You know it's a win when a country is all but forced to admit defeat.
The Tico Times, arguably Costa Rica's most trusted news source, is giving the crown to a next-door neighbor as Central America's new tourism hotspot.
I won't even admit my neighbor has cooler Halloween decorations, but that's just me…
Costa Rica has long been the vacation powerhouse of the region, even as El Salvador has totally flipped the script becoming one of the safest destinations in the world.
But another country that's long been more known for Americans seeking to skirt by FDA guidelines, an affordable safe haven for expats, and much to Venice's chagrin, the most famous canal in the world, tourism isn't typically at the top of the list, even with pristine Caribbean shoreline and a vibrant, cultural Old Town that's reminiscent of what Havana should be if they could simply keep the lights on…
It's true, highly underrated Panama is now more popular than Costa Rica, toppling the 3-million visitor benchmark in 2025.
Has Costa Rica Lost Its Luster?
Travelers have long been scoping out various locales across Costa Rica to soak up the ‘Pura Vida' lifestyle.
But their longstanding selling point may need to hire the ShamWow guy for a new angle.
We at Travel Off Path have covered numerous security-related advisories and alerts in Costa Rica over the last couple of years, ranging from violent crime taking place outside San Jose's Juan Santamaría International Airport to risks of being poisoned at hotels.
Hard to believe, right? But it's indeed true.
While well over 2 million travelers pushed those concerns to the side in 2025, another factor is that Costa Rica has gotten more expensive.
Costa Rica used to be one of the best solo destinations on Earth, but without splitting bills, it's become a hard sell.
Therefore, tourism has taken a dip, not just for solo trippers, but across the board. That's where places like Panama come in, especially since their flagship airline Copa Airlines has expanded their footprint in U.S. skies.
According to our own real-time metrics, Panama is more budget-friendly. Plus, large swaths of the country away from bustling Panama City feel undiscovered, such as the seaside village of Portobelo that I had the pleasure of visiting last year, making venturing into the lesser-known more enticing than what's been made of Costa Rica recently.
Diverse Experiences Drive Panama's Rise To Stardom
My tour guide told me Panama is still undiscovered. Truthfully, it did feel that way.
The only major crowd we saw, surprisingly, was a front row seat to the Panama Canal, to witness firsthand the inner workings of one of the most impressive engineering feats in the world.
Beyond that? Even as gargantuan as Panama City felt, sidewalks were largely open without having to zig-zag through selfie sticks or even sit in gridlock traffic.
There's a breadth of discoveries awaiting you in Panama. It doesn't matter if you're a history buff, luxury splurger, foodie, or adventurer craving an untouched Caribbean coastline; this diverse country has it all.
There are name-brand all-inclusive beachside resorts spread across multiple regions, but if you want truly postcard shores, Bocas del Toro should top your list.
Aforementioned, Portobelo was an off-radar hideaway beaming with potential, but makes for more of a day trip or weekend getaway — not your main base despite its tangible history and virgin islands anchored by a single seafood shack.
Of course, your all-but-guaranteed gateway into the country is Panama City, a destination unto itself, really.
One side has a never-ending skyline reminiscent of Dubai, the other a time capsule known as Casco Viejo, where a stay at Hotel La Compañia only levels up your adventure.
Panama's Most Underrated Beaches
Since the secret is now out on Panama, you might be best suited to scope out ‘hidden gems' within this former hidden gem.
Portobelo still hits the mark, but what about the others?
Our friends at International Living just compiled a list of the world's top 25 undiscovered beaches.
Guess who led the charge?
Yep, Panama.
For virtually crowd-free, undeniably authentic sunny paradises, check out these 4 beach escapes:
- Venao
- Cambutal
- Las Lajas
- Bocas del Toro
Find Your Panama Escape
Move over, Costa Rica. Panama is officially Central America's new tourism king! Take this quick 3-step quiz to find the perfect budget-friendly, undiscovered destination for your next trip.
What is your primary vacation goal?
How do you feel about crowds?
What is your ideal daily activity?
Your Match: Panama City & Casco Viejo
The Urban Explorer's Dream.
Why It Fits: Panama City is a destination unto itself! On one side, you have a never-ending skyline reminiscent of Dubai. On the other, you have Casco Viejo, a beautifully preserved time capsule. Book a room at Hotel La Compañia and enjoy exploring without the usual tourist hordes.
Your Match: The Panama Canal & Portobelo
The History & Engineering Buff.
Why It Fits: Witnessing the inner workings of the Panama Canal is an absolute must-do. Pair that with a day trip or weekend getaway to the seaside village of Portobelo, an off-radar hideaway beaming with virgin islands and incredible local seafood shacks.
Your Match: Bocas del Toro
The Postcard Caribbean Paradise.
Why It Fits: Skip the expensive and increasingly crowded resorts of Costa Rica. Bocas del Toro offers exactly what you are looking for: untouched, postcard-perfect shores, incredible snorkeling, and a budget-friendly luxury experience that feels wonderfully undiscovered.
Your Match: The Undiscovered Beaches
Venao, Cambutal, or Las Lajas.
Why It Fits: The secret is out on Panama, but there are still hidden gems within this former hidden gem! Skip the bustling capital and head straight to beaches like Venao, Cambutal, or Las Lajas. These spots recently topped lists of the world's best undiscovered beaches, offering incredible surf and a true, laid-back escape.
