Panama has good potential as a vacation spot with its mountains, protected rain forests, fascinating wildlife, beaches and coral reefs, and opportunities for deep-sea fishing. Visitors can see historic sites and admire Panama's Spanish-colonial structures and flourishing Amerindian cultures.
The Panama Canal is another site of interest to many travelers, as it is among the most impressive engineering accomplishments of the 20th century. It is also a big attraction for passengers aboard the cruise ships and tour boats that float through the canal. Landlubbers can watch a wide variety of vessels, among them some of the world's biggest ships, move through the giant locks.
Panama developed as an appealing place for visitors since taking the reins of the Panama Canal in 1999. Travel infrastructure is improving, with luxury accommodations, ecolodges and boutique hotels. Roads in Panama are some of the best in Central America.
In numerous ways, Panama is more appealing as a travel destination than neighboring Costa Rica. And because Panama still sees fewer visitors than Costa Rica, travelers will find lower prices, fewer crowds and the feeling that they're discovering a well-kept secret.
Location
Unlike many other places cruise ships visit, Panama isn't so much a destination as it is an experience. Although the country has several port cities, what most cruise-ship passengers see of this Central American country is what's visible from the ship during a total or partial crossing of the Panama Canal. (A number of ships that enter from the Caribbean turn around in Gatun Lake.)
Some ships do anchor near the San Blas Islands, off the northeast coast of Panama. But only a few small cruise ships visit the port cities of Balboa and Panama City (on the Pacific side) or Colon and Cristobal (on the Caribbean side). The lack of shore visits is partly because of the limited tourist facilities in the ports. However, the Panamanian government is making an effort to improve facilities for tourism and providing incentives for private tourism-related ventures.
On the Caribbean, the city of Colon has two cruise-ship terminals including the rarely used Colon 2000. These modern facilities can handle even the largest vessels and have duty-free shopping areas, restaurants and lounges.
Shore Excursions
Some cruise lines offer shore excursions as part of the canal transit. Typically, options include tours of Panama City's historic Casco Viejo and Panama Viejo districts, plus Miraflores Locks, visits to Fort San Lorenzo or an Embera Indian village, the fortresses of Portobelo and rides on the Panama Railway or the aerial tram at Gamboa Rainforest Resort.
Panama City has an evolving cruise ship port at Isla Flamenco, on the Amador Causeway, although the facility is as yet small. There are restaurants and bars, plus taxi service into the city.