Is Panama City, Panama Expensive To Visit? 2023 Guide

Discover the truth about the cost of visiting Panama City, Panama in 2023 with our comprehensive guide.
a view of a city in the distance with fog in the foreground
Photo by Zdeněk Macháček on Unsplash

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If you are planning a trip to Central America, then Panama City should definitely be on your list of must-visit destinations. This bustling city offers an exciting mix of culture, history, and entertainment, all against a backdrop of stunning natural beauty. But before you pack your bags and hop on the next flight, there is one question you need to answer: is Panama City expensive to visit? In this guide, we will help you understand the costs associated with a trip to Panama City, and provide tips for keeping your expenses under control.

Understanding the Cost of Travel in Panama City

The first step in planning your budget for a trip to Panama City is to understand the factors that influence the cost of travel. Here are some of the main factors to consider:

Currency and Exchange Rates

Panama City uses the US dollar as its official currency. This means that you do not need to worry about currency exchange fees or fluctuations in exchange rates. However, it also means that prices in Panama City may be higher than in other Central American destinations that use local currency.

It’s important to note that while the US dollar is widely accepted in Panama City, smaller businesses and vendors may not have change for larger bills. It’s a good idea to carry smaller bills and coins with you to make transactions easier.

Average Daily Budget for Travelers

The cost of travel in Panama City will depend on your travel style and preferences. However, as a general rule, a budget traveler can expect to spend around $50-$60 per day on food, accommodation, and activities.

If you’re looking to save money on food, consider eating at local “sodas,” which are small, family-owned restaurants that serve traditional Panamanian dishes at affordable prices. For activities, there are plenty of free or low-cost options, such as visiting the Panama Canal Museum or exploring the historic Casco Viejo neighborhood on foot.

Mid-range travelers can expect to spend around $100 per day, which will allow for more comfortable accommodations and dining options. For example, you may be able to stay in a mid-range hotel with a pool and enjoy meals at sit-down restaurants.

If you’re looking for luxury accommodations and experiences, you may need to budget $200 or more per day. This will allow for stays at high-end hotels and resorts, as well as activities such as private yacht tours or helicopter rides over the city.

Regardless of your budget, it’s important to keep in mind that Panama City offers a wide range of experiences and attractions for travelers of all types. From the natural beauty of the surrounding rainforest to the vibrant nightlife and cultural offerings in the city itself, there’s something for everyone to enjoy.

Accommodation Options and Prices

Your choice of accommodation will have a big impact on your travel budget. Here are some of the most popular options:

Budget-Friendly Hostels and Guesthouses

If you are looking for the cheapest possible accommodation, then hostels and guesthouses are your best bet. Expect to pay around $10-$20 per night for a bed in a dorm room, or $30-$50 per night for a private room.

Mid-Range Hotels and Airbnb Rentals

If you are willing to spend a little more for comfort and privacy, then mid-range hotels and Airbnb rentals are a good choice. Expect to pay around $50-$100 per night for a decent mid-range hotel or Airbnb rental.

Luxury Hotels and Resorts

If you want to indulge in luxury, then Panama City has plenty of high-end hotels and resorts to choose from. Expect to pay $200 or more per night for top-tier accommodation.

Food and Dining Expenses

Panama City is known for its rich and diverse cuisine, with a wide variety of dining options to suit all budgets and tastes. From local street food and markets to high-end dining experiences, the city has something for everyone.

Local Street Food and Markets

If you want to save money on food and experience the local culture, then local street food and markets are a great option. You can find a variety of delicious dishes such as empanadas, ceviche, and arroz con pollo. The most popular markets in Panama City are Mercado de Mariscos and Mercado de Abastos, where you can find fresh seafood, fruits, and vegetables. Expect to pay around $5-$10 for a meal from a street vendor or market stall.

One of the most popular street food dishes in Panama is the “raspao,” a shaved ice dessert that comes in a variety of flavors such as tamarind, passion fruit, and coconut. You can find raspao vendors all over the city, especially during the hot summer months.

Mid-Range Restaurants and Cafes

If you prefer sit-down meals in restaurants and cafes, then Panama City has plenty of options to choose from. You can find a variety of international cuisines such as Italian, Japanese, and Mexican. Some of the most popular mid-range restaurants include La Posta, Casa Tua, and Tantalo Kitchen. Expect to pay around $10-$20 per meal at mid-range establishments.

Many cafes in Panama City also serve delicious breakfast and brunch options, such as eggs benedict, pancakes, and fresh fruit smoothies. Some of the most popular cafes include Bajareque Coffee House, Casa Sucre Coffeehouse, and Unido.

High-End Dining Experiences

For a truly special dining experience, Panama City offers plenty of high-end restaurants that serve gourmet cuisine and fine wines. Some of the most popular high-end restaurants include Maito, Manolo Caracol, and Donde Jose. These restaurants offer unique and creative dishes that incorporate local ingredients and flavors. Expect to pay $50 or more per meal at high-end restaurants.

Many high-end restaurants in Panama City also offer stunning views of the city skyline and the ocean, making for a memorable dining experience. Some of the best views can be found at Tantalo Rooftop, CasaCasco, and Las Bovedas.

Transportation Costs in Panama City

Getting around in Panama City can be expensive, but there are ways to keep your transportation costs under control. Here are some options to consider:

Public Transportation Options

There are several public transportation options in Panama City, including buses and trains. Expect to pay around $0.25-$0.50 for a single ride on public transport.

Taxi and Ride-Sharing Services

Taxis and ride-sharing services like Uber are also available in Panama City, but they can be more expensive than public transportation. Expect to pay around $5-$10 for a short taxi ride.

