Bay Island Originals (tel. 504/425-3372, 9 a.m.–noon and 2–6 p.m. Mon.–Fri., 9 a.m.–noon Sat.) sells locally designed T-shirts, Honduran coffee and cigars, and a variety of better quality tourist collectibles as well as the usual junk. Swimsuits and sunglasses are also available here, if yours have been forgotten at home.
Local character of note Gunter, a German who has lived on the island for many years and who started (but since retired from) the dive shop  bearing his name, now dedicates much of his time to sculpture and painting, many works created with natural materials like driftwood found on the beach. Gunter’s latest thing is “resin” art, using resin to make different pieces (like shells) appear to float, in an attempt to capture the feel of the underwater world. He also makes jewelry. He shows (and sells) his works at Gunter’s Driftwood Gallery (tel. 504/425-3113), in his house just off Cola de Mico Road. The best time to visit is in the afternoon, or better yet, call first to make sure he’s home.
Another great place to buy art is at L’Atelier (tel. 504/3254-6808, 11 a.m.–6 p.m. Mon.–Sat.), the workshop of Argentinian transplant Patricia Suarez. Prices of her abstract paintings are based on size, and a steal considering the quality, starting at just US$10 for a postcard-sized painting and going up to US$500 for a large canvas.
One place in town with a very good selection of used books for sale or exchange is Funkytown, on the ground floor of the Reef Cinema (9 a.m.–7:30 p.m. Mon.–Sat.), from classics to beach trash to foreign language.