You know about the famous canal and perhaps the beaches. Those are two key attractions, but budget travelers will find plenty of other good reasons to visit this southernmost Central American nation.
Unlike some of its neighbors, Panama has some well-developed tourist facilities. Finding your way around is easy, even if you don't speak Spanish.
But Panama still attracts a relatively small number of visitors each year when compared to more publicized tourist destinations. Efforts are underway to market Panama more aggressively to visitors. One recent example: tourists now receive free health insurance for their first 30 days in the country!
Consider a few more reasons to take a Panama vacation on a budget.


Are you serious? Have you read what our own State Department has to say about travel to Panama? This might be cheap travel, but doesn’t your life count for something?
You can find State Department warnings about almost any destination. If you’re going to avoid any place that has potential danger spots, you won’t be doing much traveling.
There are parts of Panama that can present significant dangers for travelers, including the Darien Gap area near the Colombian border and the city of Colon on the Caribbean coast.
But my wife and I just spent about two weeks in the country (avoiding the above trouble spots) without the slightest security problem. You avoid dangerous areas and take standard precautions.
When I go to Panama, Venezuela, Honduras, Columbia, Brazil or Peru I use the same precautions I do in New York City or Los Angeles.
Panama City is among the safest Central American capitals, although it does have some problem neighborhoods. In the banking districts, you can walk around day or night because there are armed guards at most corners and plenty of security cameras in place.
Not sure the same could not be said for San Jose or Guatemala City.
My wife and I visited Panama in August, 2009. The people were very, very friendly and we did not go near any of the few trouble spots listed by the state department. After retiring from 36 years of law enforcement in Los Angeles and San Diego, most of Panama actually seemed just as safe, if not safer. It is true that our state department has bad things to say about most countries. Sometimes I think it is all part of the propaganda to make us think we are living in paradise!!
Some travelers are highly critical of the State Department’s listings, seeing them as overly cautious. But if one of the government’s key roles is to protect its citizens, they do have an obligation to point out potential dangers, especially in places where there might be limited means to help you in the case of emergency.
But it is also good advice to weigh their warnings carefully. Outside of a few highly dangerous destinations, most countries are safe to visit if you exercise some common sense. For example, if someone warns me that the neighborhoods around Casco Viejo in Panama City are dangerous–especially at night–I’m going to plan my visit accordingly.