12 Budget-Friendly Tips for Exploring Panama

Panama offers an abundance of experiences for its visitors, featuring vibrant cities, stunning beaches, and expansive natural landscapes that cater to adventure tourism.

However, it is essential to note that traveling here is not solely limited to those with substantial financial resources; costs are generally lower than in Europe, Canada, or the United States, while being slightly higher than in Guatemala, Honduras, or El Salvador.

So is Panama costly? It is not the priciest nation in Central America; that distinction belongs to Costa Rica, with Belize following closely. Nevertheless, budget-conscious travelers will need to strategize effectively and forgo some comforts to minimize expenses.

Fortunately, numerous opportunities exist to economize on dining, accommodation, transportation, and activities. The beaches are complimentary, and a wide variety of outdoor undertakings are available within Panama’s extensive and affordable national parks. The following are our top recommendations for ensuring your Panama experience is bueno, bonito y barato (good, nice, and economical).

Daily Costs

• Dorm bed in a hostel: US$10 to US$20

• Basic hotel room for two: US$30 to US$50

• Self-catering apartment (including Airbnb): US$70 to US$100+

• Public transportation in Panama City: US$0.25 to US$0.35, or US$1.25 for toll roads

• Coffee: US$1 to US$3

• Lunch for two: US$10 to US$20

• Dinner for two: US$20 to US$40

• Beer at the bar: US$1 to US$3

• Average daily cost: US$70 to US$90

1. Visit During the Wet Season to Start Saving Money

The most economical period to visit Panama is during the wet season, which spans from May to November. Accommodation prices can diminish by 10% to 30% compared to the peak season (December to April), although travelers should prepare for intermittent heavy rainfall.

Most rain events are relatively short-lived, typically occurring in the afternoon and dissipating an hour or two later; however, there can be instances of continuous rain. Certain activities, including birdwatching and white-water rafting, are significantly enhanced during the rainy season.

Bocas del Toro exhibits a highly variable microclimate, often experiencing rainfall when other areas remain dry, and vice versa. Typically, international flights to Panama are more affordable in the latter stages of the wet season, from September to November.

2. If You Only Intend to Visit Western Panama, Consider Flying into Costa Rica

Many of Panama’s prime attractions are situated in the western provinces of Chiriquí and Bocas del Toro. Should your travel plans remain confined to these regions, it can occasionally be more economical to fly to San José in Costa Rica and subsequently journey overland to Panama, especially for backpackers.

The direct bus ride from San José to the border at Paso Canoas (on the threshold of Chiriquí) takes slightly longer than the bus from Panama City to David (the second-largest city in Panama and the capital of Chiriquí). Keep in mind that you will need to go through immigration, which can be a lengthy process.

Traveling to Chiriquí is swifter and more economical if you utilize intercity buses instead of international services like Ticabus, which generally entail longer journeys and higher fares without stopping in David.

3. Take the Bus to and from Tocumen Airport

Official taxis from Tocumen International Airport to downtown Panama City typically cost between US$30 and US$40. Alternatively, a shared taxi can be less expensive, around US$15 per person for solo travelers.

The most economical choice is the Metrobus. A ticket costs no more than US$1.25. Be sure to acquire a rechargeable Metrocard prior to departure, which is valid on all Metro buses and trains. The card costs US$5 and comes with an additional US$3 of fares included.

It is important to note that a Metrocard is required to access long-distance services at Albrook bus station.

4. If You’re Single, Stay in Hostel Dorms

Solo travelers will discover the most affordable options in hostel dormitories. Depending on the locale, basic amenities and clean accommodations are available for US$10 to US$20 per night.

Hostels are prevalent in key tourist destinations such as Panama City, Boquete, and Bocas del Toro, although they are less common in other areas. Moreover, hostels provide an excellent opportunity to connect with fellow travelers.

5. Couples and Groups Should Stay in Hotels

A private room in an economical hotel is typically comparable in price to a private room in a hostel, approximately US$30 to US$50 per night. Nevertheless, hotel accommodations generally offer superior comfort.

