Costa Rica vs Panama: Which is Better for Vacation?

Q: Which is Safer: Panama or Costa Rica?

Costa Rica is considered to be safer than Panama. Costa Rica has one of the lowest crime rates in Central America and is more touristy than Panama. However, Panama is a safe country to visit too! Pick-pocketing may occur at every tourist destination, so stay cautious.

Q: Is Panama Hotter than Costa Rica?

Yes, Panama is hotter than Costa Rica . It’s closer to the Equator, so it tends to be hotter and the sunburns are no joke. Also, dry and rainy seasons are more distinct, where the dry season gets very hot, with temperatures often rising over 35 ° C.

If you’re planning a trip to Central America, you may find yourself weighing the pros and cons of Costa Rica vs Panama.

I visited both countries and while these two neighbouring countries might seem similar at first glance, they have quite a few differences.

Panama is best known for the vibrant Panama City and the Panama Canal, but this country hides some of the most beautiful tropical beaches.

From the rainforests to endless adventure activities, Costa Rica has something for every traveller. The night hike to spot wildlife was my favourite.

Let’s find out if Panama or Costa Rica is a better fit for you!

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Costa Rica vs Panama Overview

Let’s start with a quick overview of what you can expect from each country:

Infographic with a light blue background and graphics of 2 palm trees and sand on the bottom. The infographic compares Costa Rica vs. Panama, and the text comparisons say:

Costa Rica
- Incredible nature
- Ecotourism lodges
- Laid-back atmosphere
- Great surfing

Panama
- More affordable destination
- Easier to get around
- More adventure activities
- More diverse landscapes

Cost of Stay

Both Costa Rica and Panama can be visited on a budget, but when you compare the prices you can get more for your money in Panama.

Melissa wearing all-black clothing smiling at the camera, on top of lush greenery in Costa Rica. On her left is a tree, and there are mountains at a distance on a partly cloudy day

Costa Rica Cost of Stay

Costa Rica is the most expensive country in Central America, and you might be surprised to see prices similar to those back home.

While it’s possible to find budget-friendly accommodation and use public transport to get around, it will cost more for more comfortable options.

The infrastructure is not as well developed as in Panama, so you might want to rent a car instead of spending hours on the bus.

Also, the cost of different activities, National Park entry fees, and guided tours quickly add up.

Melissa kayaking in a blue & green coloured kayak at sunset outside her over water hotel in bocas del toro. The hotel is a 2-level wooden building that has a great view of Bocas town in the distance. The hotel sign reads Casa Acuario. While it was a more expensive hotel on her visit to Panama it was still affordable.

Panama Cost of Stay

Overall, I found Panama cheaper than Costa Rica.

Panama has a range of accommodation options for every budget, from luxury over-water hotels in Bocas de Toro to trendy hotels in Panama City.

Panama City is more expensive than the rest of the country. But you can find some affordable spots and once you’re in the countryside, there are many fantastic free things to do.

For example, I loved hiking Cerro Cara Iguana in El Valle and beach hopping in Bocas del Toro.

It is convenient to get around Panama by public transport, saving you money on not renting a car.

Best Things to Do

Both countries offer plenty of diverse activities, from sightseeing to swimming on stunning beaches, wildlife trekking, volcano hiking, and ziplining.

A Central America squirrel monkey, with its eyes closed and looking downward. Its nestled between the lush green leaves in the trees in Manuel Antonio National Park in Costa Rica. Comparing Costa Rica vs. Panama, Costa Rica has a lot more biodiverse nature, including beaches, forests, and mountains.

Costa Rica Things to Do

Costa Rica is known as a go-to eco-tourism destination, so most of the best things to do in Costa Rica are nature-related.

You may spend a day sightseeing in the capital of San Jose, but the real adventure is in the countryside.

Spend several days in the mountain town of Monteverde, a gateway to Costa Rica’s famous Cloud Forest.

Some of the most popular activities in the area are ziplining, wildlife spotting, hiking, and waterfall trekking.

Costa Rica is also a fantastic beach destination, with many stunning beaches along the Pacific and Caribbean coasts.

Melissa looking out at ships going through the Panama Canal at the Miraflores Locks in Panama City. There are some roadways directly below and a lock of the canal in the distance. The Panama Canal is one of the best things to do in Panama and a big draw to visit Panama vs Costa Rica.

