The country gained its independence almost over a century ago and broke free from foreign influence over its world famous canal in the year 1999. Now it holds a population of just 2.8 million which is consists of a good balance between various cultures and races. Panama also has a good percentage of indigenous people or "Amerindians" and semi-natives. Just the location of the country and its people make Panama already a very unique and excellent as a tourist destination.

Panama has as yet 1,398 registered tourist destinations of which 72% are natural sites and 28% are sites celebrating the historical and cultural heritages of Panama. The country also has a tropical climate with an average temperature of around 85 F (29.5 C) and very diverse landscape ranging from as low as sea level and as high as 3,475m above sea level. The country also has a wide variety of tropical landscape which includes rainforest, cloud forests, pristine beaches, over 900 species of bird and 1500 species of trees. The country is alive with natural beauties seducing thousands of nature loving tourists every year.

The spoken languages are Spanish and English, but most of the population speaks just Spanish. Panama is a dollarized economy and a perfect mix between the modern world and its cultural heritage. A large amount of people each year come just to visit the Panama Canal as it is the shortest shortcut by water and experience the history attached to the structure. Panama provides sustained political stability and legal security.

There are a large range of activities for the tourist to enjoy in Panama. Panama has a range of world famous pristine beaches which includes beaches that have been included in the list of the top 20 beaches in the Americas. Panama also has the largest shopping mall in all of Central America which poses as a strong attraction for a lot of visitors. And for accommodations Panama has a wide range of hotels offering kinglike luxury to hotels that are decent and cheap. And surprisingly the night life at Panama is an amazing experience. The Panama City offers a wide range of activities including partying, gambling, eating out at delicious restaurants, etc.

The tourist industry of Panama has been experiencing a boom since the year 2005. In the year 2006 992,000 tourists and excursionists visited the country. The government has been providing tax incentives for projects in special tourism zones. Incentives such as 100% income tax exemption for the period of 15 years, 100% property tax exemption (including land), and 100% exemption from import duties for 20 years, etc. The government has increased its minimum investment in the metropolitan area to US$3 million and US$50,000 to the rest of the country.

Panama is turning out be an actual tourist paradise. Panama seems to have all the ingredients and it seems to offer all the incentives for tourist to help it become one of the major tourist destinations in the world. And it is well on its way in becoming one.