There's a question I can't give a definitive answer to, but a few theories have been put forward over the years.
Most likely it's because many of these hats passed through the Panama Canal or ports on their way to the US and Europe. Ecuador being one of those far away, foreign places that few folks visited in the early part of the century.
Panama in those days had a large US influence, both in it's creation as an independent country and in the creation, control and operation of the canal and the canal zone.
Anyway, the so called Panama hat found favour with writers and travellers alike. It's wide brim and light colour making it a very suitable headwear in tropical climates. And for the pretentious, it gave the impression of a suave world traveller.
Unfortunately it's popularity has overshadowed the real thing. The true Panama hat, made locally and worn by many Panamenos around the country, has languished under the name of Sombrero pintado and is virtually unknown outside of Panama.
Sombrero pintado
Sombrero pintado is the top end of the market, it's fine weave and multiple dark bands also make it the most expensive of the many locally produced hats and it is often reserved for special occaisions like fiestas and parades.
For day to day wear, but still respectable, the Sombrero Penonomeno is the most widely available. As with the pintado, it often has the dark bands, but is also available plain and comes in a wide variety of designs and textures. This is the variety you are most likely to find in the Artisan markets. Especially in the towns of Cocle and Veraguas like Santiago or Penonome as many are made in the interior villages of these areas.
Sombrero Penonomeno plain 12 turn
From the Azuero comes the Sombrero Ocueno or sombrero blanco. This is a white version with a single thin black line around the rim made locally in the area around Ocu near Los Santos.
All of these styles come in a wide range of qualities and prices. The price from the makers is based on the work involved. The finer the weave the better the quality and higher the price. The grading system is based on the number of 'vueltas' or lines of weave around the rim.
Sombrero Pintado 24 turn
Look for at least 16 distinct rows on a decent quality hat. The width of the brim should be the same as the height of the crown. Really fine weaves of 24 or 30 vueltas command top price, often running into the hundreds of dollars to reflect the amount of work involved.
The 12 or 16 turn hats are popular as souveniers and can be purchased in the interior from artisan markets for between $20 and $50.
sombrero penonomeno 12 turn
Finally at the bottom end of the market is the Sombrero Junto, the poor mans working sombrero. Made from palm fibre, it's beige in colour and the weave is coarse , with vuelta counts around 6 or possibly 8 on an extra wide brim. It does it's job of keeping off the sun though, and should only cost around $5 if purchased in a local store.
With any of these sombreros, look at the detail of the weave, good hats have a very even weave. Poorly finished ends showing on the outside are also a bad sign.
sombrero pintado detail
So now you know how to judge quality. Hope it helps you find your real Panama hat at the right price.
The next step is to mould it according to your taste. The most popular local style is the Azueran, with the front and back parts of the rim raised, so the rain runs off onto the shoulders. This is the style seen regularly in parades and Tipico dancing.
It's easy however, to wear it fedora style with the back rim only slightly raised, or Australian style, with one side pinned up (known here as 'Mucky D's burger flipper' style, a local joke which political correctness prevents me expanding on). My personal preference is half Azueran, the front rim raised high allowing rain to run off the back, easy to flick the rim down if sun is a problem.
my sombrero pintado
Moulding is fairly easy, just get it wet and shape it as you prefer, then allow to dry naturally and it will hold the style until the next downpour.