Long overshadowed by the Panama Canal and a reputation as a hub for drug-running, Panama City is not only reinventing itself as the thriving commercial and financial hub of the Americas, it is asserting itself as a burgeoning tourist destination. Panama City (commonly referred to simply as "Panama") is one of those rare Latin American capitals that has it all: a high standard of living, a seemingly endless supply of investment from abroad, a surplus of natural beauty, and a rich cultural brew of ethnicities and religions. It has been called the new Hong Kong and Miami -- a sleek and modern city proud of its role as host to the world.

Signs of Panama City's reinvention are everywhere. The Amador Causeway, formerly a U.S. military base, is ground zero for several multimillion-dollar condominium and commercial-center developments, which include a new Biodiversity Museum designed by famed architect Frank Gehry. The run-down 19th-century buildings of Casco Viejo have been revitalized with private and public funds and declared a World Heritage Site by UNESCO. Along the coast, swiftly rising skyscrapers, spurred by an irresistible 20-year tax exemption, portend a megalopolis in the making: By 2009, 5 of the 10 tallest buildings in Latin America will be here in Panama City, including the tallest, at 104 floors. Even the dirty Panama Bay is undergoing a $360-million cleanup.

But Panama City's visitors need not venture far from their air-conditioned hotels to immerse themselves in the wild tropical jungle that is characteristic of this region. Even the city's Metropolitan Park is the protected home of more than 200 species of birds, mammals, and reptiles. Dozens of remarkable destinations outside the city limits can be reached in less than 2 hours, meaning travelers can spend the day exploring but head back to the city and be well fed and rested for the next day's adventure.

Panama City is the oldest Spanish settlement on the mainland of the Americas, founded in 1519 by Pedro Arias Dávila (Pedrarias the Cruel). The settlement was used as a base for stealing Peruvian gold and silver and transporting it back to Spain via a treacherous road that linked Panama City with the Caribbean Sea. The immense wealth that passed across the isthmus proved irresistible to treasure-thirsty pirates and buccaneers, who conducted raids throughout the region during the 16th and 17th centuries. In 1671, the Welsh buccaneer Henry Morgan sacked Panama City, and the settlement burned to the ground. The ruins of Panama Viejo, or Old Panama, can be toured today.

By 1673, Panama City had been rebuilt in what is now known as Casco Viejo; it was heavily fortified and the city was never taken again. However, raids on the Caribbean coast mounted, and the Spanish, defeated, returned to sailing around Cape Horn in 1746. Panama declared its independence from Spain in 1821, but declined in importance until the Gold Rush of the mid-19th century, when thousands of forty-niners used the isthmus as a shortcut from the East Coast of the U.S. to California. Later, when Panama seceded from Colombia in 1903, Panama City was designated the capital. With the opening of the canal in 1914, Panama City became the most important center of trade and commerce in the Americas.

Panama City's modern history was marred by the rise of strongman dictator Manuel Noriega and by the 1989 U.S.-led invasion to overthrow him, which left hundreds dead, most of whom lived in the poor Chorillo neighborhood. But today, Panama City is one of Latin America's safest cities, and nearly every tourist will feel secure walking the streets day or night.

Historic Casco Viejo

Start: At Plaza Independencia.

Finish: At Iglesia de San José (a 2-block walk from Plaza Independencia).

Time: Approximately 1 to 2 hours.

Best Times: The streets are quieter on Sundays, and churches are most active. Some restaurants and museums are closed either Sunday or Monday.

1. Plaza de la Independencia

Take a taxi to Plaza de la Independencia and begin your tour. This plaza is where Panama declared its independence from Colombia on November 3, 1903. There are several important landmarks here, notably the Catedral Metropolitana (Metropolitan Cathedral), easily recognizable by its contrasting gray, ashlar-stone facade flanked by two white neoclassical bell towers inlaid with mother-of-pearl. The cathedral took more than 100 years to build, and is one of the largest in Central America. On the south side of the plaza is the must-see Museo del Canal Interoceánico. The neoclassical building was built in 1875 as the Gran Hotel, and converted into Canal Headquarters by the French in 1881; later it was used as offices for the U.S. canal commission. It is considered to be the finest example of French architecture in Casco Viejo. Next door, on the second floor of the Palacio Municipal, is the Museo de la Historia de Panamá, a ho-hum display of exhibits charting the history of the Panamanian republic. The Hotel Central, on the east side of the plaza, was once among the most luxurious hotels in the Americas, built in 1880. Today it sits abandoned while its two owners bicker about its fate.

Walk north on Calle 6a Este (from the middle of the plaza, toward the city skyline of Panama City) to Av. Alfaro, and turn right.

2. Palacio Presidencial (Presidential Palace)

Calle 6a Este leads to the Presidential Palace, but you'll have to show your passport (or a copy) to the security guards on the street before they'll let you pass. This is the White House of Panama, the offices of Panama's President Torrijos, and it is a gorgeous Spanish mansion with a Moorish interior patio and fountain (you can't enter, but you can take a peek from the outside). Two African herons -- whose Spanish name, garza, is the reason the palace is also called the Palacio de las Garzas -- glide back and forth across the front patio. The city skyline views of Panama City's high-rises from this street are outstanding.

Turn right on Calle 5a Este, and head south 1 block, then turn left on Av. B. Walk 1 block until you reach Parque Bolívar.

3. Plaza Bolívar

One of Casco Viejo's prettiest spots, Plaza Bolívar and the buildings that surround it have undergone a face-lift over the past few years, and there are several cafes here for those who feel like stopping for a coffee or snack. The plaza originally was called Plaza de San Francisco, but was renamed in 1883 in honor of Simon Bolívar, widely considered in Latin America to be the hero of independence from Spain. There is a commemorative monument to Bolívar in the center of the plaza. The grand Palacio Bolívar (now the offices of the Ministry of Foreign Relations), on the northeast edge of the plaza, was built on the grounds of a former Franciscan monastery that succumbed to various fires. Of interest here is the totally restored Salón Bolívar (tel. 228-9594; Tues-Sat 9am-4pm, Sun 1-5pm; $1 adults, 25¢ students), site of the famous 1826 congress organized by Bolívar to discuss the unification of Colombia, Mexico, and Central America. The historical importance of this salon prompted UNESCO to declare Casco Viejo a World Heritage Site. During office hours (Mon-Fri 9am-3pm), it is possible to visit the courtyard inside the Palacio and admire the building's lovely architecture and tile work. Next to the Palacio is the Iglesia y Convento de San Francisco de Asís (Church and Convent of St. Francis of Assisi), one of the original structures from Casco Viejo but nearly totally destroyed by fires in 1737 and 1756. It has most recently been restored in 1998.

Across the plaza, on Avenida B and Calle 4 Este (you'll pass it when arriving at the plaza), is the Iglesia San Felipe de Neri, one of the first churches built in Casco Viejo (1684-88). Though damaged by fires, the church has recently been restored and is worth checking out.

