Panama

The archipelago’s most developed island is home to the provincial capital of Bocas del Toro. From the mid-1990s, foreign investors flooded the island, creating hotels, restaurants and condos while infrastructure for water, trash and sewage lagged far behind. Today the island, which runs on diesel, struggles to find a balance between satisfying development and serving community needs.

Boquete is known for its cool, fresh climate and pristine natural surroundings. Flowers, coffee, vegetables and citrus fruits flourish in its rich soil, and the friendliness of the locals seems to rub off on everyone who passes through. Boquete gained a deluge of expats after the American Association for Retired Persons (AARP) named it a top retirement spot. Until you see the gated communities and sprawling estates dotting the hillsides up close, though, you'd be hard-pressed to see what the fuss is about.

Officially known as El Valle de Antón, this picturesque town is nestled in the crater of a huge extinct volcano, and ringed by verdant forests and jagged peaks. El Valle is a popular weekend getaway for urban dwellers in need of fresh air and scenery and is also a retirement community for foreigners, with some 200 resident expats from more than 40 countries. With an extensive network of trails, this is a superb place for walking, hiking or horseback riding. Nearby forests offer excellent birdwatching, and the valleys of El Valle are home to an impressive set of waterfalls and natural pools.

This Caribbean fishing village is so laid-back and languorous, it's hard to imagine it was once the greatest Spanish port in Central America. Mules carried Peruvian gold and Oriental treasures to Panama City via the fortresses at Portobelo. Though English privateers destroyed them many times throughout their history, several of these atmospheric colonial fortresses still stand amid village homes.

Among Central America's top surf spots, Santa Catalina is still somewhat remote with limited development and home to some seriously wicked surf. Life here is pretty tranquil, in a fishing village where skateboards rip down main street and kids go barefoot but clothing is required to walk to and from the beach. Most non-surfers discover the area as the main springboard for day and overnight trips to Isla de Coiba and its national park, where there's outstanding scuba diving and snorkeling.

David is Panama’s second-largest city and the capital of Chiriquí Province. It's more a center of agricultural industry than a cultural hub. Yet with foreign capital flowing into Chiriquí, David is rapidly gaining wealth and importance, and is poised to boom.

Although it’s just a 10-minute boat ride from the town of Bocas del Toro, Isla Bastimentos is like a different world. Some travelers say this is their favorite island in their favorite part of Panama. The northwest coast of the island is home to palm-fringed beaches that serve as nesting grounds for sea turtles, while most of the northern and southern coasts consist of mangrove islands and coral reefs that lie within the boundaries of the Parque Nacional Marino Isla Bastimentos.

Colón Province is much, much more than its run-down capital. Think pristine beaches and lowland rainforests, colonial splendor and the modern engineering marvel of the Panama Canal. Portobelo, with its growing music and art scene, shows the best of the rich culture of the Congos, descendants of enslaved Africans who have preserved the legacy of their ancestors, while the train trip between Panama City and Colón remains one of the greatest rail journeys in the Americas.

For most travelers, the archipelago is Bocas del Toro. Caribbean clichés aside, there’s no shortage of postcard-pretty beaches, emerald waters and swaying palms, and scads of things to see and do.

Cherished as Panama's cultural heart and soul, the Península de Azuero is a farming and ranching hub. The area's rolling hills are matched by a long and lovely coastline. Over time the peninsula has seen stark transformations – from verdant rainforest to cattle country, from indigenous land to Spanish stronghold and, finally, from a quiet town to surf central and one of Panama’s travel hot spots.