The more affordable, basic rooms typically include fans and cold-water showers (air conditioning may increase rates by US$15 to US$20).

Some hotels have a limited number of extremely basic, budget-friendly rooms (US$15 to US$20) with shared bathrooms; it is advisable to inquire at the reception regarding algo más económico (something cheaper) or un quarto con baño compartido (a room with a shared bathroom).

Of course, the primary drawback of utilizing hotels as cost-effective accommodation is the absence of a shared kitchen for your use.

6. If You Really Want to Save, Sleep in a Hammock

For those who are comfortable with a more rustic experience or staying in a homestay, a hammock represents the most budget-friendly option. Hostels generally charge US$2 to US$5 per night for hammock space, and locals may be willing to offer similar accommodations from their residences.

It is wise to use mosquito repellent, nets, and/or insecticide coils, particularly during the wet season. Having a warm blanket or sleeping bag can be beneficial, as temperatures may drop significantly at night, even in the humid lowlands. It is also advisable to avoid overnight camping in public areas, including beaches, for safety reasons.

7. Use Public Transportation in Panama City

Taxis in Panama City are known for being unpredictable, with drivers often overcharging, particularly for foreign visitors. Moreover, the city’s frequent traffic congestion can render car travel sluggish and inefficient.

To conserve finances and alleviate the associated frustrations, it is advisable to utilize Metro buses and trains (with fares ranging from US$0.25 to US$0.35 per ride). Should you require taxi services, negotiating the fare beforehand can be beneficial. Additionally, if you have a positive experience with a driver (and many provide excellent service), requesting their contact number can facilitate future transportation.

To avoid inflated rates, steer clear of tourist taxis and those waiting outside hotels, as they are likely to overcharge. In Panama, using Uber is generally more economical and accessible than traditional taxis.

8. Opt for Buses Over Domestic Flights

Although domestic flights represent a remarkably quick method of transportation—allowing for travel across the entire country from Panama City to David in approximately one hour—the average round-trip fares exceed US$120, rendering them a costly option with a considerable carbon footprint.

Conversely, while significantly slower (the same journey by bus can take between seven to nine hours), taking a bus in Panama proves to be far more cost-effective and environmentally sustainable. Depart from the Terminales David-Panamá (TDP) on the Padafront buses for efficient travel.

9. Gorge on Fruit for Breakfast

Fresh fruit in Panama is not only nutritious and delicious but also widely available and affordable. A variety of locally grown produce includes pineapples, papayas, avocados, bananas, watermelons, and oranges.

Purchasing fruit from street vendors, local markets, or supermarkets is often more economical than opting for fruit served at restaurants. Smoothies also serve as a healthy and budget-friendly choice.

10. Feast on Carbs for Lunch

For those dining out frequently, lunch is the most cost-effective meal of the day. While street food may be scant, numerous affordable sit-down establishments offer budget-friendly set menus and/or carbohydrate-rich lunch buffets for roughly US$5 per person.

A typical Panamanian lunch features a substantial meat or chicken dish accompanied by a heaping portion of rice and beans, alongside a few slices of (occasionally sweet) plantain and a sugary beverage. Unfortunately, options for vegans and vegetarians may be limited in Panama.

11. You Can Generally Drink the Tap Water

With exceptions such as Bocas del Toro, Guna Yala, and other remote regions, the tap water in Panama is typically safe to consume. To save on costs and reduce plastic waste, consider refilling reusable water bottles at home faucets.

12. Choose Guides and Excursions Carefully

Unless funds are severely limited, it is advisable to invest in one or more guided tours. If you possess a decent command of the Spanish language, hiring local guides independently may result in lower costs compared to employing a tour operator.

It is prudent to seek reputable recommendations from your accommodation, as staff typically know where the best deals can be found. Most towns host offices of the National Environment Ministry, Mi Ambiente, which can direct you to reliable options.

This article was first published on July 27, 2022, and updated on December 3, 2023.