Gulf and Canal Zone

Geographically one of the smallest areas in Panama, the Gulf of Panama and Canal Zone pack in some of the country’s most storied settings, including Panama City and the Panama Canal. These areas are must-sees for visitors to the country, as they combine the old with the new and offer up the most cosmopolitan commodities the country has to offer.

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Panama Canal

The Panama Canal is one of the world’s most impressive engineering feats. The canal extends 80 kilometers (50 mi) from Panama City on the Pacific Ocean to Colón on the Caribbean Sea. It’s built at one of the lowest and narrowest points in Panama, and runs right through the Continental Divide. More than 14,000 ships pass through the canal annually, carrying some 300 million tons of cargo. As such, the Panama Canal is one of the largest generators of income for Panama—in 2011, the canal generated $800 million, some two percent of the country’s GDP.

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Gatun Locks Panama Canal

The Gatún Locks are set along the Caribbean side of Panama to the west of Colón. These massive locks are the largest in the Panama Canal. As you watch ships pass through the locks’ chambers, it’s easy to understand why the Panama Canal is one of the seven man-made wonders of the world.

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San Lorenzo Fort

The San Lorenzo Fort is set along Panama’s central Caribbean coast, just west of Colón and the Gatún Locks. The fort lies within one of Panama’s most recent protected areas. The San Lorenzo Protected Area spreads across 30,000 acres (12,000 ha) and includes the San Lorenzo Fort and the former U.S. military base of Fort Sherman. It also includes countless mangroves, wetlands, and forests.

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Panama City

Panama City is a hub in every sense of the word. Located in the Gulf of Panama along the Pacific Coast, Panama City sits in the heart of the country and serves as the main artery through which the rest of Panama receives its visitors, commerce, and culture.

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Playa Bonita

Playa Bonita lies just across from the Bridge of the Americas, a location that mixes proximity to and seclusion from Panama City. Playa Bonita is a pretty beach with wonderful views.

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Isla Contadora

Located 30 miles off the Pacific coast of Panama, Isla Contadora is the most developed place in the Pearl Islands. This accessible island has lucrative real estate, luxury accommodations and world-class beaches.

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Gamboa

Lying along the banks of the Panama Canal halfway across the isthmus, Gamboa is about a 45-minute drive from Panama City. With an abundance of natural beauty and an incredibly close distance to Panama City, this area is simply a must for anyone passing through the capital.

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Casco Viejo

Casco Viejo is a charming neighborhood along the southwestern edge of Panama City. It was the second site of Panama City (the first being Panamá Viejo), was the city center until the early 20th century, and was declared a UNESCO World Heritage Site in 1997. Casco Viejo has undergone restoration projects since the 1990s and they’re beginning to pay off. These days the neighborhood has a romantic, almost artsy feel that makes it a pleasant place to stroll and explore.

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Portobelo

Portobelo lies along Panama’s Caribbean coast to the east of Colón in an area known as Costa Arriba. During the Spanish colonial era, Portobelo was an important port town where goods and treasure from the Americas where shipped to Europe. These days the town is impoverished and widely unattractive. Its saving grace, however, lies in the crumbling ruins scattered inside and outside of town. There are also several decent places to scuba dive and snorkel along its coast.

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Taboga Island

Located in the Gulf of Panama, Taboga Island sits only 12 nautical miles from Panama City. Often referred to as the “island of flowers," Taboga Island's tropical climate averages a daily temperature of 83 ºF, providing the perfect conditions for growing an abundance of colorful, vibrant flowers.

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Colon

Colón, which lies along the central Caribbean coast of Panama, has historically been the country’s second-most important city. Today, however, Colón is riddled with poverty and crime. Aside from large corporate purchases at Zona Libre de Colón (Colón’s Free Trade Zone), most tourists these days are advised to stay away from the city.

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Isla del Rey

At 92 square miles (240 sq. km), Isla del Rey (King Island) is the largest of the Pearl Islands. In fact, the only island in Panama that’s larger than Isla del Rey is the massive Isla Coiba. Isla Del Rey also has the most inhabitants of all the Pearl Islands—around 2,000 people live here.

