Below is a link to anĀ article from CNN about budget travel in Panama. For budget travel, it is important to avoid the high season- that is January-March. Every Panama destination has bargain hostels and hotels. Buy a Lonely Planet guide which will have listings of inexpensive but nice lodgings. travel between cities by bus is incredibly cheap and taxis in the city are also very cheap. You can have a great time in Panama on a budget
http://us.cnn.com/2009/TRAVEL/getaways/09/25/panama.travel/index.html
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