Our Panama Travel Budget: Is Panama Expensive?

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So you’re planning a trip to Panama and want to know what things cost? I got you! 

We spent almost a month in Panama as part of our 6-month trip around Central America and tracked every cent we spent.

Panama has a reputation as being one of the more expensive countries in the region. After coming from Costa Rica where everything was very pricey, we were prepared for the worst!

So is Panama expensive? I don’t think so. It was definitely more costly than destinations like Guatemala and Nicaragua, but on the whole, we found it much more affordable than we expected.

It totally depends on your travel style, but it was quite easy for us to stick to our mid-range budget, with good value accommodation, affordable local food and mostly efficient local transport.

Our Panama travel budget averaged $142.70 USD per day for two people, which is $71.35 USD per day per person.

I’ve divided this post into two sections. The first is an overview of average costs in Panama for standard travel categories like accommodation, eating out, tours and activities and transport. I’ll share an array of random prices to give you an idea of typical costs. 

The second part is our Panama travel budget report, with our actual expenses and daily averages for each category. 

How much does a trip to Panama cost?

If you’re planning a trip to Panama, you probably want to know what it’s going to cost! 

I don’t like giving an exact daily budget, because it depends on a thousand factors and is completely personal to your travel style, interests, desired level of comfort etc. 

Instead, what I find more helpful is to share some actual costs for common travel expenses, to help you piece together a realistic budget for your trip, based on your preferences. 

These costs were accurate at the time of writing, but in a post-pandemic world, I’m sure you know how quickly prices can change, and how much costs are rising all over the world. 

Chances are some of these costs will be outdated by the time you travel to Panama, but I hope it at least gives you a helpful baseline of what to expect. 

💰 Panama’s currency is the Panamanian Balboa, but it is fixed at a rate of 1:1 with the US Dollar, and US currency is legal tender. Read more about Panama’s currency and managing your money in our Panama travel guide

Accommodation

We found accommodation in Panama to be very high quality overall. There are all types of accommodations available, from dorm beds to charming boutique hotels, whatever your Panama travel budget is, you’ll find something good.

If you’re on a tight budget, you might find the best-rated hostels a bit pricey, usually $18 – $24 for a dorm bed. However these properties are incredible and chain hostels like Bambuda, Bodhi and Viajero have very bougee, luxe hostels.

Our ideal accommodation is mid-range, in a private room with bathroom and kitchen facilities, for $50 – $60 USD per night. This was very easy to find in Panama. Some places were a bit more expensive, but others were cheaper so we were able to balance our budget overall.

If you have some money to spend, you can find some amazing stays around Panama that are comparatively VERY affordable for the quality. The accommodation in Bocas del Toro is amazing, with many overwater bungalows. The boutique hotels in Casco Viejo in Panama City are dreamy, in restored historic mansions.

🛌 TYPICAL COSTS FOR ACCOMMODATION

• Dorm bed at the best-rated hostel in Casco Viejo, Magnolia Inn: $18 USD
• Room with kitchen in a mid-range boutique hotel in Casco Viejo, Casa Arias: $80 USD
• Suite at a high-end boutique hotel in Casco Viejo, Amarla Boutique Hotel: $300 USD
• Dorm bed at jungle lodge on an island in Bocas del Toro, Bambuda Lodge: $30 USD
• Room at waterfront boutique hotel in Bocas Town, Tropical Suites: $180 USD
• Fancy overwater bungalow in Bocas del Toro, Sol Bungalows: $450 USD
• Private room and bathroom in a shared Airbnb house with kitchen in Boquete: $55 USD
• Room at charming boutique Hotel Panamonte in Boquete: $280 USD
• Dorm bed at the famous Lost & Found Hostel: $17 USD
• Oceanfront room at Hotel Santa Catalina: $150 USD
• Self-contained Airbnb cabin near the beach in Santa Catalina: $70 USD
• Private room with shared bathroom at Bodhi Hostel in El Valle de Anton: $36 USD
• King room at the charming Golden Frog Inn in El Valle de Anton: $200 USD

Eating out

Eating out in Panama can be pretty affordable if you stick to the local fondas (family-owned restaurants, usually cafeteria-style). We could get a huge plate loaded with rice, chicken, vegetables, plantains, salads, basically whatever we pointed at in the bainmarie, for $5 – $8.

We didn’t see as much street food around Panama, but there was at least one good fonda in every town. They were so delicious and we highly recommend eating there as often as possible if you’re watching costs. Some days we were able to share one plate for lunch or dinner because they loaded them up so much!

The costs start to add up if you want to eat international food. We couldn’t resist the temptation, but everything we ate was delicious and worth the extra cost. It was all good value.

A nice cafe breakfast dish (smoothie bowl, eggs benedict, waffles etc.) was usually around $8 – $12. International main meals (pasta, sandwich, pizza, burrito) at a nice, but not fancy restaurant were usually around $10 – $14.

We had a few nice meals at fancier restaurants, with a glass of wine or cocktails, and never spent more than $50 – $70 for the two of us. Not dirt cheap, but again, very good value for the quality of the food and experience in the restaurants.

