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How to see Panama City on a budget

The old town of Panama City, lined with colorful buildings

If you’re a budget-conscious traveler looking to visit Panama City, start with these money-saving tips.

While Panama is more expensive than most of its Central American neighbors – except for Costa Rica – its cosmopolitan capital is still good value, especially when compared to cities in the US and Europe.

There are plenty of opportunities to splash your cash in the city – stylish boutique hotels, world-class museums, gourmet restaurants, and hip cocktail bars among them – but there are ways to cut costs too, from sharing a hostel dorm room to taking the bus and eating with the locals.

You can always use the money you save to splurge on a once-in-a-lifetime experience – perhaps swimming with whale sharks in the Parque Nacional Coiba or desert island-hopping around the Comarca de Guna Yala. Here are our top tips to stretch your budget further.

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Avoid the high season and the highest prices

Tropical Panama is a year-round destination, but prices rise during the hot, dry season – which runs from around December to April – and get even higher around the multiple independence-related festivals in November, Christmas, New Year, and Easter. If you travel during the hotter, rainy season – around May to November – you’ll escape the crowds, as well as bag a bargain on accommodations and organized tours.

Go overland to Panama City on one of Central America’s long-distance buses

If you’re already exploring Central America, consider catching one of the budget-friendly, border-hopping bus lines that operate around the region. Ticabus has air-conditioning, wi-fi, toilets, and reclining seats and, if you’re coming from Costa Rica, the 18-hour bus journey from San José to Panama City costs around $45 – way cheaper than the 75-minute direct flight that comes in at around $230.

A homestay could mean saving some money as well as improving your Spanish © L. Toshio Kishiyama / Getty Images

Bunk up in a dorm room or stay with a family

There’s no shortage of wallet-friendly beds around Panama City with something for all budgets, from a hostel bunk to lodging in a family home. Check out booking sites such as Hostelworld, Homestay, Couchsurfing, and Airbnb, and you’ll get to enjoy some social interaction, insider tips, and kitchen space – your Spanish might improve as well.

Cash is still preferred in Panama

Credit cards are widely…

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