Panama City

Panama City is the political and administrative centre of the country and is also its capital and largest city. Located in the Pacific entrance of the world-famous Panama Canal, Panama City hosts many high-rise buildings yet is surrounded by tropical rainforests to be enjoyed on Panama vacation.

The city was founded in August 1519 by Spanish conquistador Pedro Arias Dávila. It became a stopover point on the trade route from which all the gold and silver that Spain took from the Americas passed through. It was also the starting point for the expeditions that eventually conquered Peru’s Inca Empire. Pirate Henry Morgan destroyed the city by setting fire to it in 1671 and the inhabitants were forced to resettle 8 km (4.9 mi) away. This new city was re-established on 28 January 1673 and the old city’s ruins are a popular tourist destination.  Panama City became the capital of the country upon independence from Colombia in 1903.