Known for its cool, fresh climate and pristine natural environment, the small alpine town of Boquete is nestled into a craggy mountain valley 35km (22mi) north of David. It's a fine place for walking, birdwatching, horseriding and enjoying a respite from the heat of the lowlands. Flowers, coffee and citrus fruits are grown in the area and the town's Feria de las Flores y del Cafe is a popular annual festival held in January. Boquete is a good base for climbing 3475m (11,400ft) Volcán Barú, 15km (9mi) west, or visiting the volcano's 14,300-hectare (35,320-acre) national park.

This charming and historical island, 20km (12mi) south of Panama City, has an attractive beach, some lovely protected rain forest, and is home to one of the largest colonies of brown pelicans in Latin America. Known as the Island of Flowers, because at certain times of the year it is filled with the aroma of sweet-smelling blooms, the island is a favorite retreat from the city. Taboga has a long history and was settled even before Panama City. There is a small church here, claimed to be second oldest in the Western Hemisphere, and Pizarro set sail from here for Peru in 1524. The island's annual festival is July 16, and involves nautical processions and celebrations. Taboga is a one-hour boat trip from Balboa.

The Canal is both an engineering marvel and one of the most significant waterways on earth. Stretching 80km (50mi) from Panama City on the Pacific coast to Colón on the Atlantic side, it provides passage for over 12,000 oceangoing vessels per year. Seeing a huge ship nudge its way through the narrow canal, with vast tracts of virgin jungle on both sides, is an unforgettable sight. The easiest and best way to visit the Canal is to go to the Miraflores Locks, on the northeastern fringe of Panama City, where a platform offers visitors a good view of the locks in operation. There's also a museum with a model and a film about the Canal. Boats leave Balboa, a western suburb of Panama City, for a five-hour tour through the locks to Miraflores Lake.

The capital of Panama is a modern, thriving commercial center stretching 10km (6mi) along the Pacific coast from the ruins of Panamá Viejo in the east to the edge of the Panama Canal in the west. The old district of San Felipe (also known as Casco Antiguo or Casco Viejo) juts into the sea on the southwestern side of town. It's an area of decaying colonial grandeur, striking architecture, peeling paint and decrepit balconies. Attractions include the 17th-century Metropolitan Church, the Interoceanic Canal Museum of Panama, the Plaza de Bolívar, the presidential palace, the History Museum of Panama and the sea wall built by the Spaniards four centuries ago. Via España's banking district is the complete opposite to this yesteryear charm, with aggressively modern buildings and sophisticated entertainments.Attractions on the fringes of the city include the Panama Canal, the 16th-century ruins of Panamá Viejo, the Summit Botanical Gardens and Zoo, the tropical rain forest of the Parque Nacional Sobreranía and the 265-hectare (655-acre) Parque Nacional Metropolitana.