gesture of Rufina Alfaro and the uprising of Villa de los Santos against Spain.
• 28 November. Independence Day (of Spain).
• 8 December. Mother’s Day.
• 25 December. Christmas.

The Panamanians seem to care about their appearance. Don’t try to dress up to fit in, just be yourself.

That means you don’t have to wear a suit everywhere either. Just dress conservatively and smartly. For men, clean jeans and a shirt with a pressed collar are sufficient for most outings, but you can dress more casually or formally depending on the situation. Shorts are considered extremely casual clothing suitable only for the beach, although this attitude is beginning to change in some areas. Longer Bermuda shorts in nice fabrics are also considered appropriate in many places.

However, there is a dress code for entry to all banks and government facilities, as well as many shops and supermarkets. If you enter these facilities in inappropriate clothing such as shorts or skirts above the knee, security staff are likely to refuse you entry and ask you to leave.

Think nice, neat and clean and you will already show great respect for the residents.

If you take a trip to Boquete, especially during the rainy season (April to November), dress in layers, bring a light rain jacket and waterproof walking shoes.

Panama’s culture is derived from European music, art and traditions brought to Panama by the Spanish. The hegemonic forces created hybrid forms by mixing African and Amerindian culture with European culture. The tamborito, for example, is a Spanish dance that was mixed with African rhythms, themes and dance movements.

Dance is a symbol of the different cultures that have come together in Panama. Local folklore can be experienced through a variety of festivals, dances and traditions that have been passed down from generation to generation. Local towns host performances of reggae music in español, reggaeton, haitiano (compas), jazz, blues, salsa, reggae and rock.

Outside Panama City, regional festivals featuring local musicians and dancers take place throughout the year. Panama’s mixed culture is reflected in traditional products such as woodcarvings, ceremonial masks and pottery as well as in the country’s architecture, cuisine and festivals. In the past, baskets were woven for utilitarian purposes, but today many villages live almost exclusively from the baskets they make for tourists.

An example of a unique and intact culture in Panama is that of the Guna, known for their molas. Mola is the Guna word for “blouse”, but the term mola refers to the intricately embroidered panels made by Guna women that form the front and back of a Guna woman’s blouse. It consists of several layers of fabric of different colours that are loosely sewn together in a reverse appliqué process.

Panamanian cuisine is a mixture of African, Spanish and indigenous techniques, dishes and ingredients and reflects the diversity of the population. Being a land bridge between two continents, Panama has a great variety of tropical fruits, vegetables and herbs used in the local cuisine.

Typical Panamanian food has a mild flavour, without the spiciness of some Latin American and Caribbean neighbours. Common ingredients include corn, rice, wheat flour, plantains, yuca (cassava), beef, chicken, pork and seafood.

Traditional Panamanian men’s clothing consists of a white cotton shirt, trousers and a woven straw hat.

The traditional garment of women is the pollera. It originated in Spain in the nineteenth century and was typical of Panama at the beginning of the nineteenth century, worn by maids, especially nannies (De Zarate 5). Later it was adopted by upper class women.

A pollera is made of “cambric” or “fine linen” (Baker 177). It is white and usually measures 13 metres of fabric.

The original pollera consists of a ruffled blouse worn over the shoulders and a skirt at the waist with gold buttons. The skirt is also gathered so that when it is pulled up it looks like a peacock’s tail or a mantilla fan. The patterns on the skirt and blouse are usually flowers or birds. Two large matching tassels (mota) are on the front and back, four ribbons hang from the waist at the front and back, five gold chains (caberstrillos) hang from the neck to the waist, a gold cross or medallion on a black ribbon is worn as a choker, and a silk bag is worn at the waist. The earrings (zaricillos) are usually gold or coral. The slippers are usually the same colour as the pollera. The hair is usually worn in a chignon held in place by three large beaded gold combs (tembleques) worn like a crown. A high-quality pollera can cost up to $10,000 and take up to a year to make.

Today there are different types of polleras; the gala pollera consists of a short-sleeved blouse with ruffles, two full skirts and a petticoat. The girls wear tembleques in their hair. Gold coins and jewellery are added to the outfit. The pollera montuna is an everyday dress consisting of a blouse, a plain skirt, a single gold chain, dangling earrings and a natural flower in the hair. Instead of an off-the-shoulder blouse, a fitted white jacket with shoulder pleats and a flared hem is used.

