Panama spoils its visitors with cosmopolitan cities, incredible stretches of sand, and wild countryside that is a gift to adventure tourism.
However, this doesn’t mean it’s only for those with deep pockets. Prices in Panama are cheaper than traveling in Europe, Canada, or the United States, although slightly pricier than Guatemala, Honduras, or El Salvador.
So, is Panama expensive? It’s not the most expensive country in Central America; that title belongs to Costa Rica, closely followed by Belize. Nonetheless, thrifty travelers will need to plan carefully and sacrifice a few home comforts to keep costs down.
Fortunately, there are plenty of ways to save on food, lodgings, transport, and excursions. The beaches are free, and there’s no shortage of outdoor activities in Panama’s extensive and affordable national parks. Here are our top tips for making your Panama adventure bueno, bonito y barato (good, nice, and cheap).
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 Save Money
The cheapest time to visit Panama is during the wet season, which runs from May to November. Hotel rates can drop by 10% to 30% compared to the high season (December to April), although visitors should be prepared for bursts of torrential rain.
Most downpours are brief, erupting in the afternoon and clearing up an hour or two later. Moreover, certain activities, such as birdwatching and white-water rafting, are much better in the rainy season.
2. Consider Flying Into Costa Rica
If your plans only include visiting western Panama, it may be more economical to fly to San José in Costa Rica and then travel overland to Panama. This option is often preferred by backpackers.
3. Take Public Transport to and from Tocumen Airport
Official taxis from Tocumen International Airport to downtown Panama City can cost US$30 to US$40, while the cheapest option is the Metrobus, costing no more than US$1.25.
4. If You’re Single, Stay in a Hostel Dorm
Single travelers will find the most affordable rates in hostel dorms, which are prevalent in tourist hubs like Panama City and Bocas del Toro. Rates usually range from US$10 to US$20 per night.
5. Couples and Groups Should Stay in Hotels
A private room in a budget hotel typically costs around US$30 to US$50 per night. In terms of comfort, these hotel rooms usually surpass hostel accommodations.
6. For the Cheapest Option, Sleep in a Hammock
If you’re open to roughing it, consider sleeping in a hammock, which may cost between US$2 to US$5 per night. Ensure you use mosquito repellent, nets, or insecticide coils, especially during the wet season.
7. Use Public Transportation in Panama City
Taxis in Panama City can be costly, especially for tourists. Therefore, using Metro buses and trains is a more economical choice (US$0.25 to US$0.35 per trip).
8. Opt for Buses Over Domestic Flights
While domestic flights are fast, they can be expensive, often exceeding US$120 for a round trip. Bus travel, although slower, is significantly cheaper and more environmentally friendly.
9. Enjoy Fresh Fruit for Breakfast
Fresh fruit is nutritious, delicious, and widely available in Panama. Options include pineapples, papayas, avocados, and more, usually found at street vendors and local markets.
10. Feast on Carbs for Lunch
Lunch is the most economical meal of the day in Panama. Many sit-down eateries offer inexpensive set menus for around US$5.
11. Drinking Water Safety
In most areas, tap water in Panama is generally safe to drink, except in certain remote regions. Refilling a reusable water bottle is a great way to save money and minimize plastic waste.
12. Be Cautious When Choosing Guides and Excursions
While splurging on tours can be worthwhile, sourcing local guides might be cheaper if you have some Spanish-speaking skills. Recommendations from locals or hotel staff can lead you to the best deals.
This article was first published on July 27, 2022, and updated on December 3, 2023.
