The capital city of Panama is also the country's largest. It's highly varied, including the original 16th-century settlement of Panama la Vieja, the Spanish-colonial capital of Casco Viejo, the modern business district of El Cangrejo and the Latin downtown area of La Exposicion. Built along the curve of the Bay of Panama on the Pacific coast, the city's waterfront continues to develop, with high-rises and a huge yacht marina—the newest arrivals along the seashore highway. Panama City has a vibrant, cosmopolitan feel, but be aware that parts are still run down.
Casco Viejo (Old Compound), initiated in 1673, was built on a rocky peninsula at the west end of the bay. From the wall and fortifications built around Casco Viejo, you can watch large ships in the distance that are waiting their turn to enter the canal. Although the old section is seedy as well as scenic, it's being restored thanks to designation as a UNESCO World Heritage Site. Fresh paint is brightening many of the colonial buildings, which are adorned with ornate balconies that overlook narrow streets. The French Plaza has been spruced up and is worth a stop to view the memorial to the 22,000 workers who died in France's ill-fated attempt to build the canal. The most impressive colonial structure still standing is the cathedral, which has an unusual mother-of-pearl tower. Nearby, the Church of San Jose has a spectacular golden altar that was one of the few valuable items to escape the clutches of pirate Henry Morgan when he sacked the city. According to legend, the altar was saved by a priest who painted it black (or by nuns who covered it with mud, depending on which story you hear).
The new Panama Canal Museum (Museo del Canal Interoceanico de Panama) in Casco Viejo is one of the best museums in the country. It is housed in a beautifully restored colonial building that once served as headquarters for both the French and American canal-building companies. The museum's photographs, old film footage and videos provide an impressive overview of the canal's history. There are also displays chronicling the evolution of Panama from pre-Columbian times to the present.
Panama la Vieja, at the eastern edge of the city, is not to be missed for history buffs. This original site of Panama City, which was sacked and burned by British pirate Henry Morgan in 1671, is now an extensive ruin, with gray stone walls rising through the turf. The main square, cathedral tower and town hall are each still prominent. It's a haunting experience to explore the abandoned city via well-laid-out paths. There is also a good on-site museum with a model showing how the original Panama City looked before it was destroyed.
Other attractions worth visiting in Panama City include the National Science Museum, the Reina Torres de Arauz Anthropology Museum (with interesting pre-Columbian displays) and the Palace of Justice. Nature lovers might like to hike in the expansive Metropolitan Nature Park, home to more than 200 species of birds. The Panama Jazz Festival, a three day event, occurs annually in January (http://www.panamajazzfestival.com).
Most restaurants and upscale hotels are in the Bella Vista, El Cangrejo and Marbella districts, with leady streets for pleasant walking, plus Gothic-styled Iglesia del Carmen and the baroque-style Sanctuario Nacional de Corazon de Maria.