Turn left on the south end of the plaza onto Av. B to visit the:

4. Teatro Nacional (National Theater)

Built between 1905 and 1908, on the grounds of the old Concepción Monastery, the lovely Teatro Nacional hosts theater and classical-music and ballet performances; unfortunately, they do not have a website and their show calendar is available only by calling tel. 262-3525, or by visiting www.thepanamanews.com and clicking on "Calendar." The theater opened in 1908 with a presentation of Verdi's Aida, and it is perhaps best known for the frescoes rendered by Panama's most famous painter, Roberto Lewis. Recent renovations have preserved both the frescoes and the baroque decor (scarlet and gilded tiered balconies, and a grand chandelier). The cost to enter and poke around is $1 per person. It's open Monday to Friday 8am to 4pm and sometimes on the weekends (but with no set schedule). Following Avenida B, behind the National Theater, is the Ministerio de Gobierno y Justicia, a building initially designed as a presidential building in 1908 and built, in a neoclassical design, in tandem with the National Theater by the Italian architect Genaro Ruggieri.

Continue along Av. B (the street bends and changes names for 1 block to Calle 2da) until it ends at Av. Central. Turn left on Av. Central (Calle 1a) and follow until arriving at the stairs to the Esteban Huertas walkway. Walk up and circle the:

5. Plaza de Francia

The Plaza de Francia (French Plaza) is a Casco Viejo highlight, a historically important site and a delightful place to stroll around and crunch on a flavored Sno-cone from one of the several vendors. There is also a wonderful fresh breeze here. When you head down Calle 1a, the road turns into an inviting and lovely walkway called Paseo Esteban Huertas, which is partially covered by pretty bougainvillea. You're walking atop las bóvedas, or "the vaults," which originally functioned as a Spanish dungeon and later as a jail, storehouse, and offices. Now, las bóvedas is home to a French restaurant, and Oficina Casco Antiguo (tel. 228-3664; boveda1@cwpanama.net), which offers free Saturday tours (in Spanish), leaving from its offices at 9:30am. This walkway also runs along the old defensive wall that once protected the city. From this vantage point you can see the Bridge of the Americas and ships lining up for their turn to enter the canal. Continue along the walkway and down to the French Plaza. Originally the main plaza (Plaza de Armas) of Panama City, it is now a commemorative monument to the failed French canal effort. Also here at the plaza is INAC, the National Institute of Culture (which has an art gallery next to the restaurant in las bóvedas; Mon-Fri 8am-5pm) and the French Embassy.

Head back to Av. A and walk west until reaching Calle 3ra. Here you'll find the:

6. Iglesia de Santo Domingo & Museo de Arte Religioso Colonial

Only ruins remain of Iglesia de Santo Domingo, built in 1678 but victim of several fires including one in 1781, from which time it was never rebuilt. The church kept its fame, however, through the building's unusual supporting arch made of stone, which survived the fire. The arch, called Arco Chato, was unusual in that it was long and not very arching, seemingly defying gravity. When U.S. senators debated whether to build a canal in Panama or Nicaragua, they took the arch's longevity to mean that little earthquake activity made Panama a safer place to build. Next to the ruin site is the Museo de Arte Religioso Colonial.

Continue 1 more block to Calle 4ta, turn right and walk 1 block to Av. Central. Here on the east corner is:

7. Casa Góngora

This structure is the best preserved example of a Spanish colonial home in Casco Viejo. The house, built in 1760 by a wealthy merchant, was renovated with city funds, and much of its original woodwork, including ceiling beams, has been maintained. The Casa is also now home to the Casa de la Cultura y del Artista Panameño (tel. 212-0388), a cultural center for local artists, with occasional live jazz music, folkloric presentations, fashion shows, and changing art exhibitions. Drop by to see what's happening or check out the newspaper's calendar listings for shows.

Head up Av. Central, crossing the Plaza de la Independencia (where you started). Continue on to Calle 9a to:

8. Iglesia de la Merced

Built in 1680, this church was transferred, stone by stone, from its Old Panama site. The facade is still an excellent example of one of Casco Viejo's oldest buildings.

Walk south down Calle 9a until you come to:

9. Plaza Herrera

The lively Plaza Herrera is dedicated to General Tomás Herrera, in honor of his battle for independence when Panama was still part of Colombia. Park benches here are good for people-watching or just for resting.

Walk 1 block east on Av. A to Calle 8a. You'll come to:

10. Iglesia de San José

Your last stop is at the most famous of Casco Viejo's churches, the Iglesia de San José, and its baroque golden altar. The story goes that when pirate Henry Morgan raided Old Panama, a priest had the altar painted black to hide it from looters, later moving the altar to Casco Viejo. However, studies place the altar's stylistic details in the 18th century, casting doubt on this legend. It's a gorgeous work of art nevertheless, and worth a stop. From here you can head back to Plaza Independencia by walking 1 more block east on Avenida A, turning left on Calle 7, and walking 1 block.

Like any port city worth its salt, Panama City has a gastronomic scene influenced by a melting pot of immigrants from around the world, and by its regional neighbors Colombia, Mexico, and Peru. Foodies will be overjoyed by what's on offer in this metropolitan city: Chinese food ranked by gourmets as the some of the best on this side of the Pacific, fine European cuisine, Middle Eastern eateries, Argentine steakhouses, English-style pubs, and, of course, Panamanian restaurants influenced by Afro-Caribbeans, indigenous groups, and Spanish descendants. Panamanian food is tasty, but a lot of it is fried -- especially breakfast items like empanadas, hojaldras (fried bread), and tortillas. Most main courses are accompanied by a rice-beans-plantain combo that can become repetitive. In other words, if you're planning to visit other destinations in Panama, I say sample the rich variety of international and fusion-style restaurants here and savor Panamanian fare later.

Restaurant reviews here are divided by their individual neighborhood. The El Cangrejo district represents the area northwest of Vía España. The Financial District southeast of Vía España is included with the area "Bella Vista," which is south of Vía España and also referred to as Calle Uruguay (or Calle 48 Este, just to make it more confusing). Bella Vista is essentially a compact barrio of restaurants, shops and bars.

Don't overlook hotel restaurants. The Hotel Deville's trendy Ten Bistro serves contemporary, French-influenced food where each main course costs -- you guessed it -- $10. Monsoon, the Caesar Park Panama's Asian restaurant, has been honored almost with international culinary awards. Monsoon offers a sushi night on Tuesdays, and shellfish specials on Fridays. The Decapolis Radisson's Fusion restaurant and its hip sushi lounge is the trendiest see-and-be-seen venue in town for dining. Fusion has a reasonably priced menu and often features a fixed-price buffet lunch for around $15. The Hotel Executive serves breakfast 24 hours a day, and an all-you-can-eat breakfast buffet. The Bristol Panama's restaurant, Las Barandas, offers the best Panamanian food in the city and is overseen by Panama's most famous chef.

