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As Panama's tourism boom in the recent years, several hotels have developed correspondingly to accommodate the rising demand of accommodation for tourists. Hotels may be located in the beaches, highlands or within the city of Panama. Government support to tourism has also added to its boom as tax incentives have been given to Special Tourism Zones. As more tourists consider Panama for their holiday destination, Panama has developed its tourist's attraction as well. By word of mouth, tourists are added more each year in different season although the peak tourist month in Panama is from November to January.

One of the main tourist attractions of Panama is the popular Panama Canal and the locks, which is the main economic activity of the nation. Panama Canal is considered to be one of the wonders of the world for its engineering aspect. It accommodates about 13,000 ships under 70 nations. Ships that pass through the Atlantic to Pacific oceans are designed to fit Panama Canal's sets of double locks. The Canal's length is approximately 50 miles. The average ship toll of the Canal is 30 thousand dollars. Ships that want to save from toll fees travel around Cape Horn. Tourists can see how the Canal works by watching through the Miraflores Locks. Here, the platform, guide, and museum of the Canal's model and film can be viewed. Miraflores Lock is open starting 9 am and closes at 5 pm with free entrance. Most tourist agency offers tour to the Canal. If you are not under agencies and want to look at the place, you can go by bus from Plaza Cinco de Mayo.

You can also see main tourist attractions of Panama as you drop within the city. You can readily stay and visit the largest shopping mall. The city has the second largest duty free zone next to Hongkong. Also you can see its popular skyline as you walk through. Included in main tourist attractions of Panama City are the Panama Viejo and the remains of the first city of Panama built by the Spaniards. Behind the city is the Metropolitan National Park that features various wildlife that includes sloths, iguanas, monkeys, deers, and several species of birds. You can also see the Plaza de Francia, the amazing golden Baroque altar of San Jose Church and Santo Domingo Church. Other main tourist attractions of Panama within the city are the Museum of Colonila Religious Art and the World's Heritage Site of Salon Bolivar.

At about 25 kilometers from Panama City is the Soberania National Park which has plenty of hiking trails and wonderful plant and animal life. It is located in Panama Canal's watershed and is one of the most accessible forest areas of the country. Another park that's near Panama City is the Chagres National Park.

Apart from the city, there are many more main tourist attraction of Panama which includes San Blas Archipelago which is a chain of 365 islands in the Caribbean coast, Volcan Baru in Chiriqui highlands and many more beaches in the Pacific coast.