Budget Travel Tips for Panama City
Budget-conscious travelers looking to visit Panama City can save a few dollars with these money-saving tips.
While Panama is more expensive than most of its Central American neighbors, its cosmopolitan capital still offers good value, especially when compared to cities in the US and Europe.
There are plenty of opportunities to spend your budget on the city’s best experiences – stylish boutique hotels, world-class museums, gourmet restaurants, and hip cocktail bars among them. However, you can also find ways to cut costs, from sharing a hostel dorm room to taking the bus and eating where the locals dine.
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 island-hopping around the Comarca de Guna Yala. Here are our top tips to stretch your budget further.
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 surge around 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 and bag bargains on accommodations and organized tours.
Travel Overland to Panama City
If you’re already exploring Central America, consider one of the budget-friendly long-distance bus lines operating around the region. Many offer air-conditioning, Wi-Fi, toilets, and reclining seats. For example, traveling from San José, Costa Rica, to Panama City can cost around $55, significantly cheaper than a direct flight.
Bunk Up in a Dorm Room or Stay with a Family
There’s an abundance of wallet-friendly accommodations in Panama City, from hostel bunks to staying in family homes. Enjoy social interactions, gain insider tips, and conserve budget by cooking your own meals.
Carry Cash for Day-to-Day Dealings
Credit cards are widely accepted at more upscale establishments, but it’s wise to carry cash for everyday transactions, especially since many local shops and taxis may not offer change. Be sure to have small bills handy.
Public Transportation is Your Best Bet
Parts of the city are easily walkable, particularly the historical Cobblestone streets. If you’re venturing farther, Panama City boasts an efficient public transportation system, including Central America’s first metro. A rechargeable card simplifies your travel and costs only $0.35 per journey.
Be Wise When Taking Local Taxis
Local taxis can be budget-friendly but are not metered. Always negotiate the fare before your trip—clarifying if it’s a flat rate for the whole car or per person. Rides from hotels or malls often come with a premium price. Uber is another cost-effective option available in Panama City.
Learn Basic Spanish to Avoid “Gringo Tax”
Although English is widely spoken in the city, knowing some Spanish is beneficial. Having a few useful phrases can help you avoid higher prices, especially when dealing with local vendors.
Prepare Your Own Meals
Many hostels come equipped with kitchens, allowing you to prepare your meals and save money by grocery shopping at local markets. Fresh fruits such as avocado, watermelon, pineapple, and passion fruit are affordable and delicious.
Spot Wildlife Without Leaving the City
You don’t need to leave the urban jungle to enjoy Panama’s incredible biodiversity. The Parque Natural Metropolitano offers well-kept trails and a chance to see various wildlife species, all for a small entry fee.
Experience Local Cuisine
Don’t miss out on traditional Panamanian dishes, which are often the most budget-friendly options. Popular local meals, like arroz con pollo (chicken and rice) and empanadas, can be found at low-cost eateries throughout the city.
Drink Local Beers
When thirst strikes, skip the imported beers, opting instead for local options like Panama, Balboa, or Atlas. Panama is also home to a growing craft beer scene, perfect for trying innovative brews.
Stay Hydrated
In Panama City’s high temperatures, staying hydrated is essential. While tap water is generally safe, using a water filter bottle can help save money and reduce plastic waste.
Visit Isla Taboga for a Taste of Island Life
For a simple tropical getaway, Isla Taboga is just a 30-minute ferry ride away and offers beautiful beaches and local eateries for a budget-friendly escape.
Explore Discount Websites
For those looking to save further, Panama’s discount websites offer a variety of deals on meals, tours, and experiences, making it easy to find cost-effective options during your stay.
Daily Costs Overview in Panama City
- Hostel dorm: from $15
- Basic hostel room for two: around $30
- Airbnb double room: around $30
- Metro ticket: $0.35
- Bus ticket: $0.25
- Meal for two in a local restaurant: around $20
- Draught beer: $2.50
- Coffee: $3.50
This article was first published Jul 17, 2022 and updated Mar 11, 2023.
