Is Panama Expensive? Our Budget Travel Guide
How much do you need when traveling around Panama?
Home to stunning Caribbean islands, volcanic landscapes and a refreshing capital city, Panama is quite the country to explore when heading through Central America.
Travelers do wonder if they’ll need a higher budget here though, especially as Dollars are the official currency in Panama.
In this guide we’ll look at the typical costs you can expect when traveling Panama, such as for accommodation, food and getting around. As well as recommending some of the best tours you can head on, we’ll also answer your most burning questions in our FAQ section.
Is Panama Expensive for Tourists?
Quick Answer: Panama is quite an expensive country to explore compared with others in this region (more than say Belize – although less expensive than neighboring Costa Rica).
When backpacking around Panama, we recommend setting a daily budget of roughly $25-30 a day. This will be a solid amount for staying in a comfortable dorm room, eating local meals as well as for using public transport to get around cities and regions.
Those who are looking for a more luxurious experience can expect to spend between $35-50 a day in Panama. With this budget you can stay in a sleek private room, eat out at nicer restaurants and also take Ubers more frequently.
Our 5 days in Panama itinerary shares ideas on what you can do with little time here.
Things to know before traveling to Panama
- A Stunning Pacific Coast – Most travelers are immediately drawn to Panama’s Caribbean coast, and to be fair there are some memorable experiences here like island hopping through the San Blas archipelago. However the Pacific has some stunning beaches and perfect diving conditions, so it’s worth heading to places like Santa Catalina and Coiba Island to take full advantage.
- The Different Seasons – The dry season in Panama runs from December until April, and is perfect given there are little rains. The wet season begins in May and lasts until November, which whilst wetter, is better for exploring Panama with less crowds (and often cheaper prices too!). Our personal suggestions are to head here in either March or November.
- Getting Around Panama – Using buses is by far the best way of exploring the country, and at most you’ll only need to take one night-bus when heading from the north to south. They are moderately priced too which is good for your budget. If you’re short on time you can also find daily flights from Panama City to Bocas del Toro.
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How much does a trip to Panama cost?
Budget travelers and backpackers can expect to spend roughly $25-30 a day in Panama, whilst those who want an upgrade in experience (such as private rooms, eating in nicer establishments) can budget for around $35-50 a day.
This budget only covers accommodation, food and a few extras (like beers, a walking tour or entrance etc). Other costs such as flights and day tours will need to be planned with a different budget in mind.
Cost of Accommodation in Panama
Overall, your largest day-day cost is going to be spent on where you stay in Panama. You can find hostel dorm beds for $7-11, however these can be much more expensive in the more touristy areas (such as Bocas del Todo and the district of Casco Viejo in Panama City).
So if you plan to head to these areas, you will need to temporarily raise your budget to around $30-35 to get by well. When heading to the mountainous town of Boquete in northern Panama, we recommend staying at the Agartha Hostel which has comfortable dorm beds and BBQ facilities on-site.
We’ll also find lots of private rooms and more luxurious stays when heading through Panama, and those who can swing a higher budget (or at least even for a few days) will be spoilt for choice.
Those who want a more comfortable stay when in Bocas del Toro Can head to El Clandestino, which is right on the waterfront of Isla San Cristobal. You’ll also have breakfast included in the room rate.
Cost of Food in Panama
Panama has a very traditional cuisine, which feels similar to countries like that of Colombia and Costa Rica. Must-try dishes include Ropa Vieja, Patacones and Sancocho de Gallina.
Most dishes are made up with a combination of rice, meat, beans and plantains, and it will be relatively easy to find decent street food when backpacking through Panama. A local dish like the above would cost somewhere between $3-5 each.
We can also find lots of international cuisines here, and especially so within the modern capital of Panama City. Prices can really vary depending on where you are based, and for example in Casco Viejo you will be paying more than usual. For example a meal at a nice restaurant here will cost anywhere from $8-12+.
Cost of Transportation in Panama
When traveling through Panama it’s most likely you’ll be using buses, since there are many destinations to visit between the north and south (and not many airports to feasibly arrive into).
Buses are comfortable and competitively priced, and you can usually get better rates in-person rather than booking online (for example it’s worth heading to the Albrook Bus Terminal in Panama City to buy your tickets). A one-way ticket from Panama City to Almirante (where you then take the boat to Bocas) costs roughly $30, and takes 11 hours.
Alternatively you can fly, with the most popular route being between Bocas del Toro (close to Costa Rica in the north) and Panama City in the south. A one-way flight starts from roughly $80, however will cut travel times down to just an hour.
Cost of Tours & Attractions in Panama
There is a wide variety of awesome things to do and experience when in Panama. Whilst some (like city tours) can be done independently, others are better-off visited with an organized tour.
For example the iconic San Blas Islands Can only be visited with a reputable company, given they are part of a protected region that is owned by the indigenous Kuna people.
We highly recommend joining this highly-rated tour where you’ll visit 4 iconic islands whilst also having your lunch included.
Using tours is especially important for those who want to do high-octane activities whilst traveling. This is to ensure your safety by going with someone that uses high-quality equipment and stays up-to-date with safety practices.
When in Boquete, we highly recommend joining this white river rafting tour. Here you’ll head with a highly reputable company as you explore the rapids of the Chiriqui Viejo River.
Traveling to Panama FAQs
Here are some questions our readers ask when it comes to visiting Panama:
Is Panama Expensive for Tourists?
And that’s all for our guide on how expensive Panama is.
This popular country is a perfect choice for those who want to see breathtaking nature and a warm culture. So much so that it’s being an increasingly popular choice for those who want cheaper costs and less tourism than its neighbour of Costa Rica.
In this guide we’ve looked at how much money you’ll need when traveling around Panama. This guide focuses more on the minimum needed for low-budget travelers, so of course if you feel like upgrading then by all means go for it!
Be sure to read our Backpacking Panama Itinerary to learn more about how to plan your own backpacking trip through this awesome Central American nation.
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