Panama is just beginning to realize its potential for international tourism and repatriation: protected rain forests, exotic wildlife, mountains, historical sites, beaches, coral reefs, deep-sea fishing, Spanish-colonial architecture and thriving Amerindian cultures. In addition the Panama Canal, one of the greatest engineering feats of the 20th century, offers a major attraction for cruise-ship passengers and provides a significant income stream for this emerging economy. With a multitude of marinas, tours and attractions, Panama is still a somewhat hidden gem for the international tourist or investor.

Since it took control of the Panama Canal in 1999, Panama has begun its aggressive campaign to carefully develop potential. More and more luxury hotels are being built; roads and other infrastructures are among the best you'll find in Central America. In many respects, we think Panama is more attractive than neighboring Costa Rica. And because it's still less popular than Costa Rica, travelers will find lower prices, fewer crowds and the feeling that they're discovering a well-kept secret.

"Modern Maturity", newsletter of American Association of Retired Persons (AARP), ranks one region in Panama among the top four 'best places to live abroad' in the world. International Living identifies Panama and Panama City as the best place in the world for living outside the United States.