A Famous Hat With a Serious Identity Crisis
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Has our headline made you curious? What the heck am I talking about?
Well, of course the famous “Panama Hat” – which is sometimes referred to as “Montecristi Hat”, another name which is often not used correctly either. But I guess it’s too late to sell them under a new name, like “Ecuador Hat”.

Famous all over the world, Panama hats are also known as “Montecristi” hats. Both names are misleading because the “Panama hat” has its origin in Ecuador.
Anyhow, the best of all “Panama Hats” originate in Ecuador! Similar hats are now also produced on the Yucatan Peninsular in Mexico, but these don’t have such a long and convoluted history, nor can they match the quality of Ecuador’s best. In Ecuador itself they are simply known as “sombreros de paja toquilla” (hats of toquilla straw).
So why is so little credit given to the origin of these hats?
Hats made from Toquilla Straw were worn along Ecuador’s coast long before the first Spaniards arrived. It’s only their style which has changed over the centuries.

In the streets and at the markets throughout South America you can observe women wearing hats usually meant for men – like these rope vendors with Panama hats in Otovalo, Ecuador.
A Short History of the Panama Hat
In the early eighteen-hundreds the south of Gran Colombia was an ‘out of the way’ place, with little outgoing trade. Hence, some clever businessmen shipped their hats to Panama, which at the time was also part of Gran Colombia. There they sold them to people who passed through on their way to the west coast of North America.
Of course, when the “Ecuador Hats” arrived in the north, people said they bought their hat in Panama – thus the misnomer was born. Once gold was found in California in 1849, a flood of immigrants arrived, most via the isthmus of Panama – the shortest land bridge to get from the Atlantic to the Pacific. Many of these also brought “Panama Hats” with them.
In the early nineteen-hundreds, work on the Panama Canal began, and most workers protected themselves from the fierce sun by wearing a straw hat. The fortune seekers, on their way to the famous gold fields, saw these hats, liked them, and bought them as “Panama Hats”.
So to this day these straw hats can’t get rid of their name “Panama Hats”.
Their second name, “Montecristi Hat”, can be as misleading because not all “Montecristi Hats” come from that town. Most of the toquilla straw is harvested in the Manabí province along the south coast of Ecuador. The two major hat producing towns in Manabí are Montecristi and Jipijapa.
Please click thumbnails below for a larger photo with description.
- An enormous tiled concrete statue outside the town of Montecristi, dedicated to the hat weaving women of the region in Ecuador.
- Most Panama hats are hand-woven by women. It’s hard work in an uncomfortable position: standing on your legs all day, pressing down onto the hat with the upper torso, and weaving the straw in a bent over position.
- To counteract the diminishing interest in hand-weaving Panama hats, the government founded this school for hat weavers in Pile, Manabí province.
- Unfinished Panama hats. These still need to be pressed into their form, and the brim needs all the nice touches to make them into stunning Panama hats.
- A smaller boutique style exclusive Panama hat store in Cuenca, Ecuador.
Yet from 1836 onwards, Cuenca established itself as one of the straw hat producing centres of Ecuador. Most of the city’s early wealth is based on the hat industry. Many of the beautiful historic buildings (the reason for Cuenca’s World Heritage listing ) were built from “hat money”. To this day, some hats from Cuenca are marketed as “Montecristi Hats” – although the city is a long way from the coast and the Manabí province.
Most raw hats sold from Cuenca are manufactured in small villages outside the city. In the mountain town of Sigsig you can see the raw material for sale, locals with bundles of toquilla straw under their arms, and some people weaving hats whilst attending to their market stall.
Please click thumbnails below for a larger photo with description.
- The Toquilla palm: it’s fan shaped fronds are made into the straw for Panama hats. [image credit ]
- Bundles of toquilla straw for sale at the Sunday market in Sigsig, Ecuador.
- Close-up of a woman hand weaving a fine quality Panama hat.
- The trade of unfinished Panama hats in Sigsig in the mountains of Ecuador.
- Unfinished straw hats at the Sunday market in Sigsig.
These country folk, who weave the hats, unfortunately make the least money from them, even though their skill determines the final quality of each hat. Nowadays, this poses a problem for the survival of this trade, as young people don’t want to work for such little money.
We heard that a weaver receives as little as $5-6 per raw standard hat, which is later sold for $35 in Cuenca, or $50-60 in the US or Europe. Of course there are huge differences in quality, from standard to super fine. A “Super Fino Panama Hat” can cost anything between $600 to over $1000.

Panama hats on display at the Montecristi Hat Factory. The one in the bottom row on the far right is a Standard quality hat, one like I bought. The second from the left is the far more expensive Super Fino.
The straw for every hat is produced from toquilla palm fronds. They are washed, bleached with sulphur, and dried. Then they are hand-woven into a rough hat shape.
The hats receive their final shape in a heated press. In the old days a heated iron was used to give them their shape. All the steps to finish a Panama Hat still involve a lot of manual labour, as I witnessed when I had my personal toquilla straw hat custom finished at Barranco in Cuenca.
The process to custom finish my hat. Please click thumbnails below for a larger photo with description.
- The raw hat receives its initial shape in a heated press.
- Next the approximate brim edge is drawn onto the hat.
- To give the brim more stability a nylon string is stitched into the hat’s edge.
- The brim edge is being stitched on a sewing machine.
- After the brim edge has been stitched, the excess straw gets cut off.
- Half way through cutting the excess straw off the brim edge – the hat is taking shape.
- After the brim has been trimmed the hat is once again pressed into shape.
- An adjustable sweatband is stitched to the inside of the hat.
- The third and final pressing of my Panama hat – almost ready!
- The decorative hat band is fitted. Having a custom finished hat, I could choose my own colour.

Wearing my new Panama hat. I chose a woven straw hat design with a hole pattern – to allow for more airflow. Yasha didn’t buy this stunning mauve coloured hat because we don’t know how to transport it in our small camper without it getting damaged…
ps: did you know that the weaving of “sombreros de paja toquilla“ in Ecuador is considered of such importance that UNESCO added this craft to their “List of Intangible Cultural Heritage“ ?
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Panama hats are from Ecuador? Wow, cool to learn that new fact. Travel Happy!
They sure are… ;)
The origin of the Panama hat is not something I never thought about, but this was really interesting! It’ll be a real shame is the craft disappears.
I guess the craft won’t disappear completely, but maybe only a small number of young people will continue it. Which in turn might make Panama hats more exclusive and expensive…
What a great headline — I was drawn in by my curiosity! The Panama hat is versatile and timeless. It doesn’t only look good on men, but cute on women too.
…and we have to photo to prove it: doesn’t Yasha look gorgeous in that mauve coloured hat?
I knew Panama hats came from Ecuador, but I did not know all the history you’ve provided or that they are made from toquilla palm fronds. Very interesting. It would be nice to see the weavers be more fairly compensated for their work. And it’s a shame Yasha didn’t have room for the mauve hat. It’s beautiful and looks great on her!
That the weavers earn so little really shocked us. On one hand Panama hats are sold very expensively in Western countries, they have become a new ‘fashion item’. So why not add another 15% to their price and let this flow through to the hard-working weavers – to ensure the future of this craft? But then, on the other hand, cheap copies from China are everywhere – even in shops in Ecuador. So maybe these copies create some pressure on prices.