The 10 best things to do in Casco Viejo, Panama City’s historic heart

Every visit to Panama City should begin in its historic, soulful old town. The neighborhood of Casco Viejo – also known as Casco Antiguo, and less often, as San Felipe – is the hippest part of this cosmopolitan city, and this is where just about everyone falls in love with Panama’s vibrant capital.

The top things to do in Casco Viejo cover everything from stopping in at cool coffee shops and sampling ceviche (raw fish marinated in citrus) to admiring streets lined with historic buildings and shopping for that quintessential souvenir of a trip to this Central American country: a Panama hat. It's all well worth a few days of your time.

And Casco Viejo is quite the looker. This compact, UNESCO-listed district is a wonderful mix of centuries-old churches, narrow cobblestone streets, and restored, rainbow-hued neoclassical buildings with romantic, wrought-iron balconies. Sitting back in a rooftop bar and looking out over the scene is one of Panama City's great pleasures.

Though humble in size, Casco Viejo is also the setting for many of the capital's top restaurants and trendiest bars, and its historic buildings have scintillating stories to tell. To help you plan, here are 10 of the top things to do in Casco Viejo, Panama City.

1. Stroll Casco Viejo’s cobblestone streets

A stroll through Casco’s cobblestone streets is a highly rewarding activity, and it's easy to get here by taxi or rideshare from other parts of Panama City. Police patrols keep crime levels low, so you can feel comfortable exploring at your own pace and admiring the historic buildings on all sides.

Casco Viejo spills onto a small peninsula in the south of the capital, near the mouth of the Panama Canal. Dominated by four palm-lined avenues and four main plazas – Plaza de la Independencia, Plaza Herrera, Plaza Bolívar and Plaza de Francia – the neighbourhood is studded with Spanish-era houses, churches and civic buildings. Some are faded and thirsty for a fresh lick of paint, while others have been stylishly restored as apartments, restaurants and boutique hotels.

Creating a bright counterpoint to the area's mix of elegance and decay are numerous murals by Rolando “Rolo” de Sedas, which enliven Casco’s streets. This Panamanian artist is known for transforming urban spaces using colorful, patriotic iconography.

Planning tip: Even though the area is a tourist hub, the streets are relatively free of hawkers, leaving you free to enjoy the street art and cool cafes in peace. For a meal or drink, pop into Hotel la Compañia, built as a Jesuit convent in 1688, or the American Trade Hotel, which, at three stories, was once the tallest building in the whole city.

2. Learn about the Panama Canal

Building a cross-country canal to link the Pacific and Atlantic oceans was a wildly ambitious project – one that came to fruition in fits and starts, and at a tragic human cost. Work started on the now-iconic waterway in 1880, and by the time of its completion in 1914, some 25,000 canal workers had died, mostly from tropical diseases. Nevertheless, it secured the nation's economic future.

Today, this extraordinary feat of engineering is one of the top things to see in Panama and a source of great national pride. You can get an introduction to the story of the canal without leaving Casco Viejo's cobbled streets at the Interoceanic Canal Museum (also known as the Panama Canal Museum).

Located in one of the neighborhood’s most handsome historic buildings, this interesting museum displays photographs, documents and objects that narrate the history of the canal – and of the country of Panama itself – in vivid fashion.

Planning tip: After visiting the museum, add on a side-trip to the Miraflores Locks, dividing the canal from the waters of the Pacific Ocean. An essential stop for any visitor to Panama City, the Miraflores visitor center is about 9km from Casco Viejo, an easy trip by bus, taxi or rideshare.

3. See a true treasure at Iglesia de San José

Casco Viejo is dotted with historic churches from the Spanish era, and the Iglesia de San José is worthy of special attention. Its extraordinary Altar de Oro (Golden Altar) is a true treasure – with a legend to match.

The story goes that when the Welsh privateer Henry Morgan attacked Panamá Viejo – the original colonial settlement on the site of Panama City – in 1671, Jesuit priests painted the altarpiece black to disguise its true value. In fact, the painting tale is probably apocryphal, but it's still a masterpiece of gilded wood carving.

The baroque altar was later moved to its current location in Casco Viejo, where it stands today – the only relic to have been salvaged after Morgan’s devastating attack.

Planning tip: There are six more churches of note in Casco Viejo, including the striking Catedral Basílica Santa María la Antigua, whose white towers overlook Plaza de la Independencia.

4. Rock a Panama hat

Worn by everyone from gold rush pioneers to US presidents – not to mention spies the world over – the Panama hat has become synonymous with this Central American nation. Actually Ecuadorian in origin, these straw hats are now sold everywhere in Panama City, with the best shops charging as much as US$800 for a premium hat.

Victor’s Hats on Avenida B in Casco Viejo has rows of shelves displaying Panama hats in a variety of styles and colors. If in doubt, stick to the classic version, in pale, natural tones. Inexpensive versions are sold at market stalls across the city.

