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Panama City is one of the hottest cheap destinations for 2011

PanamaCityEvery year there are new destinations that everyone seems to be talking about for the budget traveler, and Panama City, Panama is among the busier ones for 2011. It’s a city of almost 1 million people that combines the modern conveniences of Western living with some beautiful beach areas and a colonial city center.

The best times to go are from December through May, as this is the dry season with almost no rainfall to consider, but even during the so-called wet season this is still a city to condider. Flights from New York City start at around $430 round-trip, and from Miami it’s only $250 round-trip. You’ll spend about $1,000 to fly to Europe this year, so you can put a bit more toward a hotel in Panama and get some luxury at a very good price as well.

Destination: Panama City, Panama

Located at the entrance to the Panama Canal on the Pacific Ocean side, Panama City has long been a popular spot for cruise ships switching oceans, but lately it’s been attracting cultural tourists and sun-seekers as well.

Knowing at least some Spanish is helpful, as the entire region isn’t quite as English-friendly as many of us would like, but those who only speak English can usually get by just fine. There’s a mix of high-end shopping and cheap souvenirs, so bringing a suitcase that’s only half full is a wise idea.

Prices for almost everything in Panama City are very low, with full meals for well under $5 each quite easy to find if you want to eat like (and alongside) the locals. There are also plenty of tourist-friendly restaurants that have English menus, and even prices in many of those are quite reasonable by most standards.

There are some very nice beaches not far from the Panama City town center, but there are also some world-class resorts elsewhere in Panama, so many people visit the capital for a few days to check out the big city and the Canal Zone, and then head off to one of the resort areas for some sun.

Bocas del Toro is the famous resort town in the northwest of the country, and the San Blas Islands nearby also contain some excellent and cheap resorts. There are even three resorts in Panama that feature overwater bungalows, and all offer prices that are half or less what you’d pay in the South Pacific.

When to go

As mentioned above, Panama City is ideal from December through May, and it’s busy with tourists from northern areas escaping their winters. But the tropical weather is quite similar all year round, and prices are much lower during the other months. Flights are usually cheaper as well, so it can be worth it to risk a quick rain storm or two in order to save a lot of money and deal with smaller crowds too.

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