A Panama family vacation can vary in cost depending on where you go and where you stay. We stayed one month in Panama in 2023 and have broken down our expenses in this cost guide, so you can answer the question, Is Panama expensive?

We spent the majority of our month long stay in Panama on the islands of Bocas del Toro. This archipelago is a gorgeous section of Panama and near where we served as Peace Corps volunteers when we were much younger.

We chose this part of Panama for the stunning beaches and easy access to visit our host family. We also stayed a few nights in Panama City at the beginning and end of the trip.

Bocas del Toro isn’t the cheapest area of Panama to visit as it is one of the most popular destinations in the country. If you are looking visit Panama on a budget, you might want to look elsewhere. I have some ideas of cheaper locations below.

If you want a breakdown of our costs from Bocas del Toro, keep reading to find out how much we spent.

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Lodging Expenses In Panama City And Bocas Del Toro

Total: $2,474 – ($77/night average)

• $   211 – Airbnb in Panama City – Feb 3-6 ($70/night)
• $2,190 – Airbnb in Bocas del Toro – Feb 6- Mar 6 ($78/night)
• $     73 – Hotel in Panama City – Mar 6-7 ($73/night)

Round-Trip Transportation

Total: $1,202

• $581 – Flights from Cartagena to Panama City ($835 before some credits) (An average cost of a round-trip plane ticket from the U.S. to Panama City is between $300 – $500 per person.)
• $140 – Uber, Bus, Taxi, Water Taxi, and 2nd Water Taxi to Airbnb in Bocas
• $471 – One-way Flight from Bocas del Toro to Panama City for 4 people
• $  10 – Uber to Airport

Day-to-Day Costs In Panama

Total: $2,803

• Groceries, supplies, taxis, and dining out
• We ate out a fair bit while we were staying in Bocas del Toro. Our nearest grocery store was limited as far as options and traveling to the main island for groceries added up due to the cost of the boat taxis.
• Dining out at a restaurant on the islands will cost between $10 – $20 per entree.

Touristy Excursions

Total: $899

• $143 – Red Frog Beach (private taxi to the beach, $5 dollar fee per person to use the trail across the island, plus breakfast)
• $170 – Private Fishing Trip
• $133 – Playa Bluff (taxis and meals)
• $176 – Chiriquí Grande (trip to see our host family)
• $180 – Islas Zapatillas (private tour)
• $  97 – Miraflores Locks

Total Panama Travel Expenses

Is Panama expensive? That’s relative. We spent $7,378 for one month in Panama. For us at that time, it was expensive.

For a week long trip to Panama, it averages out to actually be pretty reasonable.

Read more below to hear our thoughts on why we ended up spending this much on a month long trip in Panama.

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Takeaways…

Lodging Expenses In Panama

We found some great lodging with excellent prices during our few days in Panama City. They were air conditioned, nicely furnished and in great locations. This shows you can really get a wonderful place to rest your head at a very affordable price.

Our vacation rental in Bocas was well located for us on Isla Carenero, but did not offer quite what we expected. It was quite rustic.

Access to the beach was farther away than we thought. (I was really hoping to be able to just jump off the dock in front of our place. Nope! ☹️) There was no real protection against mosquitos, chitre, and ants either. 

Additionally, having no air conditioning in one of the hottest and muggiest places we’ve stayed thus far caused us to seek refuge elsewhere at times. 

You win some and you lose some…

Due to the popularity of Bocas del Toro, the pricing for lodging is going to ultimately be more expensive than other destinations in Panama.

The price of our Airbnb was great, it just didn’t have the amenities we were expecting for a comfortable stay.

If staying in Bocas, I recommend you book a hotel that offers transportation between islands if you are staying somewhere secluded.

If you choose to stay on Bocas Island, it is really convenient to everything, but please note it can be loud in the evenings with all the bars and restaurants there.

Other Recommended Cheaper Locations To Visit In Panama

There are so many breathtaking locations in Panama to visit that most people don’t know about. Fortunately for us, we spent 2 years there as Peace Corps volunteers and learned about some amazing destinations.

Some of these destinations are more well known than others, but you can still find inexpensive lodging choices in each one!

For beautiful beaches – Check out Playa Venao, Boca Chica or Santa Catalina.

For gorgeous mountain views, nature and hiking – Check out Valle de Anton, Boquete or Volcán.

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Day-to-Day Panama Costs

Much of the “refuge” we sought was get out of the heat. We found it by going to air conditioned restaurants on Isla Carenero, where we stayed, as well as the neighboring island, Isla Colon.

These restaurants were good, but we felt they were a little pricey for what you got. However, it was still SO much better than cooking in a sweltering wood hut.😃

We also paid up for groceries at the one store that provided some more traditional American options.

Extra Transportation Fees

Another subtle culprit of higher expenses was the required use of boat taxis any time we left Carenero. We often walked 15 minutes to get to a public dock where the taxi cost $1/person. With 4 of us that cost was $4 to go across a short channel.

Then on the way home we usually had groceries or it would be after dark, and we wanted the convenience of getting dropped off at a dock close to our Airbnb. This ran $2/person, so $8 for the whole family.

While $1 and $2 costs sound trivial, this usually ended up adding $12 to our tab every time we went anywhere. That starts to add up if you are trying to save money. 

Touristy Excursions Costs In Panama

None of the excursions we lined up were super expensive, but they still stack up. We wouldn’t change anything about those.

You can cut costs in Panama by going on large group tours, but we opted for private tours to get a better experience.

They were actually very cheap for a private tour.

This gave us the ability to stay at the pretty beaches or snorkeling sites we wanted to visit for as long as we wanted and not have to follow a tour schedule. 

Plus all of the tour operators go to the same spots at the same time, so there’s no avoiding the crowds if you are on a group tour. It’s a big party!

Summary – Is Panama Expensive?

All in all we spent nearly $7,400 during our month in Panama which is roughly $1,850 for a week long Panama family vacation. If you look at those numbers, Panama is not expensive compared to some other parts of the world.

The fact that we spent almost $1,000 more in Panama than we did in Cartagena the previous month was surprising to us. There is zero doubt that we enjoyed our time in Cartagena SO MUCH MORE than our time in Panama.

We continue to realize a lot as we reflect on how we feel after a location. Much of the time, we have noticed how our feelings about a destination are reflected on how much we liked our hotel or vacation rental. I’m not sure if this is because we sleep better or we feel more comfortable which makes everything else seem better. Who knows!

All that to say, make sure the hotel you choose works great for your family. It might be the difference between an enjoyable Panama family vacation and a so-so one!

So what do you think? Is Panama expensive for vacation?

If you are curious about our time in Cartagena, check out these posts:

• The Ultimate Cartagena Family Itinerary (3 To 5 Days)
• The Best Sunset Cruise In Cartagena With Kids
• Cartagena Costs Broken Down: Is It Expensive To Visit This Beautiful City?
• Cartagena Travel Guide: Recommendations From A Local Expert
• The Best Walking Tour Of Cartagena, Colombia With Kids