Isla Taboga's best hotel, the Vereda Tropical is perched on the hillside overlooking the Bay of Panama. Its best rooms have views of the town's fishing fleet, cargo ships, and Panama City, which is almost as impressive at night. Rooms have high ceilings, fans, colorful bedspreads, and small tile bathrooms. The best rooms have French doors that open onto Juliet balconies with ocean views—well worth the extra money. You may want to eat at the restaurant ($–$$) even if you don't stay here; it's the best kitchen on the island, and the terrace view is gorgeous, though the service can be slow. The eclectic menu includes a good pizza selection, pastas with a choice of about a dozen sauces, lobster served various ways, curried prawns, and paella.
100 meters south of ferry dock, Isla Taboga, Panama