Bocas del Toro, Panama is my paradise. Good diving, incredible culture & diversity, great beaches, rainforests, howler monkeys, sloths, parrots...We get a huge surfer/backpacking crowd so it is a "young" town. Many cheap places to stay, meals at the local cantinas are cheaper than shopping and cooking. English is widely spoken (although I am enjoying learning Spanish), and the US dollar is the currency. Panama City is great place to escape to for a long weekend with movie theatres, great restaurants and modern malls.
Because this is a tourist town, we have many young people from abroad working in the restaurants, stores, hostels, dive shops, etc. The biggest drawback is that if you come with a tourist visa (90 days for Americans), you have to leave the country every 90 days for 72 hours. Since we are only 20 miles from the border with Costa Rica, many people actually enjoy their three day trips out of the country.