For cheap Panamanian food you can't beat the 24-hour chain Niko's Café, which, in addition to basic sandwiches, serves 100 snacks and items, such as a tamale or fried egg, for less than 90¢ each. Niko's can be found at Vía España and Calle Gerardo Ortega (Calle 51B Este, near the Continental Hotel), at the Albrook Bus Terminal, or on Calle 50 (Nicanor Obarrio). There are many hole-in-the-walls and cafeterias that serve what's called comida corriente, or the cheap daily special that might include a beverage. American fast-food chains, such as Dunkin' Donuts, Bennigan's, McDonald's, T.G.I. Friday's, and Subway, are everywhere. Fast-food chains are clustered next to the Veneto Hotel and the Multicentro Mall.

Grocery &. Specialty Stores -- The supermarket chain El Rey is Panama's largest, and most branches are open 24 hours a day. You can find national products plus a large selection of imported brands from the U.S. The most convenient location is on Vía España, near El Panama Hotel; there is another in the Albrook area, on Avenida Omar Torrijos on the way to Gamboa. The premier wine store Felipe Motta, in Marbella on Calle 53(tel. 302-5555), is the most complete in Central America, and their prices are reasonable. For organic groceries and health products, try Orgánica in Marbella, at the Plaza Paitilla mall on Ramón H. Jurado (tel. 215-2400; Mon-Fri 10am-5pm).

Culinary Tours -- If you're a foodie, contact Melissa DeLeon at the Panama Gourmet for culinary tours in Panama City (tel. 225-3511; www.panama-gourmet.com). Melissa, a food writer, chef, and caterer, offers tours designed by local chefs, with bilingual guides and visits to markets and restaurants. Panama Gourmet also has cooking courses.

Casco Viejo

For a coffee and muffin, sandwich, or sweet dessert (Internet access, too), try Brooklyn Café at Calle Primera, near the French Embassy (tel. 211-0961).

Few cities in the Americas can compete with Panama City when it comes to things to see and do. Some travelers spend their entire visit in and around Panama City, touring sights such as the historical ruins of Panama Viejo, walking the enchanting streets of Casco Viejo, visiting Metropolitan Park, or strolling along the Amador Causeway. Visitors can also head outside the city limits for day excursions such as boating in the canal, bird-watching and trekking in Soberanía National Park, and visiting Emberá Indian villages.

It is recommended that travelers book a city tour; transportation is included, and the experience is enriched by interpretative background provided by a bilingual guide. Half-day city tours include a morning visit to Old Panama and Casco Viejo; full-day tours head to the Miraflores Locks at the canal in the afternoon. If you want to see Panama City on your own, taxi drivers charge between $15 and $25 per hour. Every hotel has a personal recommendation for a private cab and can arrange the details.

Panama Viejo

Panama Viejo, or Old Panama, comprises the ruins of the oldest capital in the Americas, and is a proud emblem -- not to mention the most popular tourist attraction -- in this historic city. The ruin site covers 23 hectares (57 acres) on the city's eastern edge, where visitors will find crumbling buildings sprinkled about and connected by paths with interpretive signs in both Spanish and English. The good view from this part of the city sweeps east to the Casco Viejo peninsula, and beyond Panama Viejo's significance as a culturally unique attraction it is also a pleasant park and recreation area that provides visitors with a chance to get out and stretch their legs. Some people come here for a sunrise jog along Panama Viejo's path, which hugs the seafront.

In 1519, Pedrarias Dávila arrived with his Spanish expedition; he found a village, which was called Panamá by the cueva-speaking indigenous group that lived here. Historians agree that Panama means "abundance," but whether it is abundance of fish, butterflies, or some other plentiful flora or fauna is still open to debate. Not much is known about the cueva except that their language was spoken among different indigenous groups all the way to the Darién (near the present-day border with Colombia). In 1521, the Spanish king, Ferdinand of Aragon, bestowed Panama with formal city status in an effort to secure the mainland of the Americas, then called Tierra Firme. Within 40 years, the cueva were wiped out. To this day, not much is known about them but recent archaeological digs have unearthed artifacts shedding light on this ancient culture.

It is not clear why the Spaniards chose to build atop this swampy area with no clean drinking water -- perhaps it was because the cueva represented an available labor force. The Spaniards first erected huts, followed by stone buildings around the end of the 16th century -- these are the ruins you see today. In 1671, the famous buccaneer Henry Morgan sacked the city, and it burned to the ground. Panama City was then moved to what is now known as Casco Viejo, on the western side of the city.

This is the best-funded archaeological site in all of Panama and, accordingly, you'll find here a superb Panama Viejo Visitors' Center & Museum (tel. 226-8915; Tues-Sun 9am-5pm; $6 adults, $5 seniors, and $3 students; entrance fee includes admission to both the museum and the Cathedral Tower ruin site). The two-story museum offers a thorough historical account, but is the right size so as not to overwhelm visitors with too much information (exhibits are in English and Spanish). There are handsomely displayed pre-Columbian artifacts dating from 700 to 500 years before the Spanish arrival, a model of the city in its 17th-century heyday, interactive video displays of what archaeologists imagine the buildings' interiors to have looked like, and colonial furnishings, clothing, pottery, and more. The visitor center plans to have ready by late 2006 a new interpretive map for visitors to the ruin site who do not have an arranged guide. The best way to see the ruin site is to begin at the center, visit the museum, then walk the to the Cathedral Tower. The visitor center and museum are located about 6.5km (4 miles) east of downtown Panama City, on Vía Israel. To get here, take a taxi from downtown for $2. Another transportation option is the blue minibuses that leave on the hour from the Albrook bus terminal and that cost 25¢.

After 5 years of labor, the renovation of the site's most important relic, Torre de la Catedral (Cathedral Tower) is now complete, with a steel interior staircase that visitors can climb for the first time in 335 years; at the top are expansive city views. The tower is too fragile to bear the weight of a replica of the old bell that rang out across the city during colonial times, so a speaker, which chimes at 6:30am, 12:30pm, and 6:30pm, has been installed. Tip: Visit the tower in the afternoon, when the morning tour buses have gone. Otherwise, you might find yourself waiting up to 20 minutes to enter. There are Spanish-speaking guides who offer free tours of the tower. If you skip the museum, the cost to get in the area around the tower is $4 for adults, $3 for seniors, and $2 for students; it's open Tuesday to Sunday, 8:30am to 6pm. The cathedral is a good 15-minute walk from the museum.

One of the city's best handicrafts markets is at Panama Viejo, and has recently been relocated to the visitor center (no phone; call the visitor center for information; daily 8am-5 or 6pm). Note: Even though the Cathedral Tower and museum are closed on Monday, you can still visit the ruins and walking paths.

