 Facts
at a Glance
Full country name: Republic of Panama
Area: 78,000 sq km (30,420 sq mi)
Population: 2,611,000 (growth rate 2%)
Capital city: Panama City (pop 610,000)
People: 62% mestizo, 14% African descent, 10% Spanish
descent, 5% mulatto, 5% Indian
Language: Spanish, English and Indian languages
Religion: 84% Roman Catholic, 5% Protestant, 5% Islamic
Government: Democracy
President: Mireya Moscoso
 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, while 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.
 History
The earliest known inhabitants
of Panama were the Cuevas and the Coclé cultures, but
they were decimated by disease and the sword when the Spanish
arrived in the 16th century. After several forays along the country's
Caribbean shore, the Spanish settlement of Nombre de Dios was
established at the mouth of the Río Chagres on the Caribbean
coast in 1510. Panama's Pacific coast later became the springboard
for invasions of Peru and the wealth generated by these incursions
was carried overland from the Pacific port of Panama (City) to
Nombre de Dios. The transport of wealth attracted pirates and,
by the 18th century, the Caribbean was so dangerous that Spanish
ships began bypassing Panama and sailing directly from Peru around
Cape Horn to reach Europe.
Panama went into decline,
and became a province of Colombia when the South American nation
received its independence in 1821. In 1846, Colombia signed a
treaty permitting the USA to construct a railway across the isthmus
and to defend it with military force. The idea of a canal across
the isthmus had been mooted even in the 16th century, but a French
attempt to build one in 1880 resulted in the death of 22,000
workers from malaria and yellow fever and bankruptcy for everyone
involved. A Frenchman who stood to gain handsomely from a US
buyout of the French rights to build a canal was named 'envoy
extraordinary' by Washington and he negotiated and signed a canal
treaty with the USA, despite the objections of the Colombian
government. The financial and strategic interests of the US momentarily
coincided with the sentiments of Panama's revolutionaries, and
a revolutionary junta declared Panama independent on 3 November
1903, with the overt support of the USA.
The canal treaty granted
the USA rights in perpetuity over land on both sides of the canal
and a broad right of intervention in Panamanian affairs. The
treaty led to friction between the two countries for decades,
partly because it was clearly favorable to the USA at the expense
of Panama and partly because Colombia refused to acknowledge
Panama's independence until 1921 when the USA finally paid Colombia
US$25 million in compensation. The USA began to build the canal
again in 1904 and 10 years later the first ship negotiated the
engineering marvel. The US intervened in Panama's affairs repeatedly
up until 1936, when it relinquished its right to use troops outside
the Canal Zone. The two countries continued to argue over the
canal contract until a new treaty was signed in 1977. This treaty
calls for the gradual withdrawl of US interests and complete
Panamanian control of the canal by 1999.
General Manuel Noriega
took control of the country in 1984. A former head of Panama's
secret police and a CIA operative, Noriega became a demagogic
bogeyman. Murdering political opponents, quashing democracy,
drug trafficking and money laundering were his principal concerns
during the 1980s, activities which eventually attracted US sanctions
and freezing of Panamanian assets. When the winning candidate
of the 1989 presidential election was beaten to a pulp on national
TV and the election declared null and void, Noriega's regime
became an international embarrassment. Noriega appointed himself
head of government on 15 December 1989 and announced that Panama
was at war with the USA. The following day an unarmed US soldier
dressed in civilian clothes was killed by Panamanian soldiers
- or so the Pentagon claimed. The Panamanian version of events
was that the soldier was not only armed but that he had shot
and injured three civilians before running a roadblock.
Since US forces had for
months been itching for a pretext to attack, this was more than
enough reason to call in 26,000 troops for 'Operation Just Cause.'
The invasion, the intention of which was to bring Noriega to
justice and create a democracy better suited to US interests,
left more 2,000 civilians dead and thousands more homeless. Noriega
escaped capture by US troops for six days by claiming asylum
in the Vatican embassy. US forces surrounded the embassy and
pressured the Vatican to release him. They memorably used that
psychological tactic beloved of disgruntled teenagers, and bombarded
the embassy with blaring, devilish, rock music to psychologically
wear down those inside. It worked (as any parent knows); Noriega
was sent to the US, where he was convicted on money laundering
charges; he is currently serving a 40-year prison sentence in
Florida.