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Isla San José

Isla San José is a large private island in Panama’s Pearl Islands. At 16 square miles (44 sq. km), Isla San José is the second-largest island in the archipelago. It’s 55 miles from the coast of Panama and very secluded.

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Pearl Islands

Comprised of ninety islands and countless unnamed islets, the Pearl Islands are set off Panama's Pacific coast in the Bay of Panama. They are surrounded by aquamarine water and boast soft sand beaches that are lined with palm trees.

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Tocumen (PTY)

The Tocumen Airport (PTY) is the main international airport in Panama. It is just east of Panama City, and it takes a little over an hour to get from the airport to the city via public transportation.

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More about Gulf and Canal Zone

Aside from the city and canal, travelers can visit historic ruins along the Caribbean coast or go hiking in fabulous outdoor areas, including Barro Colorado, one of the world’s most famous biological reserves. The Archpiliélago de las Perlas, an archipelago of nearly ninety islands in the Gulf of Panama, is a quick fifteen-minute flight from the city. With lovely beaches and a tranquilo tempo, these islands are a great place to relax.

Most travelers will fly into and out of Panama City. Outdoorsy types may be tempted to rush off into Panama’s forests and mountains, but it would be a shame to not spend at least a little time in this city. It has a rich history of commerce and conquest, with towering skyscrapers located just miles from Spanish ruins. Visitors can stroll through Casco Viejo, a charming neighborhood with cobblestone streets and chic cafés, or visit Old Panama (La Vieja Panamá), where the ruins of the first Spanish settlement still stand. There is excellent people watching along popular walking streets (most notably Avenida Central), and there are a solid number of international restaurants to try.

The city’s nightlife has also experienced a boom in the past few years, and there are good bars and clubs for travelers to visit. Ships can be seen harbored in the bay just outside the city, waiting their turn to enter the Panama Canal. Two of the three sets of locks are along the Pacific side of the canal and just a short trip away. The Miraflores Locks are the most accessible and best set up for visitors. Here you can watch massive ships being raised and lowered into the canal, and stroll through a four-story museum.

Want a more close-up look at the canal? Sign up for a transit and go through two of the locks on a passenger boat. The Panama Canal also protects one of the world’s most important biological reserves, Barro Colorado Island. Barro Colorado has been protected since 1923 and is administered by the Smithsonian Tropical Research Institute. This relatively small island contains an overwhelming amount of flora and fauna, including more species of trees than are found in all of Europe. Visits here give travelers a chance to learn about the island and its scientific value, which is sizeable. Another great place to explore the outdoors is Parque Nacional Soberanía, which is close to Gamboa. This accessible tropical forest has well-maintained trails and some of the best birding in the country.

Keep heading north and you’ll soon reach the Caribbean coast of Panama. Visitors to this part of the country can hit up some of the area’s main sites, including the Gatún Locks, Gatún Dam, and Fuerte San Lorenzo. These sites are relatively close to one another and can be seen within an afternoon. The locks and dam provide further insight into the canal, while Fuerte San Lorenzo is a lesson in history. The ruins of this fort are the remnants of a fort built by the British in 1768, but forts have been being built, destroyed, and rebuilt here since the arrival of the Spaniards in the 16th century. Declared a UNESCO World Heritage Site in 1980, Fuerte San Lorenzo sits along the edge of a cliff and has expansive views of the Caribbean coast.

On the other side of the country, in the Gulf of Panama, is the Archpiliélago de las Perlas. Made up of some ninety named islands and more than 130 unnamed islets, this archipelago is a fine place to relax in an unadorned setting. The archipelago’s most developed island, Contadora, is small and laidback. It has charming beaches and healthy coral reefs offshore. The diving is especially good, as there are scores of large fish, manta rays, and white-tipped reef sharks. The other islands in the archipelago are remote and largely undeveloped, but provide wonderful places to visit for the day.

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