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Panama

Panama's arts reflect its ethnic mix. Indian tribes, West Indian groups, mestizos, Chinese, Middle Eastern, Swiss, Yugoslav and North American immigrants have all contributed ingredients to the cultural stew. Traditional arts include wood carving, weaving, ceramics and maskmaking.

Spanish is the official language, though US influence and the international nature of the canal zone reinforce the use of English as a second language. West Indian immigrants also speak Caribbean-accented English. Indian tribes have retained their own languages. Panama is predominantly Roman Catholic, but there are sizable Muslim and Protestant minorities and small numbers of Hindus and Jews.

Environment

The Isthmus of Panama is the umbilical cord joining South and Central America. It borders Costa Rica to the west and Colombia to the east. Panama's arched shape reflects both its role as a bridge between continents and as a passageway between oceans. At its narrowest point, it is only 50km (30mi) wide, but it has a 1160km (720mi) Caribbean coastline on its northern shore and a 1690km (1048mi) Pacific coast to the south. The famous canal is 80km (50mi) long and effectively divides the country into eastern and western regions.

There are hundreds of islands near the Panamanian coasts. The two major archipelagos are the San Blas and Bocas del Toro chains in the Caribbean Sea, though the best snorkeling, diving and deep-sea fishing are to be found in the Pacific near Coiba Island and the Pearl Islands. Panama has flat coastal lowlands and two mountain chains running along its spine. The highest peak is Volcán Barú at 3475m (11,400ft).

Rainforests dominate the canal zone, the northwestern portion of the country and much of the eastern half. Although Costa Rica is widely known for its fantastic wildlife, Panama has, in fact, a greater number of flora and fauna species, more land set aside for preservation and far fewer people wandering through the jungle looking for wildlife and inadvertently scaring it away. There's much truth in the Panamanian saying that in Costa Rica 20 tourists try to see one resplendent quetzal, but in Panama one person tries to see 20 of these exquisite birds.

Panama has two seasons. The dry season lasts from January to mid-April and the rainy season from mid-April to December. Rainfall is heavier on the Caribbean side of the highlands, though most people live on or near the Pacific coast. Temperatures are typically hot in the lowlands (between 21°C and 32°C/70°F and 90°F) and cool in the mountains (between 10-18°C/50-64°F). These vary little throughout the year.

General Information

Panama offers some of the finest snorkeling, birding and deep-sea fishing in the world, so it's hard to figure out why travelers tend to steer clear of this country or just whiz through on their way to or from South America. It may have something to do with the fact that Panama is known internationally for its canal, the 1989 US invasion and the name it donated to a style of headgear, but this does it no justice.

The reality is a proud prosperous nation that honors its seven Indian tribes and its rich Spanish legacy and embraces visitors so enthusiastically that it's difficult to leave without feeling that you're in on a secret that the rest of the traveling world will one day uncover.

Warning

Panama City is safer than most capital cities, but some parts of it (particularly the district of Chorrillo) should not be strolled around at night. The city of Colón has a major crime problem and absolutely shouldn't be strolled around day or night. The area of Darién Province between Yaviza and the Colombian border along the upper Tuira River is particularly unsafe due to the presence of smugglers, bandits and Colombian guerrillas and paramilitary forces. However, the vast majority of Darién National Park is relatively safe, though it's advisable to visit the park with a guide due to the inherent risks of travel in remote jungle with ill-defined trails. As the situation in Colombia continues to destabilize, it's advisable to keep your ear as close to the ground as possible while planning any off-the-beaten-path expeditions.

