Panajachel is a lively tourist town located on the shores of Lake Atitlan, also in the western highlands. Panajachel is surrounded by three volcanoes: San Pedro, Toliman, and Atitlan. There are a growing number of schools that specialize in teaching Spanish to foreigners in this city. Panajachel is a good place to buy inexpensive souvenirs, such as high-quality textiles, paintings, and jewelry. his city is also located close to Chichicastenango, a small town with a famous market that operates on Thursdays and Sundays and sells beautiful traditional Maya textiles.