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From left: Casco Viejo’s narrow streets are lined with beautifully restored colonial mansions; Café Coca-Cola predates both the Panama Canal and the Republic of Panama itself; in El Chorrillo, residents gather outdoors for domino games that can last well into the afternoon Previous pages from left: Casco Viejo was built as a fortified settlement and is now a Unesco World Heritage Site; with its multitude of skyscrapers, Panama City has one of Latin America’s most recognisable skylines
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ou know the American Trade Hotel? Not long ago, you could still find bullet holes inside,” my guide Jonathan Sousa chuckles, his laugh somewhere between mischief and disbelief. For a decade, the palatial 1917 building served as a base for Los Hijos Pródigos, one of Panama City’s most notorious gangs — yet today, it’s one of the capital’s finest hotels. Just hours earlier, I’d wandered through its polished halls, admiring the restored interiors and marble floors; now, Jonathan’s account feels almost impossible to imagine. But the landmark’s transformation isn’t an
isolated story. It’s a reflection of the remarkable revival of the neighbourhood that surrounds it. Founded in the 17th century, after the original settlement was destroyed by privateers, Casco Viejo has evolved from a neglected district into one of the capital’s most fashionable addresses. Colonial townhouses sit alongside French-influenced mansions and art deco facades, many transformed into boutique hotels, craft breweries and rooftop bars. Tourists drift between cafes and cocktail lounges, while beyond the seawall a queue of freighters stretches across the bay and a crescent of glass-clad skyscrapers glitters in the midday sun. But Jonathan is keen to show me the other side
of the coin. He works for Movimiento Cultural Identidad, a nonprofit based in the neighbouring areas of Santa Ana and El Chorrillo. As well as hosting tours, the organisation runs community
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development programmes that build skills and — more importantly — help foster a sense of neighbourhood pride. Leaving Casco Viejo behind, we walk north west
into Santa Ana, where the polished charm of the old quarter quickly fades into a more raw and timeworn landscape. Once-grand mansions stand with wooden roof beams exposed like bones, rubbish flanks the roads and power lines hang bowed and loose. The contrast is stark. “Not long ago, Casco Viejo didn’t look too
different from this, but the fortunes of these three neighbourhoods took very different turns,” he explains. In 1989, US troops invaded Panama to topple General Manuel Noriega’s military dictatorship. The fighting centred on El Chorrillo, home to his military headquarters, where fires swept through the district and thousands were displaced. Casco Viejo and Santa Ana, just streets away, escaped the violence, but the military’s collapse left a vacuum. Gangs moved in, claiming entire blocks and turning all three neighbourhoods into no-go zones for outsiders. Then, in 1997, Unesco World Heritage status changed Casco Viejo’s fortunes. Investment poured in, faded buildings were restored and property prices soared. Just streets away, Santa Ana and El Chorrillo could only watch the transformation unfold. Today, however, residents are working to lift up these overlooked neighbourhoods on their
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