I recently spent a month in Panama...
*Panama City: I stayed at 4 different Hotels...
Marparaiso: $22.00 - free airport transport
Hospedaje Casco Viejo: $13.00 - good atmosphere - they sell beer for .50 - good when places were closed. Freindly staff & free internet.
Covadonga: 24 hour pool - hard beds - they shut the air con when you leave the room? $22.00
California: nice place but very small room for two, but restaurant & rooftop closed at 22:00. Better to reserve in advance.
Casco Viejo is a must see, my fave part of the city, I hung out at Cafe Coka Cola a lot to eat The Fish Market was a fun experience, the ceviche was great. The best place to buy handicrafts is the market near Plaza Cinco de Mayo.
The Amador Causeway and the Canal are worth the trip as well as a day trip to Isla Taboga. I liked the Istmo Brew Pub in El Cangrejo.
I walked around safely day & night all over Panama without incident. Took local buses and taxis only when I wasn't sure how to get somewhere or to save time. I did find that a lot of places closed early... 22 - 23:00. It annoyed me that I had to check my bags all the time before entering supermarkets & stores. Clothes are really cheap.
Had no problems changing AMEX TC's or 100's at banks. Go to Banistmo to avoid service charges. My average daily budget was $40.00, more when I took tours, rented a car or took a train or plane.
*Isla Grande: Went to Colon by Train & bused it the rest of the way. Not much to do there and not much of a beach... but it was a good place to relax. In my opinion I stayed 3 days too long. My hike up to the lighthouse was fun - great view. Avoid weekends when the locals arrive and litter the beach - I was picking up garbage for a few hours... to help the care keepers. Restaurants there were opened on an irregular basis and not always good. My room at Candy Rose: $20.00 per night. No Internet Access here.
*Portobelo: Strange little place with a gothic feel... it was interesting to see the ruins - and the Vultures around The Church of the Black Christ. Stayed in the slightly dumpy La Aduana for $16 for one night before heading back to PC. Worth a day trip, but not much more.
*Bocas Del Toro: Not used to seeing so many tourists Stayed at Hotel Sagittarius - $20 - a great little place with TV, AC and very clean. The best beach was... ok it was the only one I went to was Bocas Del Drago (Starfish Beach) So long and isolated - We loved it. It's a half hour bus ride from Bocas town and there's a place to stay there if you want to be next to the beach. I regret not spending at least one night. I had one of the best meals ever at EL PECADO and MONDO TAITU is a great drinking hangout. We took a snorkelling tour and were a bit disappointed by all the dead coral and lack of fish... but we did see a school of dolphins.
*Isla Bastimentos: Wow... a laid back island that reminded me of Utila in Honduras. The Nivida Cave tour was a great experience. Red Frog Beach was one of my favs... but it's an 1.5 hour trek through the jungle to get there (you can go by boat) Wizard beach is closer (20 min.) but there's a mean undertow. The Red Rooster, near the dock was our fav eating spot. We stayed at Beverly's Hill - expensive at $30, but after Hotel Bastimentos screwed up our reservations... our choices for a decent place were limited. Great Garden - loved it. Could have stayed longer.
*Boquete: Stayed at Pension Topaz $27 - big room - $11 closet with outdoor bathroom - (overbooked) Had pool, great courtyard. were disappointed by the town itself... cold at night & in the AM wasn't partially welcome, but hey, I know it was the mountains. Days were hot. Went Horseback riding, and visited the Hot Springs in Caldera - Swam in the River. Planned to stay a day longer for a long hike but the cold and move to a smaller room was a turn off. Over rated - back to the beach please.
*Chitre to Tonosi: For this section of our trip I rented a car at Thrifty's... and it's a good thing. We mostly disapointed by the towns and beaches until we got to PEDASI. Had we done this by bus it would have cost us a lot of wasted time. In Pedasi we got a nice room and courtyard at the Residencial Pedasi - $22 in a nice quiet town we used as a base to go to ISLA IGUANA (EXCELLENT), Isla Canas and Tonosai for some smoked pork Seeing all the dry farmland and cows in the sunset was certainly a change.
*ISLA IGUANA - paradise... a 30min boat ride from Pedasi and a dream island. Lovely empty beaches... coral & fishes, Iguagnas. birds, crabs, black rocks... my fav. island in the world.