I lived on Catalia for almost 3 years a loong time ago. I would definitely suggest taking one of the snorkel tours and maybe renting a kayak for a couple of hours. The island tour where they take you by the Wrigley Horse Ranch and to the airport is pretty cool. You are sure to see some buffalo and the views are awesome.
You can also head to the other end of the island and visit Two Harbors. Its much more rustic and quiet. You can do some great snorkelling, diving, kayaking and hiking without dealing will all the crowds that will be in Avalon.
Or.. You can just hang out in the bar drinking Buffalo Milks all day.
Whichever route you take Im sure you will have a great time!
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