Sadly, after the 1920's, Casco Viejo gradually became prey to the inner city syndrome. Maintenance and development stagnated and it was basically forgotten, except by those tourists wishing to see some of the historical landmarks that are interspersed throughout.

Over the years, attempts were made by various organizations and groups to stimulate the refurbishment of San Felipe. The hopes were to imitate the successful rejuvenations of Cartegena in Colombia, San Juan in Puerto Rico and Cuba's Old Havana. Despite these attempts, up until the mid 1990's Casco Viejo remained slumped in its continuing deterioration the vicious circle of poor tenants not paying the rent and landlords losing interest in maintenance.

In 1997, however, the government instituted Law 9 and special restoration incentives were delineated for the area. Coincidentally, UNESCO chose Casco Viejo as one of its 46 historic areas in the same year. Local and international investors liked the offer, and slowly but surely new life has become evident among the narrow, balconied streets.

As one walks the streets of today's Casco Antiguo, it becomes obvious that things are changing. Beautifully restored mansions such as those owned by Mayor Juan Carlos Navarro and Minister of Tourism, Ruben Blades, delight the eye. From inside gutted buildings, their facades intact, ring the sounds of hammer and saw. Cobbled red-brick surfaces on the streets have been repaired. Trendy sidewalk restaurants have opened their doors. This time the long-awaited revamp of Casco Viejo is indeed a reality, and there are no signs that the trend will lose its momentum. Every sign augers well for the preservation of one of Panama's most interesting and enduring socio-historical legacies.

Sites of interest in the area are as follows:

• Las Bovedas - the dungeons of the old Spanish fort and above them the sea-facing ramparts. A picturesque promenade for the visitor.
• The Golden Altar, located in the Santo Domingo Church which some enterprising priest whitewashed, saving it from the larcenous grasp of Henry Morgan. It was moved to Casco Viejo.
• French Plaza - the site of a monument to the French attempts at building the Canal and the location of the present French Embassy
• The Palace of the Herons (Palacio de las Garzas) - the presidential palace with its beautiful Moorish patio and fountain.

Cathedral Plaza, with its twin towers of gleaming mother-of-pearl and the site of the once-luxurious Hotel Central, at one time the most renowned in Central America, which is now being restored to its former glory.