Insider tip: As a general rule, the tighter the weave, the pricier the hat. Note that the Panama is designed to be a sun hat – keep it dry as it can lose its shape in the rain.

5. Tuck into ceviche at Mercado de Mariscos

At the beginning of palm-fringed waterfront boulevard Cinta Costera, the lively Mercado de Mariscos is Casco Viejo’s ever-lively fish market. This is where fish hauled in fresh from the Pacific are sold wholesale, before being cooked into seafood dishes at homes and restaurants across the city.

Stalls display huge spiny lobsters on ice, neatly stacked fillets of fish and piles of freshly caught shrimp – come early in the morning (it's open from 5am) to see the market at its best. At the restaurant upstairs, you can enjoy the catch of the day cooked to order, and also sample tangy, citrus-heavy ceviche, served heaped into Styrofoam cups.

Insider tip: The local ceviche is best paired with an ice-cold beer. The market winds down by around 5pm, but the restaurant stays open till the evening and the Balboa beer is always frosty cold.

6. Sip Panama's finest coffee

There’s coffee, and then there’s Gesha coffee, Panama’s most-prized brew, and one of the world’s finest (and most expensive) varieties of coffee. Originally brought over from Ethiopia, Gesha coffee beans were found to thrive in Panama’s humid climate, particularly in the high-altitude Chiriquí region around Boquete.

But you’ll have to save your dollars to enjoy it – particularly high-grade batches of Gesha coffee have sold for as much as US$30,000 per kilogram. Even for a casual cup in a Panama City cafe, you'll likely pay more than US$10. In Casco, you can sip the so-called "Champagne of coffees" at Café Unido or Tiempos in the American Trade Hotel.

Planning tip: You'll sometimes see Gesha coffee sold as "geisha" coffee, but this is simply a translation error – the name refers to Ethiopia's Gori Gesha forest, and there's no Japanese connection.

7. Admire the seafront views from Paseo Esteban Huertas

Casco’s fascinating streets are packed into a small peninsula that juts out into the Pacific, and the water views from here are impressive, with giant ships waiting to pass through the canal set against the skyscrapers of downtown.

The best outlook is from Paseo Esteban Huertas, a pretty promenade built atop the old city’s outer wall. Under a canopy of bougainvillea, this scenic path runs from Plaza de Francia to the former Club Unión, which stood in for a Bolivian villa in the Bond flick Quantum of Solace.

Planning tip: Along the waterfront, Indigenous Guna women sell the embroidered molas (handmade textile panels) for which the country is famous. Look out for scenes of birds and animals and abstract patterns, created using colorful stitching and appliqué work.

8. Get into the spirit of rum at Pedro Mandinga

Rum was the fuel of Central America in the colonial period, and Pedro Mandinga is Panama’s first artisanal craft rum distillery, and the first dedicated rum bar to open in Casco Viejo. Tropical-print armchairs, rattan ceiling fans and vintage salsa records make this an easy spot to while away an afternoon.

Before ordering your drink, ask to sample the silver and spiced house rums made with rapadura pure cane sugar. While the menu here boasts a great collection of cocktails, nothing beats the Mandinga mojitos.

Planning tip: If you're watching your budget, happy hour specials are offered daily from noon to 6pm.

9. Admire Casco Viejo from above at a rooftop bar

Casco is the city’s nightlife hub, with an impressive number of rooftop bars hidden away atop the neighborhood's historic mansions. As well as getting a great vantage point overlooking the old town, you can enjoy Panama’s year-round warm weather.

Lazotea, atop the stylish boutique Hotel Casa Panama, offers sparkling skyline views and a chance to dip in the pool between beverages or bites (this was the first rooftop in the old town to have its own pool). The rooftop bar at Tantalo is also eternally popular, while Casa Casco is where well-dressed Panameños go for 360° views of the city and the bay.

Planning tip: The best season for enjoying Casco's rooftop bars is from December to April, when the skies are clear of rainclouds. Grab a table at sunset for maximum atmosphere.

10. Sample the rich flavors of Panamanian cuisine

For soul-nourishing and highly photogenic updates of traditional Panamanian cuisine, don’t miss Fonda lo Que Hay, one of the best restaurants in Casco Viejo (and all of Panama). Whatever else you order on the frequently refreshed menu here, try the deliciously dressed patacones (twice-fried plantains).

Other good foodie stops include La Pulpería, a seafood specialist with a nostalgically themed dining room, and Kaandela, which takes Panamanian cooking into fusion territory. For a more globe-trotting menu, try Santa Rita, where the menu riffs on Spanish and Argentinian delicacies. At all these restaurants, creative cocktails are the drinks of choice.

Planning tip: If you just want to grab a snack on the go, vendors sell everything from empanadas (stuffed pastries) to carimañolas (yuca fritters) at the Mercado San Felipe Neri.