All you need is Ecuador in the band. Handmade in Montecristi Ecuador size Large Authentic Panama hats have a rich and fascinating history. As unique as the artisans who create these hand-woven, stylish hats, each Panama hat combines natural resources of Ecuador with a long tradition of South American culture. Most people don’t know that the Panama hat actually originated in Ecuador, not Panama, as the name suggests. In the 16th century when Spaniards first arrived in South America, they found native people wearing head coverings made of straw from the carludovica palmata plant. Spaniards encouraged locals to produce Spanish-influenced hats and, over time, these handmade straw toquilla hats evolved into the brimmed straw hats known today as Panama hats. But it wasn’t until the 1800s that these Ecuadorian-crafted hats made their way to Panama. Workers on the Panama Canal wore these straw hats to protect them from the hot sun and heat, while the tightly woven hat could double as a bucket to hold water. At the same time, travelers and merchants began purchasing the hats at Panamanian ports and the “Panama” hats began to make their way across the world. The Panama hat first marked its place in history when it was showcased at the at the World Fair in Paris in the mid-1800s, receiving worldwide attention and becoming the defining fashion accessory for the elite.