Panama Things to Do

Panama might be a small country, but there are many places to see!

Spend at least one day in Panama City. Stroll the historic quarter of Casco Viejo, visit Metropolitan Natural Park, and admire the view from the Amador Causeway.

A visit to the Panama Canal is a must-do activity in Panama, and you can join several different Panama Canal day tours!

Next up, explore Boquete and visit Baru Volcano, the tallest volcano in the country, or head to Anton Valley, the second-largest inhabited volcano in the world!

For a beach getaway, head to Bocas del Toro. This beautiful region offers many fun things to do! You can enjoy snorkelling, sailing, surfing, or hiking!

Adventure Activities

Both Panama and Costa Rica are prime destinations for budget-friendly adventure activities!

Melissa ziplining at a distance amongst green trees in Monteverde in Costa Rica. Ziplining is one of the most unique things to do in Costa Rica when looking at Costa Rica or Panama for those into nature activities.

Costa Rica Adventure Activities

Costa Rica is all about adventure activities in nature.

Ziplining in Costa Rica is a must-try activity, and the best place to do it is in Monteverde’s famous Cloud Forest, where I did it. It was my first time ziplining, and it was so much fun!

You can also go on many different hiking trails. I did the night hike in Monteverde, and it was a cool experience!

The Central Pacific Coast is a fantastic spot for surfing and diving.

Another idea is to hike to natural hot springs around Arenal Volcano or swim in waterfalls like Nauyaca Waterfalls or Lafortuna Waterall.

Melissa wearing a blue jacket facing away from the camera, with her arms raised high, looking at Volcan Baru in Panama at a distance. It's hard to compare Costa Rica and Panama in terms of their nature activities, since both countries have beautiful landscapes.

Panama Adventure Activities

There is no shortage of adventure activities in Panama!

Hiking lovers are in for a treat, I hiked to the top of an extinct volcano in El Valle and took a jeep tour to the top of Volcan Baru to see the sunrise. It was incredible!

You can also combine a hike with swimming in a waterfall on the Lost Waterfall trail in Boquete. I love swimming in waterfalls.

Panama also has incredible ziplining opportunities and its own Cloud Forest!

If you’re not afraid to walk through a dark cave knee-deep in the water, visit Nivida Bat Cave.

Scuba diving in Bocas del Toro is great, but diving in Antigua is still my favourite. Surfing is also possible on Panama’s beaches.

Landscapes & Beaches

Comparing Costa Rica vs Panama in terms of landscape is challenging, as both offer spectacular views.

Melissa at a distance on the beach in Manuel Antonio National Park in Costa Rica. At a distance, there are some large cliffs. There is a thin strip of orange on the horizon with dark clouds and a dark blue sky above, indicating that the photo was taken during sunset.

Costa Rica Landscapes & Beaches

Costa Rica is a nature lovers’ go-to destination for a reason. From lush green rainforests to volcanos and beaches, Costa Rica truly has it all.

Pacific beaches are great for surfing. I watched the surfers in Tamarindo, and it looked like so much fun! I ended up taking a surf lesson in Nicaragua on the same trip.

Also, the beach in Manuel Antonio town at sunset was stunning.

Puerto Viejo, on the Caribbean side, has pristine white sand beaches.

Beautiful pink flowers with green leaves taken from Volcan Baru in Panama, with dark brown mountains at a distance and some clouds covering the sky. This shows that Central America, especially Costa Rica vs. Panama, has gorgeous diverse landscapes like beaches, forests, volcanos, and mountains.

Panama Landscapes & Beaches

Panama offers equally diverse landscapes, mountains, beaches, and volcanos.

It is a great destination for unique landscapes, like the second-largest inhabited volcano crater in El Valle de Antón.

You’ll also find paradise-like tropical islands in Bocas del Toro and San Blas Islands.

And if you aren’t sure about visiting the cities, even they offer a diverse landscape. Go hiking at places like Ancon Hill and Metropolitan Natural Park which are jungles within Panama City.

Weather

Both countries have similar tropical climates with warm temperatures year-round, but Panama has more distinct rainy and dry seasons.

People swimming at a distance at a beach in Manuel Antonio National Park in Costa Rica on a cloudy day, with creamy beige sand and a tree on the foreground. While Costa Rica is a fairly expensive country to visit compared to Panama, swimming in the beach is one of the more affordable things to do there!

