The wealthiest city in Panama, with a fascinating modern history, Panama City is a thriving economic center with modern skyscrapers and old colonial ruins lying nearly side by side.  Though not as cheap as many other destinations in Latin America, the unique culture and tropical pace of Panama City make it a sunny, happy, ideal backpacker’s destination.

Start your visit with a walk through the center of town, where you can see much modern infrastructure and visit several interesting museums.  Later don’t miss Casco Viejo, a colonial neighborhood of crumbling historic buildings and cobbled streets.  Dilapidated for now, the area is preparing itself for a major restoration to become a charming seaside neighborhood once again.

For some greenery, head over to Parque Natural Metropolitano, a 655 acres of rainforest full of trails with several pleasant lookout points ideal for taking a rest or bringing a picnic.  Horses are available for rent to traverse the paths, but they are easily manageable by foot as well. 

By day or night, don’t forget your dancing shoes.

•    dancing

Latin Dance Company, located one block from Vía España near the Hotel Riande Continental, offers classes in salsa, merengue and hip-hop for students aged 5 to 65.

That's where I'm headed next, to meet some friends for sunset cocktails at the restaurant perched over the Miraflores Locks. We've all seen it before, but the spectacle of those giant ships passing through combines with the awkward English and melodic Spanish narration to make it memorable every time. So too, is the 12-course meal at Manolo Caracol, where we keep going back as much for the sublime food as for the entertaining attentions of Manolo himself. By now, a midnight swim is in my sights...if I'm not yet a hazard to myself or others.

Whether you measure the pulse of the city by the beat of the salsa clubs on Calle Uruguay or by the staccato of the street vendors' voices in Casco Viejo, chances are you'll slip into the rhythm of this Latin playground. It's a fantastic base to explore nearby rainforest and beaches.

Although not as famous as the celebrations in Rio de Janeiro or New Orleans, Carnaval in Panama City is celebrated with the same level of unrestrained merriment and wild abandon during the four days preceding Ash Wednesday. It is the city's most notable festival.

Officially, the craziness starts slowly with a coronation ceremony on Friday, and a small parade on Saturday that consists of little more than the queen and her court.

Unofficially, the cork is way out of the bottle by then. Vía España fills with people, and everyone is in high spirits and partying in an atmosphere that is sexually charged and free of class distinctions. Music pours from all directions and spontaneous dancing breaks out everywhere.

The celebration kicks into a higher gear on Sunday, the madness peaking on Shrove Tuesday with the biggest parade of all. Floats of all sizes rule the avenue, separated by bands of gaily dressed people walking slowly in themed formations - not the least conspicuous of which is the traditional formation of transvestites.

Carnaval officially closes with the first rays of sunlight on Wednesday morning.

Panama's major sights are found to the west in Casco Viejo, home to remnants of the city's colonial heritage. To the north is Parque Natural Metropolitano, an enormous tract of rainforest that serves as a refuge from big city life. In the south, the Causeway has restaurants, bars and fine ocean views.

You'll find many markets selling a range of handmade goods, from baskets made in Emberá villages to molas from Kuna Yala. Jewelry stores here often have high-quality gems at excellent prices, and you'll find a growing number of malls which highlight the increasing love of Americana in Panama.

Nightlife is stylish, sophisticated and fairly pricey. The well-to-do denizens of Panama City love a good scene, so it's worth scrubbing up and parting with your dough. You might regret blowing your budget in the morning, but that's the price you pay to party with the beautiful people.