Panama: Where the Atlantic and Pacific Oceans Meet

Why Panama? Why now? I wish I had a more profound reason but the simple truth is it was time for our annual winter beach vacation and Panama offered a non-stop flight from Las Vegas which got us there in 6 hours, even if it did mean departing at 1am. We thought we were going to El Salvador but discovered at the last minute that its non-stop flights are active only in summer. 

All I knew about Panama was its famous Canal, Panama hats (which are actually made in Ecuador), and that Panama is a global banking center, owing to its front row seat for global shipping and its favorable tax status.

We stayed at the 611-room Westin Playa Bonita which is on the beach facing the Pacific Ocean, a secluded resort 20 miles from the airport and 10 miles from Panama City. Upon arrival we realized we had added to our pantheon of tourist hoaxes; the “playa” or “beach” was barely and the “bonita” or “beautiful” descriptor was a bold faced lie!! In fact, at low tide, the entire ocean recedes several hundred yards leaving nothing but an unsightly rock-laden bog! Lucky the 4 enormous swimming pools compensate for that shortcoming, but this place now joins the company of Rome’s Circus Maximus (a flat ordinary lawn) and the ancient city ruins at Guatemala’s Tikal (which is basically a couple of man-made structures protruding above ground). I did manage to soak in the ocean at high tide so I made the best of the situation. To reach the hotel we crossed the Bridge of the Americas which passes over the Panama Canal and is part of the 20,000 mile Pan American Highway that runs from Alaska to Chile and across to Argentina. We were generally pleased with the quality of our accommodations at Westin, although we wished they lived up to their claim that Wifi was available throughout the hotel.

Panama's formation 10-15 million years ago is considered a pivotal event in earth history, creating a land barrier that enabled the gulf stream, enabled ice ages to form and changed ocean circulation patterns. The word “panama” is widely believed to be an indigenous peoples’ word that means an abundance of fish, although some believe it refers to an abundance of rain or butterflies. One fact is certain: the place does have an abundance of all of those things!

The first European to reach the Pacific Ocean was Vasco Nunez de Balboa who came through Panama in the early 1500s. That is why the local currency is called the Balboa, even though it is completely invisible except for small denomination coins that are less than a dollar. The Balboa is equal to the US dollar which is Panama’s currency. (Apparently, the only reason the Balboa was created in 1904 was to assert its independence from Colombia.)

From the 1500s to 1800s, Panama functioned as a transit point for wealth, particularly Inca gold and silver, which was transported from South America to Europe. That period saw the growth of colonial cities and intense pirate activity, most notably the sacking of old Panama by Captain Morgan in 1671. (Yes, that's the same  Captain Morgan shown on the bottle of spiced rum!)

Today Panama is a unique blend of Central and South America; its history is mostly as part of Spain (until 1821) and thereafter part of Colombia until it declared independence in 1903. Its a culture that identifies more with other Central  American and the Caribbean countries than it does with Colombia.

Panama's population grew greatly during mass immigration, first in the 1850s to build a railroad and again in 1904 to build the Canal. Upon completion, the Canal became known as the eighth wonder of the man-made world. Our guide was quick to point out that, before the Canal, Panama had still been the hub of Atlantic-Pacific commercial activity, which used its transcontinental railroad to move freight across its narrow isthmus. 

Panama's climate is tropical with year round temperatures ranging 70s and 90s, with slightly higher temperatures  and greater humidity in summer months. Its annual rainfall is nearly 14 feet,  the second most in the world after neighboring Colombia.

We visited Panama City and the Canal, which are musts if you visit this country; the former to appreciate its rich history and the latter to observe today's substantial economy here. The highlight of the Canal visit was an IMAX film narrated by Morgan Freeman. The construction of the Canal was first attempted by a Frenchman named Lessup because of his success in building the Suez Canal decades earlier, but he was unsuccessful here. In 1904, the US. took control of the project and after 10 years the Canal was completed in 1914. A recent upgrade and expansion occurred earlier this century and was completed in 2016. It's hard to overstate the scale and scope of this project or the shipping activity it enables, but know that skyscraper-sized ships reserve their place 2 years in advance and take 36  hours to gain access to the Canal and 11 hours to actually navigate the 50 mile stretch. From our hotel looking out to the horizon we saw ships queuing as far as we could see. (Worth noting, especially for my Las Vegas neighbors, more than 100 years ago this engineering marvel and ultimate plumbing project succeeded, but getting  hot water in our recently built brand name high-rise hotel was an issue during our stay!)

Before our trip we became aware that Panama had become a retirement destination for some retiring Americans, and we noted a luxury high-rise condominium (Casa Bonita) adjacent to our hotel and renderings for additional high-rise residences that are planned for construction nearby within the next couple  of years.

Part of the attraction is apparently the fact that Panama is known as a long-standing tax haven with strict banking secrecy and a territorial tax system, exempting from tax all income generated outside the country. The country also offers attractive tax efficient visa options for retirees and expatriates. 

