We walked through the Old Port area of Puerto Penasco several times during our 3 day weekend. It is what it is, a typical Mexican tourist spot with shop after shop of the same cheesy merchandise, restaurants, and cantinas. In the evenings, mariachi and assorted bands play in the sea front plaza of El Malecon, but they only play with randomness - you never know which group is going to play or when. They just sort of stand around drinking beer and then we they feel like it, they strike up a song.
Almost all of the stores carry the same stuff: knick-knacks & souvenirs, jewlery, t-shirts, back packs and ceramics. A few places carry knock-off Michael Kors or Coach bags, but they are far over-priced. You can negotiate with the shopkeepers, in fact, you SHOULD negotiate with them, because the 1st price they give is usually double of what they will accept. A couple of them way overshot the price and then immediately started going down, but they tend to make me not even want to negotiate if I feel they are taking advantage of me. One of my daughters was able to buy a cute U of A backpack for about $13 and the other got a very pretty pareo for $15, but it did take quite a bit of shopping around and haggling to get those prices. The best shop we found was right of the main drag, right behind the Portofino restaurant (across from my favorite restaurant, the Blue Marlin). The lady who runs that particular store was pleasant, not pushy, and easy to negotiate with.
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