Panama's skinny S-shaped squiggle forms a land-bridge between North and South America. Triple the size of Belize yet barely the size of Ireland, Panama measures 716km at its widest point with its narrowest stretch just 50km. Blessed by 1600 islands and 480 rivers, the isthmus is home to 940 bird species, 10,000 plants, wild jungles, gorgeous beaches - not to mention pristine coral reefs and waters rich in marine life. Until the early 20th century the Panamanian terrain was wholly intact: then the Canal became the world's most famous short-cut. As a celebrated feat of engineering, the Panama Canal created a freedom of transit that revolutionised global transport. Today, 15,000 cruise ships glide majestically into port hemmed by vast swathes of bird-filled rainforest, high-rise cities and nine ancient indigenous tribes.

As the famous entrance to the imposing Panama Canal Cristobal's winding 80-kilometre (50-mile) stretch of water cuts through vast rock faces and vine-tangled jungle. Ant-clad creepers trail into the Canal's murky depths while giant palms are home to monkey and sloth. Transiting cruise-passengers enjoy a privileged view of the flower filled watershed edged by towering ferns. Take an elevated up to the balcony at Miraflores Locks for a bird's eye panorama of cargo ships and locomotive ‘mules' - and be sure to have a camera at the ready.

Highlights:
• Take a canopy ride high up into the tree tops at Gamboa Rainforest.
• Visit a traditional Embera settlement on the mighty Chagres River (Rio Chagres).
• Spot rare endemic and migratory birds on Gatun Lake (Gatun Largo).
• Discover old ramparts, canons and fortifications in 16th century Portobelo.
• Kayaking the watershed of the Panama Canal, spotting caiman.
• Transit Panama ocean-to-ocean on the world's first Trans-Continental railroad.

Instituto Panameño de Turismo (IPAT) (Institute of Tourism)
Vía Israel, San Francisco, Panama
Tel: 226 7000.
Website: www.visitpanama.com

A duty-free shopping hub, Panama offers a good range of inexpensive international luxury brands and goods in sleek, air-conditioned malls. Sportswear, electronics and designer names are particularly good value - discounting as much as a third off the price. Local items include Ngobe Bugle-crafted beaded necklaces, Embera palm-woven baskets, Kuna Indian molas (colourful overlaid textiles) as well as colourful hammocks, Tagua Carvings (nuts) and painted ceramics.

Panama's local dishes are good and wholesome with ceviche (fish marinated in lime juice, onions and peppers), patacones de plátano (fried plantain), sancocho (Panamanian stew with chicken, meat and vegetables), tamales (seasoned pie wrapped in banana leaves), carimañolas and empanadas (turnovers filled with meat, chicken or cheese) much-loved staples. Seafood appears on every menu with octopus, lobster, shrimp, clams and sea-snails all particularly good. A strong US influence prevails in Panama's major cities where fried chicken, Tex-Mex, pizza and burgers are easily found along with plenty of Chinese noodle joints

Year-round temperatures vary little. The rainy season lasts from May to November but generally brings showers late afternoon and overnight.

Panama

GMT - 5.

Balboa (B) = 100 centavos.

Spanish; English is widely spoken.

South America, Panama.

3.2 million.

Republic, gained independence from Colombia in 1903.

Christian, with the Roman Catholic faith is the country's predominant faith; Muslim, Jewish minorities.

Of Panama's 9 indigenous tribes, only three have retained their individuality and traditional lifestyles: Ngobe Bugle, Embera and Kuna. Each has its own believe system and cultural sensitivities. Permission should be sought, for example, before photographing the Kuna and a fee paid to a tribal chief.

Tipping: 10 to 15% is customary in hotels (where it is added automatically) and restaurants.