Building Panama City Beach: Bridges, Hotels and Big Ideas

On May 2, 1936, Panama City Beach officially became an incorporated town in Bay County, marking the start of its transformation from quiet shoreline to one of Florida’s most recognizable beach destinations.

The area’s potential grew quickly after the St. Andrews Bay Bridge opened in 1929, finally linking the barrier island to the mainland. A few years later, Gideon Thomas built the Panama City Hotel in 1935 (pictured). He worked tirelessly to attract visitors at a time when most locals still focused on farming. His efforts helped lay the groundwork for a budding tourist economy.

The town later absorbed three nearby communities (West Panama City Beach, Long Beach and Edgewater) yet kept the name Panama City Beach. Early visitors found a relaxed, low-rise strip of cottages, small motels and casual spots like a beach bar known as The Hang Out.

As property values rose and more travelers discovered its 27 miles of white sand and unforgettable Gulf sunsets, the area grew rapidly. By the early 1990s, it earned a new distinction as Florida’s premier Spring Break destination, welcoming college crowds once claimed by Fort Lauderdale and Daytona Beach.