Ptarmigan Arts - on Pioneer Ave (the main street through downtown Homer) is cute and cuddly. The art isn't cutting edge - lots of nature and photography, but there are plenty of interesting things to look at and buy. There is a regular show, but it's a small part of the gallery. This should be a stop on any touristy trip - you'll probably pick up something if you are looking for a local souvenier, but it won't blow your socks off.
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