Although Panama is not considered the cheapest country in Latin America, it worked out to be a fairly economical destination for us, simply because we spent a lot of time in one place with good kitchen facilities. We also shared a dorm bed in Santa Fe and stayed in shared rooms during the whole trip.
 

Visas

Being from the EU / Schengen states, we didn’t need a Visa to visit Costa Rica. Citizens from Japan, the US and Canada do not require a Visa either.

The countries that require a Visa to travel to Panama can be found on this list. 

 

However, we were asked for proof of departure from Panama before getting on our flight there from Costa Rica.

This time we had already booked our crossing to Colombia via the San Blas Islands which meant we had confirmation. It is worth noting that we were only asked for this at San Jose airport in Costa Rica, flying into Panama; the confirmation email that we used as proof could easily have been false.  
 

Accommodation

We were in dorm rooms for this trip, as the double rooms were far too expensive on our budget. The prices below are in USD, per night, per person in a mixed dorm.  

$10 (a night) in Panama City in a 4 bed dorm in a hostel outside of the Old Town (Casco Viejo) but nearer the Algate Shopping Centre and Bus terminal.
$15 (a night)* in Playa Venao in a 4 bed dorm with ensuite bathroom. The name of the hostel is Selina Hostel Venao - right on the beach and recommended.
$11 (a night) in Panama City in a 12 bed dorm in a hostel in the Old Town (Casco Viejo) with breakfast included and free bananas!
$7.50 (a night) in Santa Fe in an 8 bed dorm sharing a single dorm bed in a very cramped room.

$10 (a night) in San Jose for a triple room with a shared bathroom and breakfast included.

 

*This price per person, per night may increase, as we were given a special offer for the opening of the hostel.

 

Food and Drink

Panamanian food tends to consist of deep fat fried fish or chicken with rice - bad news if you like healthy eating. We often went to American fast food chains in order to get something equally bad for you but tastier! We did, however, go to a canteen type place in the old town in Panama City, and ate a good meal with rice, chicken stew, salad and vegetables for 4USD each. Look out for these cheaper looking places that tend to be filled with locals. 

The fish market near the Old Town is not as cheap, but is definitely good value for money, and has good ceviche if you don't mind eating out of take away containers.

If you’re looking for more International cuisine you will find some great places in Panama City. However, a lot of them are inaccessible if you’re on a very tight budget as we were.

We spent around €8.5 a day per person as we cooked most of our own food, eating out very occasionally. This included beers, although we mostly bought them from the supermarket.

 

Excursions

A lot of the things we saw in Panama were free, as we saw the Canal from the rooftop of a restaurant (where we didn't actually order anything), went to the beach in Venao and hiked in the mountainous region of Santa Fe ourselves (if you’re in good shape transport will not be required to visit the nearby waterfalls and mountains). Our hostel in Santa Fe, La Ohia, had a folder in reception with a list of different hikes depending on levels of difficulty, which made it extremely easy for us to choose a different one each day. The owner, Ignacio, was also extremely helpful and recommended walks with a lot of diversity.
 

Transport

There is a good, reasonably priced bus network in Panama, but getting from one place to another often involves a number of changes.

Here are the routes we did with costs in USD per person.  

 

Panama City to Playa Venao 25 USD  (4 changes required).
Playa Venao to Santa Fe 10 USD (4 changes required).
Santa Fe to Panama City 12 USD  (2 / 3 changes required).
Other public transport costs to get around Panama City (25 cents each): 2 USD (This requires a transport card, but passengers on the bus are usually happy to swipe their card for you and accept the money).
 

Money makes the world go round

The US dollar, as well as the Balboa are the official currencies used in Panama, with a 1:1 exchange rate. If you’re eventually heading to Ecuador, don’t worry about having extra dollars at the end of the trip, as the USD is also the official currency there; however, you need to make sure you change any Balboa coins as they will not be accepted outside Panama.

 

So how much?!
Visas: €0 (European citizens. See link at top of page to see if a Visa is necessary for your country).
Accommodation: €9 a night on average(per person) see more detailed breakdown and accommodation section above.
Food and drink: €18 a day (generally making our own food).
Transport: €36 per person in total - see routes above.