Casco Viejo

Casco Viejo, the Old Quarter, is also referred to as Casco Antiguo or by its original and formal name, San Felipe. No trip to Panama City would be complete without a visit to this quintessentially charming neighborhood, with its narrow streets; its turn-of-the-19th-century Spanish-, Italian-, and French-influenced architecture; its bougainvillea-filled plazas, and its breezy promenade that juts out into the sea. Visitors often compare Casco Viejo to Havana or Cartagena. The neighborhood's historical importance and antique beauty spurred UNESCO, in 1997, to declare it a World Heritage Site. Because Casco Viejo provides such an ideal place to wander around and lose yourself in the antique splendor of the city streets, I've included a walking tour . Within the walking tour are dozens of points of interest, and you can really begin and end wherever it suits you.

For the past century, Casco Viejo was nothing more than a run-down neighborhood whose antique mansions were left to rot after wealthy residents moved to other parts of Panama City. With the drop in land value, squatters and low-income families moved in, many of whom continue to live here but are being pushed out by a public and privately funded large-scale gentrification project. This is most evident along the southeastern tip of the neighborhood, where lovingly restored mansions line the streets; elsewhere renovation isn't happening as fast as was hoped when the project began more than 10 years ago. To combat the housing shortage, the government is offering funds to help resettle poor residents. Foundations such as the Oficina Casco Antiguo are working on a plan, slated for completion in 2009, that will invest heavily in tourism, expanding services and even reinstalling the old street car that once ran along the city streets.

Safety Note: In spite of Casco Viejo's renovation projects and the fact that both the mayor and the president's offices are located here, tourists should say alert and protect themselves from theft. Generally speaking, the peninsula of Casco Viejo, starting at Calle 11 Este and heading east and away from the Santa Ana neighborhood, is safe. There are two principal entryways into Casco Viejo but both pass through poor ghettos, so always take a taxi to get here. Taxis for a trip out of Casco Viejo can usually be found around the Plaza de la Independencia, or if you are dining here, have the restaurant call one for you. Once, during a holiday, I could not find a cab for love nor money, and so I visited the Estación de Policía de Turismo (Tourism Police Station) and an officer shuttled me in a little scooter-car to a busier thoroughfare, where he waited with me until I got in a cab. Of course, I wouldn't do this unless you're in a pinch, but the tourism police are very polite and helpful, and they do a good job of patrolling the streets of Casco Viejo. The station is on Avenida Central at Calle 3a Este (tel. 211-2410); the office is open 24 hours, and from Monday to Friday, 8am to 5pm, there is an English-speaking attendant.

Most important in this area is to tone down the "gringo look" if possible, meaning no shorts or ostentatious clothing like Hawaiian shirts. Also, do not wear flashy jewelry or walk the streets brandishing your top-of-the-line camera.

Cerro Ancon

This conspicuous forested hill that rises 198m (650 ft.) above the city is another "reverted" property from the canal days that is now open to the public. The hill is bordered in the north by Heights and Culebra streets, and avenidas Arías and de los Mártires in the south. At the entrance to the office of the environmental organization ANCON, at Calle Quarry Heights, a winding, pedestrian-only road provides for a brisk uphill walk to a lookout point, with 360-degree views of the city center, Casco Viejo, and the canal. The hill is home to tiny Geoffrey's tamarins, ñeques (agoutis), and migratory birds. Cerro Ancón is currently the focus of a controversial proposal by developers who want to raze the hilltop for a restaurant and parking lots, and install a cable car to transport visitors. Stiff resistance -- even the mayor has jumped into the fray, voicing his disapproval -- means this is not likely to happen anytime soon, if ever. The Museo de Arte Contemporáneo is here.

Parque Natural Metropolitano

The Metropolitan Park is the only protected tropical forest within the city limits of a major urban area in the Americas. In other words, one 5- to 10-minute taxi ride and you can delve into the earthy environs of thick jungle with a surprising array of fauna, more than 200 species of birds, and 40 species of mammals. Expect to see mostly birds and the occasional blue Morpho butterfly fluttering by. The park, roughly 265 hectares (655 acres), is located on the northern edge of Panama City, hemmed in by a few rather busy roads including the new and noisy Corredor Norte, which runs the eastern flank of the park. The park is overseen by the Smithsonian Tropical Research Institute, which carries out scientific studies here, and by the city, which maintains an administration center with maps, educational exhibits, and a bookstore. If you're planning to visit any regional national parks such as Soberanía, skip this attraction; if your visit to the country is limited to Panama City, this park is a must-see.

Three short trails give visitors a chance to get out and stretch their legs. Los Momótides trail is the shortest (30 min.) and therefore the most appropriate trail for young children and visitors in a hurry. It begins at the administration center, but you must cross busy Avenida Juan Pablo II, so be careful. Mono Tití Road heads up to Cedro Hill and a lookout point with sweeping views of the city; alert hikers occasionally catch sight of Geoffrey's tamarins, a pint-size primate, along this trail. The most difficult trail, and the longest at 2 hours round-trip, is Cienequita Trail, which begins just up the road from the center. It is possible to connect with Mono Tití Road after reaching the lookout point.

The park is open daily from 6am to 6pm; the visitor center is open Monday to Friday 8am to 4pm and Saturday 8am to 1pm. A trail guide is available for 50¢, and the park offers guided trips in English for $6 with a reservation made at least 24 hours in advance (tel. 232-5516 or 232-5552).

Calzada de Amador (Amador Causeway)

The Amador Causeway is a series of three small islands -- Naos, Perico, and Flamenco -- connected by a road and pedestrian walkway that projects out into the Panama Bay, offering spectacular views of the glittering city skyline and a consistent breeze. The islands, once the haunt of pirates, were connected in the early 1900s with rock and dirt excavated from the Culebra Cut in the Panama Canal to form a breakwater for a protective harbor for ships waiting to enter the canal, and to prevent the buildup of sediment. Later, the United States militarized the promontory and fortified it with ordnance for protection during the two world wars. The causeway remained off-limits to Panamanians until 1999, when the canal handover opened this prime spot of real estate, much to the delight of walkers, joggers, bike riders, and diners. There is nothing like jogging or walking along the causeway early in the morning with the sun rising over the Pacific and casting its pastel hues on the glittering high-rises of downtown Panama City. The causeway is packed on Sundays.

Large-scale, multimillion dollar real-estate projects are on the horizon for the causeway, including a grand hotel, a casino, condo development, and new marinas. By any measure, Panamanians are most excited about the Bridge of Life Biodiversity Museum, designed by renowned architect Frank Gehry (who is married to a Panamanian), which will feature high-concept exhibitions about the relationship between nature and man. The museum is scheduled to open sometime in 2007; check the website, www.biomuseopanama.org, for more information. Once opened, this will be a don't-miss attraction for any visitor.

