Edited: May 22, 2019
Puerto isn' San Francisco and it isn't really gay-friendly, but there is evidence of a surprising level of gay tolerance. Regardless, I would avoid all PDAs.It appears that Puerto has a thriving, albeit small, transvestite scene.
I have lived in Puerto Armuelles Panama for five years now. (This article was originally written in 2012)
Of all the places I've been in Central America, the Panamanian beach town of Puerto Armuelles exhibits a higher level of gay-friendliness or at least gay acceptance than any other place of similar size I've been.
(Note: I've never visited Puerto Vallarta for Spring Break)
Granted, this is Panama. There are still no openly gay politicians.
The long, dark shadow cast by the Catholic Church is just beginning to fade.
However, despite the superficially tough “macho” culture which exists in all of Latin America, Puerto Armuelles seems to have a softer side for its own gays. Gay men, at least.
And, while a person might be described by locals as “the queer guy who works at the market”, or “the gay man who cuts my hair” with no hint of scorn or judgment, you are still not likely to see a gay couple holding hands while walking down the street in Puerto Armuelles (as of early 2012).
I have heard of no similar "gay-friendly" tolerance for lesbians. Although, it isn't completely absent.
For instance, we know a local female doctor who has been living with her "best friend" for about 20 years. It is quite obvious to most people that they are a couple. The situation is not discussed, but it is tacitly acknowledged and tolerated. The same is true of a lawyer we know, although she is based in David.
You don't have to be Sherlock Holmes to sleuth out the fact that Puerto Armuelles is somewhat of a magnet for Panama's gays.
Ask any local, and they will tell you, that yes, for some reason Panama's gays are attracted to Puerto Armuelles.
Currently, Puerto Armuelles would not make it onto any list of top gay-friendly places to live. But, if you are gay, and looking for a place to live in Panama, Puerto Armuelles is definitely worth a look.