Hikers, take note. Panama's hilly and densely forested landscape lends itself to exploration on foot. Just two hours from Panama City, El Valle de Anton is a picturesque valley spanning a massive dormant volcano crater. Several well-maintained trails extend from the village through the forest and past waterfalls to the crater rim's highest point, known as La India Dormida (the sleeping Indian woman).
Afterwards, soothe your aching legs in the thermal baths at Pozos Termales. The western highland town of Boquete is well-known for hiking as well. Nearby, Baru Volcano National Park rises to Panama's highest point at 11,000 feet. A more moderate option, the Lost Waterfalls Trail, rewards hikers with three cascading waterfalls in less than three miles. Don't forget to pack a dry bag.