I don't know of any festivals in July, but there are a couple of bar/restaurants in Panama City Beach that feature live reggae on a regular basis.
Reggae J's is in Pier Park and they have reggae on Fri, Sat & Sun nights. Sometimes they have an additonal show on Sat or Sun afternoon. Great view of the beach, especially from second floor.
Reggae J’s Island Grill ? Blog Archive ? Visit Reggae Roof
About 10 minutes to the East is Willy's Pier Bar, which is part of Pineapple Willy's on Thomas Drive. They have blues bands on Thur-Sat. and reggae Sun -Wed. The Sunday show is from 2-5 in the afternoon and is great fun. The club is directly on the beach with a great view. They open the garage doors and it's really a good time. You can stay in the club or bring your chairs and sit on the beach. They have a good selection of beer and frozen drinks. They had these shows all of April and May, so I assume they will continue.
Pier Bar
Hopefully these links work; if not, you at least have the addresses and can check for updates. Hope you enjoy!
