Contadora is the most developed island in the Perlas Archipelago, a scattered group of islands in the Gulf of Panama about 70 km from Panama City. Its name comes from the old pearl trade — this was where pearls from the archipelago were counted before export. Later the island became a retreat for the wealthy, and in 1979 it briefly served as refuge for the deposed Shah of Iran — an episode that triggered the Iran hostage crisis. In the early 1980s, diplomats from four Latin American nations met here to begin the peace process that would help end Central America's civil wars. Today it is a popular weekend escape from the capital and a growing draw for international visitors.
The island is small enough to walk across in twenty minutes. It has nine named beaches: Playa Cacique is the most accessible, Playa Larga the most beautiful, and Playa de las Suecas the quietest. The clear warm water makes for excellent snorkelling and diving around the rocky headlands, with parrotfish, angelfish, stingrays, and nurse sharks as regular company. Between July and October, humpback whales migrate through the surrounding channel on their way from Antarctic feeding grounds. Air Panama connects Contadora to Panama City in about 30 minutes with several flights daily, and a ferry service runs for those with more time.