Costa Rica Weather

Costa Rica is divided into two sides, the Pacific and the Caribbean, each characterized by slightly different climates with rainy and dry seasons.

The Pacific side has more defined seasons, with the dry season running from December to March. On the Carribean side, it is not uncommon to see rain even during the dry season.

I visited in June, which is the rainy season, but the weather didn’t prevent me from enjoying the trip!

Part of the scuba boat from La Buga Dive & Surf in Bocas del Toro, Panama on the beach, on a sunny day with some clouds. Both Panama and Costa Rica offer snorkelling and scuba diving excursions, especially on the Caribbean sides.

Panama Weather

Panama is closer to the Equator, and the weather is slightly more predictable here than in Costa Rica.

The dry season in Panama runs from mid-December to mid-April, while October and November are considered the wettest months.

I visited in April and October, experiencing both the dry and rainy seasons. Even during the rainy season in Bocas del Toro, it would rain early in the morning and stay dry for the rest of the day.

Food

Central American cuisine is a blend of indigenous, African, Spanish, and Caribbean flavours with lots of meat, rice, and beans. Due to the influence of tourism, many restaurants also offer dishes like smoothie bowls, pizza, and burgers.

A platter of chips, wings, and small bowls of salsa on top of banana leaves, with two tongs on top of them in Costa Rica. This is some of the dishes Costa Rica has to offer as tourism is rising, especially from Westerners.

Costa Rica Food

Most of the traditional Costa Rican dishes are rice-based. For example, you have to try gallo pinto, vigorón, arroz con pollo, and casado.

As the tourism industry is booming in Costa Rica, you can find dishes from every cuisine. It is common for places to serve burgers, sushi, or pizza.

I wasn’t expecting to indulge in pizza while in Costa Rica, but the pizza I had in Tamarindo was fantastic, the cheese was just something else!

Melissa and her partner holding a small white cup of coffee each, above three types of coffee beans served on a wooden board. They are on a coffee tasting tour in Panama, which is known for their coffee more than Costa Rica is.

Panama Food

Traditional Panama cuisine is similar to Costa Rican, with staples like stews, soups, and rice.

You also have to try the coffee in Panama! Panamanians love coffee, and you can even go on a coffee tour in Panama to see the plantations and try fresh coffee!

Overall, I liked the food in Panama better. I loved how empanadas were available everywhere, and the street meat of Bocas Town was delicious.

Culture & Vibe

Both Panama City in Panama and San Jose in Costa Rica have experienced significant Americanization. It is especially pronounced in Panama City, with modern infrastructure and glass skyscrapers.

However, once you leave the capitals, the countries have a very different, laid-back atmosphere.

Melissa swimming on a beach in Manuel Antonio National Park in Costa Rica, with a few people walking and swimming behind her. Right behind her is the shore with sand and lush green trees on a cloudy day.

Costa Rica Culture & Vibe

Costa Rican expression ‘Pura Vida‘ encapsulates the way of life in Costa Rica, symbolizing laid-back vibes and a positive outlook that appreciates the beauty of life.

This unique atmosphere in Costa Rica attracts different types of tourists, from nature lovers to adventure seekers and surfers.

However, Costa Rica can be quite touristy, making it challenging to fully relax and appreciate the scenery when every attraction is crowded with tourists.

Melissa standing on a rooftop patio in Casco Viejo looking out towards Panama City on a cloudy day. Casco Viejo, in the foreground, has lower height historic buildings with mostly red roofs and in the distance is modern Panama City with tall shiny skyscrapers of varying heights and designs. To demonstrate the contrast in the vibe between the capital city in Panama and Costa Rica

Panama Culture & Vibe

As you observe the skyscrapers of Panama City, you might be surprised to learn that it is the oldest continuously occupied European settlement on the Pacific coast of the Americas.

The archeological remains of the original settlement are a UNESCO site!

The rest of the country is not nearly as urbanized as the capital. You can stay in Boquete or smaller coastal towns to enjoy a more relaxed and laid-back vibe.

I like the vibe of Panama more, especially on the islands!

Affordable Accommodations

Costa Rica is considered the most expensive country in Central America, so it will be easier to find affordable luxury in Panama.

