🎒Backpackers

Where to Stay in Panamá

Cheapest areas, hostel districts, and budget tips

⚠️ Caution💰 Budget: USD 50/day🚇 Good Transit☀️ Best: Jan, Feb, Mar

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Quick Answer

Stay in Bella Vista

Offers more affordable accommodation and local food options, with decent access to transport.

See full Panamá neighbourhood guide

Top 3 Areas to Stay in Panamá

Most affordable areas with the best value accommodation

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Bella Vista

A mix of residential high-rises, local eateries, and a lively waterfront promenade.

Our top picks in Bella Vista

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Hotel El Panama by Faranda Grand$$

A classic hotel with a large pool and spacious grounds, offering good value.

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The Balboa Residence$$

Offers apartment-style living with kitchenettes, good for longer stays.

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Taverna del Mar$

A more basic, budget-friendly option with simple rooms.

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🛡️ Generally safe during the day,...Mid-rangefamiliescouples

View Hotels in Bella Vista

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Casco Viejo

Historic colonial charm meets buzzing nightlife and culinary exploration.

Our top picks in Casco Viejo

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American Trade Hotel$$$

A beautifully restored historic building offering a luxurious and stylish stay.

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The Zsa Zsa Hostel$

A social and vibrant hostel with a great rooftop bar and friendly atmosphere.

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Casa Nuratti$$

Charming boutique hotel with a focus on art and design in a colonial setting.

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🛡️ Generally safe during the day ...Luxuryfirst-timerscouples

View Hotels in Casco Viejo

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Obarrio

Modern, upscale financial district with chic hotels, shopping, and dining.

Our top picks in Obarrio

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The Santa Maria, a Luxury Collection Hotel & Golf Resort$$$

Luxurious resort experience with golf, pools, and fine dining, though slightly outside the core of Obarrio.

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JW Marriott Panama$$$

Iconic skyscraper hotel offering stunning city and ocean views and high-end amenities.

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Sortis Hotel, Spa & Casino$$

Modern hotel with a popular rooftop pool and bar, often hosting events.

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🛡️ Generally very safe due to its...Luxurybusiness travelersluxury

View Hotels in Obarrio

View all hotels in Panamá

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Neighbourhood Comparison for Backpackers

Neighbourhood	Budget	Vibe	Best For
#1Bella Vista	Mid-range	A mix of residential high-rises, local eateries, and a lively waterfront promenade.	familiescouples
Casco Viejo	Luxury	Historic colonial charm meets buzzing nightlife and culinary exploration.	first-timerscouples
Obarrio	Luxury	Modern, upscale financial district with chic hotels, shopping, and dining.	business travelersluxury
Punta Pacifica	Luxury	Exclusive, modern residential area with luxury shopping and dining.	luxuryfamilies

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Find budget-friendly hostels in Panamá

Affordable stays in the best backpacker areas

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Tips for Backpackers in Panamá

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Book Hostels with Kitchens

Self-catering saves significant money in Panamá. A hostel with a good kitchen can cut your food budget by half.

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Walk Where Possible

Many city centres are walkable. Save transport money for longer journeys and use your feet for neighbourhood exploring.

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Find Free Activities

Free walking tours, museum free days, parks, and markets are everywhere. Ask hostel staff for the best free experiences.

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Carry a Water Bottle

A refillable bottle saves money and plastic. Many cities have free water fountains; check the local tap water safety first.

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Find free walking tours in Panamá

Budget-friendly ways to explore

Browse on GetYourGuide

Best Neighborhoods for Backpackers

Ranked by relevance for backpackers visiting Panamá

Bella Vista

Mid-range

A mix of residential high-rises, local eateries, and a lively waterfront promenade.

familiescouplesbudgetfoodies

+Affordable dining options
+Good for walking and cycling along the coast
+More local feel than Obarrio

-Less tourist-oriented amenities
-Can be noisy due to traffic

🏨 Hotel El Panama by Faranda Grand 🏨 The Balboa Residence 🏨 Taverna del Mar

Casco Viejo

Luxury

Historic colonial charm meets buzzing nightlife and culinary exploration.

first-timerscouplesnightlifefoodiesculture

+Beautiful architecture and history
+Excellent restaurants and bars
+Vibrant atmosphere

-Can be noisy at night
-Some streets are poorly maintained

🏨 American Trade Hotel 🏨 The Zsa Zsa Hostel 🏨 Casa Nuratti

Obarrio

Luxury

Modern, upscale financial district with chic hotels, shopping, and dining.

