Sources recommend the Atlantic coast if you'll be diving in the waters off of Panama. Marine life and visibility are better and the tides are calmer. Islands such as San Blas and Bocas del Toro off the Atlantic coast are very popular as well for both diving and snorkeling. Bocas is untouched as far as tourism, so there's lots of space to stretch out and look for turtles, dolphins, caverns and wrecks. On the Pacific Coast, liveaboard dive vessels are now providing divers the opportunity to experience the fish-rich walls and pinnacles surrounding Coiba Island and the nearby offshore banks.
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