Although Panajachel itself is not very interesting, it serves as a departure point for tourists that want to explore Lake Atitlan and the surrounding towns and villages. Just outside town there's also a National Park that can be visited just to go hiking and admire the monkeys and other wildlife.
The main attraction in the small town of Panajachel is Casa Cakchiquel, the first hotel in town enjoyed by many intellectuals and public figures such as Ernesto "Che" Guevara.
Lake Atitlan has a huge surface and is known to be the deepest lake in Central America. The towns and villages in the area are worth visiting by tourists that like hiking and enjoy the open air. Small boats can also be used for transport and for exploring the lake.