Panama: it's time to investigate the riches of this Central American beauty

The Man Who Pays His Way

Panama City is one of the region's most alluring capitals

(Simon Calder)

Poor Panama. Of all the countries of Central America, this S-shaped spine of mountains and jungles, decorated by a sprinkling of offshore islands, is arguably the most alluring to travellers. The República de Panamá offers world-class beaches, premier-league wildlife and outstanding trekking, as well as the only agreeable capital city in the region (though, I concede, Guatemala City, Tegucigalpa and Managua hardly comprise testing competition).

This is the country that links the Americas. Add to that the “big ditch”, the canal that connects the world’s two greatest oceans, and who wouldn’t want to be on the next plane to Panama City? Look, Emirates made a huge fuss about launching the world’s longest flight, from Dubai to the capital! Oh dear: then the airline made a very small fuss about postponing the flight until next year, amid rumours of poor sales for the new link.

Perhaps one reason is that the locals and expatriates in the UAE aren’t gripped by the notion of a holiday in Panama. Those with long memories may recall the American invasion of the country in 1989, in which General Manuel Noriega was removed from office by US forces. As part of “Operation Nifty Package”, they played heavy metal music at deafening volume until he emerged from the Vatican embassy, where he had sought sanctuary.

For the Pentagon in the Eighties to oust a right-wing military dictator in Latin America, “Old Pineapple Face” must have been a very nasty piece of work indeed.

Even when he was in prison in Florida, Panama’s reputation was barely enhanced. I travelled there rather often in the 1990s. Each time the capital had sprouted several more high-rises - money laundering on an industrial scale, I was quietly assured. It helped that the national currency, the balboa, actually turned out to be the US dollar. This was the country where questions were not asked (except once when I walked in from Colombia while skirting around the scarier parts of the Darien Gap with my pal Mick, much to the surprise of the local commandant in the town of Puerto Obaldia. The national motto could be, in the words of John Keats, “Silent, upon a peak in Darien.”

The silence has now been broken. Until last week you and I had not heard of Mossack Fonseca; now we know much about this interesting law firm, its clientele and its methods. And the route-planning team at British Airways is no doubt breathing a huge sigh of relief that it chose San José, capital of neighbouring Costa Rica, rather than Panama City as its next long-haul addition from Gatwick.

This city - this country - was built on gold, and its position as the shortest crossing point between the oceans. The ruins of Panama Vieja, on the outskirts of the modern capital, formed one end of the transcontinental superhighway along which the riches from South America flowed. The other end is the town of Portobelo, now a fine study in decrepitude. Yet despite its reputation, past and present, as a handy conduit for treasure of dubious provenance, Panama has a heart of gold. Everyone, including el comandante in the town on the edge of the jungle, is welcoming, friendly and keen to help you make the most of your stay. The buses are the brightest and liveliest in Central America, and when they reach the end of their particular routes, the hitch-hiking is excellent: I once rode along the Pan American Highway in the back of a pick-up truck on a mattress of freshly picked grapefruit. The driver told me to take a couple, which I devoured hungrily as an appetiser for the next great Panamanian eating experience - from surf, turf or possibly both. If you happen to be a vegetarian, it’s possibly not the place, but for everyone else: Panama right now presents a great opportunity to explore without the crowds. Except, possibly, for international investigators enjoying a few days off.