Panama has embarked on an extensive hotel expansion programme, not only in Panama City, but also in the countryside and in mountain and seaside areas. Accommodation ranges from international standard to inexpensive country inns, very simple hotels and new resort-style hotels. There is a 10% government tax added to hotel bills. For further information, contact Instituto Panameño de Turismo (see Contact Addresses).

There are a couple of camping resorts in Panama. It is possible to camp on some beaches, and also in the mountainous areas of Boquete and Volván.

For those travelling on a budget, there are many youth hostels in Panama, including several in Panama City and other main tourist areas. They often come equipped with a kitchen and a living room with cable television. Some even have a swimming pool.