Melissa laying down on a pool chair reading a book in Double Tree Hotel in San Jose, Costa Rica. She is in between two empty pool chairs and right behind the jacuzzi and some trees. Comparing accommodations in Costa Rica and Panama, Costa Rica is on the more expensive side, but is not impossible to find cheap, comfortable stays.

Costa Rica Affordable Accommodations

If you want to stay in a modern tree house or another unique, nature-immersed setting, Costa Rica offers a variety of options!

The accommodation in Costa Rica is leaning towards eco-friendly lodges and sustainable resorts, and these are slightly more expensive than regular hotels.

However, you can find affordable options throughout the country, but they won’t be as aesthetic.

My hotel in San Jose was modern but I stayed in more jungle-like settings in Monteverde.

Melissa in a blue one-piece bathing suit walking down the steps into a rooftop pool in Panama City. There are skyscrapers all around with varying designs and heights. The most distinctive are the spiral looking skyscraper and a pair of skyscrapers that have a V-shaped top. Rooftop pool hotels are an affordable option on where to stay when comparing Panama accommodations to Costa Rica.

Panama Affordable Accommodations

The accommodation in Panama City is significantly more expensive than the rest of the country. However, it is still affordable compared to the prices in Canada or the USA!

I stayed in several different hotels with rooftop pools and loved the experience of escaping the crowds and enjoying the view over the city.

Outside of the capital, you can find great options for affordable prices!

Even when looking for places to stay in Bocas del Toro, you can find luxury over-water hotels on a budget.

Transportation

It is easy to get around both countries, by rental car or public transport.

Perspective of Melissa when inside a rental car in Costa Rica, viewing the roads trailing behind a few cars on the freeway on a mountain filled with trees and greenery on a cloudy day. Driving is the best way to get around Costa Rica.

Costa Rica Transporation

I rented multiple cars in Costa Rica, and it was a great way to get around.

While the country might look small on the map, it takes a long time to travel between places because many roads are in bad condition.

I highly suggest you rent a 4×4 when driving outside the main cities. I got an economy rental car that lost a bumper hitting a pothole on a dirt road from Monteverde to San Jose.

Of course, you can always go for buses. They are cheap but take much longer than driving.

A blue coach bus that is the night bus from David to Panama City. Outside the green coloured bus terminal. People are sitting in chairs waiting and lined up in front of the bus to board. Buses are an easy way to get around Panama and are faster than in Costa Rica.

Panama Transporation

You don’t need to rent a car in Panama, and I got around by bus both times I visited.

Yes, Panama is big like Costa Rica, but it’s easier to get around without a car.

Public transport in Panama is reliable and affordable. Night buses are a thing to consider if you want to save time and money on accommodation, but you’ll be sacrificing quite a bit of comfort.

For a more comfortable ride, you can opt for private shuttles. I took a few, and it was considerably more enjoyable.

To reach the islands in Bocas del Toro, you should bus or fly and then use boat taxis. Bringing a rental car to the islands is expensive and redundant.

Panama vs Costa Rica FAQs

Which is Safer: Panama or Costa Rica?

Costa Rica is considered to be safer than Panama. Costa Rica has one of the lowest crime rates in Central America and is more touristy than Panama. However, Panama is a safe country to visit too! Pick-pocketing may occur at every tourist destination, so stay cautious.

Is Costa Rica or Panama More Expensive?

Costa Rica is the most expensive country in Central America, so it is more expensive to visit than Panama. You can find affordable accommodation and things to do in Costa Rica, but you can splurge more in Panama.

Is Panama Hotter than Costa Rica?

Yes, Panama is hotter than Costa Rica. It’s closer to the Equator, so it tends to be hotter and the sunburns are no joke. Also, dry and rainy seasons are more distinct, where the dry season gets very hot, with temperatures often rising over 35 ° C.

So, Is Costa Rica or Panama Better for Your Next Vacation?

Both Costa Rica and Panama are a fantastic tropical holiday destination. The dry season in these countries runs during the winter months, so they are ideal for escaping the cold.

However, if given the choice to visit either Panama or Costa Rica again, I’d choose Panama!

I’ve already gone back twice and can’t wait to be back!

Costa Rica has a well-established reputation as an eco-tourism destination, but Panama offers everything you can see in Costa Rica and more!

From delicious food to kind people, stunning beaches, and mountain adventures, your Panama week-long itinerary will be filled with adventures!