Full country name: Republic of Panama

Area: 78,000 sq km (30,420 sq mi)

Population: 2.8 milion (growth rate 1.3%)

Capital city: Panama City (pop 700,000)

People: 65% mestizo, 14% African descent, 10% Spanish descent, 10% Indian

Language: Spanish, English and Indian languages

Religion: 85% Roman Catholic, 10% Protestant, 5% Islamic

Government: Constitutional republic

President: Mireya Moscoso

GDP: US$21 billion

GDP per head: US$7,600

Annual growth: 4.4%

Inflation: 1.5%

Major industries: Banking, construction, petroleum refining, brewing, cement and other construction materials, sugar milling, shipping and agriculture

Major trading partners: USA, EU, Central America & Caribbean, Japan

Panama Currency: US dollar (known as 'balboa')

Meals

Budget: US$2-5
Mid-range: US$5-10
Top-end: US$10+

Lodging

Budget: US$7-16
Midrange: US$16-20
Top-end: US$20+

Accommodation tends to be more expensive in Panama than in other parts of Central America; a hotel room that might cost US$6 in Nicaragua or Guatemala might cost US$10 here. If you're traveling on a budget, you'll pay at least US$15 per day for a room and three meals. A moderate budget will be in the range of US$20-30 a day.

Panama uses the US dollar as its currency. The official name for it is the balboa, but it's exactly the same bill. Panamanian coins are of the same value, size and metal as US coins; both are used. In most of Central America, US dollars are the only currency exchanged. In Panama City, however, you can exchange currencies from almost anywhere in the world at a casa de cambio, due to the city's large international offshore banking industry.

You can tip some small change, or around 10% of the bill if you're feeling affluent, in fancier restaurants; in small cafes and more casual places, tipping is not necessary. Haggling over prices is not the general custom in Panama.

Panama City

The capital of Panama is a modern, thriving commercial center stretching 10km (6mi) along the Pacific coast from the ruins of Panamá Viejo in the east to the edge of the Panama Canal in the west. The old district of San Felipe (also known as Casco Antiguo or Casco Viejo) juts into the sea on the southwestern side of town. It's an area of decaying colonial grandeur, striking architecture, peeling paint and decrepit balconies. Attractions include the 17th-century Metropolitan Church, the Interoceanic Canal Museum of Panama, the Plaza de Bolívar, the presidential palace, the History Museum of Panama and the sea wall built by the Spaniards four centuries ago. Via España's banking district is the complete opposite to this yesteryear charm, with aggressively modern buildings and sophisticated entertainments.

Attractions on the fringes of the city include the Panama Canal, the 16th-century ruins of Panamá Viejo, the Summit Botanical Gardens and Zoo, the tropical rain forest of the Parque Nacional Sobreranía and the 265-hectare (655-acre) Parque Nacional Metropolitana.

Panama Canal

The Canal is both an engineering marvel and one of the most significant waterways on earth. Stretching 80km (50mi) from Panama City on the Pacific coast to Colón on the Atlantic side, it provides passage for over 12,000 oceangoing vessels per year. Seeing a huge ship nudge its way through the narrow canal, with vast tracts of virgin jungle on both sides, is an unforgettable sight. The easiest and best way to visit the Canal is to go to the Miraflores Locks, on the northeastern fringe of Panama City, where a platform offers visitors a good view of the locks in operation. There's also a museum with a model and a film about the Canal. Boats leave Balboa, a western suburb of Panama City, for a five-hour tour through the locks to Miraflores Lake.

Isla Taboga

This charming and historical island, 20km (12mi) south of Panama City, has an attractive beach, some lovely protected rain forest, and is home to one of the largest colonies of brown pelicans in Latin America. Known as the Island of Flowers, because at certain times of the year it is filled with the aroma of sweet-smelling blooms, the island is a favorite retreat from the city. Taboga has a long history and was settled even before Panama City. There is a small church here, claimed to be second oldest in the Western Hemisphere, and Pizarro set sail from here for Peru in 1524. The island's annual festival is July 16, and involves nautical processions and celebrations. Taboga is a one-hour boat trip from Balboa.

Boquete

Known for its cool, fresh climate and pristine natural environment, the small alpine town of Boquete is nestled into a craggy mountain valley 35km (22mi) north of David. It's a fine place for walking, birdwatching, horseriding and enjoying a respite from the heat of the lowlands. Flowers, coffee and citrus fruits are grown in the area and the town's Feria de las Flores y del Cafe is a popular annual festival held in January. Boquete is a good base for climbing 3475m (11,400ft) Volcán Barú, 15km (9mi) west, or visiting the volcano's 14,300-hectare (35,320-acre) national park