Just how cheap is it? If you get yourself to Isla Grande -- part of the Islas del Rosario just off the country’s north coast -- it’s a tropical paradise for as cheap as you care to make it. Although there are fancier resorts available, at eco-hotels such as La Cocotera, Las Palmeras, or El Hamaquero, you can sleep in a beachside hammock for just $10 a night. For $20, you’ll also get you three meals, including a freshly caught and grilled fish dinner. Or, pro tip: A local can bring you freshly caught lobsters on request from anywhere between $10 to $30 a day. Sneak into the upmarket Hotel Majagua and grab a piña colada for $5, or go to the inland village for cut-price cervezas. (If you want more privacy, lodging starts at around $30 per room, and goes up to between $90 to $250.)
How cheap is it? Very. Its largest city -- helpfully named Panama City -- is the world's third-cheapest major city. And it is major! Panama has the fastest growing economy in Latin America, with abundant new restaurants and luxury hotels; it's pretty much the most (and arguably only) truly global/metropolitan city in the region. And still a bunk in a cheap but well-reviewed and centrally located hostel will set you back only $14 per night, while those seeking luxury accommodations can stay at the damn Waldorf Astoria for $149 per. Which is stupid cheap, all things being relative. A public bus ride in the city is just 25 cents. You can eat on the cheap for under $20/day for all three squares if you hit up cafés for breakfast, the beach fish markets for lunch, and restaurants without English menus for dinner. Beers will cost you anywhere from $1.25 to $3 a pop. All in all, you're getting huge bang for your buck -- oh also literally your buck, as US currency is interchangeable with the Panamanian balboa.
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