I am building an android app, and want a map showing certain places (GPS Coordinates) labeled with images specific for each place. I used the Google maps API for the map display. However, I do not know exactly how to approach showing (for example) cinemas on the map. Should I create my own data source or can I use an API for that ?
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You need to use the google places API. See this stackoverflow post for a discussion of how to use it on android.

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Kurtis Nusbaum
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To be more accurate, I wan to pinpoint the touristic places in my city. So, how do I know if Google places API contains such data ? – Mr. Mango Nov 15 '11 at 23:00
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You should use your own data (lat, longs) for the POIs. Use Maps API Overlay to show them on the map.

Rajdeep Dua
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And do u recommend the data to be local on the device or how exactly should it be implemented ? – Mr. Mango Nov 16 '11 at 12:02
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I think I will use your approach, thanks ! but I have a question, after creating my own data of (lat, longs) how do I get nearby places given a certain location, should I just go through the whole table ? – Mr. Mango Nov 16 '11 at 14:13