Coffee added up (as per usual!) but the cafes were so good all over Panama, that it was worth it. Expect to pay around $4 for a barista-made latte, cappuccino etc.

We found alcohol expensive in some ways and cheap in others. Local ‘Panama’ beer wasn’t the cheapest, we paid $2.50 on multiple occasions for a small can. However Panama has a chain wine store, Felipe Motta, which has a huge range of amazing wine, and we could get decent bottles for $5 – $8 (unheard of in some other Central American countries!). The rooftop bars in Panama City all have happy hour specials which are worth planning for, cocktails were as cheap as $5.

🍗 Read more about typical food and drinks to try in Panama

🌮 TYPICAL COSTS FOR FOOD

• Loaded plate of meat, rice and sides from a fonda: $5.50 USD
• Whole fried fish from a seafood market restaurant: $10 USD
• Wood-fired pizza from a nice restaurant: $14 USD
• Share-style meal for 2 at Lo Que Hay, a top-rated restaurant in Panama City: $70 USD
• Fancy cafe breakfast dish: $15 USD
• Ice-cream in a cone: $3 USD
• 3 x sweet treats from local bakery: $3.75 USD
• Barista-made coffee: $4 USD
• Can of Panama beer: $2.50 USD
• Bottle of Pinot Noir from Felipe Motta wine store: $8 USD
• Happy hour cocktail from Tacos La Neta rooftop bar in Panama City: $7 USD

Tours and activities

Most tours and activities we did in Panama were pretty reasonable.

We’ve accepted the fact that many natural sights (waterfalls, hiking trails etc.) have a fee to access them in Latin America. It would be free in Australia, but the way land ownership works in these countries, there is usually a fee. If you’re not used to this, it might seem expensive, but it’s just the way it is!

Expect to pay between $2 – $10 for hiking trails, waterfalls, hot springs or other natural reserves.

We did a lot of free activities too though. The beaches in Bocas del Toro were stunning and free, and our favourite hike in El Valle de Anton, Cerro Cara Iguana didn’t cost us a cent!

The biggest expense in this category was our ‘tour’ to the San Blas Islands, which is a very expensive destination no matter how you decide to visit. Our experience wasn’t technically a tour, but we paid for a multi-day package that included accommodation on Chichime Island, three meals per day, return transport from Panama City and one boat tour during our stay, for a total of $600 for two people for two nights/three full days. If you’re on a really tight budget, the San Blas Islands are not a cheap activity, despite how rustic and basic the islands are.

We did two other single-day boat tours and found those activities quite reasonable. Expect to pay $35 – $90 for a full-day boat tour or the like.

🥾 TYPICAL COSTS FOR TOURS AND ACTIVITIES

• 2N/3D all-inclusive San Blas Islands package for two people: $600 USD
• Pipeline Trail in Boquete: $5 USD
• Miraflores Locks at the Panama Canal: $17 USD
• Caldera Hot Springs: $3 USD
• Full-day snorkelling tour to Coiba Island: $65 USD
• Coiba Island National Park fee: $20 USD
• Los Cangilones de Gualaca: $3 USD
• Chorros Las Mozas Waterfall: $2 USD
• Half-day surfboard rental in Santa Catalina: $15 USD
• Full-day bicycle rental in Panama City: $15 USD
• Cayos Zapatillas full-day boat tour in Bocas del Toro: $50 USD
• La India Dormida hike in El Valle de Anton: $3 USD

Transport

The cost of transport in Panama varies depending on how much convenience you want.

The most expensive, but most convenient and quickest way to get around the country is via a tourist shuttle that goes directly from point A to point B. This is great for routes that don’t have direct bus connections (to and from Boquete) and saves you a long journey with multiple bus changes. Expect to pay $30 – $50 depending on the route and duration.

Local buses in Panama are comfortable, affordable and pretty efficient. Finding timetables and route information is a problem, but once you’re on the bus, they were some of the nicest we experienced in Central America. As a very general rule, expect to pay around $2 for every hour of your journey.

Uber is prevalent in Panama City and a very cheap and easy way to get around the city. The most we paid for a trip was $8, but that was for a half an hour ride. Most shorter journeys were $3.

We did find the boat transport around Bocas del Toro to be quite pricey. Most routes between islands were $5 per person, which added up quite quickly.

We didn’t go down this route, but renting a car and driving around Panama is a popular way to see the country. You can find rentals from around $50 USD per day for a standard sedan.

