If you’ve never pictured Central America as a modern, thriving hub of economic activity, spend a few vacation days in Panama City and be convinced otherwise. Be sure to book a kid-friendly tour of the Panama Canal, one of the world’s top engineering marvels. It’s worth spending a couple of nights or more here to take in the colorful mosaic tiles, intricate architecture and amazing rejuvenation projects before heading to other regions of Panama. Our favorite kid-friendly hotel offers the best of the city’s Old World charm and updated conveniences, all in a perfect setting for sightseeing.

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