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CAPITAL PANAMA CITY - POPULATION 3.2 MILLION - AREA 78,200 SQ KM - OFFICIAL LANGUAGE SPANISH

Yet another of Central America's grand combinations of culture, beaches and abundant wildlife, Panama has as yet nowhere near the tourist traffic of its neighbor Costa Rica. Twenty-five thousand expats – brought here by Panama's multitude of international banks – are pleased to call the country home, lending an global flavor to Panama City's own brand of 'wildlife' found in its red-hot bars and nightclubs. To discover hidden treasure, head out to the inaptly named Isla Grande, a tiny island hideaway with a community of just a few hundred, and which, with no dive-shacks to lure the underwater brigade, is the perfect place to laze on a beach without a flipper or oxygen tank in sight.

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