25,000 Americans currently live in Panama where it reportedly costs $1,500 to $3,000 per month to live, including rent. Americans with a lifetime  pension of at least $1,000 per month are eligible for residency and significant discounts on utilities, entertainment and healthcare. Those same reports also claim that it is impossible for hurricanes to strike Panama, because of its proximity to the equator, but recent history shows that to be a false claim, so anyone considering a move here needs to do a lot of due diligence!! 

Panama has a population of 4.5 million, with approximately 40 percent living in Panama  City. 80 percent of this service-based economy consists of logistics and shipping (the Canal), international banking  and tourism. Even though the Canal directly accounts for only 5 percent of Panama's GDP, the Canal is clearly the driving force for the rest of the economy due to local services required to maintain canal activity. The result is an economy among the wealthiest in Latin America. 

Panama City has a very impressive skyline mostly of international bank buildings, especially for such a small city. More surprising, given its international business and close relationship with the US and our dollar, is that only 15% of the population speaks English. Everyone speaks Spanish, and 4% speak French.

The future expansion of this economy is likely to depend on the construction of pipeline infrastructure to enable the transport of oil and natural gas to Central America  and South America. 

Panamanians eat lots of fish from both the Atlantic and Pacific, especially sea bass, red snapper, tuna and ceviche. I ate fish every day and except  for our “day trip from hell” you will read about later it was all the freshest  I have ever eaten. Chicken, rice, corn, plantains, yucca and coconut are also prevalent in their diets and the cuisine blends Spanish, African, Amerindian and Afro-Antillean flavors; generally more savory than spicy relying on garlic, onion and cilantro for flavor. By the way, there wasn't a taco or burrito insight!

It seems everywhere we go we find countries touting the quality of their coffee and Panama is no exception. We’ve all heard about the great coffees from Brazil, Colombia, Ethiopia, Indonesia, Hawaii, Guatemala, Vietnam and so forth. But did you know that Panama’s Geisha-brand coffee is among the most expensive in the world and was priced at auction last year at nearly $14,000 per pound for the best grade? Lesser grades sell for up to $250 per pound and single cups in specialty cafes can cost $100. We tried their lesser priced variety and it seemed lighter and tastier than most, but probably not worth the stated premium price. Other good Panamanian brands are Palo Alto and Duran.

We took a daylong trip to San Blas, which is a collection of islands on the Caribbean (Atlantic) side of Panama to visit  the autochthonous (ie, fancy word for indigenous you’re unlikely to ever hear again!) Guna people and to swim. Imagine that, a chance to swim in both the Atlantic and Pacific Oceans on the same day! By the way, Panama is also the only place on earth where you can see the sun rise over the Pacific and set in the Atlantic (Caribbean), and all in the same day!!

Traveling through the San Blas mountains was an hour long roller-coaster ride in a 4×4 along a steep, narrow, winding road with ups and downs I estimate exceeded 30 degrees in many cases. Our driver was superb and made the trip in half the time less familiar and less skilled drivers might take. Unsurprisingly, to say Panamanian drivers are aggressive is an understatement. We experienced several near accidents during  that day.

During our mountain trek I noted several houses with a swastika insignia on red and yellow flags and wondered if we had wandered into the local chapter of the Aryan brotherhood. In fact, it is the flag of the Guna people and represents their 1925 revolution and subsequent independence from colonialism. The swastika is an ancient cultural symbol  that may symbolize the octopus that created the world. Whew! Never heard that one before but that interpretation sounded much less threatening than my original supposition. 

You should be aware that we have taken many tours of this kind in Europe, Central and South America and despite the great ride in the mountains, this San Blas trip was the worst we ever experienced in many ways; it was unsafe, unsanitary, uncomfortable, unorganized, and worst of all, noneducational; its purpose  was to explore the Guna people, yet we learned nothing about them on this trip.

The trip ran 16 hours, although it was planned as a 12 to 14 hour trip. Travel to and from accounted for 8 hours and at least another 3 hours was wasted time waiting. By the time we arrived at the harbor, which is a filthy, unsanitary and a potentially hazardous environment, we were completely disgusted.

We spent 16 hours in extreme heat without access to basic toilet and wash facilities, or even a place to change clothes for bathing. (Papillion had better facilities on Devil's Island.) The agenda changed throughout the day, and were kept in the dark by the guides who barely spoke English and offered no insight into the day’s attractions; we visited  4 islands instead of the 2 indicated in the brochure, and ended up departing at 5pm instead of the stated 3pm.

The breakfast was barely half a sandwich with a can of pear juice, given to us without a place to consume it; the lunch bears the distinction of being the worst meal we've eaten in Panama, petrified fish and dried up plantains; a major disappointment considering that all of the fish we've had here is the best we've had anywhere in the world.

In all, our week in Panama was a good trip, educational and relaxing. We never knew Panama featured so prominently in our hemisphere. We encourage all to visit but know that travel to Central and South America is not comparable to European travel. English is not prevalent, communication is not robust, clear, timely and is always subject to change, and tourism is not a well-honed industry. Reputable guided tours are a must and know that some of the tours will involve risks and discomforts that are unheard of in the US or Europe. Ask many questions!