Budget to visit Panama

Daily Budget Estimates

Budget Traveler

Expect a daily cost between $40 – $60 USD. This budget accommodates stays in hostel dormitories, preparing some of your own meals, relying on public transportation, and prioritizing free or low-cost activities such as hiking in national parks and exploring city neighborhoods on foot.

Mid-Range Traveler

A daily budget of $100 – $180 USD is comfortable for a mid-range experience. This allows for private rooms in well-located hotels, dining at a mix of local eateries and more tourist-oriented restaurants, using Ubers or taxis for convenience, and including a paid tour or activity every other day.

Luxury Traveler

For a luxury experience, plan for a daily budget of $300+ USD. This level of spending covers stays at high-end hotels or exclusive resorts, fine dining experiences, the convenience of private transfers, and the flexibility to enjoy multiple private or specialized guided tours.

Currency & Cash Management

Official Currency

Panama’s official currency is the Panamanian Balboa (PAB), but it is pegged at a 1:1 ratio with the US Dollar (USD). For all practical purposes, the US Dollar is the currency in circulation for paper money. Panama only mints its own coins (Balboas), which are identical in size and value to US coins and are used interchangeably. It is essential to arrive with and budget in US Dollars, as no currency exchange will be necessary.

Cash vs. Card

Major credit and debit cards like Visa and Mastercard are widely accepted in Panama City and other primary tourist destinations such as Boquete and Bocas del Toro. However, cash is indispensable for transactions in smaller towns, at local markets, with street food vendors, for most taxis, and especially in the remote San Blas Islands. We strongly advise carrying a mix of small bills ($1, $5, $10), as obtaining change for larger notes like $50 or $100 can often be a challenge.

ATMs

ATMs, known locally as cajeros automáticos, are readily available in cities and larger towns, and they dispense US Dollars. Before you depart, please inform your bank of your travel dates to prevent any service interruptions. Be aware that local banks typically charge a withdrawal fee of $5.00 to $6.50 per transaction, in addition to any fees your own bank may impose.

Breakdown of Major Costs

Accommodation

Prices can be higher during the peak tourist season, which runs from December to April.

• Hostels (dorm bed): $15 – $25 per night
• Budget/Mid-range Hotels: $60 – $120 per night
• High-end Hotels & Resorts: $200 – $500+ per night
• San Blas Islands (basic cabin, often all-inclusive): $150 – $250 per person, per night

Food & Drink

For an excellent value, look for the “menu ejecutivo” (executive lunch) offered at many local restaurants on weekdays. It typically includes a soup, a main course, a side, and a drink for a set price.

• Meal at a local eatery (fonda): $5 – $8
• Meal at a mid-range restaurant: $15 – $30
• Meal at a high-end restaurant: $50+
• Local beer (Balboa, Atlas): $1.50 – $3
• Craft beer or imported drink: $5 – $8
• Bottle of water: $1 – $2

Transportation

If you take a taxi that does not use a meter, it is wise to agree upon the fare with the driver before beginning your journey.

• Panama City Metro/Metrobus: ~$0.35 per ride
• Uber/Taxi in Panama City: $3 – $10 per ride
• Inter-city bus (e.g., Panama City to David): $15 – $20
• Domestic flight (e.g., Panama City to Bocas del Toro): $80 – $150 one way
• Ferry to Taboga Island: ~$24 round trip

Tours & Activities

Note that entrance fees for many of Panama’s beautiful national parks are quite reasonable, often falling within the $5-$10 range.

• Panama Canal Miraflores Locks entrance fee: ~$17
• Day trip to San Blas Islands (from Panama City): $120 – $180
• Guided tour of Casco Viejo: $25 – $50
• Coffee farm tour in Boquete: $30 – $40
• Ziplining or jungle tour: $60 – $100

Tipping & Gratuities

While always appreciated for good service, tipping is generally not as obligatory in Panama as it might be in the United States.

• Restaurants: A 10% tip is standard for good service. Check your bill, as it is sometimes automatically included under “servicio” or “propina”. If not, it is customary to leave it in cash.
• Tour Guides: A good guideline is $5 – $10 per person for a half-day tour or $10 – $20 for a full-day excursion, depending on the quality of the tour and the size of your group.
• Hotel Staff: For bellhops, $1 – $2 per bag is appropriate. For housekeeping, leaving $1 – $2 per day is a kind gesture.
• Taxis: Tipping is not expected, but rounding up the fare to the nearest dollar is a common and appreciated practice.

Money-Saving Tips for Panama

• Dine at local fondas and cafeterias. These small, often family-run eateries offer authentic Panamanian food at very affordable prices.
• Utilize the modern and efficient public transportation system in Panama City. The Metro and MetroBus are clean, safe, and extremely cost-effective.
• Look for happy hour specials, often advertised as “2 por 1” (2 for 1), for drinks. These are common in popular neighborhoods like Casco Viejo and El Cangrejo.
• Consider traveling during the shoulder seasons (May-June or November) when you may find lower prices on accommodation and flights.
• For the best rates on long-distance buses and domestic flights, it is always advisable to book your tickets in advance.
• Stock up on snacks, water, and other drinks at a large supermarket. This is significantly cheaper than purchasing them from hotel minibars or small convenience stores in tourist areas.