The legitimate winner of
the 1989 presidential election, Guillermo Endara, was sworn in
as president. But Endara proved to be an ineffective president
whose policies cut jobs and cost his administration the popularity
it initially enjoyed; by the time he was voted out of office
in 1994, Endara was suffering from single-digit approval ratings.
In the 1994 elections - the fairest in recent Panamanian history
- Ernesto Pérez Balladares came into office. Under his
direction, the Panamanian government implemented a program of
privatization and focused on infrastructure improvements, health
care and education. Pérez Balladares was barred from running
for a second term, and in September 1999 Mireya Moscoso, the
widow of popular former president Arnulfo Arias, took office.
 Economic
Profile
GDP: US$8 billion
GDP per head: US$2400
Inflation: 1.5%
Major industries: Banking, shipping and agriculture
Major trading partners: USA, Germany, Costa Rica
 Culture
Panama's arts reflect its
ethnic mix. Indian tribes, West Indian groups, mestizos, Chinese,
Middle Eastern, Swiss, Yugoslav and North American immigrants
have all offer contributed ingredients to the cultural stew.
Traditional arts include woodcarving, weaving, ceramics and mask-making.
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.
 Events
Carnaval is celebrated over the four days preceding
Ash Wednesday and involves music, dancing and a big parade on
Shrove Tuesday. The celebrations in Panama City and Las Tablas
are the most festive. The Semana Santa (Easter Week) celebrations
at Villa de Los Santos, on the Península de Azuero, are
equally renowned. The Festival of the Black Christ at
Portobelo on 21 October includes a parade of the famous life-size
statue of the Black Christ, and attracts pilgrims from all over
the country.
 Facts
for the Traveler
Visas: US, Canadian, Australian and New Zealand
citizens and most other nationalities do not need to obtain a
visa, but they do need a tourist card (available from embassies
and airlines serving Panama) in advance. Citizens of the UK,
Germany and Switzerland can stay up to three months without a
visa or tourist card if they have an onward ticket and sufficient
funds.
Health risks: Dengue fever, malaria, rabies and yellow
fever
Time: GMT/UTC minus 5 hours
Electricity: Variable - either 110V or 220V
Weights & measures: Metric
 Money
& Costs
Currency: US dollar (known as 'Balboa')
Relative costs:
- Budget room: US$6-12
- Moderate hotel: US$12-18
- Top-end hotel: US$20 and
upwards
- Budget meal: US$2-5
- Moderate restaurant meal:
US$5-10
- Top-end restaurant meal:
US$10 and upwards
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$12 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$17-30 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, 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.
 When
to Go
Panama's tourist season
is during the dry season from around mid-December to mid-April.
The weather can be hot and steamy in the lowlands during the
rainy season, when the humidity makes the heat more oppressive
than otherwise. Rain in Panama tends to come in sudden short
downpours that freshen the air and are followed by sunshine.
If you'll be doing any long, strenous hiking, the dry season
is the most comfortable time to do it; the Darién Gap
can be crossed only at this time.
If you like to party, try
to be in Panama City or on the Peninsula de Azuero for Carnival,
held each year on the weekend before Ash Wednesday. Panama City's
Carnaval celebration is one of the world's largest.
 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 shouldn't be strolled
around day or night. The area of Darien Province between Yaviza
and the Colombian border along the upper Tuira River is unsafe
due to the presence of smugglers, bandits and Colombian guerrillas
and paramilitary forces. However, the vast majority of Darien
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.
 Attractions
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 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 rainforest of the Sobreranía
National Park 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 ocean-going
vessels per year. Seeing a huge ship nudge its way through the
narrow canal, with vast tracks 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 rainforest, 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 on 16 July, 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, bird-watching,
horse-riding 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)
Volván Barú, 15km (9mi) west, or visiting the volcano's
14,300-hectare (35,320-acre) national park.
