The official language of Panama is Spanish. However, with so many new hotel owners hailing from the U.S. and Canada, English is widely spoken in the tour industry. But this doesn't get you off the hook -- taxi drivers, waiters, local tour guides, and everyday Panamanians speak little or no English. Arm yourself with basic words and phrases in Spanish and your trip won't be a constant battle to make yourself understood. Panamanians appreciate the effort, and really, part of the fun of traveling is learning the local lingo. Due to the long U.S. presence in Panama, you'll hear a few expressions that have been adapted from English, such as "parkear," meaning to park, or "watchiman," for security guard (watchman).
Panamanians speak at a relatively relaxed speed, and they have a more neutral accent when compared with their Latin American neighbors. Panamanians speaking in a slangy manner have a tendency to drop the "d" from words that end in -ido or -ado, as in pelao, instead of pelado. Like most Latin Americans, Panamanians are more conscious of salutations. Before launching into conversation or asking a question, do not forget a greeting such as "Buenos días" or "Buenas tardes," or like most Panamanians say, simply "Buenas."
A Feast of Languages -- Spanish is the official language, but other languages are spoken in pockets around Panama. The country's seven indigenous groups speak a variety of dialects of Wounaan, Teribe, Emberá, Kuna, and Ngöbe-Buglé (Guayamí), the latter two being the most common given that they are the largest indigenous communities in Panama. In the Bocas del Toro region, descendants of Jamaican immigrants who came to work on banana plantations speak what's known as "Guari Guari," alternatively spelled "Wari Wari." It is also sometimes referred to as creole English, but really the language is patois English blended with Spanish and Guayamí (Ngöbe-Buglé) words. Native English speakers have a difficult time understanding Guari Guari. A good place to hear Guari Guari is at Old Bank on Isla Bastimentos.
San Miguel creole French, spoken by immigrants from Santa Lucía during the 19th century, is a dying language in Panama that's rarely heard any longer. On the other hand, Chinese immigrants, many of whom work as merchants running corner stores and small markets called chinitos, continue to speak their native tongue. Adding to this mélange is Arabic, spoken by immigrants from the Middle East.