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In Lima there are several markets dedicated to artisan crafts. One of the most popular are the handicraft markets in Miraflores on Av. Petit Thouars. Miraflores and San Isidro boast many boutiques and shops that specialize in high quality crafts and souvenirs.  There is a relaxed artist's market is also found in the square at Parque Kennedy in the heart of Miraflores.  Be sure to ask your local host upon arrival in Lima what's best at that moment.

Here is a brief oputline of what to buy, taken from the Footprint PERU HANDBOOK:

Since so many artesans have come from the Sierra to Lima, it is possible to find any kind of handicraft in the capital. The prices are often the same as in the highlands, and the quality is high.

Good buys are:

• Silver and Gold Handicrafts
• Indian hand-spun and hand-woven textiles
• manufactured textiles in Indian designs
• llama and alpaca wood products such as  ponchos, rugs, hats, blankets, slippers, coats and sweaters
• arpillers (applique pictures of Peruvian life) made with great skill and originality by women in the shanty towns
• fine leather products which are mostly hand made
• clothing made from high quality Pima cotton, which is grown in Peru
• mate burilado, or engraved gourd found in every tourist shop, is cheap and one of the most genuine expressions of folk art in Peru.

More information and details are available in the Footprint PERU HANDBOOK, on sale in most bookstores.