Skip to content
Search hostels
A stunning view of Panama City's skyline with the historic Casco Viejo in the foreground under a bright blue sky.

Central America

Backpacking Panama

Panama links Central and South America, and backpackers come for the Caribbean islands of Bocas del Toro, the San Blas islands and Panama City.

Photo: Eliécer Gómez / Pexels

Hostel destinations in Panama

A stunning view of Panama City's skyline with the historic Casco Viejo in the foreground under a bright blue sky.

Panama City

Colonial Casco Viejo, a skyline of towers and the Panama Canal on the doorstepA tranquil stream flows through the vibrant rainforest of Boquete, Panama, under a clear blue sky.

Boquete

Cool highland coffee country beneath Volcán Barú, with hiking and river tripsCharming waterfront scene of Bocas del Toro buildings with red roofs and palm trees.

Bocas del Toro

Caribbean island-hopping, reefs and Afro-Caribbean culture by water taxi

Hostels and backpacking in Panama

Panama is home to the Panama Canal and sits at the junction of Central and South America. For backpackers, the Bocas del Toro archipelago on the Caribbean coast is a major draw, with water taxis linking islands, beaches and snorkelling spots. The highlands around Boquete and the Guna Yala (San Blas) islands are other popular stops.

Hostels in Bocas del Toro range from party-focused places on the main island to quieter, over-the-water or jungle hostels on outer islands. Panama City has hostels in and around the historic Casco Viejo. Because there is no road link to Colombia across the Darién, many travellers continue to South America by plane or by boat via the San Blas islands.