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As expected, any country that operates on the US Dollar is bound to be expensive. But Panama as a whole has too much to offer travelers to skip. Instead, savvy travelers will find a way to make bougie destinations like Panama City more affordable for cheap vagabonds like ourselves. Contrary to popular opinion…you can do Panama City on a budget. Save your money for the big-ticket excursions like a long weekend in the San Blas Islands or snorkeling with Whale Sharks in Coiba National Park instead.
Since Panama City is on every traveler’s itinerary, let’s dive into how to save big bucks in the city & all the fun *free* attractions you can enjoy in this modern city.
Your Guide to Panama City on a Budget
Getting to Panama City on a Budget
Panama City will probably be your first stop in the country. First of all, it’s the only international airport.
Secondly, flights to Panama City from neighboring countries are quite cheap on budget airlines like Wingo. We paid $80 per person from Cartagena, Colombia.
You can also reach Panama City from Colombia via the San Blas Islands on a multi-day island hopping tour. I wrote a whole blog post outlining how to best visit the San Blas islands on a budget and why I DON’T recommend those one-way tours.
Getting Around Panama City for Cheap
Upon arrival, you’ll find that Panama City is an extremely modern city. Skyscrapers, Marriott hotels, Metro systems, & clean reliable buses. The skyline even resembles Miami enough we wondered for a quick minute if we could be in Panama City, Florida.
The modernity of the city makes getting around easy. Even from the airport.
From the Airport
Airport taxis cost $30. A huge rip-off. Instead, head to the airport bus terminal. Before you exit the airport doors into the taxi area you’ll see a small stand selling SIM cards. This is where you’ll purchase a metro card for $2. There are also machines where you can load a few bucks here.
In case they are out of metro cards, you can still take the bus just ask another patron to swipe their card for you and you can give them cash.
Ride the bus to the first stop- Tocumen Airport Metro Terminal.
Then take the Metro Line 2 All the way to the end. Here you’ll hop on line 1 and ride it South to the station closest to your hostel. If you stay at our recommended hostels that will be the Santo Tomas station.
Each bus costs $0.25 and the Metro costs $0.35. Total cost to the city per person: $0.85
Elsewhere in the city
The buses are just as easy to use as the metro and once you have your metro card it’s as easy as swiping in.
Routes show up accurately on google maps so you can just direct yourself that way.
If you’re working with a bit more of a budget you can also Uber. It typically only costs $3-$5 to get anywhere within the city center.
Where to Stay in Panama City on a Budget
Mamallena Hostel ($)
I loved this hostel. Free coffee until 11 AM, free tea all day, large functional kitchen, cool rooms with comfortable bunks, LOTS of outdoor space including a garden patio, pool, bar, and balconies with city views. Another thing I really liked about Mamallena was the abundance of dogs and cats roaming about. But don’t worry it was very clean. They also have loads of budget-friendly city recs to share with you as well.
Alternate: Hostel Casa 33 ($25)
This hostel was great because they have dorms specifically designed for couples. The dorm has double-bed-sized bunks in pod form so they are cooler, quieter, and more private.
Eating on a Budget in Panama City
You’ll find that restaurants in Panama are often US (or slightly below US) prices. So we decided to skip them—or most of them. Instead, we bought groceries from the local supermarket.
Here’s where we can recommend eating in Panama City.
- Food Trucks in San Francisco area. Food trucks are a Panama thing. ** has a great post outlining the good ones.
- Empanada Shop just outside Mamallena. The kid who works there at night is super friendly and makes some great Colombian style empanadas for $1 a piece.
- Coca Cola Cafe. $5-$7 meals that are shareable. It’s also the oldest restaurant in Panama City so it has historical significance.
- Street Food Stands. They move a lot but hotdogs & hamburgers are common. Also churros. Tasty & cheap.
Free Attractions in Panama City (+ Budget-Friendly Activities)
Like most major cities there are lots of free or almost free attractions for travelers looking to stick to a budget.
Obviously, you can visit the Canal. It’s an engineering marvel and what Panama is most famous for globally (although its delish bananas should be a close second). But the tour itself is expensive & like many other bloggers, I recommend just grabbing a drink at La Taberna del Canal if you want to just see the canal in action. Also, Miraflores is quite out of town so I don’t blame you for skipping it if it’s not really your thing. We did.
Walk Around Casco Viejo
This is the old neighborhood. & yes it is the prettiest. There are old churches, lovely balconies, and well-maintained colorful façades because it’s UNESCO-Heritage recognized.
Don’t Forget to Stop For Lunch at Coca-Cola Cafe! This is the oldest cafe in Panama City and serves some great ropa vieja and other local specialties for cheap. It’s no longer owned by the family of the first owner but still a classic Panama institution.
Why I Don’t Recommend a Free Walking Tour
There are tons of *free* walking tours focused on this area of the city. But tips are expected and in Panama, the norm is more like $10 a person. Pretty pricey for NOT a lot of info that we couldn’t have gotten from a quick google of city history.
Also, the area they cover is VERY small. You could see it all yourself in 20 minutes.
Hike to the Panama Flag or Sosa Hill
Morning is the best time to spot wildlife in the cities nature preserves like Sosa Hill. The massive Panama flag that is clearly visible from Casco Viejo is a great place to see the Panama City skyline and also enjoy a nice walk within the city.
Sneak Into the Marriott Pool
This is for those of us who are willing to live on the edge. The Marriott hotel (the old trump tower) has an incredible infinity pool on the 13th floor overlooking the city. You COULD buy a day pass for $40 or you COULD just walk into the elevators on the left head to the “Wellness Center” on the 13th floor and follow the sign to “pool”.
This is an at your own risk activity. Because I’m sure it’s not exactly legal. But we managed it just fine.
Savor City Views from 66 Stories Up.
The Panaviera Rooftop bar has the BEST views of Panama City. Enter through the Casino on the right side of the Marriott Hotel. Take the elevator to the 66th floor and have a drink with epic panoramic balcony views.
Note: I can’t promise you’ll have the same experience but during our visit, the bar was closed (COVID) but unlocked…. which meant we got epic views without paying for a drink. We wandered around the eerie empty bar and onto the transparent sunset viewing balconies all alone. Apparently, it’s been that way for quite some time. Let me know if you visit and that had changed and I’ll update my blog post for everyone.
Check Out the Markets & Street Art
In almost every major city in the world, this is a favorite activity of mine. Panama City is no different. If you choose to stay at Mamallena I recommend walking to Casco Viejo. You’ll pass by some great street art and markets during your 1.5-mile walk. Paseo de Los Poetas
Overall, although expensive, we’ve found Panama has the most generous people we’ve encountered during all our travels. Locals stopping to give us recommendations and directions without being asked, sharing free wine and fruit with us, and stopping us to chat and take photos. Panama City is an interesting destination worth visiting for at least a day or two if you find yourself in Panama.
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