For popular hostels, particularly in the city, you will need to book in advance, especially during public holidays, fiestas, Carnaval and even right through the high season (Dec–April). During these times hotel prices can double, and many places are booked out months in advance. The ten percent tourist tax charged on hotel accommodation is not always included in the quoted price.
There are no official campsites in Panama, but you will find several hostels that allow you to pitch your tent for around US$6/person, and you can camp in the national parks, though facilities will be limited. That said, camping is never really necessary – even in the smallest villages there’s almost always somewhere you can bed down for the night. If you do camp, either a mosquito net or mosquito coil (mechita) is essential in the lowlands. Almost all the national parks have ANAM refugios where you can spend the night for US$5–10, though this fee is not always charged. These refuges are usually pretty basic, but they do have bunk beds, cooking facilities and running water.