Museums

Museums across Panama are under-funded and poorly staffed, and the story here in the capital isn't any different just because it's a metropolitan city. Things could change with the reopening of the Araúz Anthropology Museum in late 2006, which will have a far better location and promises to update its somewhat lackluster exhibition. The Canal Museum in Casco Viejo has modernized its tours, with bilingual interpretive signs and guides.

Beyond this, most museums in Panama City are worth visiting only if you happen to already be in the neighborhood. Perhaps local indifference to the city's museums arises from the fact that many are closed on Saturday, Sunday, and holidays -- the very time when most locals are able to visit. Volunteers and nonprofit organizations are the ones who keep the museums hanging in there, sometimes only by a thread.

You'll hear a lot of talk about duty-free shopping in Panama, but it is exaggerated. Really, the only place you can duty-free shop is at the plethora of stores at the Tocumen Airport. Shopping complexes such as the Flamingo Center on the Amador Causeway limit duty-free purchases to cruisers landing at their port. Even the duty-free zone in Colón is overrated, as most wholesalers do not sell to independent travelers. The major shopping malls here offer excellent quality and national and international brands, though prices are comparable to those in the United States. A principal shopping avenue is Vía España, where both high- and low-end shops vie for business, as well as grocery stores and pharmacies. Designer stores are located around Calle 53 in Marbella and in the nearby World Trade Center's Centro de Comercio. Also try Plaza Paitilla in the Paitilla neighborhood. You'll find electronics shops around Vía Estronga, in the Financial District.

Modern Shopping Malls

Globalization and the rising demand for high-quality products have shifted the shopping scene to spacious megamalls that house international brands, cinemas, and a food court. Multiplaza Pacific (tel. 302-5380) offers the most in terms of selection and quality, yet it is the most expensive in town. Colombian-owned Multicentro (tel. 208-2500), conveniently located across from the Radisson on Avenida Balboa, has a number of Latin-diva-style boutiques; there's also a cinema and a casino. Albrook Mall (tel. 303-6333) is an air-conditioned shrine to low-cost outlet shopping, but you'll have to do a lot of digging around to find a gem. Because it is next to the bus terminal, it is busy with families who arrive from the interior of Panama, ready to shop. There is a cinema at Albrook Mall, too.

Markets

The Mercado de Mariscos, located on Avenida Balboa and Calle 15 Este, is distribution headquarters for fresh seafood pulled from the Pacific and Caribbean. It's a vibrant market with lots of action as fishmongers shout while they deftly fillet corvina, tuna, octopus, and more. You can dine here at their upstairs restaurant. Several food stands sell seafood snacks like ceviche. Next door is the brand-new Mercado Público, the covered farmer's market of Panama City with exotic fruits and vegetables, meats, dried spices and nuts, and a food court of fondas, or cheap food stands serving Panamanian fare. The old market, demolished in 2006, had a touch more character but was filthy -- this new market is clean and bright. Don't forget to bring your camera.

Artesanía, or indigenous handicrafts, are the number-one buy here in Panama (with the exception of real estate). Molas, the reversed appliqué panels made by Kuna Indian women, rank high on the list of popularity for souvenirs and gifts, either sewn onto a beach bag, as a shirt, or sold individually for you to frame or stitch onto anything you'd like (pillowcases are an ideally sized canvas). Other popular handicrafts, such as tagua nuts or vegetable ivory carved into tiny figurines, Ngöbe-Buglé dresses, and Emberá Indian baskets and masks, can be found at the following markets. These markets do not have phones, and all are open daily with the general hours 8 or 9am to 5 or 6pm (until about 2pm Sun). The Mercado Nacional de Artesanías, in Panama Viejo next to the visitor center, is expansive and sells handicrafts from around the country. In Balboa, on Avenida Arnulfo Arias Madrid and Amador, is a small YMCA Handicrafts Market, with mostly Kuna and Emberá indigenous arts and crafts, and clothing. A little farther east and up Avenida Arnulfo Arias Madrid is the Kuna Cooperative, featuring Kuna handicrafts. This market is fun for kids because Kuna women offer to affix their traditional beaded bands onto the arms and legs of tourists, just as they themselves wear them.

For the more adventurous traveler seeking an "authentic" shopping experience, you can't beat Avenida Central, a pedestrian street and market that stretches from where Justo Arosemena meets Vía España to the Santa Ana Plaza, and that is near Casco Viejo. It's a scrappy, run-down neighborhood, with cheap stores, outdoor fruit and vegetable markets, and a bustling fusion of ethnic groups shopping for a bargain. Visually, it's the most colorful neighborhood in town. Apart from $1-and-under kind of shops, vendors lining the streets hawk clothing, accessories, plastic gizmos, and knickknacks. Shopkeepers like to blare music or announce their deals through megaphones to pull buyers in. It's a slice of everyday Panama, but it's also street theater and people-watching as fascinating as catching sight of Kuna Indian women lining up at McDonald's. Don't wander too far off Avenida Central, and keep an eye on your personal belongings. This area is patrolled by police and is generally safe during the day.

The brand-new Flamenco Shopping Plaza is on the Amador Causeway (tel. 314-0908; hours are variable but generally noon-11pm; www.fuerteamador.com). It caters predominantly to cruisers docking here, but shops are open to the general public (except the duty-free shop). The Plaza is a high-end, one-stop shopping area for souvenirs, jewelry, and upscale handicrafts. Come prepared: Visit their website and print out their discount coupons worth a savings of 10% to 15%, depending on the store.

Art Galleries

The following art galleries showcase Panamanian contemporary artists and other well-known Latin American artists. Check www.thepanamanews.com and its Calendar listing for upcoming shows and special events. Galería Bernheim, at Calle 50 and Calle Alquilino in the Financial District (tel. 223-0012), has a lengthy roster of paintings and other artwork for sale, as well as antique maps and delicately carved tagua nuts. Imagen Galería de Arte, located at Calle 50 and Calle 77 (tel. 226-2649), displays mostly paintings and sculpture by local artists, and offers professional framing. Galería y Enmarcado Habitante, at Calle 47 and Uruguay, has a small collection and is worth stopping at only if you're in the Bella Vista neighborhood; they also offer framing. As the name states, Arts & Antiques (tel. 264-8121) sells antiques and art antiques representing Spanish colonial, Art Deco, Victorian, and other epochs. The store is located in the Balboa Plaza on Avenida Balboa at Calle Anastacio Ruiz.