business travelersluxuryfoodiesdigital nomads

+Excellent dining and shopping options
+Modern infrastructure
+Good public transport links

-Lacks historic charm
-Can feel a bit sterile

🏨 The Santa Maria, a Luxury Collection Hotel & Golf Resort 🏨 JW Marriott Panama 🏨 Sortis Hotel, Spa & Casino

Punta Pacifica

Luxury

Exclusive, modern residential area with luxury shopping and dining.

luxuryfamiliescouplesbusiness travelers

+Very safe and clean
+High-end amenities and services
+Access to upscale shopping

-Expensive
-Limited public transport access
-Very residential, lacks distinct tourist attractions

🏨 The Westin Panama City 🏨 Trump Ocean Club International Hotel & Tower

Daily Budget (Budget)

USD 50/day

Hostel Albrook dorm bedUSD 15

Local 'fonda' for a 'casado' (set meal)USD 6

Metro bus day passUSD 2

Explore Casco Viejo on foot, visit Panama City CathedralUSD 0

Visit Miraflores Locks at the Panama Canal (basic entry)USD 17

See all budget tiers

Hidden Gems in Panamá

Lesser-known spots the locals love

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Mercado de Abastos de Panamá

FREE

This bustling market is where local chefs and families get their fresh produce. It's a vibrant sensory experience with an incredible array of tropical fruits, vegetables, and local delicacies.

marketParque Lefevre

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Avenida B

FREE

While Casco Viejo gets all the attention, Avenida B offers a more authentic glimpse into local life with its vibrant street art, local shops, and diverse eateries.

streetCasco Antiguo

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La Posta

A local favorite for delicious Panamanian cuisine with a modern twist, set in a beautifully restored colonial building. Their cocktails are also highly recommended by residents.

foodCasco Antiguo

Our Top 5 Favourite Tours in Panamá

Hand-picked guided experiences you can book in advance on GetYourGuide.

Guided walking tour through a European city

Panamá Walking Tour: Highlights & Hidden Gems

Discover Panamá on foot with a local guide who knows every backstreet and story. You will cover the must-see landmarks and stumble upon places most visitors never find.

View Tour Details

Panamá Food Tour: Street Food & Local Favourites

Eat your way through Panamá with a local foodie as your guide. From bustling markets to tucked-away restaurants, taste the dishes the city is truly known for.

View Tour Details

Best of Panamá: Skip-the-Line Top Attractions

Skip the queues and get straight into Panamá's top attractions with pre-booked access. An expert guide brings each site to life with stories and context you would not get on your own.

View Tour Details

Day Trip from Panamá: Scenic Excursion

Escape Panamá for the day and explore the stunning surroundings. Transport, guide, and itinerary are all sorted so you can relax and enjoy the scenery.

View Tour Details

Local cultural experience and traditions

Panamá Cultural Experience: History & Traditions

Go beyond sightseeing and connect with Panamá's living culture. From hands-on workshops to historic neighbourhood walks, this is the side of the city most travellers miss.

View Tour Details

View all tours in Panamá

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2 areas to be cautious about

Read our full safety guide for Panamá

Backpackers in Panamá: FAQ

What is the best area in Panamá for backpackers?

Bella Vista is our top pick for backpackers in Panamá. A mix of residential high-rises, local eateries, and a lively waterfront promenade. It is a mid-range area known for families, couples, budget.

Is Panamá safe for backpackers?

Panamá is rated "Moderate" overall. Stick to main streets in popular areas like Casco Viejo and Obarrio. Taxis or rideshares are recommended for getting around between neighborhoods or to/from accommodations after dark. Our neighbourhood guides include area-specific safety advice.

How much does it cost per day in Panamá for backpackers?

Expect to spend around USD 50 per day in Panamá as a backpacker. This covers accommodation, food, transport, and activities at the budget level.

When is the best time for backpackers to visit Panamá?

The ideal time depends on your priorities. Shoulder seasons (spring and autumn) typically offer the best balance of pleasant weather, lower prices, and fewer crowds. Budget travellers often find the best deals in winter or early spring.

Where are the cheapest hostels in Panamá?

The most affordable hostels in Panamá are typically found in Bella Vista. Budget accommodation options are highlighted in each neighbourhood breakdown above.

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More Panamá Guides

Full Panamá guide Areas to avoid Best time to visit More cities in Panama 👩 Solo Female Travellers 💑 Couples 👨‍👩‍👧‍👦 Families 💻 Digital Nomads ✨ Luxury Travellers 🎉 Nightlife Seekers

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