 Off the Beaten Track
Archipiélago de
San Blas
The islands of the San
Blas Archipiélago are strung out along the Caribbean coast
of Panama from the Golfo de San Blas nearly all the way to the
Colombian border. The islands are home to the Kuna Indians, who
run the 378 islands as an autonomous province, with minimal interference
from the national government. They maintain their own economic
system, language, customs, and culture, with distinctive dress,
legends, music and dance. The economy of the islands is based
on coconut sales, fishing and tourism, and they offer travelers
good diving, snorkeling and swimming; the best diving conditions
are between April and June. The most interesting islands are
Achutupu, Kagantupu and Coco Blanco. There are flights to several
of the islands from Panama City or you can catch a ride with
Kuna merchant ships from Colón.
Archipiélago de
Bocas del Toro
Several of the pristine
islands of the Bocas del Toro Archipiélago in the Caribbean
Sea are protected by the marine Parque Nacional Bastimentos.
The park offers great diving, snorkeling and swimming and its
beaches are used as a nesting ground by several species of sea
turtles. The main town on the archipelago is Bocas Del Toro on
the southeastern tip of Isla Colón. The archipelago is
off the north-eastern coast of Panama and is accessible by plane
from Panama City, David and Changuinola, or by ferry from Almirante
and Chiriquí Grande.
Isla Grande
It would take all the exotic
Caribbean clichés to describe this remote and beautiful
island off the Caribbean coast near Portobelo. Only five by one
and a half km (3 by 1 miles) in size, it's inhabited by 300 people
of African descent who make their living from fishing and coconuts.
There are a handful of places to stay on the island and boats
for rent, but no dive operators or places to rent snorkelling
equipment. Visitors are often attracted by local festivities,
which include San Juan Bautista on 24 June, celebrated with canoe
and swimming races; the day of the Virgen del Carmen, on 16 July,
is marked by a land and sea procession; and Carnaval, before
Ash Wednesday, is fêted with Calypso dancing and songs.
 Activities
There are hundreds of islands
off both coasts of Panama and, because the coasts are just an
hour's drive apart, you could easily spend the morning snorkeling
in the Caribbean Sea and the afternoon snorkeling in the Pacific
Ocean. Some of the best snorkeling and diving to be found
in Central America can be found in the protected waters beside
Panama's Coiba Island. Divers looking for something different
might want to consider diving in the Panama Canal; not only are
there wrecks to explore but also all kinds of submerged equipment
left by the French when they worked on the railroad many decades
ago. Surfers should check out Santa Catalina Beach, on
the Azuero Peninsula, which periodically sees waves with 6m (20ft)
faces, though they're usually hovering around 3m (10ft).
Fishing enthusiasts will
be pleased to know that more deep-sea fishing records
have been set at Piñas Bay, on the Pacific coast, than
anywhere else in the world. You can see sea turtles in large
numbers along both Panamanian coasts, although the Kunas' habit
of lopping their heads off with machetes and eating them is taking
a heavy toll. Cana, deep in the heart of the Darien National
Park, is birding nirvana and, what's more, you're likely
to find yourself alone as you take in the great green, blue-and-yellow,
red-and-green and chestnut-fronted macaws.
 Getting
There & Away
Panama has flights to all
Central American countries, and both North and South America;
Miami is the principal hub for flights to Panama. Copa is the
national airline. There's a US$20 departure tax on international
flights.
There are three land border
crossings between Panama and Costa Rica; Paso Canoas, on the
Interamerican Highway, is the most popular, followed by Guabito-Sixaola
near the Caribbean coast. There are buses to the border which
connect with local services on the Costa Rican side. Despite
the huge amount of shipping passing through the Panama Canal,
it's hard to catch a ride on a boat.
The two-week hike through
the jungle that comprises the Darien Gap - the roadless terrain
between Yaviza and the Colombian border - is an unwise endeavor
(see the warning above) but if you absolutely
must cross the Panama-Colombia border on foot, do so at Puerto
Obaldia, a sleepy little town just a couple of kilometers from
some fine beaches.
 Getting
Around
Panama has a number of
domestic airlines and a good domestic flight network. There's
an inexpensive bus system servicing all accessible parts of the
country.
Boats are the principal
mode of transport in several parts of Panama, particularly between
the San Blas and Bocas del Toro archipelagos. Kuna Indian merchant
vessels carry cargo and passengers along the San Blas coast,
between Colón and Puerto Obaldía. Cars can be rented
in Panama City and David.
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