It is a popular vacation destination, especially among people in the Southern United States, and is located in the "Emerald Coast" area.

The town is also a popular spring break destination, due to its beach and proximity to most of the Southern United States.

[6] Sea conditions are particularly dangerous during periods when lifeguards have put up double red flags, indicating active rip currents.

The downturn in the U.S. real estate market in 2007, combined with a surge of new condo construction, brought spiraling prices somewhat under control.

[9] Category 5 Hurricane Michael made landfall near Mexico Beach in Bay County on October 10, 2018, becoming one of the strongest and most-destructive hurricanes in American history as it destroyed a large part of the county, including many structures in Mexico Beach and Panama City.

[10][11] An EF-0 tornado did minor damage to the northwest part of Panama City Beach, Florida on February 15.

[12][13] Panama City Beach is located towards the eastern half of the Florida Panhandle, along the Gulf of Mexico.

There are approximately 9 miles (14 km) of shoreline in Panama City Beach fronting the Gulf of Mexico.

The Northwest Florida Beaches International Airport (ECP) provides commercial flights into the area.

Other modes of transportation include scooters, which can be rented by the day, as well as taxi and shuttle companies, which are permitted by the local police.

Panama City Beach also has public bus transportation known as Bayway available hourly Monday through Saturday.

It is also notable that World Championship Wrestling held their last WCW Nitro event in Panama City Beach.