Panama has ten national public holidays , during which pretty much all government offices, businesses and shops close. Panama City and Colon also each have their own public holiday, and there is one public holiday for government employees only. When the public holidays fall near a weekend many Panamanians take a long weekend (known as a puente ) and head to the beach or the countryside, so it can be difficult to find hotel rooms.

Several of these public holidays coincide with national fiestas that continue for several days. Carnaval , in February or March, is the largest and wildest of these, celebrated with parades, drinking, water-fighting and dancing in Panama City and across the country, most colourfully in Las Tablas. Holy Week (Easter) is celebrated with religious processions. In November, known as "El Mes de la Patria" , the anniversaries of the first declaration of independence and of both independence days (from Spain and Colombia) are celebrated by a succession of drum-band parades.

In addition, local fiestas are held by every small town to celebrate its own anniversary and saint's day. The most vibrant of these are the Fiesta of the Black Christ of Portobelo on October 21, when up to 50,000 purple-clad pilgrims descend on that town, and the numerous religious and folkloric fiestas of the towns of villages of the Azuero Peninsula . In Kuna Yala , the Kuna celebrate their own independence day (the anniversary of the short-lived Dule Republic) in February, as well as several other dates throughout the year.