Q (Guest Post) Recently, Panama has received a lot of buzz and unwarranted publicity in the media as being the new Costa Rica for relocation. Remember! There is only one Costa Rica, which is often imitated but never equaled and is the pioneer country and benchmark for relocation and retirement.
Here are a few precise reasons why Panama will NEVER replace Costa Rica:
- Panama is limited and has only a few suitable places to relocate to: Panama City with its traffic, suffocating heat, and high air conditioning bills; the nearby beach town of Coronado, and Altos del María 1.5 hours west of Panama; El Valle de Antón, a famous mountain village about a 2.5-hour drive from Panama City; Pedasí, a coastal town and district on the southeastern tip of the Azuero Peninsula; David in the northwest and Panama’s second largest city with an average year-round temperature of 86°F.
- Both Boquete and Volcán, in the mountains, are around 27 miles from David and have cooler weather and a community of around 3,000 to 5,000 English-speaking expatriates. It is only a matter of time before the area becomes overrun with foreigners. Clients who took a Panamanian relocation tour reported that, other than the places above, the 300 miles between Panama City and the northwest part of the country is virtually desolate and really not desirable for expat living.
- There are no commercial airports or flights directly from Boquete. The closest facility is Enrique Malek International (DAV) in David, located about 27 miles south of Boquete. While David’s airport has “international” in its name, it primarily handles domestic connections to Panama City, requiring you to catch an international flight out of Tocumen International Airport (PTY) in Panama City. This could be a factor if someone requires specialized or emergency medical care only available in Panama City.
- On the other hand, Costa Rica has scores of beautiful mountain towns and more than 500 named beaches spread across roughly 800 miles of coastline. The country’s Central Valley makes up more than a fifth of the country’s total landmass; stretches roughly from San Ramón in the west to Paraíso in the east; has nearly three-quarters of the nation’s population; and boasts year-round spring-like weather. In fact, the town of Atenas in the Central Valley is touted as having the best climate in the world by National Geographic.
- Panama boasts of its perks for retired expats, but Costa Rica has similar discounts. Private hospitals give a 10% discount or more to seniors; most bus fares are 100% free for those over 65; pharmacies also offer discounts; and food is cheap once one gets settled and knows where to shop for bargains, like at farmers’ markets and take advantage of sales at supermarkets. Several of the latter enable customers to acquire bonus points which they can later exchange for food or merchandise.
- Traditionally, Costa Rica is more politically stable, as a recent article in Yahoo News pointed out. Since 1948, when the army was officially abolished, the country has been more peaceful than its neighbor to the south. Only after the S. invasion ousted dictator Manuel Noriega in 1989 did Panamá reduce its military in 1994.
- Panamanians have a reputation for not being as friendly as Costa Ricans. There is a lingering resentment among some Panamanians that remains from when the U.S. controlled the Canal Zone for 96 years, during which time many Panamanians were relegated to being second-class citizens. Human rights organizations placed the civilian death toll at up to 3,000 or more when the U.S. ousted dictator Manuel Noriega in 1989—which did not sit well with Panamanians either. Donald Trump’s rhetoric about the U.S. taking over control of the canal again most certainly angered some Panamanians.
- If conflicts escalated between the United States and its adversaries, commerce passing through the canal could be affected adversely. As a result, Panama’s economy would be hurt since the canal is the main source of the nation’s income. Costa Rica is of no strategic importance.
- Recently, severe droughts have reduced ship traffic through the canal because of the low water level.
- Despite an official national narrative of Panama being a harmonious racial “melting pot,” Indigenous peoples and Afrodescendants face distinct challenges in daily life, economic mobility, and institutional treatment.”
Yes, the cost of living in Panamá is generally lower than Costa Rica’s, and the U.S. dollar is the official currency. However, Costa Rica’s quality of life is better. “Lo que algo vale, algo cuesta(Spanish translation for “You really get what you pay for”).
Finally, the author of this guide is a lover of Latin American culture and its peoples, and has explored every country there. So, if Panama were a better place to live than Costa, he most certainly would be living there.