Handicrafts

The widest selection of handicrafts in Panama City can be found at one of several markets . Otherwise, an outstanding selection of molas can be found at Flory Saltzman Molas, located at Calle 49 B Oeste (tel. 223-6963; www.florymolas.com). Flory also sells bedspreads made of sewn-together molas, but the laborious work required for such an extensive, intricate piece of work means you'll pay top dollar. Another "designer" handicraft boutique is Breebaart, at Calle 50 and Calle 39 (tel. 264-5937), owned by one Hélène Breebaart, who came to Panama as a representative of Christian Dior 30 years ago and stayed on. Breebaart creates designer fashion and accessories that incorporate contemporary looks with Kuna art (she has a crew of Kuna seamstresses on-site), mostly for Panama's rich and prominent women. There are some things for sale here, but Breebaart's specialty is custom-made pieces that take about a week to make.

The Gran Morrison variety/department store chain, located at Vía España and Calle 51 Este (tel. 269-2211), and in Punta Paitilla (tel. 264-5266), has a selection of handicrafts. In Casco Viejo, two stores sell indigenous crafts and other Panama-themed souvenirs: Galería de Arte Indígena, at 844 Calle 1a (tel. 6634-7064; daily 9am-8pm), sells high-quality indigenous arts and crafts, and features folkloric dancing on Friday and Saturday nights from 6 to 8pm. Down the road from the Galería, on Calle 1era in Casco Viejo, is the shop La Ronda (tel. 211-1001; daily 9am-7pm), with an outstanding selection of high-quality arts and crafts, hats, and paintings. There are shops at the Mi Pueblito cultural center, but the selection is better elsewhere.

Jewelry

During the centuries before the arrival of the Spanish, indigenous groups produced decorative gold pieces called huacas, which they laid to rest with the dead to protect their souls in the afterlife. The word comes from the Incas, meaning something that is revered, such as an ancestor or a god. Spurred by the theft of huacas from the national anthropology museum, an American living in Panama during the 1970s set up Reprosa, located at Avenida Samuel Lewis (tel. 269-0457; daily 9am-6pm), which makes elaborate and stunning jewelry casts using the "lost wax" process of the ancient indigenous groups. If you're searching for a one-of-a-kind, luxury gift for someone special, come here. Reprosa has several more demure collections that include orchids, treasures from the sea, and so forth.

Reprosa also offers a popular factory tour to demonstrate the casting and assembly process. The factory can be found just off the Costa del Este exit near Panama Vieja, and just after turning left on the first street next to the Felipe Motta shop. English-language tours cost $10 per person and must be booked at least 1 day in advance; call Monica at tel. 271-0033.

Outdoor Gear & Clothing

It's best to buy your outdoor gear and equipment before your trip -- there isn't a wide selection of outdoor products in Panama. The chain store Outdoors (tel. 302-4828 or 208-2647) represents the brands Columbia and Caterpillar, and their stores carry clothing and footwear, sleeping bags, and accessories for biking, fishing, bird-watching, and other adventure sports. Outdoors has stores in the Multicentro, Multiplaza, and a low-cost outlet store in the Albrook Mall.

Wildlife Contraband: Don't Destroy What You've Come Seeking

International laws prohibit the trade of endangered plants or animals, or products made from endangered wildlife. Yet many travelers to Panama who purchase such goods rarely realize that what they are doing is illegal, nor do they understand the consequences of their purchase. Illegal trade destroys the very wildlife and habitat that travelers come here to enjoy. You could also set yourself up for being issued a heavy fine by law-enforcement officials upon your return. To help with wildlife conservation, ask yourself, Do I know what this product is made of? Do I know where this product came from? Do I need a special permit to bring this product home?

The World Wildlife Fund's trade monitoring network, TRAFFIC, and the U.S. Fish and Wildlife Service have a series of "Buyer Beware" brochures, including one aimed at travelers in the Caribbean, that you can download from their site at www.worldwildlife.org/buyerbeware. When in Panama, you should avoid purchasing:

The Mayor of Panama City: "A Few of My Favorite Things"

Panama City Mayor Juan Carlos Navarro is one of Latin America's rising political stars, and was the youngest person ever elected to the mayor's office, in 1999, when he was 37 years old. Navarro's passion for Panama City is infectious, as is his dedication to the environment, having founded the country's leading environmental organization, ANCON. "This is Panama City's decade," he says, referring to his multimillion dollar modernization plan. "And we've just begun." Here are a few of Navarro's favorite things about Panama City:

American Express -- American Express Travel Services has an office on Avenida Balboa (tel. 207-1100, or 800/111-0006 for 24-hr. service in the United States). This office provides traveler's checks and replacement cards, along with other standard services. To report lost or stolen traveler's checks within Panama, call the numbers above, or try 207-1111.

Bookstores -- Exedra Books, on the corner of Vía Brasil and Vía España (tel. 264-4252; www.exedrabooks.com; Mon-Fri 10am-9pm, Sat 10am-8pm, and Sun noon-7pm) is the top resource for English-language books, with dozens of titles, a cafe, a reading area, a children's corner, and Internet access. If you're spending extended time in Panama, you may order books on Exedra's website and have them delivered for free for orders over $25. The Smithsonian's small but excellent Corotu Bookstore, at the Earl S. Tupper Research and Conference Center on Roosevelt Avenue in Ancón (tel. 212-8000; www.stri.org; Mon-Fri 10am-4:30pm) offers a comprehensive collection of books about Panama's flora, fauna, history, and culture, including large-format photo books, maps, and gifts. El Hombre de la Mancha (www.bookshombredelamancha.com) is a bookstore cafe with a small selection of English-language fiction and the best Panama City map in town. They have locations in the Multiplaza and Multicentro malls, and in Albrook Airport; or try Calle 59, no. 20, at Vía Israel (tel. 223-1504); or Calle 52 at Avenida Federico Boyd (tel. 263-6218). The Gran Morrison chain (Vía España at Calle 51 Este: tel. 269-2211; Punta Paitilla: tel. 264-5266) has a limited English-language book section and a variety of U.S. magazines such as People and Time.

Camera Repair -- Electrónica Caribe, located at Vía España in front of the Bon Bini cafe (tel. 223-0205 or 264-7451).

Dentists & Doctors -- Panama City has no shortage of English-speaking dentists or doctors, most of whom trained in the U.S. For a list of dentists or doctors, contact your embassy, or see "Hospitals" below.

Drugstores -- Called farmacias in Spanish, drugstores are plentiful in Panama City. For 24-hour service, visit a branch of El Rey supermarket, the most central of which is on Vía España (tel. 223-1243). Another reliable pharmacy is Farmacias Arrocha (tel. 360-4000), with locations at Vía España in front of El Panama Hotel, Vía Argentina, and Punta Paitilla.

Emergencies -- For fire, dial tel. 103; for an ambulance, dial Seguro Social at tel. 229-1133, or Cruz Roja at tel. 228-2187.

