12 budget-friendly tips for exploring Panama

Panama offers its guests vibrant cities, stunning beaches, and vast wilderness ideal for adventure seekers.

However, this doesn’t mean it’s exclusively for those with big budgets – costs here are lower than in Europe, Canada, or the United States, though slightly higher than in Guatemala, Honduras, or El Salvador.

So, is Panama costly? It’s not the priciest nation in Central America; that title belongs to Costa Rica, followed by Belize. Yet, budget-conscious travelers must plan wisely and forgo some home comforts to save money.

Luckily, there are many ways to cut expenses on food, accommodations, transportation, and activities. The beaches are free, and Panama’s numerous and affordable national parks offer plenty of outdoor fun. Here are our top tips for ensuring your Panama journey is bueno, bonito y barato (good, nice, and cheap).

Daily expenses

• Hostel dorm bed: US$10 to US$20

• Basic double hotel room: US$30 to US$50

• Self-catering apartment (including Airbnb): US$70 to US$100+

• Public transport 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 expense: US$70 to US$90

1. Travel during the rainy season to start saving money

The best time to visit Panama for budget travelers is during the rainy season, which lasts from May to November. Hotel prices can decrease by 10% to 30% compared to the peak season (December to April), but be prepared for sudden heavy downpours.

Most rain showers are brief, typically occurring in the afternoon and clearing up within an hour or two, though there can be days of persistent rainfall. Activities like birdwatching and white-water rafting are often more enjoyable during the rainy season.

The microclimate in Bocas del Toro can be unpredictable; it often experiences rain when the rest of the country is dry, and vice versa. International flights to Panama are generally least expensive towards the end of the rainy season, from September to November.

2. If your plans focus solely on western Panama, consider flying into Costa Rica.

Many of Panama’s top attractions are found in the western provinces of Chiriquí and Bocas del Toro. If you don’t plan to venture beyond these regions, it can sometimes be more cost-effective to fly into San José in Costa Rica and then travel overland to Panama, especially for backpackers.

The direct bus from San José to the international border at Paso Canoas (near Chiriquí) takes about an hour longer than the bus from Panama City to David (the second-largest city in Panama and the capital of Chiriquí). You will need to go through immigration, which can take some time.

Traveling to Chiriquí is faster and more affordable using intercity buses instead of international options like Ticabus, which usually involve longer journeys and higher fares, but do not stop in David.

3. Use the bus service to and from Tocumen Airport

Official taxis from Tocumen International Airport to downtown Panama City typically cost between US$30 and US$40. A shared taxi is a more economical choice at around US$15 per person if you're traveling alone.

The most affordable option is the Metrobus. A ticket costs no more than US$1.25. Before leaving the airport, be sure to purchase a rechargeable Metrocard, which works for all Metro buses and trains. The card costs US$5 and comes preloaded with US$3 in fares.

Remember, you will need a Metrocard to access long-distance services at Albrook bus station.

4. If you're traveling alone, choose a hostel dorm

Solo travelers can find the most affordable accommodations in hostel dorms. Prices range from US$10 to US$20 per night, depending on the location, often including various amenities and tidy rooms.

Hostels are common in major tourist areas like Panama City, Boquete, and Bocas del Toro, but are less frequent in other regions. They also provide a great opportunity to connect with fellow travelers.

5. Couples and groups should opt for hotels

A private room in an affordable hotel generally costs about the same as a private room in a hostel, ranging from US$30 to US$50 per night. However, hotel accommodations usually offer greater comfort.

The more economical, basic rooms typically feature fans and cold-water showers (air-conditioning can increase prices by US$15 to US$20).

Some hotels offer a few very basic, budget-friendly rooms (US$15 to US$20) with shared bathrooms; inquire at the front desk about algo más económico (something cheaper) or un quarto con baño compartido (a room with a shared bathroom).

The main drawback of choosing hotels for budget accommodations is the lack of a shared kitchen.

6. If you’re keen to save money, consider sleeping in a hammock.

If you're okay with a bit of discomfort or staying in a homestay, a hammock is the most economical choice. Hostels usually charge between US$2 and US$5 per night for a spot, and you might find locals willing to provide similar accommodations at their homes.

Be sure to use mosquito repellent, nets, and/or insecticide coils, especially during the wet season. A warm blanket or sleeping bag could be necessary as nighttime temperatures can drop significantly, even in the humid lowlands. Also, it's unsafe to sleep in public areas, including the beach.

7. Utilize public transportation in Panama City

Taxis in Panama City are known for being quite cunning. It's common for drivers to overcharge, especially if they suspect you’re a tourist. To make matters worse, the city often suffers from heavy traffic, making car travel slow and inefficient.

To cut costs and avoid complications, use Metro buses and trains for your transportation (US$0.25 to US$0.35 per ride). If you need to take a taxi, try to agree on a fare beforehand. And if you find a good driver (many are), be sure to get their phone number for future rides.

Steer clear of tourist taxis and those waiting outside hotels, as they will definitely charge you more. In Panama, Uber is typically a cheaper and more convenient option than traditional taxis.

8. Choose buses instead of domestic flights

While domestic flights are undeniably quick, allowing you to travel from Panama City to David in about an hour, most round-trip tickets cost over US$120, making them expensive and environmentally unfriendly.

While traveling by bus in Panama is considerably slower (the journey from Panama City to David takes seven to nine hours), it is much more affordable and eco-friendly. You can catch a ride from the Terminales David-Panamá (TDP) using the Padafront buses.

9. Indulge in fruit for breakfast

Fresh fruit in Panama is not only delicious and nutritious but also widely available and inexpensive. You can find a vibrant selection of locally grown produce, including pineapples, papayas, avocados, bananas, watermelons, and oranges.

Purchase fruit from street vendors, local markets, or supermarkets, as a fruit breakfast in a restaurant is generally not worth it. Smoothies also make for a healthy and budget-friendly choice.

10. Enjoy carbs for lunch

If you plan to dine out frequently, lunch is the most cost-effective meal of the day. While street food is somewhat scarce in Panama, numerous affordable sit-down restaurants offer budget-friendly set menus and carb-heavy lunch buffets for around US$5 per person.

A typical Panamanian lunch features a hearty portion of fatty meat or chicken served with a generous helping of rice and beans, accompanied by a few slices of (sometimes sweetened) plantain and a sugary beverage. Unfortunately, options for vegans and vegetarians are limited in Panama.

11. Generally, you can drink tap water

Except for places like Bocas del Toro, Guna Yala, and other remote regions, tap water in Panama is typically safe to drink. Save money and reduce plastic waste by refilling reusable water bottles at the sink.

12. Select your guides and excursions wisely

If you have the time, it’s worth splurging on one or more tours. If your Spanish is decent, finding local guides can often be more economical than going through a tour operator.

For the best deals, ask for solid recommendations from your hotel or hostel, as they usually know where to find the best daily offers. Most towns also have a local office for the National Environment Ministry, Mi Ambiente, which can help guide you.