Finding cheap overwater bungalows in the Caribbean, or anywhere else in the world, isn’t easy. Staying in an Overwater Bungalow isn’t known for being an affordable way to travel, after all. But what if there were cheap overwater bungalows, right here in the Caribbean Sea?

Look no further than Bocas del Toro, Panama: home to some of the most affordable overwater bungalows in the world!

Bocas Del Toro

Bocas del Toro is a paradisiacal island archipelago tucked away into the Northwest corner of Panama’s Caribbean coast. This off-the-beaten-path destination has beautiful beaches, warm turquoise waters, incredibly lush jungles, rich history and culture, and more than 10 places to stay in an affordable overwater bungalow.

And the best part about it? It’s just a few hours flight from the USA!

Tahiti and the Maldives sound nice and exotic, but getting there from North or South America is a very long and expensive journey. 

Why not save that money and make the short, cheap trip to Panama instead? 

In this article, we’ll explain 7 reasons why we think Bocas del Toro, Panama, is the best place to stay in a cheap overwater bungalow in the Caribbean!

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1. Panama is Cheap and Easy to Get To from North and South America

Panama is famous for being a gateway to the world. Not only because of the Panama Canal; but also because the Isthmus of Panama is what connects North and South America.

Similarly, you could say that Panama City’s Tocumen International Airport also connects North and South America. PTY is the biggest international hub in Central and South America and sends and receives direct flights from all over the western hemisphere. 

Panama’s own international airline, Copa Airlines, offers direct flights from most major cities in the United States (you can check out their flight map here). Most of these flights will cost between $300-$500. Europeans will also be pleased with several direct flights from Spain, Germany, France, and the Netherlands.

The cheapest flights we can find from Los Angeles to Tahiti are upwards of $800. Many people will have to fly to LA first, adding more money to the flight costs.

Check out our post: How to Get to Bocas del Toro, and learn about flying through Costa Rica instead of Panama City.

Panama City Layover: Read – 5 Best Hotels and Things To Do in Panama City

2. Panama has Really Affordable Overwater Bungalows

Why is Bocas del Toro the best place for cheap overwater bungalows in the Caribbean? Because they have tons of cheap overwater bungalows! 

Prices for a night in an overwater bungalow can vary from just $66 up to the thousands. However, the average price for a top-quality bungalow is between $150-$300 dollars per night.

Now, a couple hundred dollars per night isn’t necessarily cheap or affordable, but for an overwater bungalow? It doesn’t get much cheaper without sacrificing quality.

3. Panama has Cheap and Luxurious Overwater Bungalows

Just because the Overwater Bungalows you will find in Bocas del Toro are cheap compared to other places in the Caribbean; doesn’t mean they lack luxury or quality. 

The top water bungalows in Bocas del Toro all have glass floors, snorkeling in front, kayaks, paddleboards, direct water access, and incredible views of turquoise waters and majestic sunsets over the mountainous spine of mainland Panama. 

So, what’s the deal with such a price difference if Panama’s Overwater Bungalows are so nice?

Most of Bocas del Toro’s overwater bungalow hotels lean towards being eco-conscious and rustic, with many being completely off-grid. The lack of infrastructure throughout the archipelago means many hotels need to rely on rainwater and solar power. This makes developing big resorts with over-the-top luxury much more difficult. 

What you get instead are affordable overwater bungalows that are eco-focused while still including many top luxury amenities. Places where you can indulge yourself like a king and not feel guilty about the ecological impact of your accommodation.

4. There are Cheaper Prices Compared to other Top Destinations in the Region

Panama is not known as one of the top regional vacation destinations. 

When people think of a tropical vacation in Latin America; many will only think about going to Mexico or Costa Rica. When planning a Caribbean vacation, eyes will go towards the Bahamas, the US and British Virgin Islands, or Jamaica. 

This means that Panama has to try harder to convince people that they are more worthy of your vacation time than these well-known destinations. 

One of the ways that Panama can stay competitive is with cheaper prices throughout the country for hotels, flights, and even restaurants. 

This is another reason why the Overwater Bungalows in Bocas del Toro are so cheap; they have to compete for your attention with the big resort chains that dominate the region.

5. Skip the expensive resort meal plan and eat cheap at local restaurants

Most luxury overwater bungalow resorts are all-inclusive. This means you pay one lump sum upfront and all of your drinking and eating needs are included throughout your stay. While this is a nice way to spend a vacation, without a doubt; the resort always wins. 

Another way to save money on vacation is to have the option to eat how you want to eat; and even cook your own meals if you want. 

Bocas del Toro has cheap overwater bungalows with their own kitchens so you can cook fresh caught lobster bought directly from local fishermen for a couple of bucks; instead of paying the ridiculous prices some resorts will charge!

There are also tons of great restaurants around the central islands of Bocas del Toro. If you don’t want to eat at your hotel that night, some bungalows are close enough to town that you can easily hop on a water taxi and eat wherever you want! The average price for a main dish at the best restaurants in town is around $15! Or you can grab a local Afro-Caribbean style lunch for as little as $5! 

Just because you are staying in an overwater bungalow; doesn’t mean you have to be constrained to one resort and the food options they provide!

6. There are Affordable Overwater Bungalows and tons of cheap things to do

Bocas del Toro offers visitors an almost endless amount of fun and cheap things to do. 

Most Overwater Bungalow hotels in Bocas will have kayaks, paddle boards, and snorkel gear. But, there’s also some of the cheapest Scuba Diving in the world. PADI Open Water Dive Certification Courses can be found for less than $300, offered right in Bocas Town.

Did we mention Bocas del Toro has world-class surf? Surf lessons from the best surf schools in Bocas are $50 per person. Surfboard Rentals can be found for as little as $15 per day. 

There’s also miles of lush tropical rainforest to explore. where you can find sloths, monkeys, strawberry poison dart frogs, and a seemingly endless number of tropical birds.

And beaches? There’s over 20 of them in the 23-mile wingspan of the islands.

Deep Sea Fishing is also a popular activity where Tuna, Wahoo, and Mahi Mahi are the top prize. Or you can try fishing the traditional Bocas way; with a hand-line from one of the indigenous-style dug-out canoes!

Check out our post: The Ultimate Bocas del Toro Activity Guide, and 13 Bucket List Things to do in Panama.

7. Panama is Safe, Stable, and Uses the US Dollar

Safety is one of the most important deciding factors on whether or not people want to visit a location. Thankfully, Panama is one of the safest countries in Latin America.

Panama’s Global Peace Index Rating is 47 out of 163 countries and was ranked the 4th cheapest and safest country to visit in Latin America. For reference, the USA’s Global Peace Index rank is 128 and are in between South Africa and Saudi Arabia.

Bocas del Toro has a population of only 13,000 people who are spread throughout 9 islands. Crime rates are really low with the main problem being petty theft; which is something that can occur in every travel destination.

Also in Panama: you will literally get more for your dollar. Panama uses US currency, and while Panama City might be more expensive; the dollar’s high value goes far in rural Bocas del Toro.

Check out our article on Safety and Crime in Bocas del Toro, here. Or for Safety in Panama, here.

Want to Know More About Bocas del Toro?

Check out our Bocas del Toro Travel Guides below! There’s tons of travel guides about Bocas del Toro out there, but most are written by people who only visited the islands for a few days. Our guides are written from years of experience living full-time in Bocas!

Browse the guides below or visit our blog homepage here.