🚌 TYPICAL COSTS FOR TRANSPORT

• Tourist shuttle Bocas del Toro – Boquete (including boat): $30 USD
• Boat from Bocas Town (Isla Colon) to Isla Bastimentos: $5 USD
• Colectivo from Boquete town to The Lost Waterfalls trailhead: $2.50 USD
• Colectivo van from Santa Catalina – Soná (1.5 hours): $4.50 USD
• Bus from El Valle de Anton – Panama City (2 hours): $4.25 USD
• Short Uber ride in Panama City: $3 USD
• Uber ride from Panama City to international airport: $22 USD

Our Panama travel budget

🗺️ Copy our exact Panama itinerary

Accommodation

💰 Total: $1,289 USD
🛌 Average: $54 USD per night

• 24 nights of standard accommodation

• 3 nights were part of a package tour to San Blas, not included here

• We stayed in private rooms with bathroom and kitchen facilities every night

• Never with breakfast included

• Accommodation was easy to find in our price range and everywhere we stayed was really good quality, spacious and well equipped

• We may have benefited from visiting at the start of the wet season (June) and prices were lower than usual

Eating out

💰 Total: $821 USD
🌮 Average: $34 USD per day

• In some places where we were staying more remote, we cooked quite a few meals (Isla Bastimento, Santa Catalina) whereas in other places (Boquete, Panama City) we splurged and ate out for three meals a day

• I’d say on average we had 2 meals out per day plus coffee

• For the 3 days we were in San Blas, food was included in our package so these costs are only for 24 days of eating

• If we had alcohol with a meal, that’s included here but if we specifically went to a bar, we categorised that as alcohol

• The food was delicious in Panama

• Local food from fondas was really cheap and filling

• We spent a lot more on international food in nice restaurants and cafes in Panama City, but it was so worth it!

Tours

💰 Total: $820 USD
🥾 Average: $30 USD per day

• We classified tours as any organised experience with a tour company/guide (not things like entrance fees or self-guided activities)

• The biggest cost in Panama was our San Blas Islands ‘tour’

• This was more like a package including accommodation, 3 meals per day, return transport from Panama City and 1 boat tour during our stay

• The only other big tours we did were a boat tour to Cayos Zapatillas in Bocas del Toro and a snorkelling day tour to Coiba Island

Sightseeing and tickets

💰 Total: $154 USD
🎟️ Average: $6 USD per day

• This was basically every other activity that we did that didn’t require a guide

• It includes things like entry fees to hiking trails, surfboard rental, bicycle rental, waterfall entry and a visit to the locks at the Panama Canal

• There were a lot of days where we didn’t have to pay entry for anything and many things we did were free (beach, walks, exploring towns/cities etc.)

• We found activities quite cheap in Panama and spent a lot less than expected

Transport

💰 Total: $353 USD
🚌 Average: $13 USD per day

• Transport wasn’t as expensive in Panama as we thought it would be

• We took 2 x tourist shuttles (Bocas del Toro – Boquete and Boquete – Santa Catalina) but they weren’t as pricey as in other countries

• Distances are much shorter in Panama so costs were generally lower

• The exception to this is the boats around Bocas del Toro, which were usually $5 per person per trip to get between islands, which added up

• The public buses were affordable and mostly comfortable

• Uber in Panama City was very cheap, most trips around the city were only $3

• Our biggest transport was to and from the San Blas Islands but this was included in the cost of our tour package so isn’t included here

Other expenses

🍍 Groceries – $165 USD / $6 USD per day

• We cooked quite a bit in a few destinations where we were staying a bit more remote and there weren’t a lot of restaurants around

• The grocery stores had a great range of products and were much cheaper than in Costa Rica

🍹 Alcohol – $123 USD / $4.5 USD per day

• If we had a drink or two with a meal, we didn’t include it here

• This category was for if we were specifically going to a bar or brewery

• The majority of this was spent in Panama City at all the AMAZING rooftop bars! We may have let a bit loose on the cocktails at the end of our trip

• Panama also had a wine store called Felipe Motta with a great range of wines we hadn’t seen for months, so we indulged!

📱 SIM cards – $38 USD / $1.4 USD per day

• We both bought Mas Movil SIM cards on day 1 in Panama

• They had 7-day plans with unlimited data for $7.5 USD which we topped up a few times each

🚙 Car rental – $68 USD / $2.5 USD per day

• We rented a car for one day in Boquete for $50 USD

• We had to top up with about 1/3 tank of fuel which was quite expensive

🛂 Visa and travel costs – N/A

• Panama has no visa or entry/exit fees, so we didn’t spend anything in this category

Is Panama expensive? Final thoughts

Is Panama expensive? All in all, I would say no, Panama is not an expensive country to travel to.

Of course, it totally depends on what you’re comparing it to. It was more pricey than neighbouring Central American countries, like Guatemala, El Salvador, Honduras and Nicaragua.

Panama sits in the higher-end budget range for Central America, with countries like Belize and Costa Rica, but we found it much cheaper than these places.

We thought the price-to-value ratio in Panama was spot on. Some things were a little bit more expensive than its neighbours, but the quality of our accommodation, food and tours was excellent and always felt worth it.

I hope this Panama travel budget report is helpful for planning your own trip there. I love seeing the juicy money details from other travellers and find it really helpful to at least get an idea of what to expect. 

Prices change quickly these days, so not everything will be exactly the same, but hopefully, this is a good baseline for you to calculate how much to save or what a realistic budget is for your trip to Panama. 

MORE PANAMA POSTS

• Panama Travel Guide: Central America’s Hidden Gem
• 3 – 4 Week Panama Itinerary: Experience the Best of Panama