Panama is less visited as a destination for backpackers compared to other Central American countries like Guatemala and Costa Rica, and that’s a good thing. Although you’ll find prices higher than the Central America average, backpacking here is still affordable and worth every penny. Positioned as a geographical and cultural land bridge between North and South America, Panama is one of the most diverse countries globally. Its capital city is as modern as many U.S. cities, yet many of its remote islands and rainforests remain entirely unspoiled. Here, we explore some of the top Panama backpacker destinations.

Bocas del Toro

Bocas del Toro is undoubtedly the premier Panama backpacker destination. Located near the Costa Rica border, it is convenient for travelers eager to explore both countries. This archipelago consists of nine islands, with Isla Colon being the largest and home to Bocas Town, the main settlement.

Most of the budget accommodations are concentrated in Bocas Town, where backpackers can enjoy vibrant nightlife, restaurants, and various travel services. You can easily access other attractions from here, such as the Zapatillas Cayes and Red Frog Beach on Isla Bastimentos, known for its tiny red tree frogs and a lively backpacker atmosphere.

Panama City

While Panama City is recognized as the most cosmopolitan city in Central America, it remains a haven for budget-conscious travelers. It offers a variety of hostels, particularly within the historic Casco Viejo/Old Panama City district. There are numerous affordable activities available—strolling through Casco Viejo, walking down the picturesque Amador Causeway, visiting the Miraflores locks to watch ships navigate the Panama Canal, or hiking in Parque Natural Metropolitano. Dining and drinking where locals do will allow you to fully immerse yourself in the culture while keeping expenses low.

Kuna Yala/San Blas Archipelago

The Kuna Yala archipelago, formerly known as the San Blas archipelago, is highly recommended for backpackers seeking an off-the-beaten-path experience. The region is almost entirely unspoiled and mainly populated by Panama’s indigenous Kuna Yala people. The islands offer breathtaking views—hundreds of small white sand cays surrounded by vibrant green palms and crystal-clear waters.

This isn’t luxury travel. Visitors often stay in basic huts on private islands and enjoy the catch of the day prepared by local fishermen. It provides the ultimate castaway experience. For a more adventurous trip, consider sailing through the archipelago to destinations like Cartagena, Colombia. You can easily arrange such voyages from larger hostels in Panama City, such as Luna’s Castle.

Boquete

Boquete is known as a retirement haven for expatriate Americans, but it’s also an excellent stop for backpackers. The picturesque Boquete valley is among Panama’s most remarkable destinations, offering a cooler climate that provides a refreshing escape from the coastal heat. Additionally, Boquete is renowned for its coffee, and indulging in tours through its scenic coffee farms is certainly worth the experience.

David

David, located in Panama’s Chiriqui province in the Pacific West, is about an hour and a half from the Costa Rican border and an hour’s drive from Boquete. Its vibrant atmosphere and plethora of activities make it a fantastic travel stop. Visitors can relax in hot springs, enjoy outdoor adventures, or try their luck at local casinos. The nightlife scene is also lively, with numerous spots to mingle with locals. Backpackers will find various hostels here, including Bambú Hostel and The Purple House International Backpacker’s Hostel.

Santa Catalina

Santa Catalina is becoming one of the most popular surfing destinations in Central America. This quaint coastal village is experiencing a tourism surge, and each year more attractions for backpackers and surfers emerge, making it advisable to visit sooner rather than later.

Darien

Darien represents Panama’s final frontier and the country’s largest province, attracting only the most adventurous backpackers. The small town of La Palma marks the beginning of the Darién Gap, where the Pan-American Highway ceases to connect. This region is characterized by indigenous communities and lush rainforests. Although the drug trade does exist in the jungles of Darién National Park, this area remains one of the most pristine places in Latin America, a draw for those seeking untouched landscapes.