When I think of Panama it's the Panama canal which springs to mind first. I watched a TV documentary about the construction of the Panama Canal which related how the project was completed at a cost 25,000 lives. However I recently read an article extolling the virtues of living in Panama. Evidently in Panama you can have twice the lifestyle at half the cost. I have to say looks pretty impressive in this photo.
Panama city is located at the Pacific mouth of the Panama canal. As a major port it is renowned as a shopping centre. There are three distinct parts to the city, Panama Viejo, the 16th century ruins, the 17th century colonial city, Casco Viejo and the modern skyscraper city. The Panama Carnival sounds like one gigantic party. The Carnival dates vary but it's held over 4 days in January or February. Panama offer some of the best bird watching in the world with over 950 species to spot. There also plenty of watersports with surfing and snorkeling.
Sounds like there's something for everyone in Panama, it's a pity that it's so far from the UK.