Panama City is one of the most dynamic and contrasting capitals in Central America. Imagine gazing at 21st-century skyscrapers mirrored in the Pacific while only a few blocks away, cobbled colonial streets whisper stories of pirates, conquistadors and revolution. It’s a place where modern infrastructure, world-changing engineering feats like the Panama Canal, and rich cultural layers collide; making it an essential stop for the backpacking explorer.

Whether you're here for the architecture, the history, the food, or the cosmopolitan energy, Panama City delivers far more than meets the eye.

A Quick Snapshot: Why Visit Panama City?

🌉 Home to the world-famous Panama Canal

🏛️ Rich colonial and neoclassical architecture in Casco Viejo

🌆 A skyline to rival global metropolises, dotted with futuristic towers

🍽️ World-class food, from ceviche stands to Michelin-level cuisine

🎶 Lively nightlife scenes in rooftop bars and salsa clubs

🌿 Easy access to nature: jungle hikes just 30 minutes from downtown

Historic Layers: From Pirates to Progress

Panama City's story is rooted in trade, rebellion, and reinvention (make sure to listen to our podcast to discover an overview of the history of the country). The original city, Panamá Viejo, was founded in 1519; and sacked by pirate Henry Morgan in 1671. Its ruins still stand today and are a UNESCO World Heritage Site.

After the destruction of Panamá Viejo, the city was rebuilt on a nearby peninsula as Casco Antiguo (also known as Casco Viejo), a fortified district where Spanish, French and American influences merged. Think stone churches, wrought iron balconies, pastel facades and shady courtyards. Walking these streets is like time travelling through the pages of Central American history.

Architectural Highlights: A City of Contrasts

Panama City is a dream for architecture lovers; and not just for its old town a few key sites to wet the apetite are as follows:

Casco Viejo

Catedral Metropolitana – grand 18th-century baroque cathedral

Teatro Nacional – a stunningly restored Italianate opera house

Palacio de las Garzas – the presidential palace with colonial flair

Modern Panama

F&F Tower (El Tornillo) – a striking green twist on a high-rise

The Biomuseo – designed by Frank Gehry, showcasing Panama’s biodiversity with bold, colourful forms

Ocean Reef Islands – artificial islands with luxury living; architectural ambition meets ocean engineering

Panama City’s skyline rivals Dubai or Singapore in ambition and design. From glassy towers to eco-conscious developments, there’s a sense of movement and modernity that never stands still. 

The Panama Canal: More Than Just a Waterway

No trip is complete without experiencing the Panama Canal, one of the most important engineering feats in human history. Head to the Miraflores Locks Visitors Centre to see enormous cargo ships navigate the intricate lock system. There’s also a museum and a 3D film that gives great context to the canal’s importance; not just for global trade, but for Panama’s national identity. Do not miss it if you are in or heading to Panama

Culture, Food, and Nightlife

Panama City is as much about energy and vibe as it is about history.

Cinta Costera - a gorgeous coastal walkway where locals jog, skate and relax at sunset.

Mercado de Mariscos - Panama’s seafood market is famous for its fresh ceviche. Don’t miss the octopus or the shrimp in lime.

Street art & galleries - Casco Viejo and Santa Ana are full of murals, art collectives and pop-up exhibitions.

Rooftop bars - head to Tantalo or CasaCasco for cocktails and skyline views

Salsa & Reggaetón nights - check out Relic Bar or La Buat for some Latin rhythm

Panama is a mixing pot - Caribbean flavour, Spanish passion, and North American modernity - and the nightlife reflects that in full colour.

Backpackers’ Vibe: Hostels, Cost & Connectivity

While not always on the traditional backpacker trail, Panama City is well equipped:

Great hostels like Magnolia Inn and Hostal Casa Areka bring a social vibe and a slice of culture also giving you those sublime city feels.

Transport – Metrobus and a modern metro system make the city easy to navigate on a budget.

Prices – Expect a mid-range budget: $30–$50 USD/day with accommodation, transport, and food covered

Safety – Generally safe, but like all cities, stick to well-lit areas and avoid wandering into rougher zones after dark (read our full blog is panama safe for tourists? or visit our new safety tips pages to find out more on The Safety of Panama City.

It’s also a digital nomad haven; fast Wi-Fi, coworking spaces and great coffee culture.

Day Trips & Nature Escapes

You’re never far from green space and never far from something to do, for a full list of Top Things to do in Panama City then we have a dedicated blog to help you plan and book your stay but until then lets looks at the headline items.

Parque Natural Metropolitano – tropical forest right in the city with sloths, toucans and skyline views

Amador Causeway – cycle or stroll along this scenic causeway with epic views of ships waiting to cross the canal

San Blas Islands – a few hours away by boat, these Caribbean islands offer white sand, crystal waters and indigenous Kuna culture

Monkey Island & Gamboa Rainforest – accessible via the canal, where you can kayak through jungle and spot wildlife

Final Thoughts: Why Panama City Is a Must for Explorers

Panama City isn’t just a transit point or canal stop, it’s a destination in its own right and one that will take you by suprise especially if you have backpacked down from the north. It is where you explore 16th-century ruins in the morning, dine in a world-class rooftop restaurant by sunset, and sleep with a view of the Pacific skyline.

For the architecture enthusiast, the history buff, the curious backpacker and the cultural explorer; Panama City offers layers of story and style waiting to be uncovered.