Panama City Beach Florida is located on the golf of Mexico. It is most commonly referred to as Panama City. There is a difference between Panama City Beach and Panama City as the city is located a few miles to the East. If you're looking for sugar white sandy beaches and a tropical climate then you will be at home on Panama City Beach.Panama City Beach is a very popular vacation spot for people across the United States. It is also very popular with young college students when they go to spring break. It is known as the spring break capital of the world. Approximately 100,000 students descend on the beach during the months of March and April. So if you're looking for a unique and peaceful vacation spot check out Panama City Beach on the Gulf of Mexico in Florida.