Express Mail Services -- Many international courier and express-mail services have offices in Panama City, including UPS (tel. 269-9222) in Obarrio (near El Cangrejo) at Calle 53 E in the Edificio Torre Swiss Bank; Fed Ex (tel. 800-1122) on Calle 3 in Costa del Oeste; Mail Boxes Etc, a one-stop service with locations on Avenida Balboa in Paitilla in the Marisol Building, no. 1, next to McDonald's (tel. 264-7038), on Vía España, next to Niko's Café in the Financial District (tel. 214-4620), and in the Multiplaza Mall (tel. 302-4162).

Eyeglasses -- Eyeglass shops are referred to as ópticas. Optica López, in Plaza Paitilla (tel. 269-0358), and Natural Vision, in the Multicentro Mall (tel. 208-2648), are dependable chains with other locations throughout the city. Both eyeglass shops offer repairs, exams, and name-brand eyewear.

Hospitals -- Many Panamanian doctors receive their medical degrees in the U.S.; therefore, many speak English. The best hospitals in Panama City are: Centro Médico Paitilla, at Calle 53 and Avenida Balboa (tel. 265-8800); Clínica Hospital San Fernando, at Avenida Central España (tel. 278-6364); Hospital Nacional, at Avenida Cuba between Calle 38 and Calle 39 (tel. 207-8100 or 207-8102); and Hospital Punta Pacífica, at Calle 53 in Bella Vista (tel. 263-5287). Punta Pacífica is the newest and most advanced hospital in the country and is affiliated with Johns Hopkins University.

Internet Access -- All recommended hotels have at least one computer with an Internet connection; some have wireless service in their lobby. Service in guest rooms is usually at an additional, and often expensive, price. Or try the best Internet cafe in town, ClaroCOM, at Avenida Eusebio A. Morales and Avenida Vía Veneto (tel. 200-0015; Mon-Sat 8am-10:30pm and Sun 9am-8:30pm), with free wireless service if you have a laptop, no matter how long you need to be connected, as well as plentiful computers. Or try Esc@pate Internet cafe, on Vía Argentina close to Avenida España (tel. 263-0616).

Laundry & Dry Cleaning -- Lavandería Diamond Dry Cleaners Plus (tel. 213-2216; closed Sun) is at Calle J in El Cangrejo. Lavandería Flash (tel. 213-8092) is at Vía Argentina. SU-PERC-KLIN is in Bella Vista next to Supermercado Riba-Smith (tel. 225-7869), and in El Cangrejo in front of the Einstein statue at Calle F and Calle L -1 (tel. 223-5666).

Maps -- IPAT's information desk at the Tocumen Airport offers a general map of Panama City, but the best available is Mapi, produced by bookstore El Hombre de la Mancha and available at their stores or at the Gran Morrison stores. This map is also available at gift shops in major hotels. The tourism publication Focus has a fold-out map that is accurate but does not show all street names; this publication can be found at hotels and other tourism-oriented shops and restaurants.

Newspapers & Magazines -- You'll find the international English version of the Miami Herald at drugstores such as Gran Morrison and at supermarkets such as El Rey. Most sell English-language publications like People, Time, and Newsweek.

Photographic Needs -- Few photo shops develop slides -- really, you'd do better waiting until you return home to process slides. Kodak can be found inside El Rey supermarkets or at Calle San Francisco between Calles 74 and 75 (tel. 270-3333). You can also try FotoDigital at Calle 50 (tel. 263-3000), or in the Multiplaza Mall (tel. 302-1100).

Police -- Dial tel. 104 or 316-0080.

Post Office -- Postal service is scarce in Panama City; your best bet is to ask your hotel to mail something for you, or try Mail Boxes Etc. The central post office (Correos y Telégrafos) is open Monday to Friday 8am to 4pm and Saturday 8am to 1pm, and is located on Avenida Central in front of the Mercado de Mariscos (tel. 212-7680).

Restrooms -- Restrooms, called baños, are marked hombres or caballeros for men, and damas or mujeres for women. There are few public restrooms in Panama City; your best bet is a hotel lobby or fast-food restaurant.

Safety -- Panama law requires that foreigners carry their passport with them at all times, but play it safe and carry a photocopy of only the opening pages and entrance stamp or tourist card. Leave all valuables and extra cash in your hotel. As Latin American cities go, Panama City is very safe for foreign travelers who stay out of bad neighborhoods such as Calidonia, Curundú, El Chorrillo, and Santa Ana. Chinatown is dangerous day and night. As in any major urban area, use common sense when it comes to safekeeping valuables -- for example, don't put your wallet in your back pocket. Money and other valuables are best carried in hard-to-reach places, like deep pockets or a money belt, but purses are fine for women. Keep an eye out for suspicious characters who linger too close or follow too closely. Also, consider taking money out of ATMs during the day to avoid stepping out from a brightly lit cashpoint into darkness. Scams are not common here; muggings and purse-snatchings happen, but not frequently. If you park a car on the street, do not leave any valuables inside that could attract a thief, even if you park in a guarded parking lot.

Taxes -- All hotels charge a 10% accommodations tax, which may or may not already be included in the published rate. Restaurants charge 5% tax on all consumption, and they often sneak in a 10% service charge for a tip -- check your bill carefully before paying. A tourist card costs $5, and is purchased when checking in for your flight or when crossing the border.

Telephones -- There are no city or area codes to dial from within Panama; use the country code, 507, only when dialing a Panama City number from outside Panama. Cellphone numbers begin with 6. All cellphone numbers listed in this guide already include the 6 prefix.

Time Zone -- Panama is on Eastern Standard Time (the same as New York or Montreal), and 5 hours behind Greenwich Mean Time. Panama does not change the hour for daylight saving time, during which the time in Panama coincides with that of the Central Time Zone in the States. Note: Panama is 1 hour ahead of Costa Rica and the rest of Central America.

Useful Telephone Numbers -- For national directory assistance, dial tel. 102; to reach an international operator, dial tel. 106; for the time, dial tel. 105.

Water -- The water in Panama City is perfectly safe to drink. Nonetheless, travelers with highly sensitive digestive tracts might want to stick to bottled water.

Weather -- The year-round temperature in Panama City is 85°F to 90°F (29°C-32 °C) during the day, and around 70°F (21°C) at night. The rainy season is from April to December, with torrential rain showers -- however, rain occurs during the afternoon, and mornings are generally clear and sunny.

Spanish-Language Programs

If you're moving to Panama, or if you plan to stay for an extended time, you'll need to pick up the local lingo. The two top language-institute options offer very different programs for different kinds of people. Classes are either one-on-one or in groups -- obviously the keen traveler with time restraints will want private classes.