In Panama, traditional dress may be worn in parades where women and men perform a traditional dance. The women sway gently and twirl their skirts while the men hold their hats in their hands and dance behind the women.

Most of Panama is very safe. People in the rural areas are generally extremely friendly and helpful. If you want to visit Latin America but are paranoid about safety, Panama might be a good place to cut your teeth. One exception is the border region between Panama and Colombia, which is considered extraordinarily dangerous because of Colombian rebel groups and drug traffickers. Most of Colon City is considered dangerous , and some parts of Panama City are a bit grim, especially El Chorrillo, Curundu and El Marañón, poor and crime-ridden areas. The old colonial neighbourhood, Casco Viejo (also called San Felipe), has a bad reputation among travellers and some Panamanians, but it is quickly being gentrified. During the day, San Felipe is perfectly safe for foreigners. At night, the main streets and squares and the bar and restaurant district towards the tip are also safe, but visitors should exercise caution when travelling north on Avenida Central towards Chorillo.

Panama is known for its excellent medical care, which has recently made it a hotspot for medical holidays.

Yellow fever vaccination is recommended for all visitors over 9 months of age in the provinces of Darien, Kunayala (San Blas) and Panama, excluding the Canal Zone. Most countries require proof of yellow fever vaccination before allowing travellers to enter Panama.

The U.S. Centers for Disease Control [www] report that there is a risk of malaria in rural areas of Bocas del Toro, Darién and San Blas provinces; no risk in Panama City or the former Canal Zone. NB: Chloroquine is no longer effective in San Blas province.

Dengue fever is endemic, especially in Darien province.

Tap water is safe in almost all towns, with the exception of Bocas del Toro, where it is recommended to use bottled water.

Travelling women should be aware that the humidity and heat of the tropics can favour yeast infections. Three- and five-day treatments are available in pharmacies, but should be obtained from the pharmacist.

There are many hospitals that can provide first-class care to tourists. Many accept international insurance policies, but your insurance company may require you to pay upfront and submit a claim form. Check with your health insurance company before you travel to find out the requirements for submitting a claim for reimbursement abroad, as you usually won’t receive an itemised bill (including diagnosis and treatment codes) if you don’t request it. Here are some of the best facilities in Panama City:

• Hospital Nacional [www] – Modern private hospital on Avenida Cuba, between 38 and 39 streets, tel. 207-8100.
• San Fernando Hospital Clinic
• Hospital Paitilla is a well-equipped hospital where traditionally the wealthy upper class of Panama goes for treatment.
• Punta Pacifica Hospital newly opened hospital near Multiplaza Mall and is now operated by Johns Hopkins International. It attracts some doctors from outside Paitilla.
• Santo Tomas Hospital is considered by many emergency physicians and medical professionals to be the best for trauma care because of the number of trauma patients. Like Cook County Hospital in Chicago, the medical teams at Santo Tomas see many types of trauma every day and are well equipped to treat these cases. Once a patient is triaged, they can be transferred to a private facility.

Farmacia Arrocha, a pharmacy chain, has branches all over the country. Gran Morrison’s department stores often have pharmacies too.

The new 911 system is now only in operation for medical emergencies. Most of the coverage is in and around Panama City. However, during major holidays or national celebrations, 911 units are stationed throughout the country, including Las Tablas, David, Chitre and Santiago.

Medical evacuation flights are not as organised as in the EU, Canada and the United States. Until a medical helicopter service is operational, the only option for rapid evacuation within the country is to charter a small plane or helicopter that can carry a stretcher. Fees are charged to a credit card or paid in cash. Contact air charter companies for a quote. Typically, a medical flight in a small twin-engine plane from David to Panama City costs $4,000. Helicopters are significantly more expensive. A new air medical transport service for private members is now available. Membership for tourists costs $10 for 90 days of coverage.

Foreign evacuation flights are usually operated by air ambulance services from Miami and cost between US$18,000 and over US$30,000 depending on medical necessity.

Travellers with pre-existing conditions or those at risk should check their insurance cover for these flights. Do not assume that the credit card’s travel insurance will cover the costs. Many only cover up to $1,000.

Cleanliness and personal hygiene: Toilets are amazingly clean and well-maintained, even in the most remote areas and smallest restaurants in the country. They far surpass most North American public facilities in this regard. In most areas, it is customary to dispose of toilet paper in the designated wastebasket, not in the toilet. Most remote areas do not have adequate septic systems to handle toilet paper waste. This is especially true along the Pacific and Caribbean coasts.