Car Rentals and Gas Prices

If you plan to do a lot of driving in Panama City, then renting a car may be a cost-effective option. However, be aware that gas prices in Panama City are higher than in other Central American countries.

Sightseeing and Entertainment Expenses

Visiting Panama City is an exciting and thrilling experience. The city offers a wide range of activities and attractions that cater to every interest and budget. From free and low-cost attractions to guided tours and excursions, there is something for everyone. Here are some options to consider:

Free and Low-Cost Attractions

If you’re looking for a budget-friendly way to explore Panama City, there are plenty of free and low-cost attractions to choose from. One of the most popular free attractions is the Panama Canal. You can watch the ships pass through the locks at Miraflores for free or visit the museum for a small fee. Another great option is the Metropolitan Natural Park. This 232-hectare park is home to a variety of wildlife and offers stunning views of the city skyline. Entrance to the park is free, but you may want to hire a guide to help you navigate the trails.

Guided Tours and Excursions

If you prefer a more structured sightseeing experience, you can book guided tours and excursions. There are several companies that offer tours of the city, including walking tours, bus tours, and boat tours. One of the most popular tours is the Panama Canal Transit Tour, which takes you through the canal on a boat. Prices for guided tours and excursions can vary depending on the length of the tour and the company you choose. Expect to pay around $50-$100 per person for a guided tour or excursion.

Nightlife and Entertainment Venues

Panama City is known for its vibrant nightlife and entertainment scene. There are plenty of bars, clubs, and theaters to choose from, each offering a unique experience. If you’re looking for a lively night out, head to Calle Uruguay, which is known for its clubs and bars. For a more relaxed evening, check out the Teatro Nacional, which hosts a variety of cultural events throughout the year. Prices for nightlife and entertainment venues can vary widely, but expect to pay at least $10-$20 for admission to a club or theater.

No matter what your interests or budget, there are plenty of ways to enjoy Panama City’s sights and entertainment. Whether you choose to explore the city on your own or book a guided tour, you’re sure to have an unforgettable experience.

Shopping and Souvenir Prices

If you plan to do some shopping or buy souvenirs in Panama City, then here are some factors to consider:

Local Handicrafts and Artisan Goods

Panama City has plenty of markets and shops that sell locally made handicrafts and artisan goods. These items are unique and often reflect the local culture and traditions. You can find everything from colorful woven baskets to intricate wood carvings. Prices for these items can vary widely, depending on the quality of the materials used and the skill of the artisan. Bargaining and haggling is common in many markets, so don’t be afraid to negotiate for a better price.

Shopping Malls and Designer Brands

For more upscale shopping options, Panama City has several malls and stores that sell designer brands. Multiplaza Pacific is one of the largest malls in the city, with over 280 stores and restaurants. You can find popular brands like Ralph Lauren, Tommy Hilfiger, and Calvin Klein here. Expect to pay prices similar to those in the United States or Europe for these items. If you’re looking for high-end luxury goods, head to the Soho Mall, where you’ll find stores like Chanel, Gucci, and Louis Vuitton.

Bargaining and Haggling Tips

If you plan to shop in local markets or negotiate prices with vendors, here are some tips to keep in mind:

  • Start with a low offer and be prepared to walk away if the vendor does not agree.
  • Be polite and respectful in your negotiations. Remember that this is how many locals make their living.
  • Use cash to negotiate, as many vendors may not accept credit cards or may charge a higher price for card transactions.
  • Don’t be afraid to ask questions about the item you’re interested in. Many vendors are happy to share the story behind their products and the materials used to make them.
  • Take your time and browse before making a purchase. You may find the same item at a lower price in a different stall or market.

Tips for Saving Money While Visiting Panama City

If you are looking to keep your expenses under control while visiting Panama City, here are some tips to consider:

Traveling During Off-Peak Seasons

Visiting Panama City during the low season (April to November) can help you save money on flights, accommodations, and activities. The weather during this time is still pleasant, and there are fewer crowds, which means that you can enjoy the city’s attractions without having to deal with long lines and crowds. Additionally, many hotels and tour operators offer special discounts and deals during the off-peak season, making it an ideal time to visit for budget-conscious travelers.

Taking Advantage of Discounts and Deals

Look for discounts and deals on travel sites and social media. You can find discounts on everything from accommodations to tours and activities. Many hotels offer special rates for extended stays or packages that include meals and activities. You can also find deals on tours and activities by booking them in advance or by using coupon codes when booking online.

Another way to save money is by taking advantage of loyalty programs and credit card rewards. Many hotels and airlines offer rewards programs that allow you to earn points or miles that can be redeemed for free stays or flights. Additionally, some credit cards offer cashback or travel rewards that can be used to offset the cost of your trip.

Budgeting and Tracking Expenses

Keeping track of your expenses and budgeting your spending can help you identify areas where you can cut costs and stay within your budget. Start by creating a daily budget for food, transportation, and activities, and stick to it as much as possible. You can also use budgeting apps or spreadsheets to track your expenses and see where your money is going.

Another way to save money is by cooking your meals instead of eating out. Many hotels and vacation rentals offer kitchens or kitchenettes, which allow you to prepare your meals and save money on dining expenses. You can also visit local markets and grocery stores to buy fresh produce and ingredients, which is a great way to experience the local culture and cuisine.

By following these tips, you can enjoy all that Panama City has to offer without breaking the bank. Whether you are traveling on a tight budget or simply looking to save money, these tips can help you make the most of your trip.

Conclusion: Is Panama City Expensive to Visit?

The answer to this question is, it depends. Panama City can be expensive, but there are ways to keep your expenses under control and enjoy all that this vibrant city has to offer. By following the tips in this guide and doing some research, you can plan a trip to Panama City that fits your budget and travel style.


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