Spanish Panama is a Canadian-directed school with certified bilingual professors, offering crash courses, private classes either at the school or in your hotel, residence, or business; and a month-long program that includes excursions around town to place yourself in real-life situations where Spanish is necessary. They also have cultural excursions and Latin dance classes. The Spanish Panama school classrooms are divided units within an old apartment building, and the ambience is folksy and very friendly. They offer three housing options that are suitable for all types. First, there are homestays with Panamanian families. Second, their Carmen's Realty finds furnished apartments in the area (basic, at $500 a month, to luxury, at $1,300 a month) that can be rented weekly and monthly. Finally, Anita's Inn hostel, on the second floor above the school, has shared rooms for $10, and a few private rooms for $15 to $30 per night; most have shared bathrooms. The hostel hosts fun but mature guests who are serious about learning. Their "Just the Classes" one-on-one program is 16 hours per week for $199, and you decide when and where. Their month-long program costs $775, with around a total of 50 hours of instruction. Spanish Panama is centrally located on Calle 2a Norte, off Vía Argentina (tel. 213-3121; www.spanishpanama.com).

Your second option is ILISA Language School, with offices in the more austere environment of the so-called "City of Knowledge," the old U.S. Army base in Clayton, which is being renovated as a center for academic organizations. ILISA is a Costa Rican company and a newcomer to Panama; they have group and private classes in a more polished, corporate-style classroom. Their four-person classes are the most popular, and run from 8am to noon, with afternoon activities like coffee chats and excursions; their four-person "Plus" course is the same but with an additional 2-hour private tutoring session in the afternoon. Private, 4-hour lessons cost $655 for 5 days; $885 for 6 hours a day. Groups of four cost $430 per person for 20 hours of instruction per week. ILISA offers homestays, furnished apartment rentals, and two nearby guesthouses with shared rooms starting at $14 a night, and private double rooms for $45. The school is at Calle Gonzalo Crance 8 (tel. 317-1011, or 800/454-7248 in the U.S. and Canada; www.ilisa.com).

Panama City lies on the eastern shore of the Panama Canal, and is bordered by the Pacific Ocean to the southeast, which can disorient first-time visitors unaccustomed to seeing the sun rise over the Pacific Ocean. Throw in a mesh of looping avenues and streets with two different names, or no name at all, and prepare to feel hopelessly lost during your first few days in Panama City. Visitors rely on taxis, which are safe and cheap ($1-$2).

In very general terms, Panama can be divided into four areas: Old Panama (the ruins of the first settlement here); Casco Viejo, the city center during the late 19th and early 20th centuries; the former Canal Zone; and modern Panama, with its wide boulevards, glittering skyscrapers, and impoverished slums.

At the southwest end of the city lie the Amador Causeway, Casco Viejo, Cerro Ancón (Ancón Hill), and the former Canal Zone. From here, three principal avenues branch out across the city. Avenida Central, which begins in Casco Viejo as a thriving shopping center hawking cheap, imported goods, changes its name to Avenida Central España as it passes through Calidonia, and then becomes Vía España as it runs through the commercial area and financial district of El Cangrejo. Avenida Balboa extends the length of the coast, then forks into Vía Israel, later called Cincuentenario as it heads out to Old Panama. Corredor Sur, a fast-moving toll expressway, connects the city with Tocumen Airport. Avenida Simón Bolivar (also known as Avenida 2da. Norte Transístmica) heads north to Colón; however, a new toll expressway, called the Corredor Norte, provides a faster route to Colón, eventually connecting with the Transístmica around Chilibre.

There are no beaches in the immediate area of the city -- only mud flats -- and visitors will need to travel northeast to the Caribbean or southwest to the Pacific beaches, about a 1- to 1 1/2-hour drive from the city. The following Panama City neighborhoods run from west to east.

Where the #@&!%$ Is It?

Ah, the aggravation of finding an address in Panama City. Just like in the U2 song, this is "Where the Streets Have No Name" -- most of the residential streets, anyway. And of the streets that do have an appellation, they are either not signed or are referred to by two or three different names. Some say the reason is that Panama City has never had a postal delivery system (the postman only comes if you slip him some cash). Residents have post office boxes, called apartados, which is abbreviated as Apdo. or A.P.

Unbelievably, even taxi drivers are clueless when it comes to city street names beyond major avenues, even if they're labeled on a map. With taxi drivers, it is important that you give as much detailed information as possible such as the cross street, the closest major intersection, or better yet, a recognizable landmark -- the Marriott Hotel, for example. When asking for directions, get as much information as possible. And, if you're nuts enough to drive through Panama City, never do so without a map in your vehicle. Here you'll have double trouble because even major avenue and thoroughfare turnoffs are poorly marked. You'll most likely need to pull over periodically to see if you're still on track. Avenida Balboa runs from Casco Viejo to Panama Viejo and along the coast, and is the least-confusing route across town.

Casco Viejo/San Felipe Panama's loveliest neighborhood was once a collection of homes built during the late 1800s and early 1900s, before it became fashionable to live elsewhere in the city. The historical barrio, now revitalized with public and private funds, is undergoing a thorough renovation that prompted UNESCO to designate it a World Heritage Site. If you have time to visit just one neighborhood in Panama City, make it this one.

Balboa/Cerro Ancón/Albrook These are three quiet residential neighborhoods located within the former Canal Zone. The domestic airport Albrook is here, occupying what once was the U.S. Air Force base, and many young professionals have moved into the "reverted area" for its trademark, sturdy wooden houses with wide verandas and lush foliage. Cerro Ancón hill is the most salient landmark here, offering a 360-degree view of the city and the canal from the lookout point up high.

The neighborhoods El Chorrillo, Santa Ana, and Chinatown, on the eastern side of Cerro Ancón, are dangerous and not safe to visit, especially at night.

Calidonia/La Exposición The shoreline that fronts these two neighborhoods is the future site of many of Panama City's most ambitious high-rise developments. There are many budget (and downright scary) lodging options here, but low-cost lodging can also be found in better neighborhoods like El Cangrejo. Avenida Balboa, which hugs the shore, is an excellent place for an afternoon stroll.

The Coastline: Marbella/Punta Paitilla/Punta Pacífica Residential towers and shopping malls are the identifying characteristics of this area, where there's a confluence of Panama's newly moneyed, illegally moneyed, and recently retired residents living in glitz-and-glass high-rises overlooking the sea.

El Cangrejo/Area Bancaria/Bella Vista These three neighborhoods border each other, but they are so compact that they could be considered part of the "upscale zone." Older El Cangrejo has a "lived-in" look and hilly streets that lend this neighborhood charm. Just to the south, the Area Bancaria (Financial District), in addition to El Cangrejo, is where most travelers feel happiest lodging, as everything is within walking distance: top restaurants, shopping, and nightlife. Dozens of trendy eateries are concentrated in Bella Vista east of Avenida Frederico Boyd -- the reason why Bella Vista is sometimes referred to as the Zona Rosa.

Panama Viejo On the eastern edge of the city are the ruins of Panama Viejo, the first settlement in Panama that later burned to the ground. Many visit as part of a guided tour, but the area also has a pleasant walking/jogging path along the shore and a self-guided interpretive trail that winds through the ruins.